High Taxes and the Rise of Global Relocation Opportunities

Escalating Taxation Threatens Wealth Creation

Taxation has become an increasingly important factor for investors considering golden visas and global relocation as a strategy to escape rising and often punitive tax regimes. Governments around the world are seeking more revenue from High Net Worth Individuals (HNWIs)—including entrepreneurs, business owners, and wealth creators—who often face marginal income tax rates of 50% or more in developed economies. This heavy burden is driving many to relocate to countries that value investment and job creation over extracting maximum tax revenue.

Wealth creators already contribute a disproportionate share of tax in Western economies. In the UK, for example, the top 1% of earners paid 28.5% of all income tax in 2023, while in the USA the top 1% of taxpayers contributed 40.4% of all federal income tax in 2022. Retaining these individuals is critical for national economies, yet rising tax rates risk pushing them to explore alternatives abroad.

Mounting public debt, growing social spending, and ageing populations are placing increasing strain on state finances. As a result, governments are raising taxes to cover escalating costs and rising interest payments. Unfortunately, this trend suggests that business owners, entrepreneurs, and higher earners will continue to be targeted for additional tax contributions in the years ahead.

Progressive Taxation and its Impact on Wealth

Governments employ a range of tax measures that directly affect high-income earners and wealth creators. The most significant categories include:

• Income Tax – Employees face progressive taxation, with top earners often losing 50% or more of each additional unit of income.

• Business & Dividend Tax – Entrepreneurs frequently pay tax twice: first through corporation tax on profits, and again through dividend tax when withdrawing earnings.

• Capital Gains Tax – Imposed on the appreciation of assets, reducing the benefits of long-term investment.

• Inheritance Tax – Perhaps the most controversial, this can erode wealth significantly, with combined taxes during one’s lifetime and posthumously leaving as much as 75% of wealth in the hands of the state.

In addition, governments employ other measures such as:

• Wealth Taxes – Though not widely adopted, they remain a recurring political topic and may gain traction as fiscal pressures rise.

• Property Taxes – A reliable tool for governments since property cannot be relocated, making it an easy and immovable target for taxation.

A Changing World with Greater Choice

The global landscape has changed dramatically over the past two decades. Digital technology and remote work have made international relocation far more practical, enabling entrepreneurs, freelancers, contractors, professionals, and even employees to live and work from virtually anywhere. Despite this shift, many governments continue to increase taxes on their most productive citizens, operating as if relocation were not an option.

The reality, however, is different. With the growth of golden visa programmes over the last 10–15 years, individuals now have more opportunities than ever to protect their wealth by obtaining residence or citizenship abroad.

Global Mobility as a Tax Solution

Today, a wide range of countries offer residence- or citizenship-by-investment programmes that allow investors to legally reduce their tax exposure. Some destinations provide low-tax or even zero-tax environments, making them highly attractive to HNWIs seeking stability, security, and wealth protection.

By investing strategically through a golden visa, individuals can secure not only greater global mobility but also long-term financial efficiency—ensuring their wealth is preserved and appreciated in countries that prioritize investment and economic contribution over punitive taxation.