Some of the world’s top traditional magnets for millionaires are losing their lustre.
Britain and the United States are less appealing as destinations for wealthy investors, according to a new survey from Henley & Partners, a British firm that tracks wealth and citizenship issues. The Henley Global Citizens Report monitors private wealth and investment migration trends as forecast for 2022 by New World Wealth.
Canada is holding its own in ninth among the top 10 countries, with projected net inflows of millionaires (as measured in U.S. dollars) for 2022, with a net 1,000 expected. More than 364,000 high-net-worth individuals lived in Canada at the end of 2021.
Here are the top 10 countries expecting a net inflow of high-net-worth individuals in 2022, according to the report:
- United Arab Emirates (UAE)
- Australia
- Singapore
- Israel
- Switzerland
- U.S.
- Portugal
- Greece
- Canada
- New Zealand
Britain, once touted as the world’s financial centre, continues to see a steady loss of millionaires, with net outflows of 1,500 predicted for 2022, according to the report, which was released Monday. This trend began five years ago when the Brexit vote and rising taxes saw more wealthy people leaving the country than entering for the first time.
The U.S., meanwhile, is less popular among migrating millionaires today than before the Covid pandemic, perhaps because of the threat of higher taxes and rising crime rates in big cities, experts say. The country still attracts more high-net-worth individuals than it loses to emigration, with a net inflow of 1,500 projected for 2022, although this is an 86 per cent drop from 2019 levels, which saw a net inflow of 10,800 millionaires.
Predictably, a tsunami of private capital has left Russia and Ukraine.
Canada is a popular choice of affluent individuals and families considering migration or additional residencies, says Yannick Archambault, partner and leader of KPMG’s National Family Office practice in Canada. The country offers a high quality of life, a safe, politically stable environment and a world-renowned education system. It’s also recognized internationally for its commitment to human rights and an inclusive, multicultural society, which provides a welcoming environment to those from diverse backgrounds.
“When moving to Canada, high-net-worth individuals often bring fresh ideas, new businesses and personal wealth that help bolster economic growth and investment in the country,” Archambault says.
Rise of the UAE
The UAE is expected to overtake the U.S. in the ranking of net inflow of millionaires in 2022, according to the Henley report. The country has been focused on attracting tourism and trade by implementing a succession of mutually reciprocated visa waivers.
The net inflow of HNW individuals is also on the rise in Israel, with 2,500 forecast for 2022, an increase of 79 per cent since 2019.
Australia, in No. 2, is a consistently high performer that attracts large numbers of wealthy individuals. New World Wealth estimates that more than 80,000 U.S.-dollar millionaires have moved to the country over the past 20 years. In 2022, the country’s net inflow is expected to be 3,500. Neighboring New Zealand is expected to receive 800.
China, Hong Kong, India and Brazil are expected to be among the biggest losers of wealthy individuals in 2022.
Wealth emigration is beginning to hurt in China, too, with net outflows of 10,000 expected in 2022.
Boom expected in emerging economies
Commenting on projections in the Henley report, Trevor Williams, former chief economist at Lloyds Bank Commercial, says emerging economies are forecast to boom in the next decade.
“As the world economy grows, economies in Africa, Latin America and elsewhere in the Global South are catching up with high-income economies,” Williams says. “And as this report shows, they will see a more significant number of millionaires and billionaires in the next decade.
“For example, the number of high-net-worth individuals in Sri Lanka is forecast to increase by 90 per cent by 2031, while India and Mauritius’s millionaire growth is forecast at 80 per cent, and China’s at 50 per cent, compared to 20 per cent in the U.S. and 10 per cent in France, Germany, Italy and the U.K.”
Canada is expected to continue to be a draw for the world’s wealthiest, Archambault says. “People coming into the country who are in business bring new ideas, they will invest money here, which creates jobs.”
“Canada’s stability, excellent quality of life and positive reputation are expected to keep it high on the radar of affluent individuals and families choosing to immigrate from their country of origin — not just today, but in the years ahead.”
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