The UK lost a record 16,500 millionaires in 2025. The non-dom abolition, inheritance tax reform, CGT hikes, and VAT on school fees have triggered the largest wealth migration in British history. Italy — with its €300K flat tax, zero inheritance tax on foreign assets, and world-class lifestyle — is the top European destination. The data, the drivers, and what it means for families considering the move.
Something unprecedented is happening in Britain. According to the Henley Private Wealth Migration Report 2025, the United Kingdom lost a net 16,500 millionaires last year — the steepest outflow ever recorded for any country, surpassing even China. An estimated £66 billion in liquid assets left with them. And the CEO of deVere Group, one of the world's largest independent financial advisory firms, has warned that these numbers could potentially double in 2026.
This is not a media narrative. It is a structural shift in where the world's mobile wealth chooses to live, invest, and raise families. And Italy — specifically Milan — has emerged as the single most popular European destination for these departures.
| Metric | Data | Source |
|---|---|---|
| Net millionaire outflow from UK (2025) | 16,500 individuals | Henley & Partners |
| Estimated wealth leaving UK (2025) | $91.8 billion (USD) | Henley & Partners |
| Net millionaire outflow from UK (2024) | ~9,500 individuals | Henley & Partners |
| Year-on-year increase | +74% | Calculated |
| Projected 2026 outflow | Could potentially double 2025 figures | deVere Group CEO |
| Net millionaire inflow to Italy (2025) | 3,600 individuals | Henley & Partners |
| Italy global ranking for HNWI inflow | #3 (behind UAE and USA) | Henley & Partners |
| UK tax-to-GDP ratio (2025) | ~37% — highest since 1947 | Henley & Partners |
| London millionaires lost (last decade) | ~30,000 | Henley & Partners |
To put this in perspective: the UK's millionaire population is approximately 3 million. A loss of 16,500 in a single year represents roughly 0.5%. But these are not average millionaires. They are disproportionately the wealthiest, most mobile, and highest-tax-contributing individuals — the loss of even a small number has an outsized impact on tax revenue, philanthropy, cultural institutions, and the luxury economy.
The abolition of non-domiciled resident status, effective April 6, 2025, is the single largest driver. For over 200 years, non-doms could live in Britain while paying UK tax only on income remitted to the UK. In 2022-23, approximately 74,000 individuals claimed non-dom status, contributing an estimated £8.9 billion in tax. The replacement — a 4-year Foreign Income and Gains (FIG) exemption — is dramatically less generous and provides no long-term certainty.
Perhaps even more significant than the income tax changes: from April 2025, non-UK assets held in excluded property trusts are brought into the UK inheritance tax net after 10 years of UK residence. This represents a fundamental change in estate planning for internationally mobile families. For a family with a £50M estate in offshore trusts, the potential IHT exposure is £20M — a liability that did not exist before.
The October 2024 Budget raised CGT rates on carried interest and asset disposals. For private equity professionals — many of whom are internationally mobile and based in London — this was a direct hit to after-tax compensation. The carried interest rate increase alone prompted significant relocation planning among London's financial community.
The introduction of 15% VAT on private school fees may seem minor in isolation, but it signals a broader philosophical shift: the UK government is willing to tax the lifestyle choices of the wealthy. For families already considering a move, this was often the tipping point — not because of the cost, but because of the message it sends about the direction of policy.
No single measure would trigger an exodus. But the combination — non-dom abolition, trust exposure, CGT increases, school fees VAT, frozen tax bands, and persistent speculation about a future exit tax or wealth tax — has created a perception that the UK is becoming structurally less attractive for mobile wealth. As one advisor quoted in The National put it about his client's reaction: 'London is nice? It isn't that nice.'
