Why Are UK Millionaires Moving Out of the United Kingdom to the United States of America?

Recent trends reveal an unprecedented exodus of wealthy individuals from the UK, with many heading for the United States and other destinations. 

Britain is projected to lose about 16,500 millionaires in 2025 alone, the highest net outflow of high-net-worth individuals of any country in the world. 

This millionaire migration is not happening in a vacuum – it’s driven by a combination of domestic policy changes and economic factors that have eroded the UK’s attractiveness for the wealthy. 

From sharply higher taxes (including the end of favorable non-domicile tax status) to declining economic confidence post-Brexit, the UK’s environment for millionaires has turned much less hospitable. 

Meanwhile, countries like the United States are poised to gain from this outflow, offering economic opportunity and investor-friendly immigration pathways. Below, we delve into why UK millionaires are moving out – and why so many have their eyes on the USA – and explore U.S. visa options such as the EB-5 and E-2 visas that can facilitate this move.

Taxation: A Growing Burden on the Wealthy

Tax policy is perhaps the biggest catalyst of the current millionaire exodus. In recent years the UK government has implemented tax changes that significantly increase the burden on high-net-worth individuals, prompting many to seek friendlier tax jurisdictions. Key tax-related factors include:

• Increased Tax Burden: The UK has raised several taxes affecting affluent residents – from higher capital gains taxes to steeper inheritance taxes – making the country far more expensive for the wealthy to live and invest in. Notably, major tax hikes in late 2024 increased rates on capital gains, inheritance, and even corporate profits. The latest budget by Chancellor Rachel Reeves also “penalized wealthy foreigners” by eliminating prior tax protections and imposing full UK taxes on their worldwide income, capital gains, and estates. Under these new rules, a wealthy individual living in Britain for five years faces a top income tax rate of 45% and capital gains tax of around 24%, and after ten years, their global assets can be hit with Britain’s 40% inheritance tax. Such heavy taxation has directly reduced the net rewards of staying in the UK for the rich.

• Abolition of Non-Domicile Status: Perhaps the most pivotal change was the abolition of the centuries-old “non-dom” tax regime. For decades, non-domiciled residents (often international millionaires in London) enjoyed a special status allowing them to avoid UK taxes on foreign income and to shield overseas assets from UK inheritance tax. This regime made Britain a magnet for global elites with international assets. However, as of April 2025, the non-dom advantage is effectively gone – wealthy foreigners in the UK are now taxed on worldwide income after a short period, and even their overseas holdings become subject to UK taxes over time. Specifically, foreigners who reside in Britain more than four years must pay UK income and capital gains taxes on their global earnings, and if they remain 10 years, their entire worldwide estate can be subject to the UK’s hefty 40% inheritance tax. Eliminating this favorable tax status has been “the biggest reason for millionaires to take the exit door from the UK”, according to wealth migration analysts. Simply put, Britain no longer offers the tax perks it once did, so many international millionaires see little incentive to stay – especially when other countries still court them with generous tax benefits.

• Impact on Wealth Management and Family Offices: These tax changes don’t just affect the millionaires themselves – they also impact the broader financial ecosystem that caters to them. The UK’s wealth management and family office sector thrives when affluent clients base their assets and investments in Britain. Now, as clients depart, that industry is feeling the strain. Many family trusts and offices are considering relocating their assets (and even operations) out of the UK in response to the new taxes. Jurisdictions like Italy, for example, have introduced attractive alternatives – a flat tax on global income, no wealth or inheritance tax, and no requirement to disclose foreign assets – luring wealthy families to move their wealth abroad. As more ultra-rich families shift funds to tax-friendlier countries, local UK private banks and advisors lose business, further diminishing the country’s appeal to the rich. The overall message sent by Britain’s tax policy is one of hostility to high earners, and as one analyst bluntly put it, this “toxic mix of historically high taxes and the abolition of the non-dom regime” has resulted in thousands of the world’s wealthiest individuals fleeing the UK.

  
  

Economic Factors: Declining Confidence in the UK Economy

Beyond taxation, broader economic and political factors have shaken wealthy individuals’ confidence in the UK’s future. Many millionaires perceive better growth prospects and stability elsewhere, including in the United States. The key economic drivers of this trend include:

• Declining Economic Confidence: The UK’s economic performance in the past decade has been lackluster, especially compared to other major economies. Wealthy investors are highly attuned to such trends. Professor Trevor Williams notes that the UK is the only country among the world’s top 10 wealth markets to see a net decline in its millionaire population over the last decade – a reflection of stagnating wealth creation. Since 2014, the number of millionaires in Britain actually dropped by around 9%, even as other countries saw sharp increases. This mirrors weak market returns; for example, over the previous decade, the UK’s FTSE 100 stock index barely grew (around 0%), whereas the U.S. S&P 500 surged by over 180% in the same period. Such statistics underscore why capital and talent flow toward more dynamic economies. Many affluent Brits and foreign investors in London have concluded that greater “opportunity, freedom, and stability lie elsewhere,” as Henley & Partners’ CEO observed. When the outlook at home is of high taxes and low growth, the incentive to move one’s money – and oneself – to a faster-growing environment becomes very strong.

• Brexit and Political Uncertainty: The turbulent political climate in the UK, marked most prominently by Brexit, has further undermined confidence for wealthy residents. Britain’s exit from the EU introduced significant uncertainty and complexity for businesses and investors. The country gave up seamless access to the European single market, and contrary to some expectations, it did not promptly gain new flexibility or deregulation to compensate. Instead, Brexit led to the loss of certain financial activities (like some Euro clearing business) to EU hubs and created new barriers. The promised “Global Britain” boom has been slow to materialize, leaving many affluent individuals feeling that the UK is less attractive and less predictable than it once was. Frequent shifts in government and economic policy in recent years (several different Prime Ministers and fiscal U-turns within a short span) have added to a sense of instability. This political uncertainty is a major red flag for high-net-worth individuals. As wealth advisors note, uncertainty is the number one deterrent for the wealthy – and the UK has had it in spades. By contrast, other countries appear more stable: for example, the United States, despite its political debates, offers a huge, diversified economy that is generally seen as more stable for investors. In short, Brexit and its fallout have made some rich individuals feel the UK’s future is unpredictable, prompting them to seek security in places like the U.S. or calmer European jurisdictions.

