The UK remains the leading destination for global, multi-resident entrepreneurs in Western markets, a new report says.
The Global wealth hubs: drivers of diversification 2025 report, published on Thursday by HSBC, highlights a global mindset shared by wealthy business owners, who see borders as ‘opportunities rather than obstacles,’ it says.
The study revealed that the UK is still a magnet for global business leaders – many of whom describe themselves as ‘global citizens’, with 51 per cent having multiple residencies. This comes despite scrutiny over its appeal for UHNWs after recent announcements of changes to tax rules.
HSBC’s data is based on a survey submitted to HNW and UHNW entrepreneurs on their attitudes towards their wealth and businesses in international markets.
[See also: The Spear’s Power List 2024: Who made the cut?]
The report also found that the country is especially appealing to the wealthiest and oldest entrepreneurs. Among 23 countries, it ranked as the top relocation choice for 10 per cent of UHNW individuals and 10 per cent of those over 45 considering a move in the next 12 months.
In addition to being a top destination for physical relocation, the UK attracts financial assets and investments, ranking equal first among UHNWs and equal second among over-45s seeking to move their wealth abroad.
Content from our partners
[See also: The best global mobility, residence and citizenship by investment advisers]
Britain’s appeal for entrepreneurs
Besides drawing in older and wealthier individuals, the UK also attracts young people and business owners looking to move all or part of their businesses. According to the HSBC report, the country ranks second globally in the 18 to 44 age bracket and equal first among the youngest group (18 to 24), alongside the UAE and Saudi Arabia.
There are many reasons behind the continuous appeal of the country for both Gen Z and older entrepreneurs, the report's authors said.
First, the UK is known for its strong sports and creative industries, making it a popular place for young talent, businesses, and investment.
Britain is also widely regarded as having a ‘safe haven status’, the study says: ‘Familiarity with and faith in the UK’s legal and regulatory infrastructure, plus its wider services sector, makes the country a popular option for property ownership.’
Another enticing factor is the renowned quality of British education, particularly popular with families of second or third generation Asian entrepreneurs. The report highlights that the country’s reputation for excellence in education, with three of the world’s top 10 universities and 39 of the top 100 prep and senior schools, is a major draw for families.
[See also: Why (U)HNW families should think twice before moving abroad for tax reasons]
‘The UK has all the complementary parts of the value chain, underpinned by a deep talent pool and a strong regulatory and legal framework,’ said head of HSBC Global Private Banking UK Charles Boulton. ‘The cities, countryside and culture also make it a very attractive place to live,’ he added.
New considerations over change to taxation rules
Although the UK remains an attractive destination for wealthy businesspeople, recent changes to various tax rules could undermine its appeal, the study warns.
[See also: VAT on private school fees driving HNW ‘exodus’ from the UK]
‘Entrepreneurs want to be surrounded by people and supported by structures that help make their business more successful,’ Boulton said.
However in recent months, the government has announced the abolition of non-dom status and the introduction of VAT on private school fees, two measures that could prompt wealthy residents to leave the country.
The world’s major wealth hubs
The study also focuses on advantages for international entrepreneurs offered by four other major global wealth hubs, namely Hong Kong, Singapore, the US and Switzerland.
Each destination presents a unique benefit for wealthy global investors, with Hong Kong forming the biggest wealth corridor (with China), Singapore ‘thriving’ as an international wealth hub, the US continuously attracting business owners and Switzerland ranking first for entrepreneurs seeking to move their personal wealth over the next year.
Identifying ‘widening wealth corridors’, the report found that the world’s wealthiest investors are increasingly mobile, and tend to plan for additional residences and business opportunities around the world.
‘We see no sign of deglobalisation from an investment perspective,’ said CIO of HSBC Global Private Banking and Wealth, Willem Sels.
‘In fact, entrepreneurs’ desire to access opportunities outside their home markets is growing at a time when many respective governments are adopting a more domestic bias from an economic or trade perspective. Diversification is all about opening up opportunities.’
[See also: The new wealth hubs for UHNW non-doms]
