There are about 13 million high net worth people around the world. These millionaires continually migrate, entering and leaving countries. That constant movement is a clear sign of a drop in confidence in countries as they have the wherewithal to leave and therefore are the first out of the gate when the going gets tough. They are important because they take their wealth where they go and pay taxes. And not having them is bad for the economies they leave behind.
Many times they relocate their businesses and companies, generating employment. That is why attracting and retaining them is an effort to consider for any country. That migration has been trending upwards for the past decade, but slowed in 2020 due to the pandemic. Then came the war in the Ukraine, so the numbers for 2022 are very volatile.
Millionaire migration figures are an excellent barometer for the health of an economy. This year, more than 88,000 millionaires will move to new countries, as estimated in the latest Global Citizens report from Henley. This graph made by Visual Capitalist with that data illustrates where rich people go and where they flee.
You can see the map in its maximum resolution here.
Where do they go?
Of the wars. Although there are dozens of reasons to emigrate, one of the most important is escape from a conflict. This is what we are seeing this year with countries like Ukraine and Russia. The latter is expected to see a loss of around 15,000 wealthy people in 2022, a whopping 15% of its total population of millionaires. Wealthy people have been emigrating from Russia more and more in the last decade, a sign of the political problems they face lately.
It is also no coincidence that Ukraine is going to lose more millionaires in 2022 than ever before in its history, with an expected loss of 42% of its wealthy population. It is not known if they will return once the war is over or not, since many of them can obtain residence in other European countries.
For its part, China continues to lose many millionaires and 10,000 are expected to leave in 2022. The growth of wealth in the country has slowed in recent years and the deterioration of relations with countries such as the US or Australia is a constant concern. .
Among the countries that lose the most millionaires this year is the United Kingdom. Although until very recently it was one of the main destinations in the world for millionaires, this trend began to reverse about five years ago. Between 2017 and 2022, the British country lost almost 12,000 more millionaires than it gained. The motives? Brexit and the increase in taxes on the rich.
Where are they going?
To these ten countries: United Arab Emirates, Australia, Singapore, Israel, Switzerland, United States, Portugal, Greece, Canada and New Zealand. Large numbers of millionaires are also expected to move to ‘the three M’s’: Malta, Mauritius and Monaco.
The United Arab Emirates is expected to attract the largest influx of high net worth individuals in 2022: up to 4,000 millionaires, one of the best data recorded in the UAE. Why? For being an international business center with a growing economy and a reputation for being a safe oasis in the Middle East and Africa region. The country is strong in many sectors such as finance, oil and gas, real estate, travel and tourism.
Australia is in second place. New World Wealth estimates that more than 80,000 millionaires have moved to the country in the last 20 years. In 2022, 3,500 are expected. Why? partly to point based immigration system of Australia, which favors wealthy people and entrepreneurs. It also has a first-class health system and a growing technology sector. Some indexes even place it as one of the five safest countries in the world.
In Europe, Switzerland and Portugal triumph. The first for being the main center of wealth in Europe. Its appeal is its global “safe haven” and its high standard of living. It is also the second largest wealth management center in the world in terms of assets. And the second for its top-notch Residency Permit Program, which has attracted a large number of millionaires from Brazil and other countries.
In Asia, as we have discussed in other articles, Singapore is becoming paradise for wealthy families. The truth is that it has always been an attraction for the Chinese, Indonesians and Malaysians who went on short trips to buy, drive around the casinos in their big cars and get medical check-ups in the most prestigious clinics. However, the trend indicates that more and more wealthy people on the planet who can decide where they want to live want to settle there.
Graphic: Visual Capitalist