An estimated record 122,000 millionaires moved to new countries in 2023, up 45% from 2022.
Henley & Partners data shows Australia topped the net inflow of millionaires, outpacing the US.
China faced the highest net loss of millionaires, followed by India and the UK.
Millionaires are leaving China and the UK, and flocking to Australia and the United Arab Emirates.
That's according to data from Henley & Partners, a firm that advises the wealthy where to move to protect and grow their wealth. The firm says a record number of millionaires moved to a new country in 2023. While the US remains the home to the most HNWIs — high net worth individuals — it is not the country seeing the biggest influx.
Henley & Partners estimated that about 122,000 millionaires migrated to a new country in 2023, either for citizenship or residency. While the US is home to 37% of all people with $1 million in liquid investable assets, Australia topped the list of countries with the highest net inflow of millionaires.
The number of millionaires in 2023 was up 45% from 2022 and is the highest on record since Henley & Partners started tracking the data in 2013.
According to Henley & Partners calculations, based on data from the first six months of 2023, Australia was expected to gain 5,200 more millionaires than they lost from the previous year. That was more than double the US, which grew by 2,100 HNWIs and ranked fourth.
At the other end, China was on pace to lose the most millionaires for the second year in a row, with a net drop of 13,500. That was more than twice as much as the next country, India, which had 6,500 fewer millionaires at the end of the year. The UK was third with a loss of 3,200.
Below is a look at the countries seeing the biggest net inflow of millionaires and why they chose those countries.
1. Australia The Sydney Opera House
Gallo Images/Getty Images
2023 estimated net gain of millionaires: 5,200
2022 net gain of millionaires (rank): 3,800 (2)
According to Andrew Amoils of Henley & Partners, Australia attracts most of its new millionaires from Asia, Africa, and the UK.
Amoils explains that many millionaires are likely attracted to Australia because of their immigration laws, which award points to candidates based on age, education, professional experience, and ability to speak English.
"Australia consistently attracts sizable numbers of millionaires every year," Amoils wrote. "These consistently large inflows are possibly linked to Australia's points-based immigration system, which favors wealthy individuals and those with professional qualifications."
He also pointed to other factors such as the weather, low population density, safety, economy, education opportunities, taxes, and a first-class healthcare system.
2. United Arab Emirates Dubai, UAE
Anadolu/Getty Images
2023 estimated net gain of millionaires: 4,500
2022 net gain of millionaires (rank): 5,200 (1)
According to Henley & Partners, the number of net new millionaires in the UAE has quadrupled from its pre-pandemic levels of about 1,000 annually.
That recent growth also coincides with EXPO 2020, the most recent World Expo, where nations and millions of visitors gathered to look for solutions to issues the world is facing. This event is credited with putting the UAE on the international map.
Amoils described the UAE as the "foremost wealth hub in the Middle East" and credits its attractiveness to factors such as its safe haven status, diverse economy across several key sectors, low taxes, luxury real estate, good schools, and a top healthcare system.
The millionaires moving to the UAE come from many areas, including the UK, Russia, Africa, Asia, and other Middle Eastern countries.
3. Singapore Singapore.
Annice Lyn/Getty Images for the Commonwealth Games Federation
2023 estimated net gain of millionaires: 3,200
2022 net gain of millionaires (rank): 2,900 (3)
According to Henley & Partners, most millionaires migrating to Singapore come from other Asian countries.
Amoils noted that many tech entrepreneurs are moving to Singapore as it attempts to become the "Silicon Valley of Asia." However, he notes that the country's wealth management status is also attractive.
"Singapore is the top wealth management center in Asia and one of the number one hubs for family offices globally," Amoils wrote. "This is a major drawcard as, over time, often wealthy people gravitate to where their money is held."
4. United States of America Manhattan.
Alexander Spatari/Getty
2023 estimated net gain of millionaires: 2,100
2022 net gain of millionaires (rank): 1,500 (5)
According to Henley & Partners, most new millionaires moving to the US come from Asia.
The most common sectors among these HNWIs are entertainment, financial services, and tech. The latter is especially popular as tech start-ups often move to Silicon Valley and other parts of the US to grow their companies.
Investors are attracted to the US because of the US EB-5 Immigrant Investor Program which gives immigrants a faster route to acquiring residency in the US if they invest at least $800,000 in a domestic business.
For business owners, there are a few avenues offered to launch a startup or expand an existing company in the US. These either require an investment in the domestic business or proof that it will benefit the public.
5. Switzerland Zurich.
Allan Baxter/Getty Images
2023 estimated net gain of millionaires: 1,800
2022 net gain of millionaires (rank): 2,200 (4)
Switzerland still ranks high for millionaires despite scandals associated with the country's banking system and the near collapse of Credit Suisse.
Henley & Partners notes that Switzerland is still attractive because it is safe and provides a good lifestyle for the wealthy. It also still has a strong reputation because of its banking secrecy laws.
Switzerland does not offer citizenship through investment, but it does offer residency. This can be achieved by investing in the Swiss economy, starting a business that benefits the economy, or paying a minimum annual tax of $270,000.
6. Canada Toronto.
Safwat Ghabbour
2023 estimated net gain of millionaires: 1,600
2022 net gain of millionaires (rank): 1,200 (7)
Amoils notes that Canada checks off most boxes regarding why millionaires pick a new country, especially those who own businesses. These include a safe and stable environment, lifestyle options, building wealth, diversifying investments, and sustaining the long-term performance of their businesses.
"A strong financial, legal, and regulatory environment — combined with universal healthcare and a world-renowned education system — make the country a particularly desirable place to raise a family and operate a business," Amoils wrote.
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By: [email protected] (Cork Gaines) Title: 6 countries where millionaires are moving and how these nations help protect and grow their investments Sourced From: www.businessinsider.com/millionaires-migration-hnwi-wealthy-tax-breaks-investments-business-owners-immigration-2024-5 Published Date: Sat, 25 May 2024 09:22:01 +0000
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