The UAE is on track to become the world’s top wealth magnet for the third year running, according to the Henley Wealth Migration Report. Meanwhile, the number of millionaires in the UK, where many expatriates come from the UAE, is set to fall by 17% over the next four years, the UBS Global Wealth Report predicts. Why are so many millionaires swapping the British countryside for the beaches of Dubai?
How the UK is getting rid of its millionaires
Costs and taxes rise quickly in the UK, including for millionaires. That’s why many choose to move to the UAE, a country known for its expat-friendly tax regime.
This trend is expected to accelerate with the UK Labour Party’s election victory in June. The party is championing various regulations that are unfavourable to millionaires, such as higher taxes on the rich, higher VAT on private school fees, and the abolition of “non-dom” status. This status has often meant that foreign residents do not have to pay UK tax on income earned abroad. The scheme is now being phased out, making the country less attractive to foreign millionaires. The country’s uncertain political and economic turmoil is also contributing to the outflow of millionaires.
Millionaire demographic change
The UK currently has the third-largest number of millionaires in the world. However, that is changing fast: the number of millionaires is expected to fall from more than 3 million last year to around 2.5 million in 2028, according to the UBS Global Wealth Report.
UAE Call
For millionaires scattered around the world, the UAE is an attractive place to move to. The country boasts no income tax, a strategic location and the “golden visa”: a long-term visa that allows foreign residents to live in the UAE for an extended period.
UAE is the leader
According to the Henley Private Wealth Migration Report, the UAE will welcome an influx of 6,700 millionaires from around the world by the end of 2024. This makes the country a leader in millionaire migration. The United States is in second place on the list, and is expected to welcome 3,800 millionaires.
