New report discovers the countries that are attracting wealthy people, and those that are losing them fastest
Canada remains among the top 6 countries for high-net-worth (HNW) individuals with a healthy net inflow of wealthy people.
A new report published today (June 13) shows a net 1,200 inflow of HNWs in 2022 with a projected 1,600 for 2023, putting Canada ahead of France, Germany, the UK, China, and India among others.
The report from citizenship by investment specialists Henley & Partners uses New World Wealth data and focuses on those with at least US$1 million of investable wealth and are in their new country for at least 6 months of the year.
Canada ranks 6th behind Australia, UAE, Singapore, US, and Switzerland.
With millionaire migration set to reach 128,000 this year, Henley CEO Dr Juerg Steffan says this continues the trend of the past decade.
“In general, wealth migration trends look set to revert to pre-pandemic patterns this year, with Australia reclaiming the top spot for net inflows as it did for five years prior to the Covid outbreak, and China seeing the biggest net outflows as it has each year for the past decade. The notable exceptions are former top wealth magnets, the UK and the US.”
Henley & Partners says it has seen a spike in interest in investment migration programs: up 47% year-over-year and 36% quarter-over-quarter in the first three months of 2023.
US losing appeal, Brexit exodus
The report reveals how the United States is losing appeal among HNWs, despite being a top 5 country for net inflows.
Higher taxes are perhaps a key reason why its net inflow of millionaires is expected to be just 2,100 in 2023 compared to more than 10,000 in 2019, but political stability is also important.
“Until the Russo–Ukrainian war comes to end, both countries will continue to export HNWIs, and this will remain the single largest driver of relocation,” commented award-winning journalist and Rector of the Institute for Human Sciences in Vienna, Misha Glenny. “But with elections due in many key Western countries in the next 18 months, other HNWIs may wait until their outcome, notably in the US and the UK, before making their choice.”
The data also highlights how Brexit has been bad for the UK’s attractiveness for millionaires with a new 1,600 outflow in 2023 and a projected 3,200 exodus this year, worse than Russia (3,000).
“Whatever one may think about the merits of Brexit, this cohort is voting with its feet,” said Prof. Trevor Williams, former chief economist at Lloyds Bank Commercial. “Coupled with the policy change to remove permanent non-domiciled taxpayer status, Brexit has made the UK less hospitable and welcoming to HNWIs. It’s now harder for them to move between the UK and EU countries.”
