More wealthy migrating to benefit from special tax regimes
A record 128,000 individuals with a net worth exceeding €1 million are expected to change their country of residence this year, exceeding the previous year’s record of 120,000, according to UK-based consultants Henley & Partners.
The reason for the new record are plans by the UK’s new Labour government that will abolish or significantly modify the favorable tax regime for the rich; fears that a left-leaning government in France might reintroduce a special tax on big fortunes; and Italy’s raising of the annual tax imposed on wealthy migrants choosing it as their tax haven to €200,000 per year.
Favored destinations are Dubai, Switzerland and Singapore, as well as EU countries such as Greece, Spain and Ireland.
But the last three also face pressures to raise taxes on wealthy migrants, because, even though they bring wealth and high consumption, they also cause problems for locals in the form of higher property prices and public infrastructure problems.
