Discover the top countries millionaires are choosing to move in 2022.
Some weeks ago, VisualCapitalist released a report mapping the migration of the world's millionaires that got lots of attention.
In that article, the Henley Global Citizens Report estimated that in 2022 around 88,000 high-net-worth individuals (HNWIs)—wealthy people with a net worth of over US$1 million— will move to a new country. However, it is unclear whether this US$1 million takes into account the primary residency or only liquid assets or if it has been adjusted for inflation - let's be honest, you're not rich with a net worth of US$1 million in 2022.
Let's take a look at the illustration VisualCapitalist crafted, showing the highest net inflows and net outflows by country to answer the question of the million: where do most millionaires move to?
After looking at this map, we couldn't resist giving our point of view on why these countries are gaining (or losing) millionaires. The (prominent) common characteristic among the jurisdictions where millionaires are flocking is the lack of economic freedom - but we'll discuss this in a later post.
The number of millionaires in Russia is expected to decrease by 15,000 this year - the biggest loss in absolute terms. However, Ukraine will experience the most significant loss in relative terms - seeing around 42% of its high-net-worth individuals leaving the country.
Probably you're not wondering why these people are leaving. The violent conflict that started earlier this year has worsened the living conditions in these countries - and the people that can go are doing it. At Baseflow, our mission is to reduce the inequality in mobility so everyone can freely decide where to live - check our manifesto.
Wealthy people in China are leaving. The country is going to lose 10,000 millionaires in 2022 - the second biggest loss after Russia. According to Andrew Amoils, Head of Research at New World Wealth, this could be more damaging to the country than in previous years since general wealth growth in China has declined recently.
In addition, since the invasion that Hong Kong suffered last year after the pandemic, the country has seen its economic freedom reduced - and its attractiveness to international talent and investment.
It was surprising discovering that India is expected to lose wealthy individuals - as its economy is growing and its startup scene is thriving. Saudi Arabia was not much of a surprise due to, again, its lack of economic (and personal) freedoms.
Not only that but Brazil and Mexico made it to the top 10 countries that will lose their richest individuals - with 2,500 and 800 respectively.
In the case of Mexico, it was a little unexpected as many people in tech are discussing moving there or to the Caribbean, and many Americans leverage their real estate market to buy not only a primary residence but also second homes at a lower USD per square foot.
It is no surprise that Canada and the United States will have a positive balance of wealthy migrants this year. However, what it's surprising is that the numbers are in the same ballpark as those of small countries such as Portugal, Greece, or Singapore. The USA will only gain 1,500 millionaires in 2022 - which seems very low given that it hosts some of the most important cities around the world like New York City, San Francisco, Miami, and Los Angeles. However, the tax rates are pretty high - around half of your income will be paid in taxes in states like California - even though others like Florida have no state taxes. This makes billionaires wonder if they're getting what they pay for in terms of quality of life.
The United Arab Emirates is the country that will gain the most millionaires this year: more than 4,000. The country’s flexible immigration policies are specially tailored to attract private wealth and international talent - as well as individuals in the crypto industry.
Also, these jurisdictions have tremendous and affordable healthcare, which became pretty important after the pandemic - no wonder why Peter Thiel got his New Zealand passport last year.
Singapore is the 3rd country that will experience the most significant inflow of millionaires with 2,800 in 2022.
The country will attract 2,500 millionaires this year.
Its low tax rates, especially for ultra-high-net-worth individuals or billionaires, help make it the most popular destination for millionaires in Europe.
The United Kingdom will experience a loss of millionaires due to the devaluation of its passport caused by Brexit.
Tax and remote-friendly policies work - and these countries offer excellent conditions taking into account European standards. If you're interested in moving to Portugal, check out Baseflow's app.
.png)
.png)
.webp)
.webp)
