Tax systems help governments collect revenue to run their countries. However, high taxes tend to reduce investor interest, resulting in the millionaire migration among HNWIs. The projection for global wealth migration hints at the relocation of 142,000 millionaires in 2025, 8,000 more than the previous year. The UK might lose a staggering 16,500 millionaires in 2025, which is the highest in the world.
What Is Millionaire Migration?
Millionaire migration is a growing trend that highlights the relocation of people with a wealth of $1 million or more. The migration of millionaires shapes global markets. Wealthy individuals do not relocate merely for lifestyle; they move to protect their wealth from high taxes and political and economic instability. Far from being about lifestyle, these relocations significantly impact real estate, investment flows, and overall economic activities.
Global Changes Are a Major Cause for Millionaire Migration
The millionaire migration affects nations in both positive and negative ways. Countries facing challenges such as political instability at the local and global levels, economic crises, or high taxes are experiencing outflows of wealth. This situation benefits countries that attract millionaires by offering a safe environment, low taxes, and strong business growth.
Post-Brexit Impact and High Taxes Are Causing a UK Wealth Exodus
Brexit restricts economic activity due to reduced trade access, which further hurts the overall economy, causing a UK wealth exodus. Many millionaires consider Brexit a lost opportunity, and thus, the UK is losing its appeal for wealth preservation and global business activities. CAGE Policy Briefing No. 36 (April 2022) stated that 93% of non doms were born abroad, and another 4% had lived overseas for long periods.
Ending UK Non Dom Status
The non dom tax status was an attractive option for UK millionaires to safeguard their overseas income from double taxation. Previously, a non dom was required to pay UK tax on the revenue earned within the UK jurisdiction. The UK government scrapped the non-dom tax on April 6, 2025, and implemented a tax system based on tax residence. Ending the non dom tax regime is a leading cause of the mass migration of UK millionaires.
High Taxes for Pakistani Businesses and Their Consequences
Pakistan’s economy is struggling due to natural disasters, high taxes, and other issues. Taxes in Pakistan are among the highest in the world, but the tax-to-GDP ratio is still in single digits. Research by LUMS highlights that the share of industry in GDP is 18.4%; however, it is heavily taxed, with a 70% share in tax revenues.
Furthermore, the imposition of a 10% super tax by the government is choking Pakistan’s economy. The Pakistani business community is also facing the same situation, as the government has raised the tax burden to 45% for businesses, undermining a sustainable environment for economic activity and investment.
Here is a view of tax rates in Pakistan across different sectors:
- Companies in Pakistan are taxed at a 29% corporate tax, and an additional super tax of 10% makes it 39%.
- Banks and financial institutions pay a base tax rate of 35%; along with advance tax and withholding tax (WHT), this totals 54%.
- With a 39% corporate tax, Pakistani companies pay a significantly higher tax burden compared to other countries.
This raises the question of why foreign investors should come to Pakistan when they can pay lower taxes and get better facilities and a more conducive environment for business growth.
Comparison of Taxes in the UK, Dubai and the Pakistani Business Sector
Pakistani business tycoon and chairman of Pakistan’s largest business conglomerate, the Nishat Group, Mian Mohammad Mansha, in his tweet compared taxes between the UK and Dubai, pointing to the reasons for the outflow of capital. He raised the alarm that Pakistan’s high taxes should be slashed to a sustainable level to remain competitive in the region.
As highlighted in Forbes’ analysis, Global Tax Shifts: Navigating a New Era of Investment Migration, the table below reveals the clear differences that push UK HNWIs to relocate their wealth to more favorable destinations.
Tax Category | UK | Dubai |
Income Tax | 45% | 0% |
National Insurance | 15% | 0% |
VAT | 20% | 5% |
Corporate Tax | 19-25% | 0-9% |
Capital Gain Tax | 10-28% | 0% |
Inheritance Tax | 40% | 0% |
Property Tax | 5-12% | 2% |
Disclaimer: Rates may differ based on residency and updates. Always verify with a tax advisor. | ||
In my opinion, Dubai fuels its economy with oil revenues, fees, expat inflows, and the relocation of talent. Despite the fact that London is losing its spot as a global financial hub, the UK still survives via high taxes, a large tax base, a $3T economy, and centuries-old business organizations. The issue with Pakistan’s economy isn’t high taxes, but a narrow base that is harming honest and loyal taxpayers.
Wealth Exodus: Where Are UK and Pakistani Millionaires Shifting Their Capital?
When taxes skyrocket, wealth flees to tax-friendly nations, and we see the global migration of HNWIs. To lure millionaires seeking shelter from high taxes, tax havens go the extra mile by offering easy citizenship and residency requirements, mobility to key destinations, and a quality of life that matches expectations.
Countries offer targeted investment-migration programs to attract HNWIs to invest their capital. This includes citizenship-by-investment and residency-by-investment programs. These programs target HNWIs and ultra-high-net-worth individuals (UHNWIs). Wealthy people invest in countries offering a second passport or residency leading to citizenship, and in return, they get umbrella protection by holding second or even multiple citizenships.
The best two investment migration programs against the three KPIs are:
Portugal Golden Visa Reputation | |
KPIs | Points |
Visa Free or Visa on Arrival | 10 Points 1St Rank |
Quality of Life | 09 Points 2nd Rank |
Citizenship Requirements | 07 Points 2nd Rank |
Total Score for Portugal Golden Visa is 26 out of 30 and Ranks 1st when comparing three KPIs, i.e., visa-free or visa-on-arrival, quality of life and citizenship requirements.
Dominica CBI Reputation | |
KPIs | Points |
Residence Requirements | 10 Points 1st Rank |
Physical Visit Requirements | 10 Points 1st Rank |
Processing Time | 08 Points 2nd Rank |
The total score of Dominica CBI is 28 out of 30 and ranks 1st when comparing the three KPIs, i.e., processing time, residence requirements, and physical visit requirements.