Billionaire hedge fund founder Chris Rokos has announced his relocation of tax residency from the United Kingdom to Greece, raising renewed concerns about the impact of Britain’s tax regime on its wealthiest individuals. Rokos, who was the UK’s third-largest taxpayer last year with an estimated £330 million bill, previously expressed satisfaction in paying taxes and pledged £190 million to Cambridge University earlier this year. Despite these commitments, his decision to move highlights a growing trend of high-net-worth individuals seeking more favourable tax environments abroad.

Rokos’s departure follows a series of high-profile exits by wealthy entrepreneurs and investors. Steel magnate Lakshmi Mittal has relocated to Dubai, Egyptian businessman Nassef Sawiris has moved to the United States, and Checkout.com founder Guillaume Pousaz now resides in Monaco. Richard Gnodde, formerly a senior banker at Goldman Sachs UK, has shifted to Milan. These moves underscore the appeal of countries offering advantageous tax conditions. Greece, for example, imposes a flat annual tax of €100,000 on qualifying new residents’ foreign income for up to 15 years, a scheme mirrored by Italy and attracting many British entrepreneurs, while Dubai remains a prominent destination due to its low-tax environment.

The trend is prompting unease among experts who warn that Britain risks losing not only established billionaires but also the next generation of entrepreneurs and millionaires who have the means and motivation to relocate. Some founders have expressed concerns that proposed tax increases, particularly on capital gains tax (CGT), could exacerbate the trend. The CGT rate on higher earners was increased to 24% in late 2024 and may rise further under current government proposals, potentially aligning closer to the 40-45% rates of income tax.

Accountancy professionals advising founders have urged policymakers to reconsider further hikes on CGT. Natasha Frangos, managing partner at HaysMac, reports a noticeable rise in entrepreneurs contemplating moving abroad, with destinations such as Milan, Greece, and the US particularly attractive. Frangos also identified a related challenge: while the UK excels at fostering start-ups, many scaling companies seek capital overseas, especially in the United States, with some founders choosing to remain there. This capital flight diminishes potential reinvestment in the British economy and represents a loss beyond tax revenue.

Concerns extend beyond taxation to broader issues affecting entrepreneurial retention, including perceived inequities in the UK’s corporate tax system. Some founders argue that multinational technology firms often pay disproportionately low UK tax compared to homegrown companies. There are also cultural differences in attitudes toward business failure, with the UK seen as less forgiving compared to the United States, potentially discouraging risk-taking entrepreneurs.

Despite these trends, some prominent entrepreneurs remain committed to the UK. Mia Drennan, co-founder of loan administration company GLAS, recently valued at over £1 billion, stated she is “very much rooted” in Britain and intends to list GLAS on the London Stock Exchange in the future. Nevertheless, Rokos’s exit serves as a reminder that loyalty can be challenged when the financial and regulatory environment becomes less favourable.

The UK Treasury faces a delicate balance in managing tax policy to retain its wealthy and entrepreneurial population without discouraging success or prompting capital flight. The growing exodus among high-net-worth individuals highlights that the cost of leaving may soon outweigh the benefits of staying for many.