Why India's Rich Are Heading Abroad
For India, the trend is intricately linked to intensified domestic tax scrutiny, a rapidly formalising economy, and the magnetic pull of attractive, albeit sometimes illusory, overseas residency programmes.
On July 7, the Emirates News Agency (WAM) reported that the UAE's Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) categorically denied rumours that the country was offering lifetime Golden Visas for AED 100,000 (around ₹23 lakh) to select nationalities, including India and Bangladesh.
This statement followed a widely circulated story, initially reported by PTI and picked up by Indian outlets, claiming a 'nomination-based' pilot programme had been launched for Indian and Bangladeshi nationals, dramatically reducing long-term visa costs.
This incident fits into the broader context of a global phenomenon often referred to as the 'great wealth migration'.
The Henley Private Wealth Migration Report 2025 reveals that India remains among the top five countries losing the highest number of millionaires annually. An estimated 3,500 Indian millionaires will leave the country in 2025—down from 5,100 in 2023 and 4,300 in 2024, yet still among the world's highest.
More strikingly, these individuals are expected to take with them a combined wealth of $26.2 billion.
Globally, 142,000 HNWIs are forecast to relocate in 2025, the highest figure on record. On the receiving end, the UAE is set to welcome the largest net inflow (9,800), well ahead of the US (7,500).
A combination of zero income tax, investor-friendly regulations, a luxurious lifestyle, and long-term visa options has cemented the UAE's position as a wealth hub. Its appeal spans continents, attracting affluent individuals from India, the UK, Russia, Southeast Asia and Africa.
'Outside of Europe, strong demand from the UK, India, Russia, Southeast Asia and Africa, facilitated by attractive golden visa options, has reinforced the UAE's position as the world's most sought-after wealth haven (+9,800),' the Henley report said.
Saudi Arabia, meanwhile, is the biggest gainer year-on-year, with an expected net inflow of 2,400 millionaires in 2025.
Despite the outward flow, India's millionaire population is growing. Between 2014 and 2024, the number of Indian HNWIs rose by 72%, fuelled by start-ups, stock market gains and rising family wealth. Yet regulatory hurdles, security concerns, taxation and lifestyle aspirations continue to spur emigration.
Several factors are driving the migration of India's wealthiest citizens:
1. Tax pressures at home
A key push factor is increased scrutiny by Indian tax authorities. The Central Board of Direct Taxes (CBDT) recovered ₹20,000 crore in outstanding dues in Q1 FY25, nearly double the amount from the same period last year. This includes ₹17,244 crore in corporate tax and ₹2,714 crore in personal income tax (as per ET, 8 July).
The CBDT has set a ₹1.96 lakh crore recovery target for the fiscal year. Total outstanding tax demands have ballooned to ₹42 lakh crore (from ₹10 lakh crore in 2019–20), according to a parliamentary report dated 1 October 2024.2. Formalisation of the economy
India is in the midst of a profound economic transformation. Historically, a substantial portion of its economy operated informally, characterised by cash transactions and limited oversight. However, a concerted effort by the Indian government is rapidly pushing economic activities into the formal sector, with direct implications for tax compliance and recovery.
Central to this is the Unified Payments Interface (UPI), which processed 185.8 billion transactions worth ₹261 lakh crore in FY 2024–25, a 41% increase from the previous year, according to the Reserve Bank of India (RBI).
Every UPI transaction is linked to a PAN, creating digital trails for tax authorities. This has made income harder to conceal, leading to greater compliance.Other measures include: Goods and Services Tax (GST): Unified tax structure with digital tracking via e-invoicing and e-way bills.
JAM Trinity: Jan Dhan, Aadhaar and Mobile systems that tie identity to financial transactions.
Udyam Portal: Simplified registration for MSMEs, broadening the tax base.
3. Cryptocurrency crackdown
The Indian government has significantly escalated its formalisation efforts concerning emerging asset classes, particularly cryptocurrencies, which are now legally recognised as 'Virtual Digital Assets' (VDAs).
This regulatory shift, implemented through a series of measures, aims to integrate the crypto ecosystem into the nation's broader financial and tax framework. Key to this strategy are strict taxation policies and enhanced regulatory oversight under the Prevention of Money Laundering Act (PMLA).
Specifically, a flat 30% capital gains tax is levied on profits from VDA transfers, irrespective of the holding period, with no provisions for offsetting losses against gains or other income. Furthermore, a 1% Tax Deducted at Source (TDS) is applied to VDA transactions exceeding ₹50,000 (or ₹10,000 for specific entities) on the total sale consideration, rather than just the profit. These tax mandates have severely impacted the profitability of crypto investments and trading domestically.
The inability to adjust for losses combined with the TDS on gross transaction value has rendered the Indian crypto market economically challenging for many large-scale investors and high-frequency traders.
The cumulative effect of these stringent tax and regulatory policies has been a discernible shift in crypto trading volume and capital away from Indian platforms towards offshore exchanges. Wealthy individuals, seeking environments with lower tax burdens and less restrictive regulations on their digital assets, are increasingly exploring international avenues.
4. Global mobility and lifestyle aspirationsAccording to a survey by Kotak Private in partnership with EY, 22% of ultra-rich Indians expressed a desire to leave the country for better living standards, healthcare, education, and ease of doing business.
Many also seek visa-free travel, which Indian passports currently do not offer at the same level as European or Caribbean counterparts. While domestic pressures contribute to the outflow, powerful 'pull factors' from abroad, particularly attractive residency and citizenship-by-investment (CBI) programs, play a significant role.
Countries offering zero or low personal income tax, capital gains tax, and inheritance tax are highly desirable. The UAE stands out as a prime example, with its zero personal income tax, no capital gains tax, and no inheritance tax, making it a leading choice for wealth preservation.
Additionally, jurisdictions such as Portugal, Singapore and the UAE offer attractive regimes for estate planning, making them prime options for intergenerational wealth transfer.
UAEWith its zero-tax regime, quality of life and efficient Golden Visa programme, the UAE remains the top destination for Indian HNWIs.
USAThe US remains popular, especially through the EB-5 visa route. A new entrant, the Trump 'Gold Card', has also generated buzz.
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Also read: India Launches E-Visa For Kuwait From July 14: 5-Year Tourist Visas Available Source The Economic Times
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