China and Britain Face an Exodus of Millionaires, Study Shows

(Bloomberg) -- The UK is on track to lose 9,500 millionaires this year, more than any country in the world except China, according to a new report on the migration intentions of the world’s wealthy.

It’s more than double the number that left the country in 2023 and lags only China, which is expected to lose 15,200 millionaires this year, according to the Henley Private Wealth Migration Report, authored by migration advisory Henley & Partners.

“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,” Dominic Volek, Henley’s group head of private clients, said Tuesday in a statement.

The report’s numbers refer to net arrivals and exits, reflecting where millionaire populations are growing versus shrinking. Henley’s research partner New World Wealth estimated the migration figures based on relocation data, investment migration program statistics and interviews with intermediaries in the wealth industry.

Where the World's Wealthy Are Moving | Net number of millionaires expected to arrive or leave in 2024

The estimate comes as Britain girds for an election in just over two weeks where the opposition Labour Party, which is advocating for some higher taxes on the wealthy, has about a 20-point lead over the ruling Conservatives.

The recent uptick in departures of Britain’s ultra-wealthy residents is the acceleration of a trend that began around the time of Brexit. From 2017 through last year, the country lost 16,500 millionaires to migration, according to the report. The exodus is a reversal for the country that for decades served as a magnet for rich families from Europe, Asia, Africa and the Middle East, who mainly flocked to London.

More than 7% of the millionaires projected to move globally this year will be leaving the UK, the report shows. That reflects “a steady accumulation of factors” that are making the country less appealing to the rich, including Brexit, the energy crisis from the war in Ukraine and the subsequent rise in inflation, said Hannah White, chief executive officer of the Institute for Government in London.

“The outflow of high-net-worth individuals already generated by the economic and political context is now being accelerated by policy decisions ahead of the election,” she wrote in an analysis accompanying the Henley report.

Top Destination

The Conservatives and Labour have both pledged to scrap preferential tax treatment for non-domiciled residents — rich foreigners living in the UK, also known as non-doms. Labour leader Keir Starmer has additional plans to tax the wealthy.

While Starmer has described himself as a “socialist,” he has pledged to make Labour the “party of wealth creation.” He and his would-be finance minister, Rachel Reeves, have said they have no plans for additional taxes on wealth and capital gains.

The top destination for millionaires is the United Arab Emirates, which is set to attract 6,700 rich individuals this year. A longtime favorite of wealthy people from India and the wider Middle East, the country welcomed thousands of Russians in the wake of the Ukraine war.

Only about 1,000 millionaires are projected to leave Russia this year, less than half the number that left last year and down from 8,500 in 2022.

While the influx of Russians to the UAE has slowed in the past year, that’s been partly offset by larger numbers of relocating Europeans and Brits, according to the report. The number of millionaires living in the UAE’s largest city, Dubai, has risen 78% over the last decade, Henley said.

With zero taxes on personal income, a time zone convenient to multiple continents and a world-class airport, the UAE has made concerted efforts to appeal to rich people. Both Abu Dhabi and Dubai have created sophisticated financial markets to entice global firms and family offices to set up shop.

The US was the second-biggest projected recipient of millionaire newcomers at 3,800, followed by Singapore with 3,500 expected arrivals.

--With assistance from Ben Stupples.

(Adds Russian number in fourth paragraph from bottom)

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