In 2023, India is predicted to lose 6500 millionaires - a staggering number in itself, but a step down from the actual net outflow of high net-worth individuals in 2022. It is only the second in line as a top loser of millionaires - individuals with an investmentable wealth of $1 million - after China that is projected to lose 13.500 millionaires in 2023, a significant increase from the actual loss of 10,800 millionaires in 2022.
The UK, China, Russia, Brazil, Hong Kong, South Korea, Mexico, South Africa, Japan, Vietnam, Nigeria are all expected to lose more millionaires than last year, according to Henley & Partners' Private Wealth Migration report. With their points-based immigration system, Australia is the most preferred destination for high-net-worth individuals to migrate to, mostly because of its wealthy individuals and those with professional qualifications like accountants, doctors, engineers, hi-tech professionals and lawyers.
Australia's weather, beaches, scenery, safety and security, healthcare system, quality of life, educational opportunities, taxation system and economy are just a few of the benefits that entice millionaires not only from mid- and low-income countries, but also from high-income countries.
The UAE has a high inflow of millionaires every year, and is expected to welcome around 4,500 millionaires in 2023. The'safe haven status', diversified economy, low tax rates, healthcare system, real estate, international schools, luxury hub are some of the factors that work in its favor in attracting millionaires.
China is predicted to lose a significant number of millionaires to migration. The report states that the country's general wealth growth has been slowing over the past few years. The ban on Huawei 5G by several major markets, including USA, UK and Australia, is a significant blow to the country's growth plan that revolves around its high-tech sector. The minister acknowledged that Huawei was just one company but it was linked to many other local companies.
COVID-19 has harmed China's relations with several major trading partners, such as Hong Kong and Taiwan, the report said.
The UK's economy is not as good as it has in the past. It was a sought-after destination for migrants - up until a decade ago. It attracts a significant number of wealthy people from various corners of the globe. In late 2016 the trend began to reverse with many millionaires leaving the country and fewer coming in. The UK lost more than 12,500 more high-earning individuals than it gained. The impact of Brexit on non-domiciled residents is compounded by the impact of Brexit, its healthcare system, taxation regime, and a declining importance of the London Stock Exchange on the global stage.
Even so, some small, affluent towns in the UK have become more rich over the past five years. Weybridge, Weybridge, Bray, Harrogate, Henley-on-Thames, Marlow, Taplow, Virginia Water and Beaconsfield are all becoming popular among centi-millionaires who have investable wealth of more than $100 million.
Those who are very mobile are extremely mobile. Their movements are a sign of a country's economic outlook, the report said. The decrease in movement is a sign of a decrease in confidence in a country, and an inflow of the opposite.
Millionaire migration has always been based on political stability, low taxes, and personal freedom, but it has now changed. Also read: Chinese media on India-Canada tension