There is a clear shift underway. In recent years, a growing number of affluent British nationals and non-domiciled residents have begun re-evaluating their long-term place in the United Kingdom. The drivers are consistent: looming tax reforms, mounting cost of living, safety concerns, and post-Brexit loss of EU access. For high-net-worth individuals and families, the UK no longer represents the safe haven it once was.
This shift is not anecdotal. It is a realignment, and the question of why British nationals are leaving the UK increasingly begins with what’s changing at home—and what alternatives are emerging abroad.
The End of Non-Dom Advantages
Historically, the UK’s non-dom regime allowed wealthy residents to pay taxes only on income brought into the country, sparing global earnings from local taxation. That framework is now disappearing. The UK Chancellor has announced that, starting April 2025, the remittance basis will be abolished and replaced with a residency-based taxation model. Global income will now fall within the UK’s tax net.
According to international tax strategist David Lesperance, the impact on mobility is already unfolding. “Wealthy individuals were already bracing for changes and need to adapt with haste,” he noted. Families with capital to protect are now establishing proactive plans—primary and contingency-based—that prepare them for multiple outcomes. With legislative unpredictability on the rise, more are choosing to leave before additional rules can be passed.
Lesperance adds that British lawmakers underestimate the mobility of capital. While London remains a magnet of global commerce, the push factors for departure—from tax uncertainty to lifestyle cost—are gaining strength.
Cost of Living and Inheritance Tax Pressures
London and other major UK cities have become increasingly difficult environments for wealth preservation. Escalating costs of living—across education, healthcare, housing, and personal security—are pressuring even upper-tier earners to reconsider their futures.
Compounding this is the UK’s 40% inheritance tax rate, among the highest in developed economies. When taken together, the financial weight is becoming unsustainable for those looking to preserve family wealth over generations.
In contrast, countries like Portugal and Italy have positioned themselves as structurally more advantageous. Italy offers a flat tax regime that enables foreign residents to pay a fixed annual rate on global income. Portugal, long favored by expatriates, provides a tax-friendly approach for qualifying residents, particularly through its Non-Habitual Residency framework.
Safety, Mobility, and the Post-Brexit Reality
Concerns about personal safety have also come to the fore, particularly in large UK cities. Rising crime and strained public services are influencing relocation decisions—especially among families with young children.
The aftermath of Brexit is a further catalyst. Since leaving the EU, British passport holders have lost the ability to live, work, and move freely across the Schengen Area. For those with business, family, or lifestyle ties to continental Europe, this has been a significant setback—sparking renewed interest in citizenship-by-investment and investor visa programs abroad.
Mark Penney of SunCap Visa notes that the shift isn’t solely about financial calculus. “For many Brits, or those in the non-dom category, relocating abroad is not just about tax savings—it’s about quality of life, access to global markets, and securing a stable future for their families,” he explained.
Portugal and Italy: Lifestyle, Strategy, and Access
Portugal has emerged as a preferred destination for many British investors, particularly the coastal corridor between Lisbon, Cascais, and Estoril. Alexandra Bonte of Bonte Filipidis confirms that British families are actively targeting this region for its balance of urban life, international education options, and coastal luxury. The proximity to Lisbon’s airport further enhances its appeal to internationally mobile households.
But relocation isn’t only about where one lives—it’s also about how capital is treated. As Michael Maxwell of Portugal Panorama and Ariete Capital explains, strategic investors today are seeking security first. “Investors are looking for flexibility in how they allocate their capital, diversification of assets across different markets, and a country with a strong track record of respecting investor rights,” he says.
Portugal’s Golden Visa program, though evolving, continues to offer a pathway for qualifying investments—particularly through regulated funds. Maxwell emphasizes that his funds accept zero exposure to Golden Visa risk, investing only in sectors with consistent performance and well-governed frameworks.
Italy also remains attractive for those with cultural, business, or family ties to the region. Programs such as Ariete Capital’s investor portfolio allow participants to access residency through diversified investments in Italian equities, private placements, and derivatives—with biannual liquidity for flexibility.
The New Direction for Global British Wealth
The question of why British nationals are leaving the UK comes down to structure. Those with strategic capital are moving toward countries that offer legal certainty, lifestyle benefits, and tax environments aligned with international wealth.
As new UK tax reforms take effect, that movement is expected to accelerate. For investors, entrepreneurs, and legacy-minded families, the road ahead is increasingly continental—one that passes through Lisbon, Cascais, or Milan before circling back to London only for business, not residence.
