2024 is not just another election year—it's a year jam-packed with significant political events, including the European elections, British general elections, early elections in France, and the upcoming US presidential election, not to mention past elections and reforms. This bustling schedule is causing concern among the ultra-wealthy, many of whom are increasingly moving to more business-friendly destinations.
A growing number of wealthy individuals moving abroad
The political uncertainty surrounding the European elections has worried many wealthy individuals. Some have chosen to move their money to other countries, with a preference for Switzerland and Luxembourg, two nations often targeted by the European Commission. In 2021, a group of journalists uncovered a vast tax arrangement in Luxembourg that benefited billionaires, millionaires, and other wealthy figures (including politicians, athletes, and artists) by offering them favorable tax conditions. Luxembourg denied these claims, but the revelations were embarrassing. In 2024, the Grand Duchy was again highlighted for its "tax favoritism" (LuxLeaks case). The recent OpenLux scandal revealed that 6,500 billion euros were placed in "offshore" companies between 2018 and 2019.
Currently, ultra-wealthy individuals are returning to Luxembourg and Switzerland. The European Commission removed Switzerland from the list of tax havens in 2019, but despite reforms, the country still carries the tax haven label. In 2021, Switzerland ranked fifth in the , a ranking of countries most tolerant of tax abuses conducted by a collective of university researchers. The Netherlands is just ahead of Switzerland in this ranking. Several European countries are recognized by NGOs as tax havens (Luxembourg, the Netherlands, Malta, Cyprus, and Ireland) but not by the European Commission.
Reasons for leaving
One of the main reasons for leaving is uncertainty. The rise of the far-right is a cause for concern. Chilled by an explosive political climate, worried about the rise of the far-right and Trumpism, some wealthy Americans prefer to emigrate. A similar sentiment is observed among wealthy Europeans, who are also alarmed by the rise of the far-right. Another source of concern is taxes. In the UK, the victory of the Labour Party has sparked fears of tax increases. The same fears are prevalent in France, following the left's victory.
If ultra-wealthy individuals are leaving for countries with more favorable tax regimes, it's because these places offer reduced corporate taxes, fiscal benefits without the need to be physically present, fiscal opacity, and legislation that supports secrecy. This setup is increasingly at odds with the global push for stricter tax rules aimed at transparency.
The fight against tax fraud is intensifying from the United States to Japan, which, in particular, is reeling from tax fraud allegations within the ruling Liberal Democratic Party (LDP). The scandal led to several ministers resigning. Even Prime Minister Fumio Kishida, who has been in office since 2021, announced his resignation on August 14th.
However, it would be risky to associate all billionaire expats with tax fraud and money laundering. While some multimillionaires engage in these practices, many are involved in tax optimization—a legal practice that is encouraged by specialized firms. Tax optimization involves legally reducing tax liabilities using mechanisms established by the state.
The end of Golden Visas is reshuffling the game for wealthy expats
Another reason why ultra-rich individuals are increasingly moving abroad is the end of Golden Visa programs in Portugal, Ireland, the United Kingdom, and Australia. Spain has significantly reduced its program. This is a tough blow for wealthy investors but a win for social justice among the residents.
Nevertheless, the super-rich can still turn to Greece, Italy, Austria, and Malta, which continue to resist pressures from the European Union (EU). Hungary has even reinstated its controversial program—to attract wealthy investors. Outside the EU, wealthy investors are spoiled for choice: Switzerland, United Arab Emirates (UAE), New Zealand, Canada, Turkey, Antigua and Barbuda, Cayman Islands, Vanuatu, and the United States...
Billionaire expats' favorite destinations
Immigration specialists dealing with super-wealthy individuals exchange tips on the best places to invest. While Portugal has announced the end of its Golden Visa, it is still accessible through investment. Antigua and Barbuda exempts foreigners from income tax. Cyprus, Monaco, Hungary, Panama, Italy, and Singapore are other popular destinations. Moreover, despite upcoming elections, major investors can still bet on the United States. Specialists rely on the resilience of the world's leading economic powerhouse.
Although the choice is ultimately based on the client's profile, the UAE seems to attract all categories of wealthy individuals, including entrepreneurs, investors, the new rich, and large fortunes. Most of them choose Dubai, which is proud to attract large international wallets and aims to become the new city of the ultra-rich. So stay tuned for further developments.
