Canada drew more HNW newcomers than expected in 2022: report
Upward trend to continue, with migration of wealthy immigrants expected to rise 33% in the next year
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Canada broke new records for immigration last year, with more than 1 million people arriving in 2022.
An unexpected result, however, was a greater number of high-net-worth individuals than predicted. According to a new report from Henley & Partners, an investment migration consultancy based in Britain, Canada experienced a net inflow of high-net-worth individuals (HNWIs) of 1,200 for 2022. That is 200 more than expected.
That puts Canada in seventh place among the top 10 countries with the highest net inflows of private wealth migration. Ahead of Canada were the UAE, Australia, Singapore, Switzerland, the U.S. and Portugal.
Within Canada, the highest concentration of wealth can be found in Toronto, which ranked 12th among 97 cities globally in Henley’s World’s Wealthiest Cities Report 2023, followed by Vancouver (29th, up from 36th), Montreal (48th, up from 59th) and Calgary (55th, up from 81st).
A positive trend
Canada’s net inflow of HNWIs (those with investable wealth of US$1 million or more) for the year was initially projected at 1,000, meaning an estimated 1,000 more affluent people (and, in many cases, families) were expected to migrate to Canada in 2022 than leave.
Out of 40 million residents, about 367,500 HNWIs call Canada home. That puts Canada in eighth among the world’s wealthiest countries by HNWI population as of December 2022, according to the report. This ranking is consistent with Canada’s position in 2021.
Looking ahead, for 2023, Canada is forecast to be in the top 10 in terms of net inflows of HNWIs once again, rising to 6th place overall. Net inflow of wealthy individuals is expected to be 1,600, an increase of 400 from 2022.
Top 15 global cities ranked by number of HNWIs, and their change in population since 2012
- New York City, 340,000 (+40%)
- Tokyo, 290,300 (-5%)
- San Francisco Bay Area, 285,000 (+68%)
- London, 258,000 (-15%)
- Singapore, 240,100 (+40%)
- Los Angeles, 205,400 (+35%)
- Hong Kong, 129,500 (-27%)
- Beijing, 128,200 (+70%)
- Shanghai, 127,200 (+72%)
- Sydney, 126,900 (+35%)
- Chicago, 124,000 (+24%)
- Toronto, 105,200 (+29%)
- Frankfurt, 102,200 (+20%)
- Zurich, 99,300 (+35%)
- Houston, 98,599 (+65%)
(Percentage change from 2012 to 2022; Source: Henley & Partners)
Why Canada is a top choice
With the World Health Organization officially declaring the end of Covid-19 as a global health emergency, HNWIs are becoming more mobile. Many are looking beyond their borders and seeking options for a safe and stable environment. They’re also looking to enhance their lifestyle options and pursue new opportunities for building wealth, diversifying their investments and sustaining the long-term performance of their businesses.
Canada meets most, if not all, of those requirements. A strong financial, legal and regulatory environment — combined with universal healthcare and a world-renowned education system — make the country a particularly desirable place to raise a family and operate a business.
One reason why Canada is attracting so many HNWIs from abroad is the government’s Start-Up Visa Program. It has a strong competitive advantage.
Despite global economic and inflationary pressures, Canada’s economy has remained resilient, and supportive tax measures and incentives benefit business owners and family-owned enterprises.
A number of these tax measures are helping to drive sustainable and inclusive growth, entrepreneurship, and the country’s transition to a greener economy.
A more welcoming immigration environment
Canada has a long-established commitment to human rights, inclusion, diversity and equity, in addition to its social and environmental responsibilities — all of which align with the values of many HNWIs and their families. Canada’s family sponsorship program is playing a significant role in attracting, retaining and integrating newcomers to the country. Affluent individuals across the world are accessing the opportunity to reunite with other family members who may already be well established here.
In 2022, the federal government also introduced initiatives to temporarily accept newcomers to Canada who were negatively affected by major geopolitical and environmental events.
Supporting a new wave of entrepreneurial leadership
One reason Canada is attracting so many HNWIs from abroad is the government’s Start-Up Visa Program. This popular program provides permanent residence to entrepreneurs and active investors in companies that want to expand their businesses and establish a presence in Canada. Through this program, HNWIs who operate qualifying businesses can obtain work authorizations along with permanent residence in Canada for up to five company founders and their immediate family members.
The Start-Up Visa Program also facilitates the goals of HNWIs to expand their businesses globally. There are similar programs in Australia, the U.S. and the U.K., but Canada’s program has a strong competitive advantage as it enables fast, predictable and efficient entry for foreign nationals.
“The Start-Up Visa Program was created in 2015 and, over the last three years, the Canadian government has clarified several key points that make it easier to access and more predictable in terms of processing times and outcomes,” according to Graeme Black, a partner with KPMG Law LLP’s Canadian Immigration practice. “Now, increasing numbers of high-net-worth individuals are accessing the program and sharing success stories about establishing their businesses in the Canadian market.”
The program has also gained attention and popularity because of Canada’s attractiveness for foreign direct investment, stable political landscape, diverse demographics and proximity of cities such as Toronto and Vancouver to the U.S. market.
Both cities, which are preferred destinations for most Start-Up Visa participants, are known for their vibrant tech scenes, strong talent and entrepreneurial ecosystems that support founders in developing and growing their businesses. Each city also has a diverse expat population, which helps to make relocation more attractive by offering amenities that are familiar to newcomers.
A land of possibilities
Canada offers a unique combination of a stable economy, a high quality of life and ample opportunities for entrepreneurs from all backgrounds to grow and diversify their businesses and investments. Our strong research-and-development capabilities, including the biotech, renewable energy, financial technology and information technology sectors, are particularly attractive to international entrepreneurs. Opportunities for growth in these sectors benefit from the presence of key industry players and access to a world-class labour market and educational system.
These factors and many others continue to make Canada a country of choice for affluent individuals and their families from around the world.
Yannick Archambault is a Partner and the National Leader for KPMG’s Family Office practice in Canada, which provides an integrated, multi-disciplinary approach for high-net-worth and ultra-high-net-worth individuals and their families.
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