Why Do Wealthy Britons Choose Dubai, Singapore Over London Home
The UK leads the world in losing millionaires, and this wealth migration has become a pressing national issue. Here's what makes these numbers important: Only 6,000 taxpayers contributed an additional £2.1 billion following recent changes to the Capital Gains Tax regime. The UK faces a real risk when wealthy taxpayers decide to pack up and leave.
This exodus goes beyond the super-rich. Young people are looking elsewhere too. Research shows that 72 percent of people aged 18 to 30 would move abroad to live and work, either for a while or forever. The data reveals a significant increase in UK working tourists, from 31,000 in 2023 to nearly 50,000 in a single year. Low wages drive many to make this choice. Tax-friendly places like Dubai and Singapore look more attractive each day, creating serious challenges for Britain's economic future.
Wealthy Britons accelerate exodus from UK
Wealthy individuals are leaving the United Kingdom at record-breaking rates. Studies show that 10,800 millionaires left British shores in 2024—one wealthy person every 45 minutes. The numbers jumped 157% compared to the previous year.
Recent high-profile departures raise concerns
Several notable business leaders and investors have left the country. KLI Asset Management founding partner Elio Leoni Sceti and Bestseller founder Troels Holch Povlsen are among those who moved away. Charlie Mullins, who founded Pimlico Plumbers, moved to Spain. He believes that "Britain is in trouble" because of higher taxes and new employment laws that make running businesses harder.
German technology entrepreneur Christian Angermayer chose Switzerland as his new home. British hedge fund billionaire Alan Howard might move to Geneva. Aston Villa owner Nassef Sawiris thinks about moving to the Middle East. British real estate investor Asif Aziz now lives in Abu Dhabi.
The exodus affects more than just international residents—British-born wealth creators are leaving too. Beyond millionaires, the UK lost 78 centi-millionaires and 12 billionaires in 2024. Many of those who left worked in financial services and technology sectors.
Data shows UK leads in millionaire outflows
The UK now tops global rankings for millionaire departures. A European country leads the world in millionaire outflows for the first time in a decade. The UK might lose about 16,500 high-net-worth individuals in 2025—more than twice China's projected losses, which led these statistics for ten years.
These departing millionaires took wealth worth $91.8 billion with them. The UK lost 16,500 millionaires to migration during the six years after Brexit, from 2017 to 2023.
This trend worries many because the UK stands alone among the world's ten wealthiest nations (W10). It saw a 9% drop in its millionaire population since 2014. Other W10 countries grew their wealthy populations by 40% during this period.
Tax-friendly places attract these wealthy Britons. Dubai and Singapore top the list, along with Paris, Amsterdam, Monaco, and Geneva. The United Arab Emirates gained 6,700 new millionaires in 2024, with UK citizens making up one-sixth of them. Switzerland expects to welcome 3,000 migrating millionaires in 2025.
An Oxford Economics survey reveals that two-thirds of the UK's non-domiciled wealthy residents plan to leave. New inheritance tax rules on worldwide assets drive this decision. Europe's wealthy elite seem to lose confidence in the UK, which could affect the country's financial stability and growth potential.
Tax hikes push high earners to relocate
Tax policy changes in the UK have become one of the most important factors driving wealth migration. Many high earners now look for tax-friendly environments in other countries because of multiple tax adjustments.
Capital gains and income tax changes explained
The Labour government's October 2024 Budget brought major tax increases that affected wealthy people. The simple capital gains tax rose from 10% to 18%, while the higher rate went up from 20% to 24%. Many investors then decided to cash in their gains before these changes started. These changes led to a drop in capital gains tax receipts from nearly £17 billion in 2022-23 to £14.5 billion in 2023-24, and then down to £13.1 billion in 2024-25.
The ongoing freeze on income tax thresholds has made the tax burden heavier through fiscal drag. This happens when inflation pushes wages up but tax thresholds stay the same, which pulls more income into higher tax brackets. The higher rate threshold has stayed at £50,270 since 2021 and will remain frozen until at least 2028. If this threshold had kept up with rising wages in the last two and a half decades, it would now be close to £75,000.
The Office for Budget Responsibility expects 7.2 million people will pay higher-rate tax by 2027—a giant jump from just 2.9 million in 2000. This means about one in seven adults will soon be considered "high earners" for tax purposes.
