Billionaires Flee UK and California Over Aggressive Wealth and Inheritance Taxes

Property tycoon David Reuben has relocated from London to Monaco, becoming the latest ultra-wealthy resident to exit the United Kingdom following the abolition of the non-domicile tax status. Reuben, whose personal fortune stands at $13.1 billion and whose family wealth reaches £28 billion, moved after reforms exposed worldwide assets to Britain’s 40% inheritance tax. The UK’s experience mirrors an escalating conflict in California, where voters are deciding on Proposition 40, a proposed 5% one-time tax on roughly 200 billionaires.

More than a dozen billionaires controlling a combined £120 billion have left Britain over the past two years, exerting fiscal pressure on the Treasury. In California, high-profile figures including Larry Page, Sergey Brin, Peter Thiel, Travis Kalanick, and Steven Spielberg have already decamped for tax-friendly states. Those departures represent a potential $29 billion loss from Prop 40's projected $100 billion revenue. However, not all executives oppose the measures; Nvidia CEO Jensen Huang dismissed the prospect of moving, stating: “We chose to live in Silicon Valley and whatever taxes they would like to apply, so be it.”

The exodus from Britain accelerated after the April 2025 termination of the centuries-old non-dom regime, which had allowed wealthy expatriates to avoid domestic taxation on overseas income. Monaco remains a preferred refuge because it levies zero income, capital gains, or inheritance taxes. Simon Reuben, David's brother, has resided in the principality for four decades, underscoring the enduring appeal of traditional low-tax jurisdictions.

Political battles over billionaire migration are intensifying ahead of upcoming policy deadlines. While advocates like Senator Bernie Sanders promote wealth taxes as vital revenue tools, opponents, including California Governor Gavin Newsom, warn that capital flight undermines fiscal targets. With California opponents spending over $187 million to defeat Prop 40 and promote nullification measures, the dual cases highlight the risks governments face when taxing mobile global wealth.