UK Becomes Top Country for Wealthy Exodus
"Tax Escape" Drives 16,500 to Leave
Middle East and Italy Emerge as Preferred Destinations
This year, the number of wealthy individuals leaving their home countries around the world is expected to reach a record high of 142,000, according to a report by Nihon Keizai Shimbun (Nikkei) on June 25. The United Kingdom, which has implemented tax increases targeting the wealthy, has overtaken China to become the country with the largest outflow of high-net-worth individuals. The Middle East, Italy, and the United States have emerged as popular new destinations for these wealthy migrants.
Citing a report released on June 24 by global wealth consultancy Henley & Partners, Nikkei reported that approximately 16,500 wealthy individuals with investable assets of at least $1 million (about 1.45 billion won) are expected to leave the United Kingdom this year. This figure far exceeds the net outflow from China (7,800 people), making the UK the top country for net outflow for the first time since the company began compiling such statistics. The total assets held by the wealthy individuals leaving the UK are estimated at about $91.8 billion (approximately 13 trillion won).
The background to this exodus of wealthy individuals is the reduction of tax benefits. The UK government abolished the non-domiciled status, which provided tax exemptions on overseas income, starting in 2024. Nikkei explained that this measure was highly unfavorable for high-income individuals with financial assets worldwide and served as a decisive trigger for the migration of the wealthy. This trend has given rise to the phenomenon known as "Wexit," a portmanteau of "Wealthy" and "Exit."
The countries attracting the most wealthy individuals leaving the UK are Middle Eastern nations and Italy. Italy operates a system that sets an annual cap on taxes for residents' overseas income. Milan, in particular, is highly popular as a financial and economic hub where English is relatively easy to use. A notable example is Nassef Sawiris, the Egyptian billionaire and member of the ownership group of Premier League club Aston Villa, who recently relocated from London to Italy.
However, the influx of wealthy individuals has also caused negative side effects within local communities. Nikkei pointed out that soaring rents in central Milan have led to urban hollowing, with essential workers such as police officers, public transportation workers, and cleaners being pushed out to the outskirts.
Meanwhile, the outflow of wealthy individuals from China and India appears to be slowing somewhat. In the past, many migrated to developed countries due to reasons such as social infrastructure or service standards. However, the rapid growth of their domestic economies has narrowed the gap with developed nations, which is seen as the main factor behind this change.
Parag Khanna, CEO of geopolitical risk assessment firm AlphaGeo, assessed, "Both China and India now have greater confidence in their own economies than in the past."
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