People earning between £100,000 and £125,140 face even tougher conditions. This income bracket pays an effective 60% tax rate because they lose £1 of their personal allowance for every £2 earned above £100,000. Once they reach £125,140, they lose all their personal allowance before moving into the 45% additional rate tax band.
Impact of non-dom rule reforms on foreign-born residents
The most significant change affecting wealthy foreign residents has been ending the centuries-old non-domiciled tax regime. The previous system let about 74,000 non-doms avoid UK tax on foreign income and global assets. These protections will end in April 2025, with several key changes:
UK tax will apply to foreign income and gains after just four years of residence instead of 15 years
Inheritance tax will cover global assets after 10 years of UK residence
The annual charges of £30,000 or £60,000 that non-doms used to pay will be eliminated
Tax experts call the inheritance tax element the "emotional trigger" that's making many people leave. Non-doms could previously protect offshore assets from UK inheritance tax indefinitely. The new rules will tax these assets after living in the UK for 10 out of the previous 20 tax years.
The Treasury estimated that these reforms would generate £33.8 billion over five years; however, independent studies contest this projection. The Centre for Economics and Business Research report shows that if only 25% of non-doms left the UK, the Treasury would not gain any revenue. Oxford Economics warns these plans could cost the government nearly £1 billion each year as non-doms leave.
The exodus seems to be happening already. Between October 2024 and July 2025, 3,790 company directors moved their official residence abroad—40% more than the 2,712 who left during the same period the year before. Director departures peaked in April 2025 with 691 leaving—79% more than in April 2024.
Some notable departures include Shravin Bharti Mittal (heir to one of India's richest families), Nassef Sawiris (Egyptian investor), and Richard Gnodde (veteran Goldman Sachs banker). A wealth management expert says "almost every single one of his clients" who were non-doms have now left the UK.
Dubai and Singapore offer tax-friendly alternatives
The UK's rising tax burden has wealthy Britons looking elsewhere. High-net-worth individuals prioritise Dubai and Singapore as their top relocation destinations. These destinations offer a stark alternative to the UK's current fiscal policies.
Zero- or low-income-tax regimes attract expats
Dubai's biggest draw? Zero personal income tax. Residents keep 100% of their earnings. This makes a big difference compared to the UK's progressive taxation system that pushes more people into higher tax brackets. Without personal income taxes, expatriates in Dubai can build wealth faster and reinvest their money without barriers.
Singapore takes a different approach with its territorial tax system. Foreign-sourced income usually stays untaxed. People earning up to EUR 19,084 pay no personal income tax. The rates then climb gradually to 24% for earnings above EUR 954,210. UK residents end up paying nowhere near these lower tax rates.
Business owners also reap substantial benefits in both locations. Dubai now has a 9% corporate tax on profits over AED 375,000 (EUR 97,329), but profits below this amount stay tax-free. Companies in Free Zones can still get complete tax exemptions if they don't do business with UAE mainland entities.
Singapore sets its corporate tax rate at 17%. Smart incentives help many businesses reduce their tax burden to around 8.5%. New entrepreneurs get an even better deal with 75% tax exemption on their first SGD 100,000 (EUR 95,421) of income for three years.
Business-friendly environments and legal protections
These jurisdictions offer more than just tax breaks. Dubai's Free Zones let foreigners own 100% of their business with zero taxes in many cases and minimal red tape. The UAE has tax agreements with more than 138 countries that protect investors from double taxation. These agreements shield global assets effectively.
Legal protection comes standard with these tax advantages. The UAE ranks among the most politically stable countries in its region. Political upheavals or social unrest don't affect it. This stability matters because wealth preservation needs both tax efficiency and long-term security.
Singapore shines in global ease-of-doing-business rankings. The country offers a transparent legal system, efficient government services, and strong investor protection. With 102 double-taxation treaties worldwide, it beats Dubai's 92 agreements. This makes Singapore a wonderful choice for businesses operating globally.
For those departing the UK, these locations offer more than just instant tax relief. Dubai does not impose inheritance or wealth taxes, allowing assets to transfer without depletion. UAE corporate entities also let property stay registered under offshore companies, which makes succession planning clearer.
Singapore matches these benefits with its tax exemptions. The Supplemental Retirement Scheme (SRS) gives foreigners a tax-advantaged account. They can deduct contributions from taxable income while investments grow tax-free.
The growth of these financial hubs directly links to fewer millionaires staying in the UK. The UAE topped millionaire migration charts in 2024 and gained 6,700 new millionaires. One in six came from the UK. This event shows how tax policy lights up the path for wealth migration in our mobile global economy.
