The low-tax countries wooing the world’s wealthy

Europe's super-rich are increasingly relocating due to changes in tax regimes and political uncertainties. The UK's recent decision to abolish its "non-dom" tax regime, which allowed wealthy foreigners to avoid taxes on overseas income, has prompted a significant exodus of millionaires. Similar patterns are seen in France, Norway, and other European countries where political instability or tax reforms are driving the wealthy to seek more favorable conditions elsewhere.

Countries like Switzerland, Italy, and Monaco are becoming popular destinations due to their attractive tax regimes, but these privileges are under growing political scrutiny, leading some nations to tighten or modify their offerings. The global competition to attract millionaires has intensified, with newer players like Dubai and Singapore joining traditional havens.

The migration of the wealthy has broader implications, such as potential impacts on local economies and the risk of political backlash. There are concerns about the sustainability of such tax regimes amid rising populism and global efforts to standardize tax rules. This trend reflects significant shifts in the global economic landscape, with tax considerations being a key factor in relocation decisions.

For more information see Emma Agyemang "The low-tax countries wooing the world’s wealthy" The Financial Times, August 11, 2024. 

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.