The United Kingdom (UK) is witnessing an unprecedented exodus of millionaires. This exodus is marking a significant shift in global wealth migration patterns. Europa Trust Company Ltd explores the motivations behind this migration—and why jurisdictions like Gibraltar are emerging as prime alternatives for those seeking stability, tax efficiency, and quality of life.
London, the capital of the UK has fallen out of the top five wealthiest cities in the world. In the past year, The UK lost 11,300 Dollar millionaires. The UK is now regarded as the third-highest country of outflowing millionaires, surpassed only by China and India.
Why Are Millionaires Leaving the UK?
High Tax Pressure:
Wealthy individuals are facing an increasingly high tax burden in the UK. Increased taxes on income, capital gains, and inheritance are pushing the wealthy to look for tax-friendlier jurisdictions.
Political and Economic Instability:
Years of political upheaval (BREXIT, leadership changes and fluctuating economic forecasts), have led to an environment that many high-net-worth-individuals (HNWI’s) consider too uncertain for long-term wealth planning in the UK.
Diminished Prestige of London:
Once considered a global financial powerhouse, London has fallen out of recent global city wealth ratings. This decline signals broader concerns about the UK’s competitiveness in attracting and retaining the global elite.
So, Where Are They Going?
Australia and the United Arab Emirates (UAE) are popular destinations for these departing millionaires. Australia attracted 5,200 more millionaires in 2023 than it lost, thanks to its investor-friendly immigration policies, strong economy, and attractive lifestyle. The UAE also saw a significant influx due to its tax-free environment and luxury lifestyle offerings- particularly in Dubai.
Gibraltar: A Rising Star for Millionaire Migration
As the wealthy seek destinations closer to home, Gibraltar is increasingly seen as an appealing choice. With its unique blend of British ties and Mediterranean flair, Gibraltar offers the perfect combination of stability, lifestyle, and fiscal benefits.
Key Advantages of Gibraltar
Favourable Tax Environment:
- No Capital Gains Tax – Ideal for wealth growth.
- No Inheritance Tax – Easier generational wealth transfer.
- No VAT – Reduces cost of living and doing business.
Efficient Corporate Structures:
- Minimal administrative burdens – making it easier for businesses to operate.
- Business-friendly regulatory environment.
- Privacy and Confidentiality – Gibraltar provides high levels of privacy for corporate entities and beneficial owners.
Prestige Marine Registry:
- Red Ensign Flag – Globally recognised and respected for high standards and safety.
- Compliance & Safety – Adherence to world-class maritime regulations, compliance and safety at sea.
Lifestyle and Accessibility:
- Mediterranean Living – Enjoy sunshine, scenic views, and a relaxed lifestyle.
- Strategic Location – Easy travel access to the UK, Europe, and North Africa.
Gibraltar: The Millionaires New Consideration:
As global millionaire migration continues to reshape wealth dynamics, jurisdictions like Gibraltar are poised to attract a new wave of affluent residents. With the right mix of tax advantages, lifestyle benefits, and political stability, Gibraltar is fast becoming a compelling alternative for those looking to preserve and grow their wealth outside of the UK and beyond.
Now is the Time to Work with The Europa Group
Europa Trust Company Limited is part of the Europa Group. We have been based in Gibraltar for 40 years and have built a reputation as a stable and reputable business.
We provide a comprehensive range of company and trust formation and management services including company and trust administration, foundations, partnerships, corporate directors, shareholders and secretaries, accounting, marine registration and other associated services.
Our clients are an eclectic mix of international executives, authors, sportsmen, corporations, wealthy individuals, families and many more. Their individual interests and needs are at the centre of our focus. Each client benefits from the experience and multi-jurisdiction knowledge of a dedicated Europa Group professional.
The Europa Group is authorised and regulated by the Gibraltar Financial Services Commission.
If you are thinking of changing your company management, Contact us today to find out how we can help you.
