Young Millionaires from the UK and France Eye UAE as New Home
A new report has found an interesting trend cropping up in the activities of millionaires in the United Kingdom and France. The finding is that a number of these millionaires are now taking serious thought to moving to other countries. Indeed, let us understand the details of this report and the implications of this potential “wealth exodus.”
The Affluence & Elections Survey: Key Findings
The Affluence & Elections Survey, commissioned by Arton Capital, gives interesting insights into the mindset of millionaires in two of Europe’s key economies. Answers were obtained from 518 people with serious money to their name:
• 256 French Residents with net assets of at least €1 million
• 262 UK Residents with net assets of at least £1 million
• 26% of respondents having a net worth above £/€5 million
The timing of this survey comes at an appropriate time because it took place after the elections in both countries, in which left-wing governments rose to power. This political change seems to be scaring the wealthy for their financial future.
Key Figures:
– 44 percent of millionaires polled more likely to leave now than prior to the midterms
– As many as 21 % of young millionaires aged 25-40, identified the United Arab Emirates
– Ninety per cent showed concerns about the likely tax hike by their new regimes
– 79% felt that they would access better economic and living opportunities overseas
Why Are They Considering Relocation?
Various factors identified through the survey drive them towards considering a move, including:
1. Economic Concerns: Most of the wealthy individuals are concerned about probable tax increases and changes in regulation that may hurt them both personally and from business aspects; only 7 percent of the respondents said they weren’t concerned about the future of their economies.
2. Quality of Life: A whopping 66% cited quality of life as one of the reasons that make them think of emigrating. In effect, this goes on to prove that riches alone will not suffice; rather these people look forward to an all-round improvement in living.
3. Safety and Security: Against the backdrop of unrests in both the UK and France in recent times, 33 percent of the people cited safety and security as reasons for intending to move.
4. Business opportunities: Most of them sense more opportunities for entrepreneurship and investment elsewhere, particularly in booming sectors such as technology.
The UAE: The Rising Star for Wealthy Expats
Growing massively on the radar of young millionaires has been the United Arab Emirates, especially Dubai. Below, here’s why the UAE is doing so well with the wealthy:
* Tax Benefits: The UAE has adopted a zero policy in personal income tax, which significantly lures high-net-worth individuals who plan to preserve their wealth.
– Business-Friendly Environment: The country has branded as an international entrepreneurial venue, comparative to financial capitals such as New York, Singapore, and London. Its permissive regulations and support for investors make it an ideal place to set up startups or expanding businesses.
– Modern Lifestyle: Cities like Dubai provide an excellent mix of ultramodern amenities with a feel of still being community-based. Plus, the good weather all year round pleases many.
– Political Stability: In a region often characterized by turbulence, the UAE emerges as an island of stability, giving the security that the wealthy take first and foremost.
– Strategic Location: The UAE’s position as a gateway between East and West makes it an attractive hub for international business operations.
Other Popular Destinations
While the UAE is gaining traction, North America remains a strong contender for relocating millionaires:
United States: 31% cited the USA as a preferred destination due to its huge economy and booming tech industry.
Canada: 32% were interested in moving to Canada, especially among French millionaires looking to leverage long-standing cultural ties and enjoy the high standards of life.
The Appeal of “Golden Visas”
For many wealthy people considering a move, “Golden Visa” and “Citizenship by Investment” programs hold great interest. In fact, 34 percent of millionaires responded that they would be “very likely” to use such programs, which grant residency or citizenship in a new country in exchange for major investments. They can yield increased global mobility, tax benefits, and a “Plan B” for uncertain times.
Implications of the Wealth Migration Trend
Such a potential exodus of the rich may have sweeping implications:
1. Brain Drain: This outward flow of millionaires could be accompanied by a loss of talents, skills, and job-creating abilities from their home countries.
2. Tax Base Erosion: Tax revenues in home countries could take a big hit from the outward flow of high net-worth individuals in large numbers.
3. Receiving Countries Benefit: Countries like the UAE will benefit by hosting such wealthy and skilled persons, along with their investments.
4. Re-evaluation of Policy: Countries that face exodus by rich individuals will have to rework their taxation and economic policies to be more competitive.
5. Global Redistribution of Wealth: This could turn out to be one of the reasons behind global wealth redistribution, again altering economic power structures.
Conclusion
The results of the Affluence & Elections Survey encapsulate a growing unease amongst the wealthy in the UK and France. As many millionaires, most of them young, are now looking to move out, countries like UAE are trying to market themselves as the next destination. This development mirrors the rising global mobility of wealth and talent, posing a challenge but also an opportunity for countries around the world. The impact of this wealth migration on global economics, politics, and society at large has to be watched as this process unfolds.
