Fleeing Wealthy Brits Fuelling International Property Markets

The Chancellor’s announcement that higher rate taxpayers will soon lose 50% of their salary in income tax was greeted with disdain amongst many wealthy Britons.  And not only are wealthy individuals leaving the UK as a result, but companies such as McDonald’s are moving their company base because they are very worried about the way the UK’s economy is headed.

With massive debt piling up in Britain’s coffers, raising taxes is inevitable – just look at Ireland’s track record this year alone.  In an effort to sort out its economic woes the Republic has had 2 budgets within just 6 months, and pushed the likes of capital gains tax and capital acquisitions tax right up to try and bring balance to their budget.

Because Britain seems to be going the same way, many are thinking about getting out before it’s too late!  And it seems that the fleeing wealthy Brits are fuelling international property markets in the likes of Monaco and Gibraltar!

Every cloud has a silver lining apparently – so perhaps the silver lining in terms of wealth being stripped from the UK as those who can do so up and leave, is that some countries’ property markets are not doing so badly after all!

We have been led to believe by the media that the entire globe is in financial meltdown, and that as a result all nations’ property markets are on their knees too.  After all, it follows that a recession equals job losses which in turn equals fewer people buying property or moving and over extending themselves financially, which finally equals falling housing prices and a damaged property market.  But where there has been an influx of wealthy individuals looking for a new home for themselves and their wealth, property prices have been positively affected apparently!

According to a report in the Telegraph based on comments from the Sovereign Group’s Chairman Howard Bilton, where an expat’s money is welcome across Europe and beyond – i.e., where it is not eroded by taxation – so in almost every single case there has been a property market bounce as a result!  It seems that the wealthy Brits and wealthy international companies that are relocating to Switzerland, Monaco, Gibraltar or even Singapore are having a positive effect at least in the most expensive pockets of the local property market.

The government has yet to comment on the number of high profile wealthy individuals who are storming out of Britain in protest at the latest tax rises – we guess they’re hoping that the rest of us won’t notice and won’t realise that with every wealthy Briton who vanishes, our personal tax burden just got heavier for longer.

Oh well – we just all need to become millionaires so we can live where we want to live.  Alternatively, we all just need to find an affordable place abroad where we are welcome, our income is not heavily taxed either, and where – even if the local economy and housing market is faltering – the way of life is so much better than we won’t care anyway.  And yes, there are places out there like that – from Cyprus where personal income tax on retirement income is still only 5%, to Malaysia or even Belize where qualifying individuals can live tax-free potentially!