Wealthy Britons Seek To Exit UK Over Tax Concerns, La Vida Survey Reveals

Wealthy Brits Consider Leaving the UK Amid Tax Concerns

A recent survey conducted by La Vida, specializing in investment migration, reveals that taxation is the predominant concern for wealthy citizens in the UK contemplating a move to a second residency or citizenship. The 2026 UK Investor Survey, which gathered insights from investors active in seeking residency by investment from September 29 to October 8, indicates that as high as 82.6% of respondents are primarily motivated by tax factors.

Wealth Tax as a Driving Force

The concern over potential wealth taxes stands out as a major deterrent for many investors. About 66% of participants cited wealth tax as a key issue influencing their decision-making around relocation. This is above concerns related to income tax and inheritance tax, signaling a growing unease about the tax climate for high-net-worth individuals in the UK. Other significant concerns also featured prominently, including political stability (56.5%) and the rising cost of living (52.2%). Interestingly, worries about crime rates appear to have diminished compared to previous years, dropping from 59.3% to 37% since last year's survey.

Paul Williams, the CEO of La Vida, underscores the financial implications of these departures. He notes that the average wealth of the participants was around £9 million—more than 20 times the national average. This, in turn, represents a considerable potential loss of tax revenue for HM Revenue and Customs (HMRC) with each high-net-worth investor who decides to leave.

Portugal as a Preferred Destination

When it comes to preferred countries for relocation, Portugal emerged as the clear favorite, with 73.8% of participants naming it among their top two destinations. This is a significant increase from 50.6% the previous year. Italy and Greece follow, with preferences of 26.2% and 19%, respectively. Notably, interest in Dubai has plummeted, with just 2.4% of respondents expressing a desire to move there, a stark decline from 13.6% last year.

Williams highlights that many of La Vida's clients have invested several hundred million euros into Portugal's economy, predominantly through the Golden Visa program.

Brexit's Influence

Brexit continues to sway opinions about residence. Approximately 63% of those surveyed acknowledge it as a considerable factor for their interest in secondary residency, with an additional 17% classifying it as a minor influence. The discontinuity triggered by Brexit changes, such as longer waiting times for Brits entering the EU, has cemented sentiments to seek alternative residency solutions.

One participant stated, “Brexit is the primary reason for my inquiry about a second residency,” showcasing how significant this political change has been for many investors. Another noted that they don’t regret supporting Brexit; however, it complicates their plans to relocate easily to Portugal.

Planning for the Future

Rather than a hasty exit, many respondents view establishing a second residency as a prudent plan B. Over 60% cited having a back-up plan as a primary goal, while about 58.7% are motivated by the desire to mitigate tax burdens. Furthermore, nearly 54.3% expressed interest in the convenience of visa-free travel that comes with second residency.

There is a growing clamor for the UK to reintroduce a Golden Visa program, with about 60% of respondents supporting the move. After the closure of the UK’s Tier 1 (Investor) visa to new applicants in February 2022, both previous Conservative and current Labour governments have hinted at the possibility of reinstating such a program. The current administration under Prime Minister Andy Burnham is actively seeking investment avenues, likely making this proposal appealing as fiscal year changes approach.

Conclusion

The findings from La Vida's survey reflect a pressing need for the UK government to reconsider its stance on targeting wealth retention strategies, as the country faces increasing competition from global peers in attracting high-net-worth individuals. Respondents feeling left behind echo a concern that the UK risks losing its competitive edge in the ongoing battle for wealth and investment.

For comprehensive survey data and additional comments, La Vida offers detailed insights upon request.