When you turned a newly minted millionaire, the place would you migrate to? Resulting from inertia, I guess most of you’d keep proper the place you’re. A number of us are afraid of change, which is why we keep at jobs we hate and endure by means of damaged marriages for too lengthy.
However how about being extra adventurous as an alternative and relocating to a different nation. In any case, you’ve got bought extra money than 94% of the American inhabitants and 99% of the world. Reside a little bit!
Relying on the place you’d transfer to when you turn out to be a millionaire relies on the place you presently dwell, how completely happy you presently are, and what stage of life you are in. Let me share the place I’d have moved to in my youthful days. Then we’ll get to the massive information.
Millionaire Migration In My 30s
If I might rewind time to 2012, after I left my job and did not have kids but, I’d have spent a 12 months dwelling in Malaysia for a 12 months after which China for a 12 months. I had a blast dwelling in Kuala Lumpur throughout center college, and at all times fantasized what life can be like if I truly had some spending cash. The persons are nice and the meals is arms down, prime 3 on the earth in my ebook.
In the meantime, I first visited China in 1997 as a school junior finding out overseas for six months. It was extraordinarily evident again then that the nation was going by means of an financial increase. However after I bought a job provide to work and assist handle an eyeglass elements manufacturing firm in Shenzhen in 1999, I chickened out for the safer route of a Wall Road job.
By returning to China, I’d fulfill my uncertainty of not going as a 22 12 months outdated and enhance my Mandarin. Then I’d try to do one thing entrepreneurial so I will not look again on life with remorse for not making an attempt. With hundreds of thousands of {dollars} in investments, I’d be at liberty to experiment with new concepts. I am positive I might simply make mates, partly by being a gregarious newcomer.
Millionaire Migration In My Late 40s
Immediately, when you had been to tempt me to maneuver away from vibrant San Francisco with $10 million, I’d clearly transfer to Oahu. I have been to most states in America and over 60 nations up to now, and Hawaii gives one of many best qualities of life.
As a bonus, you would possibly even get to dwell longer, with Hawaii as the very best life expectancy state at 79.9 years in accordance with the CDC. As soon as you’ve got gained the monetary lottery, your well being can not take a again seat. Your aim needs to be to dwell as lengthy and wholesome of a life as doable to take pleasure in your wealth for longer.
Sadly, my starvation for journey and exploration has waned. For all you youthful of us on the market, make the most of your motivation when you’ve nonetheless bought it. Finally, you will not wish to dwell in youth hostels and backpack world wide.
Immediately, I largely wish to dwell in an space with year-round sunshine and cozy climate. I really like being outdoor and transferring my physique in some capability day-after-day. Additional, I wish to be there for my dad and mom, who’re of their late 70s.
The place Millionaires Are Shifting Round The World
Primarily based on The 2025 Henley Personal Migration Report, extra millionaires are migrating than ever. The UAE is attracting essentially the most millionaires, adopted by USA, Italy, Switzerland, and Saudi Arabia.
Conversely, the UK is dropping essentially the most millionaires, adopted by China, India, South Korea, and Russia.
What is going on on right here? The reply is a nation’s tax coverage. Given millionaires earn essentially the most and have essentially the most belongings, additionally they are inclined to face the very best tax charges. Due to this fact, one of many best methods to reduce taxes is to relocate to a rustic with decrease taxes, and ideally, a better high quality of life.
UAE Is Drawing Millionaires In, Whereas the U.Ok. Pushes Them Out
When you’re a high-net-worth particular person seeking to optimize for taxes and life-style, it’s simple to see why the UAE is among the prime locations. With zero earnings tax, long-term golden visas, and a luxurious life-style in a strategic world location, the UAE has turn out to be a magnet for migrating millionaires.
To date, most millionaire migrants to the UAE have come from India, Russia, Africa, and the broader Center East. However extra Brits and Europeans are anticipated to comply with as tax insurance policies in locations just like the U.Ok. turn out to be more and more unfavorable.
The U.Ok., particularly, is dropping enchantment quick. The federal government is phasing out the long-standing “non-dom” standing, which used to protect overseas residents from paying taxes on abroad earnings. That change alone will possible drive many rich residents to think about relocating.
Add in Labour Celebration plans to slap a 20% VAT on personal college tuition, and also you’ve bought one more reason for prosperous households to look elsewhere. When the federal government retains elevating the price of staying, it’s solely pure to discover what life would possibly seem like someplace extra welcoming.
Exhausting To Save On Taxes By Migrating As An American
When you’re a rich American fascinated with transferring overseas to decrease your tax invoice, right here’s the fact: the IRS doesn’t care the place you reside. As long as you maintain a U.S. passport, you owe taxes in your worldwide earnings, no matter your bodily location.
This makes America certainly one of only some nations on the earth with citizenship-based taxation. In different phrases, even when you transfer to a tax haven, the U.S. nonetheless desires a chunk of your monetary pie.
That stated, there are methods to cut back your tax legal responsibility—however not get rid of it.
Overseas Earned Earnings Exclusion (FEIE)
For 2025, the Overseas Earned Earnings Exclusion lets you exclude as much as $130,000 in earned earnings when you qualify through the bodily presence take a look at (330 full days overseas in a 12-month window) or the bona fide residence take a look at. When you’re married and each of you qualify, that’s probably $260,000 of earnings shielded from federal earnings tax.
However take into account, this exclusion solely applies to earned earnings—your W-2 wages or freelance/contractor earnings. It doesn’t apply to funding earnings, rental earnings, dividends, or capital positive aspects. So in case your wealth is basically passive, the FEIE gained’t assist a lot.
