Thor Björgólfsson, Iceland's first billionaire [1], has changed his tax residency from the United Kingdom to Italy.

The move signals a potential trend of high-net-worth individuals leaving the UK due to instability in tax regimes. Björgólfsson, the founder of the investment firm Novator, relocated the company's operations from London to Zurich, Switzerland [2].

Björgólfsson said the decision followed recent changes to UK tax laws. He said the perceived fragility of the non-domiciled tax regime was a primary driver for his departure [3]. This regime historically allowed certain residents to avoid paying UK tax on foreign income, provided they did not bring those funds into the country.

Reports indicate the residency change occurred over the last year [1]. While some reports suggest the departure followed a confidence vote, other accounts describe a gradual transition of assets and residency [1, 4].

Beyond his personal residency, the shift of Novator to Zurich represents a strategic relocation of capital and corporate management. The move comes as the UK government faces scrutiny over its ability to attract and retain global wealth amidst shifting fiscal policies [3].

Björgólfsson said his departure could be part of a broader exodus of millionaires from Britain [2]. He said the current tax environment has become less predictable for international investors, a factor that often outweighs the specific percentage of tax owed.

“Iceland's first billionaire has changed his tax residency from the United Kingdom to Italy.”

The departure of a high-profile billionaire and the relocation of a firm like Novator to Switzerland highlight the tension between UK fiscal policy and global competitiveness. As the UK modifies its non-dom tax rules to increase transparency and revenue, it risks alienating the 'mobile' wealthy class who prioritize tax certainty. This shift may prompt other European hubs, such as Italy or Switzerland, to capture more investment capital as the UK struggles to balance social equity with the desire to remain a global financial center.