India has currently become the fourth largest economy in the world. One important reason for this and the population of growing millionaires in the country. But for some time, the migration of these millionaire people from the country is also being seen. In fact, there is a tremendous change in the world, which is giving a new look to all the countries of the world. If we talk about India, then the main reason for migration from India is the rigorous tax system here. Because of which the millionaires here are migrating to those countries, where there is not much strict rules regarding tax. On the other hand, the economy of India has become more formalized. At the same time, there is another reason for the migration of millionaires from India. That is that many countries have started Overseas Residency programs, which are quite attractive. This is the reason that now the millionaires of the country are investing money not in India but in cities of Dubai and other countries. Let us try to understand it in detail.
UAE golden visa went viral, what was rumor
On 7 July, the Emirates News Agency (WAM) reported that the UAE’s federal identity, citizenship, customs and port Safety Authority (ICP) clearly denied the rumors that the country will give a life of life to AED 100,000 (about 23 lakh rupees) to the citizens of select countries including India and Bangladesh.
The statement came after a widely broadcast news, which was initially published by PTI and which was also raised by the Indian media. It was claimed in this news that a “nomination-based” pilot program has been launched for Indian and Bangladeshi citizens, which has reduced dramatically in the cost of the longitarm visa.
Migration of money continuously from India
Henley Private Wealth Migration Report 2025 shows that India is one of the top 5 countries in countries where the most millionaires are decreasing annually. It is estimated that 3,500 Indians will leave the country in 2025 – which is less than 5,100 in 2023 and less than 4,300 in 2024, yet it is one of the most people in the world. The special thing is that these persons are expected to carry assets of $ 26.2 billion in total.
At the global level, in 2025, 1,42,000 rich Indians (HNWI) migration is estimated, which is the largest figure ever. The most net investment (9,800) is expected to come in the United Arab Emirates (UAE), which is far ahead of the US (7,500).
The combination of Zero Income Tax, Investor Friendly Rules, Luxury Lifestyle and Longym Visa option has established the UAE as a wealth hub. Its attraction extends to the continents and is attracting rich people from India, Britain, Russia, Southeast Asia and Africa.
Henley’s report states that outside Europe, due to strong demand from Britain, India, Russia, Southeast Asia and Africa, attractive golden visa options, the UAE strengthens the situation as the world’s most demanded money-property shelter (+9,800).
Meanwhile, Saudi Arabia is the most profitable country from year to year, where a net arrival of 2,400 millionaires is expected by 2025.
Despite the foreign flow, the population of millionaires of India is increasing. Between 2014 and 2024, the number of Indian high-intensive persons (HNWI) increased by 72 per cent, which was possible due to start-up, profit in stock market and growing family property. Nevertheless, regulatory barriers, safety regions, taxation and lifestyle related things are promoting migration.
Why are Indian millionaires going?
Domestic tax pressure
Strict investigation by Indian tax authorities is a major reason. The Central Board of Direct Taxes (CBDT) recovered a dues of Rs 20,000 crore in the first quarter of FY 2025, which is almost double the same period of previous year. This includes Rs 17,244 crore as corporate tax and Rs 2,714 crore as personal income tax. CBDT has set a target of recovery of Rs 1.96 lakh crore for the financial year. According to a parliamentary report on 1 October 2024, the total outstanding demand increased to Rs 42 lakh crore, which is much higher than 10 lakh crores in FY 2019-20.
Economy formalization
India is going through an intensive economic change. Historically, a large part of its economy operated informally, featuring cash transactions and limited monitoring. However, due to the coordinated efforts of the Government of India, economic activities are rapidly coming into the formal sector, which is directly impacting compliance and recovery.
Its center is an integrated payment interface (UPI), which processed 185.8 billion transactions worth Rs 261 lakh crore in FY 2024-25, which is 41 percent more than the previous year according to the Reserve Bank of India (RBI). Each UPI transaction is connected to PAN, which provides digital information to tax authorities. This has made it difficult to hide income, which has improved tax compliance.
On the other hand, GST, Jam Trinity, Jan-Dhan, Aadhaar and mobile systems which connect identity with financial transactions are also an enterprise portal, which has expanded simple registration, tax base for MSME.
Action on cryptocurrency
The Government of India has greatly increased its formalization efforts in relation to emerging asset class, especially cryptocurrency, which is now legally recognized as “virtual digital assets” (VDA). The purpose of this regulatory change implemented through several measures is to integrate Crypto Ecosystem in the country’s broad financial and tax structure. The key to this strategy is strict taxation policies and increased regulator monitoring under the Prevention of Money Laundering Act (PMLA).
In particular, on the benefits of VDA transfer, whatever the holding period, a similar capital gains of 30 per cent are levied, which has no provision for compensation for the loss or other income loss. In addition, on VDA transactions of more than Rs 50,000 (or Rs 10,000 for specific institutions), 1 % TDS is applied to total cell value instead of only benefits. These tax orders have severely affected crypto investment and profitability of business at the domestic level.
Global Mubility and Lifestyle
According to a survey conducted by Kotak Private in partnership with EY, 22 per cent of over-rich Indians expressed their desire to leave the country for better living standard, healthcare, education and ease of business.
Many people also desire for visa-free travel, which currently Indian passports do not provide European or Caribbean passports at the same level. Although domestic pressure contributes to going abroad, the powerful “attractive factor” coming from abroad, especially by attractive residence and investment, plays an important role.
Countries with zero or low personal income tax, capital gain tax and succession tax are very desirable. The United Arab Emirates is a prime example of this, where zero personal income tax, no capital gains tax and no succession tax, makes it a major option for wealth conservation.
In addition, jurisdiction such as Portugal, Singapore and United Arab Emirates offer attractive arrangements for property planning, making them a major option for money transfer.