New migration data shows that the United Kingdom is increasingly seeing an outflux of millionaires to other destinations, including South Africa.
The Wealth Migration Report 2023 from Henley & Partners and New World Wealth shows that around 400 high-net-worth individuals (HNWIs) – those with a net worth of over R18 million – emigrated from South Africa in 2022, and 500 did so in 2023.
The 2021 UK census noted that over 215,000 South Africans live in the UK.
According to New World Wealth, the UK – London especially – has traditionally been one of the world’s top destinations for migrating millionaires, from the early 1900s to 2010. It consistently attracted wealthy people from Europe, CIS, Asia, Africa and the Middle East.
However, this trend began to reverse around a decade ago, as more millionaires left the country and (fewer) came in.
From 2017 to 2022, the UK lost approximately 12,500 more HNWIs than it gained through migration. It is expected to lose another 3,200 HNWIs to migration in 2023.
Reasons for leaving include the poor performance of the London Stock Exchange, Brexit, many in the financial services moving to other nations in Europe, the deterioration of the health system, and increasing safety concerns in major cities.
Capital gains tax and estate duty rates in the UK are the highest in the world.
Cape Town is listed among the top receivers of UK wealth.
Cape Town is a popular destination, notably for its good governance, natural beauty and relatively affordable luxury property market when compared to other international cities.
Ross Levin from Seeff has noted that an influx of international buyers into Cape Town is due to the relatively flat price at the top end of the property market and the weaker rand.