Where are millionaires moving to in 2022? High net worth individuals are leaving the US, Britain, China and India for the UAE, Australia and Singapore – but why?

Aug 3 , 2022

A luxury villa in Emirates Hills, UAE. Photo: Knight Frank

According to the ‘Henley Global Citizens Report’, wealthy investors are on the move again after a dip due to Covid-19, with 88,000 millionaires expected to move by the end of 2022

The world’s wealthy are concerned with competitive tax rates, business opportunities and climate change – and are looking into citizenship by investment too

The world’s wealthy are on the move. New research suggests that the number of millionaires (measured in US dollars) relocating to new countries is a trend only somewhat hampered by the pandemic, and predicts that 2023 will be a record year.

The “Henley Global Citizens Report”, jointly produced by international residence and citizenship by investment advisory firm Henley & Partners, and wealth intelligence firm New World Wealth, shows Russia and Ukraine are experiencing the greatest exodus of high-net-worth individuals (HNWIs). Less predictably, destinations that traditionally attracted wealthy investors – notably the UK and US – are losing their lustre.

Dr Juerg Steffen, CEO of Henley & Partners, says HNWI migration was a rising trend over the past decade until it dipped in 2020 and 2021 due to Covid-19. He added that the 2022 forecast “reflects an extremely volatile environment worldwide”.

A luxurious home in Israel. Photo: Sotheby’s

“By the end of the year, 88,000 millionaires are expected to have relocated to new countries, 22,000 fewer than in 2019,” Steffen said. “Next year, the largest millionaire migration flows on record are predicted – 125,000 – as affluent investors and their families earnestly prepare for the new post-Covid world, with an as yet to be revealed rearrangement of the global order, and the ever-present threat of climate change.”

The relevance, said Andrew Amoils, head of research at New World Wealth, is that HNWI migration figures are an excellent barometer for the health of an economy. “Affluent individuals are extremely mobile and their movements can provide an early warning signal into future country trends,” he said.

“Countries that draw wealthy individuals and families to migrate to their shores tend to be robust, with low crime rates, competitive tax rates, and attractive business opportunities.”

HNWI outflows

The biggest loser, according to the report, is the UK, with net outflows of 1,500 millionaires predicted for 2022. “This trend began five years ago when the Brexit vote and rising taxes saw more HNWIs leaving the country than entering for the first time,” explained Amoils, adding that the country has suffered a total net loss of around 12,000 millionaires since 2017.

The appeal of the US is also dwindling fast, Amoils continued. “America is notably less popular among migrating millionaires today than pre-Covid, perhaps owing in part to the threat of higher taxes,” he said. “The country still attracts more HNWIs than it loses to emigration, with a net inflow of 1,500 projected for 2022, although this is a staggering 86 per cent drop from 2019 levels, which saw a net inflow of 10,800 millionaires.”