Britain is becoming a less attractive location for the wealthy, a report suggests.  

The migration consultancy Henley & Partners said tax reforms, fiscal uncertainty and policy changes were prompting wealthy families in Britain to 'reassess their options'.

The firm, which helps high net worth individuals secure visas and relocate abroad, said Britain had gone from being its twentieth-largest source of new clients in 2018, to its fifth-largest today.

Its 'Millionaires on the Move' report said the abolition of the non-domiciled tax status regime, changes to inheritance tax, the closure of the 'golden visa' for investors in Britain and a 'broader climate of fiscal and policy uncertainty' has downgraded Britain's status as an appealing location for the wealthy.

It was named as one of five countries where wealthy residents were considering packing their bags, along with Germany, Norway, South Korea and France. 

Stuart Wakeling, managing partner at Henley & Partners UK, told This is Money Britain faces far greater competition for globally mobile families than it did a decade ago, with locations such as Portugal, the United Arab Emirates and Singapore now vying for their attention.

He said: 'On the one hand, a series of tax and policy changes have prompted wealthy families already living in the UK to reassess their long-term plans. 

'On the other, the closure of the Tier 1 Investor Visa [also known as the golden visa] removed one of the country's principal routes for attracting international entrepreneurs and investors. 

'At the same time, countries such as Italy, Greece, Portugal, the UAE, and Singapore have been actively strengthening their proposition.' 

Douglas McWilliams, founder at the Centre for Economics and Business Research, added: 'High-net-worth migration is the canary in the coal mine for economic policy.

'If wealthy people are leaving a country en masse, you can be reasonably sure that the country's economic policy isn't working.' 

Why is Britain less appealing to the wealthy?

Rachel Reeves announced a series of tax hikes in her Autumn Budget in November 2025 that will hit people’s hard-earned wealth. 

This included a new mansion tax as well as higher income tax rates on property and dividends.

Properties in England worth more than £2million are to face a council tax surcharge of £2,500 to £7,500 on top of the thousands they already pay. 

In 2024, the Chancellor also unleashed £40billion of tax hikes in the Autumn Budget.  

Anita Wright, a chartered financial planner at Ribble Wealth Management, told the news agency Newspage: 'Scrapping the non-dom regime, pulling foreign assets into inheritance tax, the mansion tax, higher rates on rental income and dividends. Each one looks reasonable on its own, but together they read as a message: you are a target.'

It is not only the tax that is putting off wealthy residents, but also the constant changes of policy. 

Nouran Moustafa, practice principal at Roxton Wealth, said: 'The wealthy are not all packing bags because they dislike paying tax. Many accept tax. What they dislike is unpredictability. When Dubai, Italy, Switzerland and other jurisdictions offer clearer planning, the UK starts to look less competitive.'

Meanwhile, Tony Redondo, founder of Cosmo Currency Exchange, said if Britain persists in disincentivising the wealthy, a 'brain drain' of talent will worsen. 

Redondo said: 'The primary catalyst is the dismantling of non-domiciled tax status, stripping the UK of its main structural advantage for international capital.

'Bringing offshore trusts into the 40 per cent inheritance tax net, alongside capital gains volatility and tighter carried interest rules, creates severe multi-generational exposure. 

'The fallout will be significant. The top 1 per cent contribute roughly 30 per cent of all income tax. Losing them creates structural deficits requiring either public service cuts or heavier burdens on the middle class. 

'The longer-term consequence is a professional brain drain.'

Where are the wealthy heading to? 

Singapore, Italy, Switzerland, Greece, Hong Kong, and New Zealand are growing in appeal to the well-heeled. 

Singapore was found to be underpinned by 'political stability, strong institutions and deep capital markets', Henley & Partners said.

The Cayman Islands, Cyprus, the Netherlands, Portugal, Italy and Bermuda were also proving popular with the wealthiest individuals and families, the report said. 

On Portugal, local property experts at agent Goldcrest said: 'Compared with luxury benchmarks in London, Paris, New York, and Dubai, Portuguese properties offer significantly more space for equivalent investment, with strong capital appreciation potential in a maturing, diversifying market.'  

Goldcrest added: 'Portugal offers EU membership benefits, a stable jurisdiction, and robust links to Europe, the Americas, Africa, and Asia.' 

On Italy, Henley & Partners said: 'Italy is among the leading success stories of 2026. Interest continues to be driven by its flat-tax regime for new residents, favourable inheritance tax framework and access to the EU market, with Milan increasingly emerging as an international financial and family office center.' 

Justin Alexander, a director at Khalij Economics, said the Gulf had proved 'remarkably resilient in the face of an historic shock' of war. 

Henley & Partners said it recorded a 41 per cent increase in enquiries from UAE-based individuals between the final quarter of last year and the first quarter of this year, while applications for alternative residence or citizenship rose by 29 per cent over the same period. 

Alexander said: 'While uncertainty may influence short-term behaviour, the region's long-term appeal remains underpinned by low taxation, strong connectivity, high quality of life, and increasingly sophisticated financial services.'  

In its analysis, Henley & Partners scrutinised a range of factors in different countries, including tax treatment, the rule of law, quality of life, options for investors and geopolitical stability.  

Henley & Partners said many wealthy people are now looking to build 'sovereign portfolios' of residence rights, citizenships, investments and business interests across multiple jurisdictions. 

'For much of the past century, governments could largely treat their wealthiest residents as a relatively fixed asset - rooted by businesses, family ties, and limited international mobility', Dr Jurgen Steffen, chief executive of Henley & Partners, said.

He added: 'That assumption is becoming increasingly outdated.'