Governments worried about losing investors, entrepreneurs and tax revenue are getting a temporary reprieve. The global rush by affluent households to move their money, businesses and tax residency overseas has slowed sharply, easing some of the strain that followed years of political upheaval, tax changes and economic uncertainty.
Yet the broader contest for investment and economic growth remains very much alive.
Research from Capgemini found that 25% of high-net-worth individuals either changed their principal tax residence in 2025 or planned to do so, down from 56% the previous year. The slowdown follows several years in which political turbulence, tax reforms and shifting economic conditions encouraged many affluent families to relocate assets and residency to jurisdictions they viewed as more attractive.
Nowhere was the slowdown more visible than in Britain. The share of affluent people changing or planning to change tax residency fell from 54% in 2024 to 19% last year, following the abolition of the country's non-dom tax regime. The change prompted several high-profile departures and fueled concerns about whether the UK could continue attracting global wealth and business activity.
For governments, these movements are about far more than a handful of rich individuals changing address. High earners often own companies, fund new ventures, employ advisers and spend heavily on property, hospitality and professional services. When significant numbers leave within a short period, the effects can spread through local economies and industries that rely on confidence and spending.
The latest figures suggest much of that adjustment may already have taken place. Advisers say many of those most likely to leave have already made their decisions, reducing the pace of departures. That could bring greater stability to parts of the UK's luxury property market, private banking sector and financial services industry after a prolonged period of uncertainty.
The survey also suggests many affluent households are thinking differently about where they keep their money and how they pass it on. A few years ago tax changes and political surprises were driving decisions. Now inheritance planning and family wealth appear to be taking priority, reflecting a longer-term focus on preserving assets rather than responding to short-term headlines.
Singapore remained one of the most popular destinations for those choosing to relocate, reinforcing its reputation as a major hub for global finance. The United States also continued attracting affluent newcomers despite years of political division, highlighting the enduring appeal of its investment opportunities and deep financial markets.
For governments trying to attract business activity without placing additional strain on taxpayers, retaining entrepreneurs and investors has become increasingly important. Many advanced economies are dealing with slower growth, rising spending commitments and mounting pressure on public finances. In that environment, keeping capital, talent and business owners within national borders has become part of a wider race for economic competitiveness.
Britain's experience shows how quickly policy decisions can influence the movement of money and investment. The wave of departures that followed non-dom reforms raised concerns about tax receipts, business investment and London's status as a global financial center. While those concerns have not disappeared, the latest data suggests the initial shock is beginning to fade.
Economists and advisers still watch these moves closely because affluent households are often among the first to react when they believe a country's outlook is changing. Their decisions can provide an early indication of how investors view economic stability, taxation and future opportunities.
For most households, the issue may feel distant. Yet governments facing slower growth and tighter budgets are becoming increasingly focused on keeping investment at home. When money becomes more mobile, countries must work harder to attract the businesses, spending and tax revenues that support jobs and economic activity.
The scramble for new tax homes may have cooled, but the forces behind it remain firmly in place. Governments are still searching for growth, investors are still weighing their options and public finances remain under strain in many developed economies. Attracting mobile money has become a quieter battle than it was a year ago. The winners may not notice immediately. The losers probably will.
