The United Arab Emirates (UAE) is poised to become the world’s leading wealth magnet for the third consecutive year, as indicated by the Henley Private Wealth Migration Report. Conversely, the UK, a significant source of UAE expatriates, is projected to experience a 17% decline in its millionaire population over the next four years, according to the UBS Global Wealth Report. The question arises: why are so many millionaires opting to leave the British countryside for Dubai’s beaches?
The primary reason is the escalating costs and taxes in the UK, which are particularly burdensome for millionaires. Consequently, many British millionaires are choosing to relocate to the UAE, which is renowned for its favourable tax regime for expatriates.
This trend is expected to accelerate following the UK Labour Party’s election victory in June. The Labour Party’s proposed policies, including higher taxes for the wealthy, increased VAT on private school fees, and the abolition of the “non-domicile” status, are unfavourable to millionaires. The “non-domicile” status allowed foreign residents to avoid paying UK tax on income earned abroad, a benefit that is now being phased out, making the UK less attractive to foreign millionaires. The ongoing political and economic instability in the UK further contributes to the exodus of millionaires.
Currently, the UK has the third-largest millionaire population globally. However, this is rapidly changing, with the millionaire population expected to drop from over 3 million to approximately 2.5 million by 2028, as predicted by the UBS Global Wealth Report.
For millionaires worldwide, the UAE is an increasingly attractive destination. The country offers zero income tax, a strategic location, and a ‘golden visa’ that allows foreign residents to live and work in the UAE long-term.
According to the Henley Private Wealth Migration Report, the UAE is set to welcome an influx of 6,700 millionaires from around the world by the end of 2024, solidifying its position as the leader in millionaire migration. The United States follows closely, with an expected net inflow of 3,800 millionaires.
