Millionaires on the move: Where are the world's rich migrating to in 2024?
New Delhi, Jun 21, 2024
The evolution and development of the UAE's wealth management ecosystem is unprecedented.
The UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024 — second only to China worldwide, and more than double the 4,200 who left the country last year, which was itself record-breaking following the exodus of 1,600 high-net-worth individuals (HNWIs) in 2022. For the third year running, the UAE looks set to take first place as the world’s leading wealth magnet, with a record-breaking 6,700 moneyed migrants expected to make the Emirates home by the end of the year, significantly boosted by large inflows from the UK and Europe, revealed the latest data from Henley & Partners.
India continues to lose large numbers of millionaires, especially to the UAE. However,these outflows are not particularly concerning as India continues to produce far more new HNWIs than it loses to emigration. Furthermore, the bulk of the millionaires who leave India tend to retain business interests and second homes in the country, which is a positive sign.
The Henley Private Wealth Migration Report 2024 features the latest net inflows and outflows of millionaires (namely, the difference between the number of HNWIs with liquid investable wealth of USD 1 million or more who relocate to and the number who emigrate from a country). The average growth in millionaires in the decade from 2013 to 2023 for the Top 15 wealthiest countries (W15) in Henley & Partners’ country wealth rankings was 36%. What stands out is the 92% growth in China’s high-net-worth individual population, 85% in India’s, and 62% in the USA’s, which highlights how strongly correlated millionaire growth is with economic development, and that the size of the economy matters, as these are the three largest economies by population in the world and the strongest economically.
Where are the wealthy migrating to?
High-net-worth families see certain global cities, such as London, New York, Singapore, and Dubai, as attractive places to settle in for reasons such as legal and regulatory access, quality of life, healthcare, education, and safety and security, and the countries in which they are situated reap the benefits. Unsurprisingly, the list of stable countries with a high quality of life, which see inflows of the rich, especially if there is instability elsewhere, also features Canada, Australia, and Italy.
Top 10 countries globally in terms of projected net inflows of millionaires for 2024
UAE remains world’s leading millionaire magnet
With its zero income tax, golden visas, luxury lifestyle, and strategic location, the UAE has entrenched itself as the world’s number one destination for migrating millionaires and is poised to welcome a record net inflow of 6,700 this year alone. With consistent high inflows from India, the wider Middle East region, Russia, and Africa, the anticipated influx of larger numbers of Brits and Europeans looks set to see the Emirates attract nearly twice as many millionaires as its nearest rival, the US, which is projected to benefit from a net inflow of 3,800 millionaires in 2024.
Singapore takes 3rd prize again this year with net inflows of 3,500, while the perennially popular destinations for migrating millionaires, Canada and Australia, follow in 4th and 5th places with net inflows of 3,200 and 2,500, respectively. European favorites Italy (+2,200), Switzerland (+1,500), Greece (+1,200) and Portugal (+800) all make it into this year’s Top 10 for net millionaire inflows along with Japan, which is on course to welcome 400 wealthy migrants, boosted in part by an accelerating trend of Chinese HNWIs moving to Tokyo that started post-Covid.
Britain pulls the plug on millionaires
The UK, and London especially, has traditionally been seen as one of the world’s top destinations for migrating millionaires and for many years (from the 1950s to early 2000s) it consistently attracted large numbers of wealthy families from mainland Europe, Africa, Asia, and the Middle East. However, this trend began to reverse around a decade ago as more millionaires began to leave the country and fewer came in. Notably, during the six-year period from 2017 to 2023 post Brexit, the UK lost a total of 16,500 millionaires to migration. Provisional estimates for 2024 are even more concerning, with a massive net outflow of 9,500 millionaires projected for this year alone.
Why are Indian millionaires leaving the country?
"Both China and India are seeing high net outflows because of the success of their sizeable economies in generating new millionaires, although slowing wealth growth in China in recent years could mean sustained losses become more damaging over time. As do those from many other developing nations, including notably Brazil, Vietnam, South Africa, and Nigeria, Indian millionaires often depart the sub-continent in search of a better lifestyle, safer and cleaner environments, and access to more premium health and education services. Elsewhere, regional threats and uncertainty over the security stance of America following a potential Trump victory in the 2024 US presidential election in November mean that South Korea and Taiwan are continuing to see net outflows of HNWIs," noted the report.
The megatrend of investment migration
The surge in millionaire migration is fueling a corresponding boom in the investment migration sector. The top two nationalities currently driving demand are Americans and Indians, with Brits, Filipinos, and South Africans remaining in the Top 10 as they have done for the last five years.
As for the most sought-after residence programs, Portugal’s Golden Residence Permit Program remains a popular choice in 2024 despite ending its real-estate linked investment option, as are Greece’s Golden Visa Program and Spain’s Residence by Investment Program. In terms of citizenship options, Malta’s Citizenship by Naturalisation for Exceptional Services by Direct Investment, which allows for the granting of citizenship by a certificate of naturalization to foreign individuals and their families who contribute to the country’s economic development, is a perennial favorite. And in the Caribbean, Antigua and Barbuda’s Citizenship by Investment Program and Grenada’s Citizenship by Investment Program continue to attract affluent global citizens and their families.
The safe haven 8
The benefits of inward millionaire1 migration are particularly noticeable in the leading safe haven countries of the world, namely, Australia, Switzerland, Singapore, the UAE, New Zealand, Malta, Monaco, and Mauritius, which have all transformed their economies by encouraging wealthy people to move there.
Henley and Partners defines a safe haven country as a sovereign state with high levels of safety and security that remains largely shielded from the world’s political and economic problems.
These “Safe Haven 8” countries share the following characteristics:
• All are popular destinations for migrating millionaires, with foreign-born migrants making up over 40% of the millionaire populations in all of these countries.
• All have achieved strong millionaire growth of +35% or more over the past decade — see Country Wealth Stats.
• All are classified as high-income markets by the World Bank.
• All rank strongly when it comes to key safety and security metrics such as intentional homicide rates, child safety, and women safety.
Common reasons why millionaires migrate to these countries include:
• High levels of safety and security.
• Well-developed and highly regarded banking and wealth management systems, which makes them safe places to keep money.
• Solid bases for investing in global stock markets. This is particularly important for international investors and financiers.
• Excellent schooling and educational opportunities for their children.
• Popular retirement hotspots — Malta, Australia, and Mauritius are especially sought-after in this regard.
• Top-class healthcare systems.
• High standards of living.
"In Germany, the HNWI population has increased by 15% over the last 10 years, in France it’s up 14%, while the number has risen by 35% in Australia, 29% in Canada, and an astonishing 62% in the USA. These growth rates are of course a product of several factors including new business formation, local stock market gains and prime property trends in each country, with millionaire migration also being a significant contributing factor, especially in the case of the Safe Haven 8," noted the report.
[The Business Standard]
