A new study predicts that UK to lose nearly one in six home-based dollar millionaires by 2028. The consequences of the Russia-Ukraine warthe emergence of New markets and the search for a lower tax pressure emerge as the main reasons why this migration will occur.
In the particular case of the United Kingdom, the research predicted a 17% drop in the number of millionaires. According to estimates, the high-income population would increase from 3,061,553 – registered in 2023 – to 2,542,464 in 2028.
The reasons why millionaires will leave the United Kingdom
The report prepared by UBS Global Wealth Report, in its 2024 edition, predicts a sharp drop in the number of millionaires living in the United Kingdom between now and 2028. In total, it is expected that 17% of the population in this social class will leave the country, representing a drop from 3,061,553 people to 2,542,464.
Paul Donovanchief economist of UBS Global Wealth Managementstated that one of the main reasons for these people leaving the United Kingdom is a search for balance in the current situation. According to the researcher, this country currently has the third largest number of millionairesso its figure is “disproportionately high“.
Another reason points directly to the consequences that Europe is currently suffering as a result of the armed conflict between Russia and Ukraine: “Obviously, in the United Kingdom we have seen in recent years, as in other countries, implications of sanctions against Russia“Donovan said at a news conference.
Finally, the economist also explained that this migration is due to the Search for new destinations with lower tax pressure. “ The non-native millionaire population, the global population – which is constantly changing – will continually seek places with low taxes.“said Donovan, who also added that this “is not an effect of British policies per se” but reflects the “factors of attraction” from other places, such as, Dubai and Singapore.
What is the situation in other countries?
The exodus of millionaires will not only be a problem in the United Kingdom. According to the report, A 4% drop is also expected in the Netherlands, from 1,231,625 to 1,179,328.
On the other side of the spectrum, the study reported that the number of adults with a net worth of more than $1 million will have increased in 52 of the 56 markets studied by 2028. The largest growth of millionaires —from 47%— is expected in Taiwandriven by the microchip industry from the country.
The report detailed what the specific situation will be in each of these markets. Thus, the study expects that the total number of dollar millionaires in United States increases by 16% until 2028, in Germany 14%, in France also a 16%, in Japan 28%in Spain 12% and in Italy 9%.
Source: Ambito
