It is a phenomenon that has been seen many times: millionaires popping up all over the world in search of the most lucrative opportunities to park their wealth. Countries like the United Kingdom, China, India, and Russia used to house large numbers of millionaires, but there seems to be a turning point in the former tax havens. Australia, on the other hand, appears to be gaining popularity, according to a report by migration advisory firm Henley & Partners.
UK losing popularity among the wealthy
For years, the capital city of London, in particular, attracted many foreign millionaires who often invested in real estate. However, since the Brexit was officially realized in 2020, more millionaires are leaving the UK than entering. The controversy surrounding a special tax rule for British individuals who earn their wealth outside the UK has also caused unrest among the millionaires. As a result, the UK is expected to witness a net outflow of 3,200 high-net-worth individuals in 2023, double the number from last year. Only China and India have a higher net outflow than the United Kingdom.
Wealthy individuals migrating worldwide
Russia has also lost its appeal among the wealthy. The cause may be clear: the war in Ukraine plays a prominent role in this decline. India is expected to see a loss of around 6,500 millionaires. According to an insider, this is due to “prohibited tax legislation combined with complex rules regarding outgoing transfers that are susceptible to misinterpretation and abuse.”
China tops the list in terms of expected net outflow: 13,500 millionaires. Andrew Amoils, Head of Research at New World Wealth, explains:
“The overall wealth growth in China has slowed in recent years, which means that the recent outflow may be more detrimental than usual. The Chinese economy grew strongly from 2000 to 2017, but wealth and millionaire growth in the country have been negligible since then.”
Australia, UAE, and Singapore gaining popularity among millionaires
While the prominent havens of the past see their influx of millionaires shrinking, millionaires see Australia, the United Arab Emirates (home to Dubai), and Singapore as increasingly attractive havens for themselves and their wealth. According to the firm, Australia is regaining its position as the top destination, just as it was in the five years before the COVID-19 pandemic. The UAE, particularly Dubai, is immensely popular, as is Singapore.
