In a politically fragile yet increasingly interconnected world, millionaires are “voting with their feet.”
The global pandemic may have temporarily halted travel plans for many, including High Net Worth Individuals (HNWIs). Still, as life returns to normalcy, these affluent individuals are back on the move.
An estimated 122,000 HNWIs are projected to relocate by the end of 2023, according to Henley & Partners’ Private Wealth Migration Report. In this context, an HNWI boasts a net worth of at least USD 1 million.
A Warm Welcome: Countries Attracting New Millionaires
A diverse array of countries are set to welcome the lion’s share of migrating millionaires and billionaires in 2023. Australia tops the list, reclaiming its position from the United Arab Emirates.
Here’s a more detailed breakdown:
The top 10 destinations are geographically varied, with only two Asian countries cutting. The rest are dispersed across Europe, North America, and Oceania.
Despite economic woes, Greece is expected to welcome 1,200 HNWIs this year. This influx could be attributed to the country’s golden visa program, which offers residency and EU passports to wealthy individuals willing to make significant real estate investments.
Many preferred destinations offer high economic freedom, presenting attractive tax conditions or investment opportunities. Expecting an influx of 3,200 millionaires, Singapore enjoys the distinction of being the world’s most economically free market.
The Great Exodus: Countries Losing Their Millionaires
Conversely, some countries are poised to see a significant outflow of wealth. China is predicted to lose 13,500 HNWIs in 2023—more than double the number anticipated to leave India, the second-highest country on the list.
Here’s a closer look at the countries expected to experience a millionaire exodus:
Several countries have restrictive regulatory frameworks and corruption issues, creating hurdles for HNWIs looking to manage their wealth.
External factors also play a role. For instance, wealthy Russians face personal tariffs and trade restrictions from Western countries due to the Ukraine conflict. China’s clampdown on Hong Kong has made it less appealing for business. Furthermore, Brexit has disrupted the ease of cross-border operations for many UK businesses and individuals.
While these countries may continue to produce homegrown millionaires and billionaires, the net loss due to migration can have significant economic implications.
The Growing Trend of Millionaire Migration
Despite a temporary lull during the pandemic, the trend of HNWIs relocating from their home countries has increased over the past decade. In a politically fragile yet increasingly interconnected world, it’s unsurprising to see millionaires “voting with their feet.” Governments worldwide are now vying to attract this economically influential group.
Do you want to delve deeper into this intriguing trend or seek further information on global wealth migration?
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