With wealthy families increasingly comparing personal safety, taxation and investment regimes across rival hubs, competition to attract these mobile millionaires is heating up.
Global millionaires are on the move, according to a new report, with the UK seeing an exodus of high net worth individuals (HNWI).
The UK is expected to see a staggering net loss of 9,500 millionaires in 2024, more than double the 4,200 who left the country last year, according to the Henley Private Wealth Migration Report 2024.
On the flipside, the UAE continues to be a major wealth magnet, with an unprecedented 6,700 moneyed migrants set to make the oil-rich Arab Gulf country their home by the end of the year, significantly boosted by large inflows from the UK and Europe.
“The creation of wealth, coupled with government policies designed to attract the wealthy, have created a new economy,” says David Bailin, former chief investment officer for Citi Global Wealth, now CIO at Capital Partners in New York.
“At the heart of the decision to move from one's home are three factors: safety of assets, taxation of assets, and ability to invest broadly across asset classes globally. Instability and high taxation drive the opposite,” adds Mr Bailin.
Tax attacks
Changes to the non-dom regime in the UK, which has existed for more than 200 years, may prove a significant factor in wealth migration. Conversely, Dubai has a favourable tax system, making it more appealing for wealthy families
Overall, China is set to be the biggest loser, with an anticipated net loss of 15,200 HNWIs this year, compared to 13,800 in 2023, amid an aching economy.
“An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023,” says Dominic Volek, group head of private clients at Henley & Partners, a consultancy enabling ‘citizenship by investment’ and second passports for HNWIs. “As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty, and social upheaval, millionaires are voting with their feet in record numbers,” he says.
What Henley & Partners describes as the “great millionaire migration” can be a leading indicator of geopolitical trends. This signals “a profound shift in the global landscape and the tectonic plates of wealth and power, with far-reaching implications for the future trajectory of the nations they leave behind or those which they make their new home”, says Mr Volek.
Factoring the fear
Micha Emmett, chief executive officer at CS Global Partners, a rival consultancy to Henley & Partners, talks about how the fear factor influences many wealthy families choosing their domicile. “Protecting one's assets is indeed a fundamental aspect of human nature, regardless of one's wealth status, be it a billionaire, a millionaire or an entrepreneur,” she says.
“Countries need to recognise that individuals now have a plethora of choices when it comes to selecting jurisdictions that not only welcome them but also safeguard their wealth and assets,” says Ms Emmett.
Changing geopolitical patterns, availability of diverse investment migration pathways, and implementation of more nationalistic policies are all contributing to the ongoing migration cycle among multi-millionaires.
The UK has recently dipped in metrics monitored by her firm, which she says “indicates that economic prospects are not competitive in comparison to jurisdictions such as the UAE and Singapore”. Nevertheless, the view at CS Global Partners is that the UK will always remain a popular jurisdiction for the wealthy.
