Portugal benefiting from the WEXIT effect

• 29 October, 24

Around 9,500 high-net-worth individuals (HNWIs) are expected to leave the UK this year, with most set to relocate to the EU, which is projected to attract over 6,500 of these millionaires by December’s end. The UAE ranks as the second most popular destination, anticipating an increase of about 800 HNWIs from the UK, followed by the US (+720), Australasia (+300), and the Caribbean Islands (+250).

In line with the 2024 Henley Wealth Migration Dashboard, Henley & Partners and New World Wealth have released an updated forecast ahead of the upcoming UK budget. Data collected over the past nine months suggests that the UK’s “WEXIT” will include 85 centi-millionaires and 10 billionaires, with 68% expected to settle in European countries, particularly Portugal, Italy, Malta, Greece, Switzerland, Monaco, Cyprus, France, Spain, and the Netherlands.

Stuart Wakeling of Henley & Partners’ UK office notes that in the last six months, applications from UK investors for migration programs surged by 160% compared to the previous period, moving the UK from 20th to 4th in global demand. The UK’s high taxes and the potential for additional increases under Labour’s budget are driving factors. New World Wealth’s Andrew Amoils highlighted that the UK’s capital gains and estate taxes are among the highest worldwide, contrasting with countries like Singapore and the UAE, which levy no capital gains tax.

Peter Ferrigno, Henley & Partners’ Director of Tax Services, pointed out the limited fiscal options for the new government, with inheritance tax standing at 40% on estates above GBP 325,000 and potential tightening around the ‘carried interest’ tax loophole.

Cre: portugalnews