India expected to lose 6,500 millionaires in 2023, second-highest after China

India is expected to lose 6,500 millionaires in 2023 – a staggering number in itself, but a step down from actual net outflow of high net-worth individuals in 2022. India had lost 7,500 millionaires in 2022. It is only second in line as one of the top losers of millionaires – individuals with investable 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, Russia, Brazil, Hong Kong, South Korea, Mexico, South Africa, Japan, Vietnam, Nigeria are all expected to lose more millionaires than last year, as per Henley & Partners’ Private Wealth Migration Report. In comparison, Australia, UAE, Singapore, USA, Switzerland, Canada, Greece, France, Portugal, New Zealand, Italy are projected to welcome more millionaires than last year. 

WHERE MILLIONAIRES ARE MIGRATING

Australia is the most preferred destination for high-net-worth individuals to migrate in 2023, mostly because of their points-based immigration system that favours wealthy individuals and those with professional qualifications including 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 some of the benefits that entice millionaires not only from mid- to low-income countries, but also from high-income countries, the report elaborated. 

UAE also sees one of the highest inflows of millionaires every year, and is expected to welcome around 4,500 millionaires in 2023. It is expected to witness high numbers of millionaires coming in from the UK, Russia, Lebanon, Pakistan, Turkey, Egypt, South Africa, Nigeria, Hong Kong, and China.

UAE’s ‘safe haven status’, diversified economy, low tax rates, healthcare system, real estate, international schools, luxury hub are some of the reasons that work in its favour in attracting millionaires. 

WHERE MILLIONAIRES ARE MIGRATING FROM

China is predicted to lose a large number of millionaires to migration. The report states that general wealth growth in the country has been slowing over the past few years. It specifically mentioned the banning of Huawei 5G by several major markets including USA, UK and Australia as a big blow to the country’s growth plan that revolves around its high-tech sector. It acknowledged that Huawei was just one company but it was linked to many other local companies. 

COVID-19 has also harmed China’s relations with several major trading partners in the last couple of years, along with Hong Kong and Taiwan, it stated. 

Things are not all that great for the UK either. It was – up till a decade ago – one of the most sought-after destinations for migrating millionaires. It attracted a large number of wealthy people from across the globe. Around 6 years ago, this trend began to reverse with many millionaires leaving the country and fewer coming in. The UK lost approximately 12,500 more high-net-worth individuals than it gained. It is expected to lose another 3,200 millionaires in 2023. 

UK’s non-domiciled residents are leaving the country compounded by the impact of Brexit, its healthcare system, its taxation system, and a shrinking importance of the London Stock Exchange in the global stage. 

Even so, some small affluent towns in the UK have increasingly gained wealth over the past five years. Beaconsfield, Bray, Harrogate, Henley-on-Thames, Marlow, Taplow, Virginia Water and Weybridge are increasingly becoming popular among centi-millionaires – those who have investable wealth of over $100 million. 

WHY ARE MILLIONAIRES MIGRATING

Affluent families are extremely mobile. Their movements are an indication of a country’s economic outlook, the report added. Increasing movement points to a drop in confidence in a country, and an inflow the opposite. 

Political stability, low taxation, personal freedom have always been key metrics for millionaire migration but priorities have now shifted. Children’s prospects, quality of life, access to top-tier academic institutions, options to move to cities that are more resilient to climate change, robust regulatory environment and options to base themselves in countries where their capital can be protected for generations to come are gaining equal importance. 

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