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- Millionaires are leaving their countries in numbers for political stability, low taxation, personal freedom, and more.
- Most high-net-worth individuals are moving to countries such as Australia, the UAE, Singapore, the USA, and Switzerland.
- The wealthy have fled from their home countries, particularly China, India, the UK, Russia, and Brazil, for many reasons, including deteriorating healthcare, taxation, and safety concerns.
- For more stories, visit the Tech and Trends homepage.
High-net-worth individuals from different parts of the world are migrating in search of political stability, low taxation, personal freedom, and to protect their lifestyles, wealth, and legacies.
According to a Henley Private Wealth Migration Report 2023, wealthy families are heading to countries such as Australia, the UAE, Singapore, the USA, and Switzerland – leaving their home countries, including China, India, the UK, Russia and Brazil.
Millionaires going 'Down Under'
Private wealth migration trends show that Australia is reclaiming the number one spot for net millionaire arrivals as it did between 2015 and 2019.
"Australia is expected to attract the highest net inflow of high-net-worth individuals in 2023. This large influx of the world’s wealthiest is nothing new.
"Australia consistently attracts sizeable numbers of millionaires every year, mainly from Asia and Africa, but more recently also from high-income countries such as the UK," said the report.
Between 2002 and 2022, over 82 000 high-net-worth individuals moved to Australia. An additional 5 200 are expected to arrive in 2023.
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"These consistently large inflows are possibly linked to Australia’s points-based immigration system which favors wealthy individuals and those with professional qualifications [including] accountants, doctors, engineers, hi-tech professionals, and lawyers," the report said.
The biggest motivating factors for their migration include the weather, beaches, scenery, and the country’s natural beauty.
Other factors include low population density, safety and security, first-class healthcare system, an advanced economy, high quality of life for families, education opportunities, and the absence of estate duty.
Moving to the United Arab Emirates
Before the pandemic, the UAE saw about 1 000 high-net-worth arrivals in the country each year. This year, approximately 4 500 millionaires are expected to enter the destination – one of the highest on record, according to the report.
"Most incoming millionaires in 2023 are expected to come from India, with large numbers also coming from the UK, Russia, Lebanon, Pakistan, Turkey, Egypt, South Africa, Nigeria, Hong Kong, and China," said the report.
Some reasons for migrating to the UEA include safety, a diverse economy, low tax rates, a first-class healthcare system, a luxury hub, prime real estate, favourable international schools, and all-year leisure activities such as beaches, water parks, and yachting marinas.
Singapore – a haven for rich Asians
Wealthy individuals in Asia are flocking to Singapore, with 3 200 millionaires expected to enter the city-state in 2023.
"Singapore is the top wealth management center in Asia and one of the number one hubs for family offices globally. This is a major drawcard as, over time, often wealthy people gravitate to where their money is held," said the report,
Over the past few years, numerous tech entrepreneurs have moved to Singapore. This, according to the report, is "an encouraging sign as the city-state positions itself to rival Tokyo and Shenzhen to become the Silicon Valley of Asia".
USA
About 2 100 high-net-worth Asians are expected to flock to the USA in 2023. Typically, the wealthy, who move to the USA are involved in the entertainment, financial services, and tech sectors.
"In particular, successful tech start-up entrepreneurs often move to the USA (Silicon Valley especially) to take their companies to the next level," said the report.
Switzerland – Europe’s top wealth hub
Despite the collapse of Credit Suisse, a global investment bank and financial services firm, Switzerland is still expected to attract about 1 800 wealthy individuals in 2023.
"Although lower than the net inflow last year, this shows that the country’s enduring appeal lives on. Switzerland is after all still one of the safest and best run countries on earth, and a great place to live, particularly for the super-wealthy," the report said.
Millionaires leaving the UK
For many years, the UK has been seen as one of the world’s top destinations for migrating millionaires. From 1980 to 2010, the country attracted large numbers of wealthy people, particularly from Africa, Asia, Commonwealth Independent States, Europe, and the Middle East.
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About six years ago, more millionaires started to leave the country, with only a few coming in.
"Notably, during the period from 2017 to 2022 the UK has lost approximately 12 500 more high-net-worth individuals than it has gained through migration, and it is expected to lose another 3 200 millionaires to migration in 2023," according to the report.
Possible reasons for the exodus include the impact of Brexit, deteriorating healthcare, taxation, safety concerns, the shrinking importance of the London Stock Exchange globally, and more.
Millionaires are leaving China
Many millionaires are leaving China as general wealth growth in the country slowed down in the past few years.
From 2000 to 2007, China’s economy recorded steady growth, but wealth and millionaire growth in the country has been negligible since then.
"The banning of Huawei 5G by several major markets (USA, UK, and Australia) appears to have been a major blow for China, as much of the country’s future growth plan was based around its hi-tech sector.
"Although just one company, Huawei was the crown jewel of this sector and many other local companies were linked to it. China’s overall plan to move away from being a component manufacturer and towards finished products was also damaged by this ban," according to the report.
The Covid-19 pandemic also severed China’s trading relationship with several major trading partners over the past couple of years, especially Australia and the US, among other issues.
