Private jets at Palma airport.

Private jets at Palma airport. | Majorca Daily Bulletin reporter

Humphrey CarterPalma12/07/2024 10:57
TW
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Spain, and popular destinations like Mallorca, are forecast to witness an influx of millionaires from the UK over the next few years. According to UBS’s latest Global Wealth Report, some 500,000 millionaires will leave the U.K. by 2028, equivalent to a 17% fall, leaving questions about the U.K. and London’s position as a haven for the global elite. That is the biggest relative fall in the millionaire population among the countries covered by UBS. Belgium, Germany, Spain, and Italy are among the European countries that are expected to see their millionaire populations grow. Continental European hotspots, including Milan, are becoming the new stomping ground for millionaires sick of London, according to the report.

The UBS Global Wealth Report for 2024 forecast the number of dollar millionaires in Britain would fall by 17% to 2,542,464 in 2028 from 3,061,553 last year. It also forecast a 4% fall in the Netherlands, to 1,179,328 from 1,231,625. Paul Donovan, Chief Economist of UBS Global Wealth Management, said the shift away from Britain partly reflected the fact that, with the third highest number of millionaires, its figure was currently “disproportionately high.”

“You have obviously seen in the U.K. over the last few years, as you have seen in other countries, implications arising from sanctions against Russia,“ he told a press conference. Donovan said Britain’s decision to scrap its “non-dom” status - which lets wealthy, often foreign residents avoid tax on overseas income - had also had a “small effect.”

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“The non-indigenous millionaire population, the global population, which is constantly shifting, will be looking for low tax locations all of the time,“ he said, adding this was “not a function of UK policies per se” but reflected the “pull factors” of other countries, pointing to Dubai and Singapore.

UBS said that for its report “wealth” is defined as the value of financial assets plus real assets owned by households, minus their debts. The report is based on 56 markets accounting for around 92.2% of global wealth, the Swiss bank said. Overall, in dollar terms, global wealth grew by 4.2% in 2023 after a decline of 3% in 2022, the study said.

The number of adults worth over $1 million will have risen in 52 of the 56 markets by 2028, the report forecast. The strongest growth in millionaires - of 47% - was expected to be in Taiwan, driven by the country’s microchip industry. UBS said that over the 15 years it has published its report the Asia-Pacific region has posted the biggest growth in wealth, up almost 177%, followed by the Americas at nearly 146%, while Europe, the Middle East and Africa (EMEA) was up just 44%.
Asia-Pacific had, however, also seen the sharpest increase in debt, the report said. Total debt in the region was up by over 192% since 2008, more than 20 times the growth in EMEA and almost four times the rise for the Americas.