How wealth migration affects UK tax revenue
The UK's tax revenue depends heavily on a small group of high earners, which puts the country at risk as wealthy people move abroad more often. When public finances rely too much on rich taxpayers, even small changes in where these wealthy people live can affect government income by a lot.
Top 1% contribute nearly 30% of income tax
The UK tax system shows a remarkable imbalance, where high-income earners pay much more than their fair share of national taxes. High earners in 2023-24 (those making over £214,000) earned 13% of all pre-tax income but paid 29% of total income tax. This gap has grown larger over the years, as the tax share from the top 1% increased from 11% in 1978-79 to 29% in 2023-24, despite lower top tax rates during this period.
This concentration goes beyond just the super-rich. The top 10% of taxpayers now pay about 60% of all income tax, up from 35% in 1978-79. On the flip side, the bottom 50% of earners only contribute 9.3% of income tax.
Government finances now depend too much on a small group of taxpayers who can move elsewhere. While they make up just a tiny part of the population, these highest earners generate almost a third of the government's primary income source. Each person in this elite group pays as much tax as dozens of average taxpayers combined.
Rich individuals spend more money too, which helps the economy. Oxford Economics found that each non-dom spent an average of £800,000 in VAT last year. These people also paid about £890,000 in stamp duty in the past five years.
Small exits can cause large fiscal gaps
An increasing number of wealthy individuals are relocating abroad, which could significantly harm public finances; however, experts have differing opinions on the extent of this impact. The Adam Smith Institute says the annual tax loss from departing millionaires equals what over half a million average taxpayers contribute. Each person earning over £1 million annually would have paid at least £393,957 in income tax – the same as 49 average taxpayers combined.
Expert opinions vary regarding the financial impact. Former Chancellor Jeremy Hunt said replacing the non-dom regime would bring in £2.7 billion yearly. However, Oxford Economics has a different perspective; they argue that if 32% of non-doms leave, as their research indicates could occur, the Treasury would end up losing money rather than gaining it.
Wealthy residents help the economy in many ways. Non-doms have put an average of £118 million into the UK economy and given about £5.9 million to charity. Many jobs in retail, hospitality, legal services, and luxury goods also depend on these wealthy residents.
Experts debate how many wealthy people are actually leaving. The Henley Private Wealth Migration Report predicts 16,500 millionaires will leave the UK in 2025. But other groups see it differently. The Tax Justice Network points out that the 9,500 millionaires who were said to be leaving in 2024 were just 0.3% of the UK's 3.06 million millionaires – not exactly a mass exodus.
Whatever the exact numbers, having tax revenue so concentrated creates clear risks. Even small changes in where wealthy people live can have big effects on tax income. A net loss of less than 1% of millionaires could mean billions in lost revenue. Such an outcome leaves policymakers with tough choices about keeping taxes competitive while meeting revenue needs.
What other countries learned from taxing the rich
The UK can learn a lot from other countries' struggles with wealthy residents leaving due to tax policies. Two examples show the collateral damage that aggressive tax strategies can create.
France's failed 75% tax experiment
François Hollande's socialist government launched a controversial "supertax" in 2012. This new policy slapped a 75% rate on earnings above €1 million. The government wanted to help France recover from economic crisis. The political left initially supported this move, but critics quickly labelled it as anti-business.
Rich people started leaving France right away. Bernard Arnault, who ran LVMH and was France's richest man, got Belgian nationality. Actor Gérard Depardieu did the same before becoming a Russian citizen. About 2.5 million French citizens moved to countries with better tax rates, including the UK, Belgium, and Singapore.
The French government thought the supertax would bring in €30 billion in 2013. They ended up with just €16 billion – a €14 billion gap. Things got worse as the French economy struggled. GDP growth stayed below 0.8% every quarter after they brought in the tax. Unemployment shot up to 10%.
The tax failed to generate much money. It collected only €260 million in 2013 and €160 million in 2014, and this affected just 1,000 employees across 470 companies. France's budget deficit grew to €84.7 billion during this time. The government quietly dropped the tax in 2015 when it became clear it wasn't working.
Norway's wealth tax and resulting exodus
Norway learnt a similar lesson when even minor tax changes forced wealthy people to leave. The centre-left government bumped the wealth tax rate to 1.1% in 2022. This small change led to a massive exit of wealthy residents.
