Nik Storonsky, the billionaire co-founder and chief executive of the financial technology company Revolut, has changed his official place of residence from the United Kingdom to the United Arab Emirates. The move, confirmed by a corporate filing, follows significant changes to the UK's tax rules for wealthy foreign nationals.
Key Takeaways
- Revolut CEO Nik Storonsky has moved his residency to the UAE, according to a Companies House filing.
- The relocation occurs as the UK abolishes its 'non-dom' tax status, which allowed wealthy residents to limit taxes on foreign earnings.
- Storonsky holds an estimated 25% stake in Revolut and has a personal net worth of approximately $14.3 billion.
- Revolut is concurrently expanding its presence in the UAE while seeking a full UK banking license.
- An internal valuation places Revolut at $75 billion, potentially making it larger than established UK banks like Barclays if it goes public.
Storonsky Changes Residency Amid UK Tax Overhaul
A filing with the UK's Companies House has officially documented that Nik Storonsky, a prominent figure in the global fintech industry, now resides in the United Arab Emirates. This decision comes shortly after Revolut established a new global headquarters in London's Canary Wharf district.
Storonsky is one of the UK's wealthiest entrepreneurs, with a personal fortune valued at $14.3 billion (£10.6 billion) by the Bloomberg Billionaires Index. As the chief executive, he maintains a significant ownership stake in Revolut, estimated to be around 25%.
His relocation is part of a larger trend of high-net-worth individuals reconsidering their UK residency. The shift coincides with the UK government's decision to eliminate the long-standing 'non-domiciled' tax regime.
Understanding the Non-Dom Status
The 'non-dom' regime was a tax status available to UK residents whose permanent home, or domicile, was outside the country. It allowed them to avoid paying UK tax on foreign income and capital gains unless they brought the money into the UK. This system has been a significant draw for international business leaders and investors for decades. In April, Shadow Chancellor Rachel Reeves confirmed plans to abolish this tax break, prompting many to re-evaluate their financial arrangements.
A Broader Exodus of Wealth from the UK
The decision to scrap the non-dom tax status has triggered a notable departure of affluent individuals from the country. This policy change removes a key financial incentive that has historically made the UK an attractive base for the global elite.
Official data from HM Revenue and Customs (HMRC) indicated that approximately 400 individuals with non-dom status had left the country ahead of the rule change. However, other reports suggest the number could be much higher.
Departure Statistics
According to reports from Bloomberg, as many as 4,400 business leaders have filed paperwork to change their residency away from the UK over the past year, indicating a significant reaction to the shifting fiscal landscape.
This exodus raises questions about the long-term impact on investment and tax revenue in the UK. The government's policy aims to create a fairer tax system, but it also risks driving away capital and entrepreneurial talent.
Storonsky's Background and Citizenship
Nik Storonsky was born in Russia but has taken steps to distance himself from his country of birth. Following the 2022 invasion of Ukraine, he publicly renounced his Russian citizenship. He subsequently acquired British citizenship.
It remains unconfirmed whether his change of residency to the UAE will affect his British citizenship status. Storonsky's career in finance was well-established before he launched Revolut, with prior roles at major investment banks Lehman Brothers and Credit Suisse.
Revolut's Dual Focus on the UK and UAE
While its CEO relocates, Revolut continues to pursue significant strategic goals in both the United Kingdom and the Middle East. The company secured a UK banking licence with some restrictions in 2023 and is actively working towards obtaining a full, unrestricted licence. This remains a critical step for expanding its financial services in its home market.
Simultaneously, Revolut is accelerating its global expansion, with a strong focus on the UAE. According to the Financial Times, the company is exploring the acquisition of a local bank in the region and is increasing its hiring efforts there. This dual strategy suggests Revolut aims to solidify its foundation in the UK while aggressively pursuing growth in new, high-potential markets.
Revolut's Potential Market Value
An internal share sale recently valued Revolut at $75 billion (£55 billion). If the company were to achieve this valuation in a public listing, it would surpass the market capitalisation of some of Britain's largest traditional banks, including:
- Barclays: Valued at approximately £53 billion.
- Lloyds Banking Group: Valued at approximately £49 billion.
The Future of Revolut's Public Listing
Speculation continues to surround Revolut's eventual initial public offering (IPO). The company's massive private valuation makes its stock market debut one of the most anticipated events in the fintech sector. For years, London has been considered a primary candidate for the listing, but the company has not made a final decision.
There remains speculation over where the company will opt to float on the stock exchange, with a dual listing in New York and London seemingly still a possibility.
A dual listing would allow Revolut to tap into the deep capital pools of the US market while maintaining a presence in London. The choice of listing venue will be a major indicator of the company's future direction and where it sees its most significant growth opportunities. For now, Revolut has declined to comment on Storonsky's relocation or its IPO plans.
