HNWIs Migration Trends: Australia Leads, China Faces Mass Exodus in 2023

In a shift reflecting global travel patterns, High Net Worth Individuals (HNWIs) from India, much like their counterparts worldwide, curtailed their movements during the pandemic. Consequently, migration numbers for these affluent individuals declined. 

However, there’s a notable resurgence in the mobility of millionaires and billionaires. Anticipations indicate that by year-end, approximately 122,000 HNWIs will have relocated to a new country, as reported by Visual Capitalist.

Henley & Partners’ Private Wealth Migration Report, a decade-long tracking of HNWIs’ movements, provides insights. The report defines HNWIs as individuals possessing a net worth of at least $1 million USD. The report revealed that a staggering 6,500 High Net Worth Individuals (HNWIs) have left India in 2023, marking a significant rise compared to previous years. The main reason cited for this mass exodus is the complex fiscal environment in India, marked by high taxation rates and regulatory hurdles.

Countries Gaining New Millionaires

The top 10 nations likely to host the largest number of millionaires and billionaires in 2023 span the globe. In a noteworthy development, Australia has reclaimed its prime position from the UAE this year.

Here is an overview of the data:

Remarkably, only two Asian nations feature in the top 10, with the rest distributed across Europe, North America, and Oceania.

Despite enduring significant economic challenges, Greece is expected to welcome 1,200 High Net Worth Individuals this year. One contributing factor might be the nation’s golden visa program, enabling affluent individuals to acquire residence and, eventually, EU passports for a minimum real estate investment cost of 250,000 euros.

The appeal of these leading millionaire destinations lies in their higher levels of economic freedom, facilitating lighter tax burdens and simplified investment processes. Singapore, projecting an influx of 3,200 millionaires, stands out as the most economically free market globally.

Countries Losing New Millionaires

In the global landscape of High Net Worth Individuals (HNWIs) migration, China is set to experience a substantial departure of 13,500 such individuals this year, surpassing the second-ranked country, India, by more than double (6,500 departures).

Let’s delve into the details of the bottom 10 countries in this context:

Several factors contribute to the migration trends in these countries. Stringent regulatory bodies and corrupt governments can hinder the ease with which HNWIs manage their financial assets. 

Russia faces personal tariffs and trade restrictions from Western nations due to the Ukraine conflict. China’s actions in Hong Kong have made it a less attractive business destination. The UK’s Brexit has disrupted the seamless movement of labour, finances, and investments across European borders, impacting both businesses and individuals.

While some of these nations may still see the emergence of new local millionaires and billionaires, the loss of thousands of HNWIs through net migration carries significant economic repercussions.

Overall, there’s a growing trend of millionaires relocating globally. Over the past decade, notwithstanding a dip during the pandemic, the number of HNWIs leaving their home countries has steadily risen each year.

Here’s a snapshot of the figures:

According to the Visual Capitalist report, in an interconnected yet geopolitically fragile world, it’s no surprise that millionaires are making strategic choices about where they reside. Consequently, governments are increasingly competing to attract and retain the world’s economic elite.