London, July 1, 2025 – The United Kingdom is bracing for an unprecedented wealth drain, with the Henley Private Wealth Migration Report 2025 forecasting a staggering net outflow of 16,500 high-net-worth individuals (HNWIs) this year. This marks the largest single-year exodus of millionaires globally, driven by economic uncertainty and sweeping policy changes, with many wealthy Britons relocating to tax-friendly havens like the UAE, USA, Italy, and Switzerland.

Historic Wealth Flight from the UK

According to the Henley Private Wealth Migration Report 2025, the UK’s millionaire outflow is more than double that of China (-7,800), which had led global HNWI departures for the past decade. The report, compiled by Henley & Partners and New World Wealth, highlights a record-breaking 142,000 millionaires relocating worldwide in 2025, with the UK bearing the brunt of this “great wealth exodus.” This follows a decade-long decline, with the UK’s millionaire population dropping by 9% since 2014, compared to a 78% increase in the US.

The surge in departures is attributed to a combination of economic stagnation and policy shifts. The closure of the Tier 1 Investor Visa in February 2022 eliminated a key entry route for affluent foreigners, while the Conservative government’s overhaul of the non-domicile tax regime in March 2024, followed by Labour’s changes to inheritance tax rules in October 2024, triggered a sharp escalation in HNWI exits. In Q1 2025, UK nationals submitted 183% more applications for alternative residence and citizenship programs compared to Q1 2024, signaling a deepening perception that opportunity and stability lie elsewhere.

UAE: The World’s Top Wealth Magnet

The United Arab Emirates continues to dominate as the world’s leading destination for migrating millionaires, expecting a record net inflow of 9,800 HNWIs in 2025, with an estimated collective investable wealth of $63 billion. The UAE’s appeal lies in its zero income tax, golden visa programs, world-class infrastructure, and political stability, making it a prime choice for UK and European millionaires. Dubai, in particular, has emerged as a global wealth nexus, attracting HNWIs from the UK, India, Russia, and the Middle East.

Other top destinations include the United States (+7,500), Saudi Arabia (+2,400), Switzerland (+3,000), and southern European countries like Italy (+2,200), Portugal (+800), and Greece (+1,200), many of which offer attractive investment migration programs. The US, bolstered by its EB-5 Immigrant Investor Program, remains a strong draw, particularly for those seeking opportunities in tech hubs like Florida.

Why Are Millionaires Leaving the UK?

The UK’s wealth flight, dubbed “Wexit,” has been years in the making. Brexit’s fallout, including the loss of London’s status as a global financial hub, has eroded its appeal to HNWIs. Recent tax reforms, including a 40% duty on estates above £325,000 and Labour’s proposed 20% VAT on private schools, have further fueled the exodus. Social media posts on X reflect growing frustration, with users like @DanielPriestley noting that the UK’s high taxes are driving millionaires to jurisdictions like Dubai, Monaco, and Portugal.

Professor Trevor Williams, former Chief Economist at Lloyds Bank, emphasized the UK’s unique decline among the world’s top 10 wealthiest nations, stating, “The UK is the only W10 country to see a 9% decline in its millionaire population over the past decade.” Meanwhile, countries like the UAE and Switzerland have capitalized on low-tax regimes and political stability to attract wealthy migrants.

Economic Impact and Global Trends

The UK’s loss of 16,500 millionaires, representing 0.63% of its millionaire population, could have significant economic repercussions. HNWIs contribute to job creation and foreign exchange revenue, and their departure may signal deeper economic challenges. However, the Tax Justice Network cautions that these figures represent less than 1% of the UK’s millionaire population, and 81% of UK millionaires support paying a fair share of taxes, with 80% backing a 2% wealth tax on assets over £10 million.

Globally, the 2025 migration of 142,000 HNWIs underscores a broader shift in wealth dynamics. While the UK and China face significant outflows, emerging wealth hubs like Montenegro, Malta, and Costa Rica are gaining traction. In Asia, China’s outflows are slowing due to booming tech sectors in Shenzhen and Hangzhou, while South Korea (-2,400) and Vietnam (-300) face growing departures amid economic and political uncertainties.

What’s Next for the UK?

As the UK grapples with its record-breaking millionaire exodus, policymakers face pressure to address the underlying causes. The lack of a viable entry pathway for incoming HNWIs, coupled with high taxes and economic uncertainty, has tilted the balance toward outflow. Meanwhile, destinations like the UAE continue to thrive by offering stability and tax incentives, reshaping the global wealth map.

For more insights, refer to the Henley Private Wealth Migration Report 2025 and Forbes.

Published: July 1, 2025 | NRIGlobe.com