Millionaires Leaving the UK: Where They Go (2025)

In 2025, a structural shift began in the UK tax base. The abolition of non-domicile status in April 2025 triggered what independent economists at the Oxford Economics unit called a "non-linear behavioural response" - a sharp and sustained outflow of high-net-worth individuals from the UK. This post tracks who is leaving, where they are going, and what it means for the countries receiving them.

Who Counts as a "Millionaire Leaving the UK"?

Press coverage often conflates two separate groups. The first is UK non-doms: individuals who lived in the UK but were domiciled elsewhere, benefiting from the remittance basis of taxation on foreign income. Approximately 68,000 individuals held non-dom status in 2022 (HMRC). These are disproportionately very wealthy - the top 1% of this group paid around 40% of all non-dom income tax.

The second group is broader: high-net-worth individuals (HNWIs) with the flexibility and resources to restructure their tax residency in response to UK tax increases. Since 2024, this group has faced rising CGT rates (now 18-24%), reduced pension contribution limits, and the new non-dom rules. Henley and Partners estimated in their 2025 Wealth Migration Report that the UK would experience a net outflow of approximately 9,500 millionaires in 2025 - one of the highest nationally in absolute terms.

The Numbers Behind the Exodus

The OBR projected 10,800 non-dom departures per year following the reform. But their analysis also included a downside scenario where larger behavioural effects turn the fiscal impact negative - meaning the tax revenue from taxing remaining non-doms fails to compensate for the spending and economic activity leaving with those who depart.

Knight Frank's 2025 Wealth Report noted that the UK's share of global UHNWI (ultra-high-net-worth individuals, above USD 30M) population fell for the second consecutive year. The advisory firm Withersworldwide reported a 40% increase in UK-departure inquiries in the 12 months following the non-dom announcement in the March 2023 Budget.

Where Are They Going?

Departure destinations cluster into four categories, each with a distinct value proposition:

• UAE (Dubai, Abu Dhabi): The default destination for the tax-first decision. Zero income tax, zero CGT, zero inheritance tax. No residency day requirements - a 2-year renewable Golden Visa requires property investment of AED 2 million or above. Drawback: no UK double taxation treaty, 6+ hour flight from London, high cost of living, no EU market access.
• Italy: The EUR 200,000 flat tax regime (Regime dei Neo Residenti) is attractive for very high earners - anyone with foreign income above approximately EUR 4 million per year. It covers all foreign income for a flat annual charge, is valid for 15 years, and requires prior non-Italian residency for 9 of the last 10 years. Popular with hedge fund managers and private equity partners.
• Switzerland: Lump-sum taxation (forfait fiscal) is available in several cantons, calculated at 5-7x annual Swiss living costs. Requires negotiation with cantonal authorities and is only open to non-Swiss nationals who do not work in Switzerland. High living costs, no EU membership.
• Cyprus: The top EU destination. Combines 15% corporate tax, 0% dividend tax for non-doms (17-year window), the 60-day residency rule, EU membership, English-language environment, and significantly lower cost of living than the UK. 4.5-hour direct flight from London. British common law legal tradition.

Why Cyprus Leads Among EU Options

For former UK non-doms choosing an EU destination - driven by a desire to keep EU market access or passport optionality - Cyprus has become the clear leader. The reasoning is consistent across relocation advisors and private wealth managers: Cyprus is the only EU member that combines a personal non-dom regime (comparable in effect to what the UK used to offer), genuinely low corporate tax, a flexible residency test, English as the primary business language, and a common law legal system.

Malta offers a nominally similar regime but its corporate tax refund system is more complex and scrutinised. Ireland has no personal non-dom equivalent. Bulgaria and Romania have low corporate rates but lack the legal infrastructure and quality of life that attract wealth managers and their clients.

What This Means for the UK Treasury

The fiscal arithmetic is uncertain. HMRC's official estimate projected a net gain of GBP 2.7 billion per year from the non-dom reform. The OBR's central scenario agreed, but flagged significant uncertainty around behavioural responses. Their downside scenario showed a net negative fiscal impact if departure rates exceeded 12,000-15,000 per year.

Beyond direct tax revenue, the economic multiplier effects matter. Non-doms and HNWIs tend to be high-spending consumers, significant investors in UK property and businesses, and employers of local professional services. Their departure removes demand from London property, legal, accounting, and private banking sectors.

Cyprus as the Destination: Practical Considerations

For UK nationals specifically, the post-Brexit reality adds a layer of complexity. UK citizens are third-country nationals in Cyprus and cannot use EU freedom of movement. They require a temporary residence permit - typically either a Category F (financially independent person) permit requiring proof of sufficient income, or a permit as a director/shareholder of a Cyprus company.

The practical steps are manageable within 3-6 months: establish a Cyprus company, transfer operations and income streams, spend 60+ days in Cyprus per year, register as a Cyprus tax resident, and apply for non-dom status. The non-dom window begins from the date of first tax registration in Cyprus.

Our Cyprus vs UK comparison page covers the full tax differential, and our Non-Dom status guide explains exactly who qualifies and how to apply. For personalised guidance, visit our services page to book a consultation.

Frequently Asked Questions

How many non-doms are leaving the UK?

The OBR projected 10,800 non-dom departures per year following the April 2025 reform. Broader estimates from private wealth advisors (Knight Frank, Henley and Partners) suggest total HNWI outflows from the UK of 9,000-12,000 individuals annually in 2025, including both non-doms and other high-net-worth residents restructuring their tax position.

Do UK non-doms owe UK tax after leaving?

UK tax residency ends when you cease to meet the Statutory Residence Test. Once non-resident, UK-source income may still be taxable (employment income, rental income from UK property) but foreign income and gains generally fall outside UK tax. A clean break requires careful planning around the timing of asset disposals and income realisation. The UK has a temporary repatriation facility (TRF) allowing former non-doms to bring pre-2025 foreign income and gains into the UK at reduced rates until 5 April 2027.

Is Cyprus the best alternative to UK non-dom status?

For EU-based relocation, Cyprus is the strongest single option. The combination of non-dom regime, 60-day residency rule, EU membership, English legal system, and cost of living advantage is not matched by any other EU member. For those prioritising zero personal tax above all else, the UAE offers lower headline rates but lacks EU access and involves a more significant lifestyle change.

How long does it take to relocate to Cyprus for tax purposes?

Most structured relocations complete within 3-6 months. The key steps are: company incorporation (1-3 weeks), bank account opening (2-6 weeks), residency registration (1-2 months), and tax registration including non-dom application (1-2 months). Day count begins from when you first arrive in Cyprus in the tax year, so planning the calendar year timing matters.

Sources

Official sources: HMRC Non-Domiciled Taxpayers Statistics 2022-23 | OBR Economic and Fiscal Outlook October 2024 | PwC Cyprus Tax Facts 2026.

Knight Frank Wealth Report 2025. UHNWI migration data.

Henley Global Citizens Report 2025. Projected millionaire migration by country.

This article provides general information only. It does not constitute tax or legal advice. Consult a qualified tax advisor for your specific situation.