Wealthy Britons Flee to Italy and Greece Ahead of Tax Hike

[Social Media]

 

A growing number of wealthy British families are rushing to relocate to Italy and Greece before April 5 to avoid the upcoming tax reforms set to take effect in the new financial year. With Labour’s inheritance tax increases, higher capital gains tax, and the abolition of the non-dom regime on the horizon, financial experts report a surge in UK taxpayers seeking lower-tax alternatives abroad.  

 

Under the new rules, all UK residents will be taxed on their global income and gains, and the remittance basis—where tax is only paid on money brought into the UK—will be eliminated. Meanwhile, frozen income tax thresholds, which push more people into higher tax brackets, will remain unchanged until at least 2028-29.  

 

The remittance basis had allowed non-domiciled individuals to avoid UK tax on foreign income, provided they did not bring the money into the country. However, maintaining this status came with an annual charge of £30,000 for those who had been UK residents for at least seven of the previous nine tax years, and £60,000 for those residing in Britain for 12 of the past 14 years.  

 

Chris Etherington, from accountancy firm RSM, noted that Mediterranean countries like Italy and Greece are attracting high-net-worth individuals due to their favorable tax regimes, which resemble the soon-to-be-defunct non-dom rules in Britain. Christopher Groves, a partner at international law firm Withers, reported a "huge spike" in clients relocating to Italy, with many scrambling to leave before the tax year ends. "It’s important to make sure you’re gone by April 6 if you’re going to leave next year. You need to have found your villa in Marbella or apartment in Monaco," he said.  

 

Groves added that the tax changes had forced many to accelerate their departure plans, often in a rushed and unstructured manner. “The changes to non-dom and inheritance tax rules have pushed lots of people who didn’t have a real plan to leave the UK to bring that forward, which means they’re doing things in a less well thought-through way. The world is so small these days, so it feels like a relatively easy step to take, but there can be practical difficulties.”  

 

UK residency is automatically granted to individuals who spend 183 or more days in Britain during a tax year, but moving abroad does not necessarily eliminate UK tax obligations. Some individuals may qualify as non-residents by meeting automatic overseas tests, such as spending fewer than 16 days in the UK if they had not been a resident for the past three years or fewer than 46 days if they had been non-residents for three consecutive years. However, those who fail to meet these tests may still be considered UK residents based on ties such as family, property, or employment.  

 

With Britain’s tax burden at its highest level in 70 years and expected to rise further, the 40% inheritance tax has become a key factor motivating many to relocate. Groves highlighted the disparity with other countries: “We’re so out of step [with other nations]. You can go to Italy and [inheritance tax] is single digits if anything, in Switzerland it’s nothing. Here, 40% above £325,000 is confiscatory by comparison.”  

 

The Office for Budget Responsibility estimates that up to 20% of non-doms may leave the UK due to these tax changes. However, it’s not just non-doms making the move. Wealthy Britons, regardless of residency status, are seeking tax-friendly destinations. In 2024 alone, Britain lost 10,800 millionaires to overseas migration—more than double the number who left in 2023.  

 

Research by the Adam Smith Institute suggests that each millionaire who departed last year would have contributed at least £393,957 in annual income tax—an amount equivalent to the tax payments of 49 average earners. Meanwhile, the Saltus Wealth Index found that more than a quarter (28%) of individuals with investable assets exceeding £250,000 are considering leaving the UK within the next year.  

 

The Treasury was approached for comment on the exodus of Britain’s wealthy but has yet to respond.

 

Based on a report by The Telegraph  2025-03-15

 

 

[ExpatOilWorker]

Norway 🇳🇴 did the same tax "mistake".