According to New World Wealth head of research, Andrew Amoils, millionaire migration figures can be a telling real-time barometer for the health of an economy as wealthy people are extremely mobile and they therefore tend to be the first to move when the need arises.
“The countries that consistently attract affluent families through migration tend to be economically robust and usually have low crime rates and offer attractive business opportunities,” said Amolis.
Henley & Partners released a report on key insights about “Where and Why Millionaires are Migrating in 2023”.
The report reveals that private wealth migration trends look set to revert to pre-Covid patterns in 2023, with Australia reclaiming the top spot for net millionaire arrivals as it did between 2015 and 2019, and China suffering the biggest net outflows of high-net-worth individuals as it has since 2013.
“Ongoing volatility is amplifying security, political, and economic risks, prompting affluent families globally to diversify their domicile portfolios via investment migration to enhance economic mobility and protect their lifestyles, wealth, and legacies,” said Henley & Partners.
Here are the top 5 destinations for net inflows of high-net-worth individuals in 2023 and why millionaires are migrating to these destinations, according to Henley & Partners.
Australia
According to the report, Australia is at the top of the list and is expected to attract the highest net inflow of high-net-worth individuals in 2023.
“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. About 82 000 high-net-worth individuals have moved to Australia over the past 20 years (2002 to 2022), and another 5 200 are expected to arrive in 2023,” said Henley & Partners.
It said that these consistently large inflows are possibly linked to Australia’s points-based immigration system which favours wealthy individuals and those with professional qualifications, such as accountants, doctors, engineers, hi-tech professionals, and lawyers.
Some of the possible reasons why down under is popular among migrating millionaires include safety and security.
New World Wealth’s in-house safety index currently rates Australia as one of the safest countries on Earth. It has an advanced economy. Australia is especially strong in energy and mining, financial services, health care, and real estate.
It also offers a high quality of life for families – the country holds great appeal as an ideal place for bringing up children.
United Arab Emirates
The United Arab Emirates comes in at second place with a net inflow of about 4 500 millionaires expected in 2023 – one of the highest on record.
“Pre-pandemic, the UAE traditionally saw net inflows of around 1 000 high-net-worths per year. 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 Henley & Partners.
According to the report, some of the reasons why the UAE is attractive to the wealthy is because of its safe-haven status and its highly diversified economy. The Emirates is strong in many key sectors, including financial services, health care, oil and gas, real estate, technology, and travel and tourism.
Tax rates are low. Along with Bermuda and Monaco, the UAE has the most competitive tax rates in the world and is a luxury hub.
Singapore
According to the report, Singapore is Asia’s biggest wealth magnet.
“Singapore continues to attract wealthy individuals, mainly from the rest of Asia. A net inflow of approximately 3 200 high-net-worth individuals is expected in the city-state in 2023,” said Henley & Partners.
The report revealed that Singapore is the top wealth management centre 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,” the report read.
It said a large number of tech entrepreneurs have made the move to Singapore over the past few years, which is an encouraging sign as the city-state positions itself to rival Tokyo and Shenzhen to become the “Silicon Valley of Asia”.
USA
Henley & Partners said that America is a steady performer and expected to attract a net inflow of about 2 100 new high-net-worth individuals in 2023, mainly from Asia.
“Traditionally, most affluent people 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.”
Switzerland
Despite recent issues with the Swiss banking system and specifically Credit Suisse, Switzerland is still Europe’s top wealth hub and projected to attract a net inflow of about 1 800 high-net-worth individuals in 2023, according to the report.
“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,” it read.