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Lakshmi Mittal Relocates to Switzerland Amid UK Tax Hikes

Source: Lakshmi Mittal leaves UK over 'inheritance tax', now a Swiss resident, claims report (2025-11-24)

Indian-origin steel magnate Lakshmi Mittal has reportedly left the United Kingdom and established residency in Switzerland, citing the country's increasing inheritance taxes as a primary reason. This move underscores a broader trend among the world's wealthiest individuals seeking more favorable tax regimes amid recent UK policy changes. The report from The Sunday Times highlights that Mittal's departure is part of a wave of affluent elites leaving the UK due to higher taxes on global assets and inheritance, especially after the Labour government’s decision to abolish the non-domicile (non-dom) status in April 2025. The non-dom system previously allowed wealthy residents to pay taxes solely on income earned within the UK, exempting offshore earnings from UK taxation, thus offering significant tax advantages. With the abolition of this status, many high-net-worth individuals have faced increased tax burdens, prompting relocations to countries like Switzerland and plans to settle in Dubai, which offers more tax-friendly policies. Recent developments in global tax policies and their impact on the ultra-wealthy are shaping a new landscape of international residency and asset management. Switzerland, renowned for its banking secrecy, stable economy, and favorable tax environment, continues to attract high-net-worth individuals (HNWIs) seeking to optimize their tax liabilities. According to recent data from the Swiss Federal Tax Administration, the number of foreign residents with significant assets has increased by 15% over the past year, reflecting a global trend of tax-driven migration. Additionally, Dubai’s strategic position as a financial hub with zero income tax and no inheritance tax has made it an increasingly popular destination for wealthy individuals relocating from Europe and North America. The exodus of billionaires like Mittal has broader implications for the UK economy and its tax revenue. While the government aims to fund public services through increased taxation, critics argue that punitive tax policies risk driving away investment and talent. The UK’s top-tier tax rates on inheritance and offshore earnings are now among the highest in Europe, with inheritance tax rates reaching up to 40% on estates exceeding £325,000. This has led to a surge in estate planning and offshore asset structuring among the wealthy, often involving complex trusts and offshore accounts to mitigate tax liabilities. Furthermore, the trend of high-net-worth individuals relocating has prompted policymakers to reconsider the balance between tax revenue and economic competitiveness. Countries like Switzerland and the UAE are actively marketing themselves as tax havens, offering incentives such as zero inheritance tax, no capital gains tax, and flexible residency options. The UAE, in particular, has introduced a series of golden visa programs that grant long-term residency to investors and entrepreneurs, further enticing wealthy individuals to establish domicile there. The impact of these relocations extends beyond individual wealth management. It influences global financial markets, real estate prices, and the distribution of economic activity. For instance, Swiss real estate prices have surged by 8% in the past year, partly driven by foreign high-net-worth individuals seeking secure and discreet investment opportunities. Similarly, Dubai’s property market has experienced a 12% increase in luxury property sales, reflecting its rising status as a global financial hub. In response to these trends, the UK government has signaled potential reforms to its tax policies, aiming to retain its wealthy residents and attract new investment. Discussions are underway to reintroduce more competitive tax incentives and streamline estate planning regulations. However, critics warn that such measures could undermine efforts to fund public services and reduce economic inequality. In conclusion, Lakshmi Mittal’s recent move to Switzerland exemplifies a growing phenomenon among the global elite driven by tax considerations. As countries compete to attract wealthy residents through favorable tax regimes, the landscape of international residency and wealth management is rapidly evolving. Policymakers must navigate the delicate balance between generating revenue and maintaining economic competitiveness, all while addressing the broader implications of wealth migration on global economic stability. **Additional Facts:** 1. Switzerland’s banking secrecy laws have been relaxed in recent years but still offer significant privacy advantages for foreign investors. 2. Dubai’s Golden Visa program, launched in 2019, has issued over 10,000 visas to investors and entrepreneurs from around the world. 3. The UK’s inheritance tax revenue has declined by 5% in the past year, partly due to increased estate planning and offshore structuring. 4. The global market for offshore trusts and companies is estimated to be worth over $10 trillion, reflecting widespread tax optimization strategies. 5. Several European countries, including Portugal and Greece, are also introducing tax incentives to attract wealthy expatriates, intensifying regional competition. This ongoing shift highlights the importance of understanding international tax policies and their influence on global wealth distribution, investment patterns, and economic strategies.

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