In a stark reflection of the changing global landscape of wealth, the UK is projected to experience a record exodus of millionaires in 2024, losing a net total of 9,500 high-net-worth individuals (HNWIs).
This unprecedented loss, according to the Henley Private Wealth Migration Report 2024, is second only to China worldwide and more than double the number of millionaires who left the country in 2023.
Meanwhile, the United Arab Emirates (UAE) continues to cement its position as the world’s leading wealth magnet, attracting a record-breaking 6,700 millionaires this year, significantly boosted by large inflows from the UK and Europe. This marks the third consecutive year that the UAE has secured the top spot.
Global millionaire migration trends
The report, released by international investment migration advisory firm Henley & Partners, reveals that a staggering 128,000 millionaires are expected to relocate globally in 2024, surpassing the previous record of 120,000 set in 2023. This “great millionaire migration,” as described by Dominic Volek, Group Head of Private Clients at Henley & Partners, is indicative of a profound shift in the global landscape of wealth and power.
China remains the biggest loser of millionaires globally, with an anticipated net exit of 15,200 HNWIs this year. India, however, has managed to stem its wealth exodus, dropping to third place behind the UK with 4,300 millionaires projected to leave in 2024.
Reasons for UK’s millionaire drain
The report points to a combination of factors driving the millionaire exodus from the UK, including economic and political turmoil, as well as recent policy decisions that are perceived as unfavorable to the wealthy.
Dr. Hannah White OBE, Director and CEO of the Institute for Government in London, highlights the potential impact of policy changes such as the end of the UK’s non-dom tax regime and the removal of VAT exemption for private schools. These decisions, she argues, could accelerate the outflow of HNWIs from the country.
UAE’s Wealth Appeal
The UAE’s appeal to millionaires lies in its zero income tax, golden visas, luxury lifestyle, and strategic location. The country has developed a robust wealth management ecosystem that offers a range of innovative solutions to protect and enhance wealth.
Sunita Singh-Dalal, Partner leading the Private Wealth & Family Offices at Hourani in Dubai, emphasizes the unprecedented evolution of the UAE’s wealth management landscape, which has contributed to its growing popularity among the global wealthy.
Implications of millionaire migration
The migration of millionaires has far-reaching implications for both the countries they leave and those they choose as their new home. While it can provide a significant boost to the economies of destination countries, it can also lead to a loss of talent and capital for those left behind.
Andrew Amoils, Head of Research at New World Wealth, highlights the economic benefits of millionaire migration, noting that many are entrepreneurs and company founders who can create local jobs in their new country. However, for countries experiencing a net outflow of millionaires, it is crucial to address the underlying issues that are driving this trend to ensure long-term economic stability and prosperity.
| Percentile of earners | Median annual earnings before tax |
|---|---|
| 10th | 9024 |
| 25th | 15840 |
| 50th | 27324 |
| 75th | 42300 |
| 90th | 63936 |
| 95th | 87228 |
| 99th | 181224 |
Source: Office for National Statistics, November 2023/The Times Money Mentor
The table above shows what many people may find surprising where they sit in society for “wealth.”
For example, if you earn £45,000, you’re in the top 25% of earners, if £65,000, you are in the top 10% of earners. and those earning £100,000 or more are in the nation’s top 2% of earners. With more millionaires jetting off this could mean more of us will have to pick up the slack when it comes to tax hikes. Yet, we will still be struggling to pay bills as our rates and wages have not matched the cost of living.
