High taxes, poor facilities forcing rich Indians to shift abroad 

In a quiet but seismic shift, India’s wealthiest citizens are increasingly trading their Indian passports for new horizons abroad. In 2024 alone, over 2.06 lakh Indians renounced their citizenship, with high-net-worth (HNW) individuals leading the charge.

According to a report by Henley & Partners, nearly 3,500 millionaires with estimated wealth of $26.2 billion are expected to migrate from India in 2025. An estimated 4,300 millionaires left the country last year, part of a broader trend that saw 17.5 lakh Indians relinquish their passports since 2011.

What’s driving this exodus of the elite, and what does it mean for India’s future? Henley & Partners highlighted standard of living, healthcare, work and business opportunities, taxes and safety and security among the driving factors for the migration high net worth individuals. 'Millionaires' or 'HNW individuals' refer to individuals with liquid investable wealth of $1 million or more.

For Devika (name changed) and her husband, the high taxes and comparatively low facilities in return, were the triggering point to leave India a couple of years ago. “We were paying over Rs 50 lakh as income tax but there was almost no facility we were getting in return. The security, health and education facilities in India are really poor compared to western countries," Devika, who has shifted to Ireland, said.

For many elite Indians, the Indian passport — ranked 76th on the Henley Passport Index with visa-free access to just 58 countries — is a shackle. Compare that to passports from the US (193 countries), Canada (186), or Singapore (192), and the appeal of foreign citizenship becomes clear. “We keep saying India is great here, but you face the reality when you travel abroad,” said Sandeep Singh, who narrated his ordeal in travelling to New Zealand with Indian passport. “My sister, who carries an Australian passport, got immigration clearance immediately, but for my family, we had to wait there for nearly three hours for our turn to get the clearance," Singh said.

Various reports state between 2018 and 2023, over 3.2 lakh Indians opted to settle in the US, 1.6 lakh in Canada, and 1.3 lakh in Australia. Emerging hubs like Dubai, Singapore, and European nations such as Portugal and Malta are also drawing India’s elite, lured by investment migration programmes offering residency or citizenship.

Beyond mobility, the Indian millionaire are also chasing better economic prospects. Education is another magnet. Countries like the US, UK and Australia boast world-class universities, and foreign citizenship ensures easier access and post-graduation opportunities for the next generation.

Quality of life also plays a starring role. Low crime rates, robust healthcare, and social security benefits are powerful draws. Add to that India’s complex tax regime and regulatory hurdles, and jurisdictions like Dubai or Singapore, with their low-tax environments, become irresistible. While the Indian government frames this migration as a natural byproduct of globalisation, voices on social media tell a different story.

"In countries such as the UAE, the personal income tax is 0. And, it has 9% corporate income tax. In India, it is the opposite: our personal income taxes are higher than corporate income taxes. Therefore, people migrate. Data tells us that on (millionaire outflow/total millionaire bases) India ranks #1 in migration," Akshat Shrivastava, Founder of Wisdom Hatch shared in a post on LinkedIn.

He highlighted corruption in Indian system as a major drawback in building wealth.

"Now: you'd say that: "Oh, Western countries too have very high taxes, what's the big deal?" When Scandinavian/Western Countries charge high taxes, they have the option to send their kids to good public schools, avail healthcare, social security etc. But, in India: corruption hits the middle class the most. In India: there is double-whammy: pay high tax, AND also incur expenses: on sending kids to private schools (and other services). This leads to higher expenses and lower savings," he said.