These factors combined have made the UK a less welcoming place for millionaires than it once was. The numbers tell the story: wealth migration reports forecast the UK will lead the world in net millionaire outflows in 2025, far surpassing other high-tax countries. At the same time, the United States is projected to enjoy a significant net inflow of millionaires (about +7,500 in 2025). America’s continued status as a financial and innovation powerhouse – and a country that actively welcomes wealthy investors – has not gone unnoticed by those looking to leave Britain.

The United States: An Attractive Destination for UK Millionaires

Given the UK’s changing landscape, it’s no surprise that many British millionaires (and foreign millionaires leaving London) are looking toward the United States as their new home. The U.S. offers a combination of economic opportunities, relative stability, and specific immigration pathways for investors and entrepreneurs. Unlike the UK, which scrapped its “golden visa” investor program in 2022 and has been tightening rules for wealthy immigrants, the United States continues to extend an invitation to those who can invest in America’s future. Two visa options are particularly well-suited for high-net-worth individuals from the UK: the EB-5 Immigrant Investor Visa and the E-2 Treaty Investor Visa.

• EB-5 Immigrant Investor Visa: The EB-5 program is one of the most straightforward routes to U.S. permanent residency (a green card) for wealthy individuals. Through the EB-5 visa, a foreign investor (and their immediate family) can obtain green cards by making a substantial investment in a new U.S. business or development project that creates jobs for American workers. The minimum investment required is significant – typically $1.05 million, or a reduced threshold of $800,000 if investing in a targeted high-unemployment or rural area (Targeted Employment Area) – and the project must create at least 10 full-time U.S. jobs for a successful application. In return, the investor gains the right to live in the United States permanently, with all the benefits that status entails. The EB-5 visa does not require a U.S. sponsor or employer; the investor’s capital and commitment to job creation are what qualify them. For UK millionaires who have the means, the EB-5 is an appealing option because it provides a direct path to U.S. permanent residency for themselves, their spouse, and children under 21. It’s essentially an opportunity to “invest your way” into America, and it has become increasingly popular for those leaving countries with unfavorable climates for the wealthy. (Notably, the UK’s closure of its own investor visa stands in stark contrast – whereas Britain has shut the door on investor immigrants, the U.S. keeps this door open.)

• E-2 Treaty Investor Visa: For those who may not wish to commit such a large sum or who prefer to actively run a business in the U.S., the E-2 visa is another excellent pathway. The E-2 Treaty Investor Visa is a non-immigrant visa (temporary but renewable long-term) available to citizens of countries that have a commerce treaty with the U.S. – and the United Kingdom is one of them. The E-2 visa allows UK entrepreneurs or investors to move to the U.S. to start or purchase a business, as long as they invest a “substantial” amount of capital and will develop and direct that enterprise. Unlike the EB-5, there is no fixed dollar minimum for E-2; the investment just must be significant relative to the type of business (often starting from around $100,000+ for small enterprises, though many invest more). The E-2 visa can be obtained relatively quickly and can be renewed indefinitely (in five-year increments for UK nationals) as long as the business remains operational and the visa requirements continue to be met. While the E-2 is not a direct route to a green card (since it is a non-immigrant classification), it offers a great deal of flexibility. E-2 investors can bring their spouse and children (who can attend U.S. schools, and spouses can often obtain work authorization), and they can live in the U.S. long-term, running their enterprise. For many wealthy individuals, the E-2 visa serves as a springboard – it lets them establish themselves in America through business, and later they might pursue permanent residency via other means (for example, some convert an E-2 to an EB-5 by expanding their investment, or explore family or employment-based green cards down the line). The key point is that the E-2 gives treaty investors from the UK a viable, simpler way to reside in the U.S. and enjoy its opportunities without the huge upfront investment the EB-5 requires.

Both the EB-5 and E-2 visas underscore a larger reality: the United States is actively welcoming the very millionaires that the UK is currently pushing away. The U.S. has programs in place to encourage foreign investors to bring their capital, talents, and families. This investor-friendly stance, coupled with the robust U.S. economy and its world-class business environment, makes America a natural destination for footloose millionaires. Indeed, the Henley Wealth Migration Report projects the U.S. will gain a substantial number of millionaires in 2025, second only to the UAE, while the UK tops the list of millionaire losses. Wealthy British individuals are recognizing this trend and strategically relocating to jurisdictions where they feel their wealth is valued rather than targeted.

Moving Forward: Planning Your Move to the U.S.

The decision to relocate as a high-net-worth individual is complex – involving financial, lifestyle, and immigration considerations. If you are a UK millionaire (or any foreign investor) contemplating a move to the United States, it is crucial to plan carefully and understand the immigration pathways available. This is where SmartInvestorVisas.com can help. As a U.S. immigration law firm with extensive experience in investor visas, we have guided many clients through the EB-5, E-2, and other visa processes to successfully make America their new home.

Contact our team today for a personalized consultation. We will work with you to evaluate your options, whether it’s the EB-5 Immigrant Investor route to a green card or the E-2 Treaty Investor visa to start your business in the U.S. Our attorneys will provide expert guidance at every step – from navigating visa requirements to handling the paperwork – to ensure a smooth transition. Don’t let opportunity pass you by.