Record Numbers of High Net Worth Individuals Are Leaving the UK - Where Are They Going, and Why?

The UK is currently experiencing a record exodus of High Net Worth Individuals (HNWIs) and Ultra High Net Worth Individuals (UHNWIs)¹, with the trend expected to accelerate dramatically over the next four years.

UK fiscal policy is acting as a catalyst for this exodus, with Britain under its heaviest tax burden since the 1940s² and concerns growing about how the new government’s tax plans will add to this burden, when they are announced in its first budget, later this month.

“The outflow of high-net-worth individuals already generated
by the economic and political context is now being accelerated.”
Hannah White - CEO, Institute for Government (IfG)

So, where are these HNWIs and UHNWIs re-locating to, and what are the key factors in their decision-making?

At Forth Capital, we specialize in helping HNWIs and Ultra High Net Worth Individuals (UHNWIs) navigate complex international financial landscapes, ensuring that they can maximize opportunities in a globalized world. In this article, we explore the top five destinations that HNWIs and UHNWIs are moving to from the UK and why these locations are increasingly attractive for wealth management and long-term financial planning.

1. United Arab Emirates (UAE) – Especially Dubai

Dubai has emerged as one of the most popular destinations for HNWIs, particularly due to its tax-free regime. The UAE offers a highly attractive environment for wealthy individuals seeking to minimize their tax burden. With no personal income tax, capital gains tax, or inheritance tax, Dubai provides an unparalleled financial haven for those looking to preserve their wealth.

Moreover, Dubai provides all of the necessary components required to lead a luxurious lifestyle, with world-class amenities, exclusive real estate, and a strong sense of personal security. The city's growing reputation as a business hub, particularly in finance and technology, makes it appealing not only for retirees but also for entrepreneurs and investors. The easy access to international markets from Dubai further strengthens its appeal.

2. Australia – Particularly Sydney and Melbourne

Australia has long been a top choice for HNWIs seeking both quality of life and political stability. The country's major cities, like Sydney and Melbourne, offer a vibrant economy, a high standard of healthcare and education, and an overall safe and welcoming environment.

While Australia doesn’t offer the tax-free advantages of the UAE, it does provide favourable tax opportunities depending on residency status and wealth structuring.

For UHNWIs, Australia’s stable political environment and strong property market provide an attractive destination for long-term wealth protection. Its geographic isolation also makes it a safe and desirable location in times of global uncertainty.

3. United States – Particularly Florida and Texas

The U.S. remains a highly attractive destination for both HNWIs and UHNWIs, particularly tax-friendly states like Florida and Texas. Both states offer no state income tax, making them attractive for HNWIs and UHNWIs seeking to mitigate tax exposure. In addition, the U.S. provides significant business and investment opportunities, particularly in technology, real estate, and financial markets.

For UHNWIs, cities like Miami and Houston have become epicentres of luxury real estate, with a growing international presence. The country’s reputation for innovation and entrepreneurship further adds to its appeal for individuals looking to grow their wealth.

4. Switzerland

Switzerland remains a long-standing favourite destination for UHNWIs. Switzerland’s strong reputation for discretion and security makes it a prime location for those seeking to safeguard their wealth.

Switzerland offers political stability, luxury real estate, and some of the best healthcare and education systems in the world. Its central location in Europe also allows easy access to international business centres.

5. Portugal – Especially Lisbon and the Algarve

Portugal has increasingly become a hotspot for both HNWIs and UHNWIs due to its Golden Visa program, which offers residency (and eventually citizenship) in exchange for real estate investment. This program has attracted a significant number of wealthy individuals, particularly from the UK, who are seeking both lifestyle benefits and tax advantages.

Portugal’s Non-Habitual Resident (NHR) scheme offers a 10-year tax holiday on foreign-sourced income, including pensions, dividends, and capital gains, which makes it highly attractive for retirees. The country’s mild climate, beautiful landscapes, and growing reputation as a hub for entrepreneurs further enhances its appeal.

Conclusion

The outflow of HNWIs and UHNWIs from the UK in 2024 is set to accelerate over the next four years, driven by their desire to protect their assets, reduce tax liabilities, and enhance their quality of life.

At Forth Capital, we understand that global mobility requires careful financial planning. As international wealth management experts, we are here to guide you through the complexities of international cross-border financial planning, ensuring that your wealth is not only preserved but optimized in your new home.

Whether you’re considering a move to Dubai, Australia, the U.S., Switzerland, Portugal, or any other destination, Forth Capital can help you plan and manage your wealth effectively.

Contact us today or send us an email to learn more about how we can support your financial goals.

1 Source: The H&P Private Wealth Migration Report 2024

2 Source: Institute for Fiscal Studies [13 June 2024]

This communication is for information purposes only and does not constitute financial, legal, or tax advice. Please schedule a meeting to receive advice on international financial planning and wealth management.