More than 30 Norwegian billionaires and multimillionaires left Norway in 2022. This number was bigger than all the departures from the previous 13 years combined. The exodus continued growing in 2023. Most rich Norwegians moved to Switzerland because of its lower taxes.
This exodus hit Norway's economy hard. The government expected to get an extra €139.31 million each year from the tax increase. Instead, people worth about €51.53 billion left the country. This meant losing €566.80 million in wealth tax revenue each year—a net drop of €427.49 million. Norway lost four times more money than it hoped to gain.
Kjell Inge Røkke, Norway's fourth-richest person with NOK 19.6 billion (£1.5 billion), was among those who left. His move to Lugano, Switzerland, costs Norway NOK 175 million in lost taxes every year. Tord Ueland Kolstad also moved his NOK 1.5 billion fortune to Lucerne. Many wealthy people said they wanted to stay but felt forced out by the tax system.
Ole Gjems-Onstad from the Norwegian Business School estimated that the people who left had combined fortunes of at least NOK 600 billion. He compared it to Brexit, saying, "Norway has no great tradition of self-harm, and the flood of entrepreneurs moving abroad has come as something of a shock.""
These international examples show what might happen if the UK changes how it taxes its wealthy residents, especially as more rich people are already moving away.
Why lifestyle and safety matter to the wealthy
Quality of life has declined sharply in the United Kingdom, making it a strong factor in wealth migration. Wealthy residents now base their moving decisions on daily experiences and safety concerns just as much as tax implications.
Crime, infrastructure, and public services in decline
British infrastructure shows alarming signs of decay. Local authorities saw investment drop in 46% of areas between 2018 and 2022. These communities received 16% less funding by 2022 compared to 2018. The UK ranks last among G7 nations in infrastructure spending for 24 out of 30 years. These reductions created a massive £2 trillion infrastructure gap.
Crime rates have hit property values hard in previously safe neighbourhoods. Statistics show 41% more crimes occurred in the poorest 10% of areas versus the wealthiest in 2024. Violent crimes, robberies, and sexual offences happen twice as often in these struggling areas. Research proves that cutting homicides by 10% would boost housing values by 0.83% the next year.
Transportation networks that businesses depend on keep getting worse. A study of 390 manufacturing companies revealed that most think road infrastructure has deteriorated this past decade. British products now cost more to make and ship. Business leaders disagreed with cancelling the northern section of HS2, with 57% opposing this decision.
Comparative quality of life in Dubai and Singapore
Dubai and Singapore stand out as cities built to welcome wealth creators. These places rank among the world's cleanest and safest urban centres. Singapore holds the 30th spot globally for quality of life and leads all Asian cities. The city offers pristine streets and top-tier infrastructure.
Singapore earned its 'Garden City' nickname honestly – greenery covers half the city-state. Parks and green spaces make it attractive to wealthy families looking for a better life. Dubai transformed its desert landscape into luxury living spaces with pristine beaches and waterfront developments.
Safety statistics in both cities tell an impressive story. Women feel secure walking at night – something that's becoming rare in London. Singapore beats Dubai at green spaces and public transit, but Dubai wins with bigger homes and more luxurious lifestyle options.
Wealthy expat families find exceptional amenities in both places. Businesses in Singapore cater to families by providing stroller access and child-friendly facilities throughout the city. Employers in Dubai enhance the benefits by providing housing allowances and funding for schools.
Migration trends show these lifestyle benefits matter more than traditional UK connections. People want more than tax breaks – they're looking for safe neighbourhoods, working public services, and family-friendly environments.
Can the UK compete with global financial hubs?
The UK's traditionally dominant position in global financial centres faces tough competition. The financial services sector achieved a trade surplus of EUR 119.56bn in 2023. However, the sector hasn't grown in real terms since 2010. This stagnation raises questions about London's future as a financial hub, especially given current wealth migration trends.
London's declining appeal for global talent
Businesses choose their headquarters based on talent availability. London's charm has faded significantly over the last few years. The Brexit vote marked a crucial shift – business visits to London dropped five percent between 2015 and 2017. Jobs related to headquarters have slowed down steadily since 2016. These trends show deeper structural problems beyond just tax issues.
Financial services play a vital role in the UK economy. The sector adds about 9% to the UK's economic output and creates 1.2 million jobs nationwide. All the same, new financial hubs worldwide create tough competition. Companies considering relocation prioritise finding good talent over other factors. This situation raises serious concerns about London's diminishing attractiveness in relation to controlling wealth migration.
