2024 sees record relocation of millionaires seeking favourable tax regimes

A significant wave of wealthy individuals is migrating from high-tax countries, a trend expected to peak this year. Many affluent people are leaving countries like the UK, France, and Norway, where favourable tax regimes are being scaled back or eliminated, and relocating to places like Switzerland, Dubai, Singapore, and Southern European nations such as Cyprus, Greece, Italy, Portugal, and Spain, where new incentives are attracting them.

In the UK, the recently elected Labour government’s plan to end a longstanding tax regime benefiting the wealthy has led to a significant exodus. In France, political uncertainty and fears of a potential wealth tax under a left-wing government are driving the wealthy to seek residence elsewhere. Norway has already seen a steady outflow of wealthy residents to Switzerland following the introduction of a wealth tax two years ago.

As competition for wealthy immigrants intensifies, new tax havens like Dubai and Singapore are emerging alongside traditional ones such as Switzerland. Cyprus, along with other Southern European countries, is gaining attention as a destination for the wealthy, thanks to its favourable tax policies. According to global immigration consultancy Henley & Partners, 2024 is expected to see a record migration of the wealthy, with around 128,000 millionaires and billionaires set to relocate, surpassing last year’s figure of 120,000.

While these wealthy migrants bring economic benefits, such as increased spending and investment, their relocation also creates challenges for local populations, including rising property prices, increased pressure on public services, and changes to the character of communities where they settle.

Credit: KNEWS