| Destination | Net Inflow 2025 | Key Attraction |
|---|---|---|
| UAE (Dubai) | 9,800 | Zero income tax, golden visa, growing infrastructure |
| United States | 7,500 | Market depth, EB-5 visa, dollar assets |
| Italy | 3,600 | €300K flat tax, zero IHT on foreign assets, lifestyle, EU passport |
| Switzerland | 3,000 | Lump-sum taxation, political stability, banking |
| Singapore | 2,800 | Asian hub, English-speaking, low tax |
| Portugal | 1,200 | Post-NHR reforms, golden visa changes |
| Greece | 1,000 | €100K flat tax (requires €500K investment) |
Italy's position as #3 globally and #1 in Europe is remarkable given that the flat tax was only introduced in 2017. High-profile relocations — including senior Goldman Sachs and Aston Villa figures choosing Milan — have created a snowball effect, drawing more wealth managers, law firms, and luxury services to the city.
Dubai offers zero tax but no EU access, no pathway to citizenship, limited healthcare, and — as many families discover after 2-3 years — a lifestyle that revolves around air conditioning. Switzerland offers stability and discretion but prohibits work under lump-sum taxation and has a longer, more complex path to settlement.
Italy uniquely combines:
The UK non-dom regime allowed foreign income to go untaxed if not remitted. Italy's flat tax goes further: for €300,000 per year (€50,000 per additional family member), ALL foreign income is covered regardless of amount or remittance. There is no 4-year cliff, no retroactive clawback, and no uncertainty about future policy — grandfathering has been consistently applied with every rate increase.
The inheritance tax advantage is what tips the balance for many families. Under the flat tax, foreign assets are completely exempt from Italian inheritance and gift tax. A £50M foreign estate passes to heirs with zero Italian IHT. In the UK under the new rules, the same estate faces up to £20M in IHT after 10 years of residence. Over a 15-year period, the total cost of Italy's flat tax (€4.5M) is dwarfed by the inheritance tax saving alone.
The exodus is not one type of person. It includes:
Moving from London to Milan is not like moving from London to Dubai. There is a genuine regulatory and bureaucratic process that requires professional coordination:
There is growing political pressure on the UK government to act. Former prime minister David Cameron has publicly called for measures to stem the flow. Some reports suggest Chancellor Reeves may be considering reversing the trust IHT changes. But the consensus among advisors is that it is probably too late for those who have already left — and the uncertainty itself is now a driver of further departures.
The independent Office for Budget Responsibility still assumes the non-dom abolition will raise £2.7 billion annually by 2028-29. But research by Oxford Economics suggests that up to 32% of non-doms could leave, which would make the policy a net cost to the Treasury. The actual figure for 2025 appears to have exceeded even pessimistic projections.
If you are a UK-based HNWI considering your options, the window for planning is now. The Italian flat tax regime is open, functioning, and proven. Grandfathering provisions mean that locking in at €300,000 today protects you from future increases for 15 years. The school year begins in September — applications should already be underway. And Milan's property market, while appreciating, remains 40-60% below London equivalents.
The question is no longer whether the exodus is real. It is whether you will be part of it — proactively and on your terms — or whether you will wait until the next Budget makes the decision for you.
There is ongoing speculation but no confirmed plans as of April 2026. An exit tax would tax unrealised gains on departure. Even the threat of one is accelerating relocations — families are moving pre-emptively. Italy does not impose an entry or exit tax.
Yes. Owning UK property does count as a 'UK tie' under the Statutory Residence Test, so you must manage your UK day count carefully. UK rental income is taxable in the UK, but under the Italy-UK double tax treaty and the flat tax regime, it is also covered in Italy.
Your children can attend UK universities regardless of where you live. Tuition fees for non-UK residents may differ for some institutions. Many families maintain a small UK base for university visits while their primary residence is in Italy.
From initial decision to established Italian residency: 6-12 months is typical. The advance tax ruling (interpello) takes 120 days. School applications need 6-12 months lead time. Property search: 1-3 months. The ideal timeline is to begin planning 12 months before your target move date.
Disclaimer: This article reflects publicly available data and reports as of April 2026. Tax laws in both the UK and Italy change frequently. This is not financial or legal advice. Always consult qualified professionals in both jurisdictions before making relocation decisions. The Italian Gateway coordinates these professionals on your behalf.