The Great Escape: The tax that threatens to empty California of its residents
An unprecedented wave of departure has been recorded among California's wealthy, who are abandoning the state following extreme tax policies and preparing for a vote on a new wealth tax. Many of them are turning to New Zealand, where they are purchasing "golden visas" that allow them to live, work, and study in the country in exchange for an investment of millions of dollars, reports the Financial Times.
An unprecedented wave of departure has been recorded among California's wealthy, who are abandoning the state following extreme tax policies and preparing for a vote on a new wealth tax. Many of them are turning to New Zealand, where they are purchasing "golden visas" that allow them to live, work, and study in the country in exchange for an investment of millions of dollars, reports the Financial Times.
The upcoming vote in November in California concerns the imposition of a one-time tax of up to 5% on assets of individuals and trusts with capital exceeding one billion dollars. The initiators of the move claim it is necessary to cover gaps in the funding of health services, but it is sparking great outrage among the billionaires who will be the target of this tax.
California Governor Gavin Newsom opposes the state tax, warning that it could drive wealthy residents and their businesses out of California, and ultimately harm the funding of schools, clinics, and public safety. Tech giants like Sergey Brin of Google have already invested tens of millions of dollars in the fight against the tax.
New Zealand, for its part, presents itself as the ultimate haven for billionaires. New Zealand Prime Minister Christopher Luxon hopes that the visa program will reverse the "brain drain" and import foreign capital, entrepreneurial experience, and connections. Since the rules were relaxed in April 2025, over 700 wealthy foreigners have submitted applications under the renewed programs, compared to 115 applications in the three years preceding that.
Among the billionaires who have already left California before the tax comes into effect on January 1, 2026, are Google founders Larry Page and Sergey Brin, as well as Peter Thiel and Steven Spielberg. Their combined wealth is estimated at about 27 billion dollars in potential tax revenue, and the list is not final. The city of Queenstown in New Zealand, known for its private jet traffic and luxury facilities, has become a particularly sought-after destination for them.
