A Portrait of Global Wealth Distribution and Millionaire Migration
Henley & Partners, a distinguished investment migration consultancy headquartered in London, provides invaluable services to high-net-worth families and thriving businesses. Their core focus is advising clients on residence and citizenship acquisition across the globe while closely observing and tracking the migration patterns of the world’s wealthiest individuals. Their insights have drawn a vivid portrait of the ever-shifting landscape of global wealth distribution.
The Pre and Post-Pandemic Landscape of Millionaire Migration
From 2013 to 2019, the trend of millionaire migration rose consistently, beginning at 51,000 moves and peaking at 110,000. However, the onset of the global pandemic in 2020 dramatically reduced these numbers, with migration plummeting to a mere 12,000. As the world adapted to the “new normal,” there was a slight recovery to 25,000 in 2021, with a more robust recovery of 122,000 moves projected for 2023.
Millionaire Migration and the United States
Despite a noticeable outflow of millionaires from the United States, an even more significant number appear eager to establish residence within its borders. The net inflow of millionaire immigrants to the U.S. dropped to 1,500 in 2022, starkly contrasting the 10,800 who immigrated in 2019.
Top Destinations for Millionaire Immigrants
The top recipient of millionaire immigrants in 2022 was the United Arab Emirates, followed by Australia, Singapore, and Switzerland. The United States, despite its decreased net inflow, still managed to secure the fifth position, with Portugal, Canada, Israel, Greece, and New Zealand rounding out the list.
Countries Experiencing Net Outflows of Millionaires
In contrast, China experienced the largest net outflow of millionaires at 10,800, followed by India with a net loss of 7,500. The geopolitical turmoil surrounding the invasion of Ukraine led to an exodus of 8,500 Russian millionaires, with a continued, albeit smaller, net outflow of 3,000 projected for the current year.
The Brexit Effect on Millionaire Migration
The United Kingdom, once a favorable destination for millionaires, has seen a reversal in its fortune since the enactment of Brexit. The country witnessed an exodus of 1,600 millionaires in 2022, and projections indicate that another 3,200 are expected to leave this year. This shift emphasizes how the post-Brexit movement restrictions between the European Union and Britain have rendered the country less attractive to wealthy immigrants.
The Crucial Factors in Millionaire Migration Decisions
According to Henley & Partners‘ report, political stability holds the most weight when millionaires decide where to reside. Other factors such as low taxes, a business-friendly environment, and personal freedom also significantly impact their decisions. As several countries are preparing for elections in the coming 18 months, it’s anticipated that many millionaires may be biding their time, waiting for political landscapes to become clearer before making their next move.
Navigating These Shifts
As we continue to monitor these trends at Legacy Private Trust Company, understanding these shifts becomes crucial for wealth management, investment management, and strategic financial planning. By recognizing the influence of global developments on wealth migration, we can provide more precise, informed advice to our clients, aiding them in navigating their financial future amidst an ever-changing world landscape.
If you are a Legacy client and have questions, please do not hesitate to contact your Legacy advisor. If you are not a Legacy client and are interested in learning more about our approach to personalized wealth management, please contact us at 920.967.5020 or connect@lptrust.com.
This newsletter is provided for informational purposes only.
It is not intended as legal, accounting, or financial planning advice.
