In a drastic shift of economic tides, the UK is expected to experience a more significant net exodus of high-net-worth individuals (HNWIs) in 2023 than Russia, as indicated by the Henley Private Wealth Migration Report 2023. The United Kingdom, home to a rich history of financial prosperity and elite society, is predicted to see 3,200 HNWIs depart its borders. This alarming statistic is higher than Russia’s anticipated loss of 3,000 HNWIs, making the UK the third leading global nation in losing millionaires after China and India.
Rich Exodus Double Last Year’s Numbers
This latest projection of a mass exodus is doubly worrisome, given it’s twice that of the previous year when the UK witnessed 1,600 millionaires packing up. The report, crafted by the esteemed international residence and citizenship advisory firm Henley & Partners, investigates global wealth and investment migration patterns, focusing on the movement of HNWIs with investable wealth exceeding USD 1 million.
Australia and UAE Lead in Wealth Influx
The HNWI global migration map for 2023 sees Australia clinching the top spot with a projected net inflow of 5,200 millionaires. UAE is in second place with an expected arrival of 4,500 new millionaires. The list continues with Singapore, the US, Switzerland, and Canada boasting substantial net HNWI inflows.
UK, US Lose Luster Post-Brexit and COVID-19
The financial lustre of the UK has dimmed since Brexit, with 2017 recording the highest net outflow of HNWIs post-referendum7. The current forecast signals an even more pressing millionaire exit. Similar trends are emerging in the US, experiencing dwindling appeal amongst migrating millionaires due to possible high tax threats. This comes in stark contrast to 2019 when the US saw a net inflow of 10,800 millionaires.
Other Major Millionaire Losses
China continues its decade-long trend of losing the most HNWIs to migration, a worrying development given its slowing wealth growth. Despite being the second-largest loser, India is less affected due to its production of new millionaires. Meanwhile, Russia, Brazil, Hong Kong, South Korea, Mexico, South Africa, and Japan make up the remainder of the top ten losers of millionaires in 2023.
Political Stability: The Magic Ingredient for Millionaire Magnet
In his commentary for the Henley Private Wealth Migration Report 2023, Misha Glenny, award-winning journalist and Rector of the Institute for Human Sciences in Vienna, underscores the pivotal role of political stability in attracting HNWIs. He emphasizes low taxation regimes and personal freedom, drawing attention to the Russo-Ukrainian war as a significant migration catalyst.
Unsettled Times Fuel Investment Migration
Record-breaking inquiries into investment migration programs signify a high demand, driven mainly by Indians and Americans—a trend facilitated by the relentless global uncertainty and economic disruptions. Dr Areef Suleman, Director of Economic Research and Statistics at the Islamic Development Bank (IsDB) Institute, highlights the ripple effect of this millionaire migration on destination countries.
The Race for Residence by Investment Programs
Portugal’s Golden Residence Permit Program takes the crown as the most popular in 2023, followed by Austria, St. Kitts and Nevis, Canada, and Italy. These programs offer attractive investment migration pathways to HNWIs, providing new opportunities amidst global uncertainty.
Written by: Bridget Gomes
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