A significant shift is underway in the UK’s financial landscape following the abolition of the long-standing non-domiciled tax status. With new tax reforms on the horizon, reports note that 42% of High-Net-Worth Individuals (HNWIs) actively seek to transfer their wealth to more tax-friendly jurisdictions. This trend reflects a broader global movement among affluent investors prioritising financial security, favourable tax structures, and long-term wealth preservation.
The UK’s non-dom tax regime, which has existed for over 200 years, allowed residents domiciled elsewhere to avoid paying tax on foreign income and capital gains for up to 15 years. As of 2023, an estimated 74,000 individuals benefited from this status. However, proposed reforms have triggered widespread concern. According to Oxford Economics, nearly 98% of surveyed non-doms said they would leave the UK sooner than planned if the tax changes were implemented. Additionally, 63% of wealthy investors indicated they would exit the UK within two years or sooner. Meanwhile, 67% stated they would never have moved to Britain had these changes been in place earlier. The primary driver for this exodus is inheritance tax, cited by 83% of respondents, followed by income and capital gains tax revisions (65%).
The implications of tax changes
The destinations of choice for these departing HNWIs include Switzerland, Monaco, Italy, Greece, Malta, Dubai, and the Caribbean, all offering favourable tax regimes and financial incentives. The EU stands to gain the most, with an estimated 6,500 British millionaires relocating to European countries such as Italy, Portugal, Switzerland, and Spain. The UAE will attract 800 HNWIs, while the US, Australasia, and the Caribbean will also see a notable influx.
In what some have dubbed “WEXIT” (Wealth Exit), the UK’s wealth migration is expected to include 85 centi-millionaires and 10 billionaires, with 68% opting for Europe. As the UK navigates this period of economic and political uncertainty, its elite investors are choosing to safeguard their wealth in more stable, tax-efficient environments—a trend likely to shape the future of global wealth distribution.
Why a second citizenship is a wealth investment
To achieve this, the UK’s affluent are turning to residency or citizenship-by-investment programs to benefit from the favourable tax regimes of these sought-after countries. These programs typically require substantial financial commitments, such as real estate investment, capital transfer, business development or government donation.
Beyond tax advantages, a new residency can provide strategic benefits in estate planning, ensuring wealth preservation and smooth inheritance with minimal tax exposure. Many countries offer low or zero tax rates on foreign income, allowing HNWIs to protect and grow their assets while gaining visa-free access to Europe and other tax-friendly jurisdictions.
Stand-out options in Europe
For these reasons, Portugal, Malta, and Greece have emerged as prime destinations for high-net-worth individuals (HNWIs) seeking residency through investment.
For example, Portugal’s Golden Visa program offers residency through non-real estate capital transfers starting from EUR 250,000. In 2024, the Non-Habitual Resident (NHR) tax regime was replaced by the IFICI regime. The new regime focuses on scientific research startups and specific professions, applying a 20% tax rate. Portugal also established Double Taxation Agreements with over 70 countries, ensuring individuals do not pay taxes on the same income in Portugal and other countries. These benefits, coupled with Portugal’s high quality of life and strategic EU location, make it a top choice for investors.
Similarly, Malta’s Global Residence Programme (GRP) offers a 15% flat tax rate on foreign income, no tax on foreign capital gains, and no inheritance or wealth taxes, making it an appealing jurisdiction for wealth preservation and investment. Malta residency can be obtained by investing in real estate, either property purchase from EUR 375,000 or rent from EUR 14,000 per year plus government fees, while Maltese citizenship can be obtained by investing EUR 700,000 in real estate purchase or EUR 16,000 annual rent plus government fees.
Greece’s Golden Visa program also attracts investors, primarily through real estate investments, despite lacking a specialised tax regime like Portugal and Malta.
Greece applies to gift and inheritance tax at graduated rates depending on kinship, up to 10% in the case of spouses, children, and grandchildren and up to a maximum of 40% in other cases. However, it remains advantageous due to the absence of a wealth tax and a 7% flat tax rate on foreign pension income for retirees relocating to Greece.
Caribbean Citizenship by Investment (CBI) Programs
Caribbean CBI programs offer citizenship through investments in real estate or government funds, providing tax benefits and greater global mobility at a starting cost of USD 200,000. Except for Antigua and Barbuda, which requires a five-day stay within the first five years to renew the passport, these jurisdictions have no physical residency requirements.
These programs grant visa-free access to numerous countries, including the Schengen Zone, and the right to live, work, and settle in other CARICOM nations. With no income, capital gains, inheritance, or wealth taxes, the region’s favourable tax policies make it an attractive choice for investors seeking wealth preservation.
The time to act is now
As the tax landscape evolves, so does the need for proactive wealth management strategies. For HNWIs considering their options, exploring residency and citizenship through investment solutions is more relevant than ever. These programs can be transformative if you want to diversify your investment portfolio, enhance your global mobility, or secure a more favourable tax environment.
Contact Citizenship Invest today to discover tailored residency-by-investment solutions that can help you navigate this new financial landscape. Our team of experts is ready to assist you in safeguarding your wealth and maximising your opportunities in the global market.
