(Sept 10): When Britain’s super rich are looking for more tax-friendly jurisdictions to call home, they are increasingly spoiled for choice.

Recent changes are steadily eroding the UK’s standing as a global wealth hub, hitting everything from London’s high-end real estate to tax receipts. At the same time, a growing number of competing cities — all within a few hours flight and often offering better weather and lifestyles — are honing their pitches to disaffected high earners. In some cases, they’re lobbying the wealthy directly or adopting the policies that once helped establish the UK’s reputation. 

Previously, talk of London’s rivals focused on places like Geneva, Monaco and Milan. Now, money is also being drawn to what some might see as more peripheral locations. 

This week, it emerged that hedge fund trader Chris Rokos is set to leave the UK for Greece, a nation that has previously seen its own wealthy elite flock to London.

The Mediterranean country’s regime exempts overseas income from local levies for 15 years, similar to Italy. Türkiye recently introduced a system which extends that benefit to 20 years and also offers minimal inheritance tax — a particular gripe for many wealthy in the UK where a 40% rate kicks in at relatively low levels. 

The high-profile relocations have piled up in recent years: Switzerland has attracted UK financiers Alan Howard and “godfather of secondaries” Jeremy Coller, while UK real estate moguls the Livingstone brothers departed for Monaco.

“There’s a reasonable number of options in terms of countries that people can move to which are highly tax efficient, a very light tax or effectively zero tax environment,” said Dominic Lawrance, a partner at Charles Russell Speechlys. “Individuals making a massive lifestyle change need to also think about non-tax factors — succession laws, schools, the nightlife, cultural activities. All those things ought to come into the mix when deciding where you’re going.”

While some dispute that the UK has lost its mojo when it comes to the wealthy, the negative mood music is hard to ignore. 

This summer, Michael Platt’s BlueCrest Capital Management said the UK is “no longer a serious contender” as a place to do business after the firm lost a court ruling over how some of its senior traders should be taxed. Billionaire Alex Gerko also failed in a legal battle over deferred trading profits.

In recent years, Milan’s self-styled “empty London” drive has seen an influx of well-heeled individuals such as Goldman Sachs Group Inc’s Richard Gnodde, elevating the Italian city’s profile as a financial centre. 

Meanwhile, the competition to lure the monied elite is intensifying, and not just away from London. Türkiye and Greece are perceived by some as seeking to attract investors and business people away from Dubai and Abu Dhabi after the Middle East war hit the cities’ reputation for stability. 

That’s particularly pointed in the hedge fund world. Billionaire hedge fund titan Ray Dalio has established a family office in Abu Dhabi, while famed oil trader Pierre Andurand moved to Dubai at the start of this year, according to a person with knowledge of the matter. A representative for Andurand declined to comment.

Millennium Management is now preparing to follow Rokos by opening its first office in Athens. Greek Finance Minister Kyriakos Pierrakakis’ next London visit is likely to include meetings with financiers to discuss potential moves, people with knowledge of the trip said. 

For its part, the UK has brought in a new four-year programme called the Foreign Income and Gains regime, which offers 100% relief from UK tax on overseas earnings. 

John Barnett, a tax and private client partner at UK law firm Burges Salmon, says that just extending that to seven years would make it a “pretty sensible system”. He also points out that there’s no €300,000 (RM1.42 million) annual lump sum payment, like in Italy. 

Lawrance at Charles Russell Speechlys said the UK tax offering needs to be even longer, at least a decade. 

“People need a certain degree of stability in their lives, the security that they will be able to remain here for something rather than an ephemeral four years,” he said. “Four years is really very short compared to the international rival regimes.”

While a number of big names have made headlines by leaving the UK, the most recent data point to just a small decline overall. 

The number of wealthy foreign residents claiming preferential tax treatment on their overseas earnings declined just 0.5% in the fiscal year through April 2025, according to tax authorities.

Even for just the plain well-off looking to escape the UK’s high levels of income tax, Europe offers a multitude of options. Spain has its Beckham law, named after soccer star David Beckham, that allows foreigners to pay a flat tax rate for a fixed period. 

There’s also breaks for the professional classes in high-tax nations such as the Netherlands and Sweden, which compete favourably with Britain’s high income tax rates.

“Almost all clients will make a lifestyle choice,” said Barnett. “Obviously if there are a variety of places that suit your lifestyle, you might then choose the one that has the better tax regime.” 

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