In 2023 thousands of millionaires are migrating to Australia from India and China

Although the second-biggest loser globally, India’s net exit numbers are predicted to drop to 6,500 in 2023 compared to last year (7,500).

The Henley Private Wealth Migration Report 2023 which tracks wealth and investment migration trends worldwide says Australia is expected to attract the highest net inflow of High Net Worth Individuals (HNWIs) in 2023 at 5,200.

The United Arab Emirates is expected to drop into 2nd place following its record-breaking influx in 2022, it is still expected to enjoy an impressive net arrival of 4,500 new millionaires this year. Singapore ranks 3rd with a net inflow of 3,200 HNWIs, its highest on record, followed by the US with an expected net influx of 2,100 millionaires.

Switzerland (net inflow of 1,800) and Canada (1,600) are in 5th and 6th place, respectively, with Greece (1,200), France (1,000 — double last year’s net intake of 500 millionaires), Portugal (800), and New Zealand (700) all making it onto this year’s Top 10 list for net HNWI inflows.

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Where are these millionaire migrants coming from

As it has for the past decade, China continues to lose the largest number of dollar millionaires each year to migration. 

Andrew Amoils, Head of Research at New World Wealth, explains that “general wealth growth in China has been slowing over the past few years, which means that the recent outflows could be more damaging than usual. China’s economy grew strongly from 2000 to 2017, but wealth and millionaire growth in the country has been negligible since then (when measured in US-dollar terms)”.

Although the second-biggest loser globally, India’s net exit numbers are predicted to drop to 6,500 in 2023 compared to last year (7,500).

Skill Migrants; Image Source: @CANVA

Mr Amoils points out,

“These outflows are not particularly concerning as India produces far more new millionaires than it loses to migration.”

Commenting on the Report, Sunita Singh-Dalal, Partner, Private Wealth & Family Offices at Hourani adds that “prohibitive tax legislation coupled with convoluted, complex rules relating to outbound remittances that are open to misinterpretation and abuse, are but a few issues that have triggered the trend of investment migration from India”.

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The UK (3,200) and Russia (3000 ­vs 8,500 in 2022 following its invasion of Ukraine) sit in 3rd and 4th place respectively, with Brazil (1,200), Hong Kong (SAR China) (1,000 — less than half the actual net outflow in 2022), South Korea (800 — double the net outflow in 2022), Mexico (700), South Africa (500), and Japan (300 compared to last year’s net loss of 100) making up the rest of the Top 10 biggest millionaire losers forecast for 2023.

Award-winning journalist and Rector of the Institute for Human Sciences in Vienna, Misha Glenny, says the lessons for those who hope to attract HNWIs are clear.

“Political stability is the key metric for those selecting where they want to live, together with low taxation regimes and personal freedom. ”

What are popular investment migration pathways?

Portugal’s Golden Residence Permit Program remains the most popular overall in 2023, followed by Austria’s citizenship by investment offering and St. Kitts and Nevis’s Citizenship by Investment Program. Next is Canada’s Start-Up Visa Program, the fastest way for entrepreneurs and wealthy individuals to access Canadian residence and the North American market. Rising in popularity this year and last in the top five is Italy’s Residence by Investment Program, with Greece’s Golden Visa Program and Spain’s Residence by Investment Program hot on the heels of their Mediterranean counterpart.

Dominic Volek, Group Head of Private Clients at Henley & Partners, says historically, many wealthy individuals acquired residence rights or citizenship without moving to those countries.

“Recent and persistent turmoil has caused a shift — more investors are considering relocating their families for a range of reasons, from safety and security to education and healthcare, to climate change resilience and even crypto-friendliness.”

“It is important to note that nine of the Top 10 countries for forecast net HNWI inflows in 2023 host formal residence-by-investment programs that encourage foreign direct investment in return for the right to reside, which can also lead to citizenship in some cases. Investors see the clear value of diversifying their domicile portfolios as the ultimate hedge against both regional and global volatility, now and in the future.”