Regulatory burdens and political uncertainty
The regulatory environment plays a decisive role when companies choose locations. About 60% of industry participants say it's their top policy priority. The UK's regulatory situation faces several major hurdles:
Rules are too complex and numerous, making the UK less attractive
Companies don't get clear and predictable guidance
Red-tape might cost up to 3-4% of GDP, around £70bn
The UK knows how to regulate risk but doesn't deal very well with growth-focused regulation. Yes, it is worth noting that the Business Impact Target, meant to cut regulatory costs, failed badly—costs went up by £14.3bn in the first three years instead of going down.
Political uncertainty makes these problems worse. Recent global elections might destabilise the UK's financial system. About 51% of UK SMEs worry about possible government changes. This uncertainty makes long-term planning harder and affects investment choices.
Regulators see this problem and have started programmes to simplify rules and reduce burdens. The big question remains: Will these changes be enough to stop wealth migration? The UK might keep losing ground to more competitive financial hubs that offer both tax benefits and stable regulations.
What experts say about reversing the trend
Financial and economic experts have different ideas about fixing the UK's wealth migration problem. Their suggestions point to several policy changes that could help keep wealth within the country.
Policy recommendations from economists
Tax experts believe bringing back predictability will help keep wealthy people in the UK. "The real challenge is now restoring trust and stability," says Marc Acheson, global wealth specialist at Utmost Wealth Solutions. Henley & Partners researchers want "a strategic policy overhaul... embracing competitive incentives akin to those offered by other leading jurisdictions".
Many specialists suggest focusing on specific policy changes. Sean Cockburn of Forvis Mazars points out that "the emotional trigger has been inheritance tax". This insight has led Chancellor Reeves to think about dropping her plan to tax non-doms' global assets through inheritance tax.
James Quarmby, who leads private wealth at Stephenson Harwood, suggests a bold new investment visa with real benefits: "£2 million is too low. I'd recommend a £4 to £5 million minimum investment. But that must come with tax incentives." He thinks Labour might subtly introduce an investor visa with a different name—"something more palatable, like a 'Global Talent Visa'.
Balancing fairness with fiscal sustainability
While some push for more competitive rates, others support progressive taxation. Patriotic Millionaires UK suggests a 2% tax on wealth over £10 million. This would affect just 20,000 people (0.04% of the population) but could raise £24 billion yearly. Their study shows 65% of the UK's millionaires back this idea.
Policy experts suggest making tax treatment more equal. They want carried interest to be taxed like regular income and they also want investment earnings to receive similar tax treatment.
People who oppose wealth taxes worry about how people might react. SW Group highlights "the complexities of designing a system that produces a successful tax yield without driving negative behavioural responses". They believe policies focused on growth might work better to keep wealth creators in the country.
Conclusion
British wealth is leaving the country at an alarming rate, which could spell trouble for the nation's economic future. Rich Britons now find places like Dubai and Singapore nowhere near as taxing and much more appealing than their homeland. Higher taxes, mounting regulations, and a declining standard of living have pushed them away. The numbers tell the story – a millionaire leaves Britain every 45 minutes, showing how tax policies can drive wealth right out of the country.
France and Norway experienced this lesson firsthand. Their aggressive tax policies drove away wealthy citizens and they ended up collecting less money than before. The UK risks the same fate, especially since the top 1% of taxpayers pump nearly 30% of all income tax into government coffers. Without doubt, their departure would leave huge holes in the budget, which would be difficult to fill.
Money isn't the only thing driving people away. The UK's infrastructure keeps crumbling, and crime rates are rising in many areas. Meanwhile, Dubai and Singapore showcase exceptional safety records, spotless streets, and great environments for families. These lifestyle perks, combined with strong business ecosystems, make them attractive options for wealth creators looking for greener pastures.
Britain's ability to compete with these rising financial powerhouses remains uncertain. London's historical position as a financial giant faces threats from complex regulations, political instability, and its fading appeal to global talent. In spite of that, experts point to several possible fixes – bringing back predictable tax policies, offering more competitive investment visas, or rolling out carefully planned wealth taxes.
The UK must balance fair taxation with financial stability. These patterns of wealth migration are crucial as the country strives to retain its wealthy residents while preserving tax revenues. Today's policy choices will alter the map of Britain's economy for generations to come.