Increasing Numbers of Wealthy Individuals Migrating to Take Advantage of Tax Incentives

A record 128,000 individuals with a net worth exceeding €1 million are projected to relocate this year, surpassing last year’s high of 120,000, as reported by UK-based consultancy Henley & Partners.

This surge is largely driven by upcoming changes from the new Labour government in the UK, which plans to either eliminate or significantly alter the tax benefits currently enjoyed by the wealthy. Additionally, concerns about a potential left-leaning government in France reintroducing a special tax on high-net-worth individuals, along with Italy’s decision to raise its annual tax for wealthy migrants to €200,000, are prompting many to seek more favorable tax environments.

Popular relocation choices include Dubai, Switzerland, and Singapore, as well as certain EU countries like Greece, Spain, and Ireland.

However, these latter nations are under increasing pressure to adjust their tax policies for wealthy migrants. While these individuals contribute significantly to the economy through wealth and consumption, they also create challenges for local communities, such as rising property prices and strains on public infrastructure.