Navigating New Shores: Essential Tips for a Successful Relocation

With over 135,000 millionaires forecast to migrate from their country of residence in 2025, which regions are high-net-worth individuals likely to consider for relocation?

Which countries offer the most attractive tax regimes along with appealing factors such as climate, safety, and lifestyle? Utmost Wealth Solutions, a provider of insurance-based wealth solutions, examines the countries poised to benefit most from significant wealth inflows. 

Countries such as China and the UK are projected to see the largest capital outflows, underscoring the urgency for wealthy individuals and families to seek favorable destinations. According to Utmost Wealth Solutions, these are the most attractive jurisdictions; however, high-net-worth individuals should also consider the associated risks and challenges.

The UAE

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Dubai (Image: finews.asia)

Attractions:

  • High ratings in personal safety
  • Ease of entry
  • No personal taxes

Considerations:

  • Despite its tax-free status, residents may inadvertently become «accidental taxpayers» if they do not plan their global investment portfolios carefully.
  • The absence of a double tax treaty with the United States can expose residents to US withholding taxes and estate taxes on US assets.
  • The newly introduced Corporation Tax may affect family investment companies, even those structured offshore.

Portugal

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Douro Valley, Portugal (Image: Shutterstock)

Attractions:

  • Favorable climate and lifestyle
  • No inheritance tax

Considerations:

  • The recent dilution of the non-habitual residence regime means fewer individuals may qualify for this attractive tax treatment, potentially exposing their wealth to higher tax rates.
  • Although there is no inheritance tax, a 10 percent stamp duty may apply to certain asset transfers upon death.
  • With careful planning, tax on investments can be reduced to as low as 11.2 percent, and assets can be passed on free of capital gains tax and additional stamp duties.

Italy

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(Image: Ante Hamersmit, Unsplash)

Attractions:

  • Pleasant climate and lifestyle
  • Four special «expatriate» tax regimes, including one for HNW individuals allowing them to pay a flat annual tax of 200,000 euros for 15 years

Considerations:

  • The expatriate regimes are designed to encourage long-term residency.
  • Clients should consider structures that extend beyond the special tax period to reduce long-term income and inheritance tax exposure.

Monaco

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Monaco's casino (Image: Shutterstock)

Attractions:

  • Exceptional personal safety
  • No personal taxes

Considerations:

  • Similar to the UAE, individuals risk becoming «accidental taxpayers» due to Monaco’s limited network of double tax treaties.
  • Failure to address tax implications in beneficiaries’ home countries during succession planning may lead to unexpected tax liabilities.
  • Inheritance tax in Monaco can also apply to foreign assets if not structured appropriately.

Australia

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Circular Quay, Sydney, Australia (Image: Srikant Sahoo, Unsplash)

Attractions:

  • Attractive climate and lifestyle
  • No inheritance tax

Considerations:

  • Although Australia does not impose an inheritance tax, it ranks among the top jurisdictions for income taxes, with marginal rates reaching up to 47%.
  • The country’s broad anti-avoidance provisions can result in punitive taxation for offshore trusts and company structures.
  • With proper planning, it is possible to shelter investments in a manner that reduces tax on those investments to zero.

«The changing legislative and macro-economic landscape is driving significant shifts in migration trends for HNW clients. While some countries are tightening their fiscal policies toward wealth, others are capitalizing on the opportunity to create a more attractive environment for high-net-worth individuals,» Brendan Harper, Head of Asia and HNW Technical Services at Utmost Wealth Solutions, said.