Overseas Tax Credit score (FTC)
When you’re dwelling in a higher-tax nation, the Overseas Tax Credit score enables you to offset U.S. tax legal responsibility dollar-for-dollar based mostly on the earnings taxes you pay overseas. This may be particularly helpful for these incomes important passive earnings.
Nevertheless, you may’t double-dip. When you exclude earnings utilizing FEIE, you may’t additionally declare the FTC on that very same earnings. And whereas the FTC can scale back your tax invoice considerably, it not often brings it to zero—particularly when you’re dwelling in a low-tax jurisdiction.
State Taxes Nonetheless Lurking
Some states, like California, don’t quit simply. They are going to hunt you down just like the Predator does in certainly one of my favourite motion pictures. Until you fully sever ties—no property, no driver’s license, no voter registration—they might nonetheless argue you owe state earnings taxes too. It’s reminder that simply since you transfer doesn’t suggest the state lets go.
Need True American Tax Freedom? Resign Citizenship
If you wish to fully lower ties with the IRS, there’s just one manner: surrender your U.S. citizenship.
However earlier than you go reserving a one-way ticket to St. Kitts, know that this transfer comes with penalties. In case your internet value exceeds $2 million or your common earnings over the previous 5 years is above a sure threshold (~$200,000+), you might owe an exit tax. This tax treats all of your belongings as in the event that they had been bought the day earlier than you surrender—triggering potential capital positive aspects taxes on unrealized positive aspects.
You’ll even be giving up the appropriate to dwell and work freely within the U.S., face limitations on banking and journey, and lose entry to sure authorized protections. And when you surrender, there’s no going again.
For most individuals, particularly these with deep roots or enterprise pursuits within the U.S., renunciation is a nuclear choice—not a intelligent tax optimization transfer. It is a lot simpler to relocate to one of many no state earnings tax states as an alternative.
Associated: How You will Really feel Reaching Numerous Millionaire Milestones: $1 – $20 Million
Reside within the Greatest Place Cash Can Purchase
Every time we moved, I used to be unhappy to depart mates behind, but it surely was additionally thrilling to see new elements of the world. That form of publicity offers you perspective. You begin to respect the place you reside—and extra importantly, you begin to perceive what’s doable elsewhere.
Sadly, even when you work remotely and have hundreds of thousands in investments, chances are high you gained’t truly transfer to a brand new nation for a greater life. It’s exhausting to depart behind the consolation of the acquainted—your routines, your pals, your group. If in case you have younger children, it turns into even more durable since you do not wish to disrupt their sense of stability.
Give it some thought. No rational multi-millionaire would voluntarily spend winter in frigid Winnipeg, Canada or Duluth, Minnesota once they might be having fun with life in Honolulu, Hawaii. And but, loads of millionaires keep put. Why? As a result of they’ve constructed deep roots of their communities. That connection outweighs local weather and even tax financial savings.
While you’re youthful and nonetheless constructing wealth, go wherever the very best alternatives are. However when you obtain monetary freedom, don’t overlook to improve your setting. Reside in the very best place cash should buy—not only for consolation, however for high quality of life.
Readers, when you had been to inherit $1 million or $10 million, the place would you progress—and why? When you’re presently dwelling within the UAE or the U.Ok., I’d love to listen to what your life-style and tax expertise has been like. Would you advocate it to others searching for monetary freedom or a greater high quality of life?
Reevaluate Your Portfolio Earlier than You Relocate
When you’re fascinated with transferring for a greater life—or simply sitting on a big money windfall—it’s value getting a second opinion in your funds. One sensible transfer is to make the most of a free monetary check-up from Empower.
If in case you have $100,000 or extra throughout taxable accounts, IRAs, financial savings, or a 401(okay), an Empower advisor may help you uncover hidden charges, spot unbalanced allocations, and determine methods to enhance your risk-adjusted returns. It’s a no-obligation method to stress-test your technique—particularly when you’re contemplating a dumbbell portfolio or shifting extra belongings internationally.
Earlier than you migrate your life or your cash, ensure your portfolio is working as exhausting as you’re.
This assertion is offered to you by Monetary Samurai (“Promoter”), who has entered right into a written referral settlement with Empower Advisory Group, LLC (“EAG”). Click on right here to be taught extra.
Your Roadmap to Wealth—No Matter The place You Reside
Interested by migrating for a greater life-style, decrease taxes, or extra freedom? Earlier than you progress, ensure your funds are on stable floor.
In my USA TODAY nationwide bestseller, Millionaire Milestones: Easy Steps to Seven Figures, I break down the sensible, step-by-step methods I used to construct wealth from scratch. Whether or not you are still grinding towards your first $100K otherwise you’re strategizing round multi-million-dollar choices like geographic arbitrage and tax effectivity, the ebook presents a transparent path ahead.
Cash offers you choices. And upon getting choices, you may dwell the place—and the way—you actually need.
Seize your copy in the present day and begin making strikes with confidence.
Subscribe To Monetary SamuraiÂ
Pay attention and subscribe to The Monetary Samurai podcast on Apple or Spotify. I interview consultants of their respective fields and focus on a number of the most attention-grabbing matters on this web site. Your shares, scores, and opinions are appreciated.
To expedite your journey to monetary freedom, be a part of over 60,000 others and subscribe to the free Monetary Samurai e-newsletter. Monetary Samurai is among the many largest independently-owned private finance web sites, established in 2009. Every little thing is written based mostly on firsthand expertise and experience.
