The UK is projected to lose 9,500 millionaires in 2024, second only to China globally, as high-net-worth individuals ‘vote with their feet’ against a backdrop of economic and political uncertainty, a report from Henley & Partners has found.
This figure is more than double the 4,200 who left the UK last year, a record in itself following the 1,600 high-net-worth individuals (HNWIs) who moved away in 2022, Henley’s Private Wealth Migration Report 2024 identified.
For the third consecutive year, the United Arab Emirates (UAE) is set to emerge as the world’s top destination for the wealthy, with a record-breaking 6,700 super-rich migrants expected to relocate there by the end of 2024.
This surge is significantly bolstered by large numbers of HNWs locating from the UK and Europe.
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The Henley Private Wealth Migration Report 2024 highlights the latest net inflows and outflows of millionaires. The data, projected by New World Wealth, a global wealth intelligence firm, underscores a decade-long trend.
China is poised to be the biggest loser in terms of millionaire migration, with an anticipated net exit of 15,200 HNWIs this year, compared to 13,800 in 2023. India has managed to reduce its outflow, dropping to third place with 4,300 millionaires expected to leave, down from 5,100 last year. South Korea is expected to see an increase in HNWI departures, with a forecasted loss of 1,200 millionaires, up from 800 in 2023. The outflow of millionaires from Russia appears to be slowing, with only 1,000 projected to leave this year, compared to 8,500 in 2022 and 2,800 in 2023.
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Dominic Volek, Group Head of Private Clients at Henley & Partners, says 2024 is shaping up to be a watershed year in the global migration of wealth. 'An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023. This migration trend signals a profound shift in the global landscape of wealth and power, with far-reaching implications for both the countries they leave and those they move to.'
Decline in UK’s appeal to millionaires
Historically, the UK, particularly London, has been a top destination for migrating millionaires. However, this trend began to reverse about a decade ago, with a net outflow of 16,500 millionaires from 2017 to 2023. Provisional estimates for 2024 indicate a further net outflow of 9,500 millionaires. Economic and political turmoil, along with policy changes, are accelerating this exodus.
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Dr. Hannah White OBE, Director and CEO of the Institute for Government in London, says the outflow is driven by economic and political instability, compounded by policy decisions ahead of the upcoming election. The Conservative government's move to end the non-dom tax regime from 2025 and Labour's plans to impose VAT on private schools are also key factors.
Spear’s Contributing Editor Alec Marsh notes that wealthy individuals are already 'voting with their feet' in response to these changes. The elimination of the non-dom tax regime, which has been in place for 225 years, is a significant deterrent for the global wealthy elite considering the UK as a home.
'Even before the starting gun was fired on July 4’s general election, it’s apparent that the wealthy in Britain are already voting with their feet,' Marsh says.
'The writing was on the wall well before Jeremy Hunt, the Chancellor of the Exchequer, sought to take the wind from the sails of the Labour opposition by announcing in March that he would be scrapping Britain’s 225-year-old non-dom tax regime, which allows those with extensive wealth overseas not to be taxed on it in the UK. While it may have been clever politics, it was a red flag for the global wealthy elite, who saw Britain’s right-of-centre party suddenly prepared to play fast and loose with the established rules affecting them for short-term political gain.'
UAE: The leading millionaire magnet
The UAE has solidified its position as the premier destination for migrating millionaires and is expected to welcome a record net inflow of 6,700 HNWIs this year, nearly twice as many as its nearest competitor, the US, which is projected to attract a net inflow of 3,800 millionaires in 2024.
Singapore is projected to be the third most popular destination for migrating millionaires, with net inflows of 3,500, followed by Canada and Australia, with net inflows of 3,200 and 2,500, respectively. European destinations like Italy, Switzerland, Greece, and Portugal also feature in the top 10, along with Japan, which is benefiting from a trend of Chinese HNWIs moving to Tokyo post-Covid.
Andrew Amoils, Head of Research at New World Wealth, explains the benefits to destination countries: 'Migrating millionaires bring significant forex revenue and often start new businesses, creating local jobs. This impact is even more pronounced among centi-millionaires and billionaires, who frequently contribute to substantial economic development in their new homes.'
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Global wealth distribution and migration trends
While the number of millionaires in the UK has dropped by 8% over the past decade Germany, France, Australia, Canada, and the USA have all seen substantial growth in their HNWI populations, driven by new business formation, stock market gains, and property trends.
The report also identifies other countries experiencing significant outflows of millionaires, including Brazil, South Africa, Taiwan, Vietnam, and Nigeria. The reasons for these outflows vary, from economic success generating new millionaires in China and India to regional threats and political uncertainty in South Korea and Taiwan.
