The Wexit Wave: When Britain No Longer Attracts the Super Rich

(Dan Tri) - Britain is set to lose 16,500 millionaires this year - a global record. Once a "financial paradise", London is now witnessing an unprecedented exodus of the upper class.

From global icon to historic wave of migration

London's glittering financial towers in the City of London or Canary Wharf were once inviolable symbols of global economic power.

For decades, the UK has been home to some of the world’s most talented financial minds and a haven for the super-rich. With its strong legal system and stable investment environment, the UK has been a haven for the super-rich. But that glorious picture is slowly cracking.

According to the forecast of Henley & Partners - the world's leading investment migration consultancy, 2025 will be a gloomy milestone in the UK's financial history.

The Private Wealth Migration 2025 report, produced in conjunction with data firm New World Wealth, found that around 16,500 high net worth individuals (HNWIs, or millionaires) will leave the UK. Not only is this the highest number globally, it is also double the number expected to leave China, which has led the outflow of wealth for a decade.

“2025 will be a turning point,” said Juerg Steffen, CEO of Henley & Partners. “For the first time in 10 years, a European country will lead the world in the number of millionaires leaving the country.” This is the largest wave of “wealth migration” ever recorded from a single country, since Henley & Partners began tracking the phenomenon.

By 2025, the UK is expected to lose a record 16,500 millionaires - twice as many as China and 10 times as many as Russia. (Illustration: rezi.ai).

Wexit: When Taxes and Instability Spark a Wave of Flight

The phenomenon, which some experts call “ Wexit” (short for “Wealth Exit”), stems not only from changes in tax policy, but also reflects a growing sentiment: the wealthy realize that opportunity, freedom and stability lie elsewhere, according to Mr. Steffen.

A decade of economic stagnation following the global financial crisis, combined with the lingering fallout from the 2016 Brexit referendum, has undermined Britain’s appeal. “The UK’s status as a preferred destination for the super-rich is being eroded by policy indecision and persistent economic uncertainty,” says Stuart Wakeling, managing partner and head of Henley & Partners’ UK office.

The final blow came in the form of sweeping tax reforms. The October 2024 budget – the first under the new Labour government – ​​approved increases in capital gains tax and inheritance tax.

In particular, this policy abolishes the “non-dom” status that once allowed wealthy foreigners living in the UK but not having citizenship to be exempt from tax on their worldwide income. From April this year, foreign individuals who have lived in the UK for more than four years will be taxed on income and capital gains as native citizens. If they have been resident for 10 years or more, their entire global assets will be subject to inheritance tax of up to 40%.

About 60% of millionaires leaving the UK in 2024-2025 are foreigners, who are directly affected by the new “non-dom” regulations, said Andrew Amoils, head of research at New World Wealth.

“The sectors most affected are highly specialised finance, including banking, fund management and law. There has also been a significant exodus from the technology sector,” he added. People who once used London as a global hub for wealth and careers are now looking elsewhere.

Economic Wounds and the Rise of “New Paradises”

The consequences of this exodus for the British economy are predicted to be huge. “In the long term, the economic competitiveness and ability to attract investment in the UK and Europe as a whole will be severely affected,” Mr. Steffen commented. The UK is now in a difficult position: “both losing potential foreign investors and witnessing a record outflow of domestic millionaires,” according to Mr. Wakeling.

Professor Trevor Williams, Chairman and Co-founder of FXGuard and former Chief Economist of Lloyds Bank, highlighted a worrying fact: “Over the past 10 years, the UK is the only country in the group of 10 richest economies in the world (W10) to record a decline in the number of millionaires”.

Since 2014, the number of millionaires residing in the UK has fallen by 9%, while the average increase across the W10 group has been 40%. In the same period, the US – Britain’s main rival in the race for talent and capital – has seen its millionaire population increase by 78%.

According to experts, the cause of the Wexit wave lies not only in the new tax policy in the UK but also reflects "a growing awareness among the wealthy that opportunity, freedom and stability lie elsewhere (Illustration: Istock).

Other Western European powerhouses such as France, Spain and Germany are also expected to see millionaires leave in 2025, with 800, 500 and 400 people respectively. This is a sign of a larger trend: the super-rich are withdrawing from traditional economic centers in Western Europe.

In contrast, southern European countries such as Italy, Portugal and Greece have emerged as new “wealth magnets”. Thanks to friendly tax policies, attractive “golden passport” programs and high quality of life, Italy is expected to welcome 3,600 new millionaires this year, while Portugal and Greece will attract 1,400 and 1,200, respectively. Switzerland, which retains its traditional appeal with its stability and privacy, is expected to welcome 3,000 more millionaires.

On the global wealth migration map, the United Arab Emirates (UAE) continues to assert its position as the number one “paradise”, expected to attract 9,800 millionaires in 2025, thanks to its preferential visa policy and dynamic business environment. The US remains the second most attractive destination with 7,500 millionaires. New hotspots such as Thailand, Montenegro, Saudi Arabia and Costa Rica have also begun to record significant capital flows from the super-rich.

The exodus of 16,500 millionaires is more than just a number. It is a clear sign of the UK's declining international standing.

The departure of the super-rich means not only a loss of tax revenue, but also a loss of investment capital, management know-how, and job creation. To maintain its role as one of the world’s leading financial centers, London needs systemic changes, from tax policy, to investment climate, to market confidence. Otherwise, Wexit could be just the beginning of a more serious downturn for this once-proud economy.

Source: https://dantri.com.vn/kinh-doanh/lan-song-wexit-khi-nuoc-anh-khong-con-hap-dan-gioi-sieu-giau-20250625230338903.htm