The Chancellors abolishment of non-dom tax breaks as been blamed for the exodus (Image: Getty )
THE Chancellor’s gamble on taxing Britain’s super rich appears to have backfired with the wealthy fleeing for Monaco – sending rents soaring there by as much as 37%. Wealthy Britons, as well as foreign nationals living in London, are heading to the Mediterranean tax haven citing Rachel Reeves’s new levies on millionaires and billionaires as a major reason.
As of April, the Chancellor abolished the so-called “non dom” tax system which had meant high-income earners who had their permanent home outside the UK did not have to pay tax on foreign income. And further changes could see super-wealthy individuals effectively taxed at a rate of 67% across their foreign income, according to experts.
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More than 10,000 millionaires, who contribute a disproportionate amount of tax and business activity to the UK, left the country last year. The entrepreneur exodus has also been driven by crime gripping mayor Sir Sadiq Khan’s London, as millionaire movers say “safety” is the other main reason for upping sticks.
Paolo Petrini, pictured inset above, from Petrini Exclusive Real Estate Monaco, one of the largest agents in the principality, told the Sunday Express: “We’re seeing a growing number of British clients, coming not only from London but also from major cities such as Manchester, Birmingham and Edinburgh. Some mention recent changes to the UK tax landscape, for example the end of a regime that previously allowed certain foreign income not to be taxed.
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Brits make up the third-largest foreign contingent in Monaco (Image: Getty )
“Safety is just as important – many of our clients say they value the peace of mind they find in Monaco, a calm they had lost at home.”
Mr Petrini said on average his firm had seen rent increases of “between eight and 15%” affecting some of the principality’s roughly 17,000 residences open to international buyers.
He added “in certain ultra-prime segments” the increases have been even more striking with one apartment seeing a 37% rise in rent.
Space is always at a premium in Monaco, which has a population of 38,000 living in an area only around 150 acres bigger than Hyde Park. The super-rich playground is ruled by Prince Albert, 67, son of Hollywood legend Grace Kelly. He has styled Monaco into one of the most attractive places for the wealthy to live.
Entry requirements are strict and famous residents include F1 champions Sir Lewis Hamilton and Max Verstappen.
Florian Valeri, of the Barnes Valeri Agency, told Express.co.uk rents had risen between 10 to 20% in the last two years. And he added: “I have heard from British people moving here who were robbed in the UK.
“They were already thinking of moving, but their decisions were accelerated by this insecurity that you are facing.”
He added: “We are observing more requests for turnkey (fully furnished) apartments, more and more people don’t want to furnish the apartment which could take up to two or three months. Those properties could be rented at 20% above market value.
“We are also seeing a rise in hotel residency, and this can be a good door to arrive, some of the wealthy people do that to see if they want to settle here long-term and to have a better understanding of the country and research their next apartment.”
A man enjoys the beautiful view in Monaco (Image: Getty )
A Treasury spokesperson said: “The UK remains highly attractive. Our main capital gains tax rate is lower than any other G7 European country and our new residence-based regime is simpler and more attractive than the previous one, while it also addresses tax system unfairness.”
A Met spokesperson said since April thefts in London's West End had reduced by 20% and violence against a person was down 8%.
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Savings allowances explained as Rachel Reeves approves tax crackdown
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Rachel Reeves causes fresh confusion over inheritance tax changes
Inheritance move thousands of wealthy families are making to cut tax rate by 4%
Rachel Reeves set to target millions of Brits with ￡2,300 savings tax
Huge update on council tax 'cut' for state pensioners as Treasury responds to campaign
Little-known tax rule means you will get big HMRC bill if you have this many children
HMRC catches out almost 1,200 more families in inheritance tax crackdown
Rachel Reeves deals another blow to pensioners in council tax discount update
Keir Starmer refuses to rule out tax hikes after ￡50bn black hole exposed
HMRC tax demand letters for savers with ￡1,000 in current account
HMRC demand letters for people with ￡10,000 in savings account
Rachel Reeves accused of Middle England tax raid as she scrambles to avoid disaster
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Rachel Reeves thinks tax hikes will fix her ￡51bn black hole - here's why they won't
'Act now' warning issued as Rachel Reeves eyes 'targeted moves' on pensions and property
Disaster for Rachel Reeves as thousands of bosses flee Britain
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HMRC issues 12 month tax warning set to impact 700,000 ordinary Brits
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Savings allowances explained as Rachel Reeves approves tax crackdown
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Rachel Reeves causes fresh confusion over inheritance tax changes
Inheritance move thousands of wealthy families are making to cut tax rate by 4%
Rachel Reeves set to target millions of Brits with ￡2,300 savings tax
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Rachel Reeves accused of Middle England tax raid as she scrambles to avoid disaster
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Rachel Reeves thinks tax hikes will fix her ￡51bn black hole - here's why they won't
'Act now' warning issued as Rachel Reeves eyes 'targeted moves' on pensions and property
Disaster for Rachel Reeves as thousands of bosses flee Britain
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HMRC issues 12 month tax warning set to impact 700,000 ordinary Brits
Only one tax will help Rachel Reeves plug her Budget black hole - but it will destroy her
Savings allowances explained as Rachel Reeves approves tax crackdown
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Rachel Reeves causes fresh confusion over inheritance tax changes
Inheritance move thousands of wealthy families are making to cut tax rate by 4%
Rachel Reeves set to target millions of Brits with ￡2,300 savings tax
Huge update on council tax 'cut' for state pensioners as Treasury responds to campaign
Little-known tax rule means you will get big HMRC bill if you have this many children
They added: “Our intelligence and data-led approach to tackle the crimes that matter most to Londoners – such as shoplifting, robbery and anti-social behaviour – is already working.
“We’re arresting more than 1,000 more criminals each month, neighbourhood crime is down by 19 per cent and we’ve solved 163% more shoplifting cases this year.
"Up to 80 more officers will join the dedicated West End team to bear down on crimes which Londoners care about the most – and we'll continue to work with partners to focus resources and pursure prolific offenders."
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