In the latest Henley Private Wealth Migration Report 2023, it is predicted that India will see the departure of approximately 6,500 high-net-worth individuals (HNWIs) in 2023. This figure positions India as the second-highest country globally in terms of estimated outflows. However, it is worth noting that India’s net exit numbers are expected to decrease compared to the previous year, dropping from 7,500 to 6,500, according to the report.
Net Outflows of HNWIs
India’s projected outflow of 6,500 HNWIs in 2023 pales in comparison to the estimated net outflow figures of other countries. China, for instance, is expected to witness a net outflow of 13,500 HNWIs, while the United Kingdom and Russia are predicted to experience outflows of 3,200 and 3,000 HNWIs, respectively. The United Kingdom’s anticipated flight of HNWIs is twice as high as the previous year, during which it saw a net exodus of 1,600 millionaires.
According to Andrew Amoils, Head of Research at New World Wealth, these outflows are not a cause for major concern, as India continues to produce a greater number of new millionaires than it loses to migration.
Sunita Singh-Dalal, Partner at Hourani, highlighted several factors that have contributed to the trend of investment migration from India. These include prohibitive tax legislation and convoluted rules concerning outbound remittances, which are often open to misinterpretation and abuse.
China’s Wealth Drain
China has consistently experienced the highest number of dollar millionaires leaving the country due to migration over the past decade. Amoils pointed out that the recent outflows could be particularly damaging for China, considering the slowdown in its general wealth growth in recent years. Although China’s economy witnessed robust growth from 2000 to 2017, wealth accumulation and millionaire growth have been stagnant since then, especially when measured in US-dollar terms.
Net Inflows of HNWIs
While India and China face significant net outflows of HNWIs, other countries are expected to attract substantial numbers of wealthy individuals. Australia tops the list, projected to experience a net inflow of 5,200 HNWIs in 2023. The United Arab Emirates (UAE) follows closely in second place, despite a slight drop from its record-breaking influx in 2022. Singapore secures the third position, with a net inflow of 3,200 HNWIs, a record high for the country. The United States is also set to attract 2,100 millionaires.
Switzerland ranks fifth, projected to have a net inflow of 1,800 HNWIs, followed by Canada with 1,600 HNWIs. Greece, France, Portugal, and New Zealand complete the top ten countries attracting wealthy migrants.
Brexit and the UK’s Net Outflow
The impact of Brexit is evident in the UK’s high net worth investor landscape. The report highlights that the peak net outflow of HNWIs from the UK occurred in 2017, following the Brexit referendum in 2016. While there was a slight decrease in net losses between 2017 and 2019, the forecast for 2023 indicates a significant ongoing exodus of millionaires from the country.
Decline in the Attractiveness of the US
The report also suggests a declining appeal of the United States among migrating millionaires, potentially due to the threat of higher taxes. Although the US still attracts more HNWIs than it loses to emigration, the projected net inflow of 2,100 millionaires for 2023 represents a staggering drop from the 2019 levels, which witnessed a net inflow of 10,800 millionaires.
Popular Investment Migration Pathways
The report highlights several popular investment migration pathways. Portugal’s Golden Residence Permit Program ranks first, followed by Austria’s citizenship by investment offering and St. Kitts and Nevis’s Citizenship by Investment Program. Canada’s Start-Up Visa Program provides entrepreneurs and wealthy individuals with quick access to Canadian residence and the North American market. Italy’s Residence by Investment Program has gained popularity in recent years, ranking in the top five along with Greece’s Golden Visa Program and Spain’s Residence by Investment Program.
The data for the Henley Private Wealth Migration Dashboard is provided by New World Wealth, a wealth intelligence firm. The report covers key countries in five regions: Africa, the Americas, Asia Pacific, Europe and CIS, and the Middle East. New World Wealth tracks global wealth migration trends between countries and cities. The term “millionaires” or “high-net-worth individuals” (HNWIs) refers to individuals with investable wealth of US $1 million or more. The report by Henley & Partners, an international residence and citizenship advisory firm, presents the latest net inflows and outflows of dollar millionaires, indicating the difference between the number of HNWIs who relocate to and emigrate from a country. The HNWI migration figures focus on individuals who reside in their new country for more than six months per year.
In conclusion, India is expected to witness the departure of 6,500 HNWIs in 2023, positioning it as the second-highest country globally in terms of estimated outflows. However, the net exit numbers are predicted to decrease compared to the previous year. While countries like China experience significant wealth outflows, Australia emerges as the top destination for net inflows of HNWIs. The impact of Brexit is evident in the UK, leading to a considerable exodus of millionaires. The United States also faces declining popularity among migrating millionaires. Understanding these migration trends and their underlying factors can provide valuable insights into the global movement of high-net-worth individuals.
Source of this News: Indian Express
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