Movements of High Net Worth Individuals (HNWIs)

In more recent years, many reasons have generated an increase in global migration flows. As shown by the data collected in the "World Migration Report 2024" released by the International Organization for Migration (IOM), the migration phenomenon varies from State to State based on economic, geographical, demographic and political aspects which are reshaping the migration corridors developed in the past years.

In particular, the greatest post-COVID-19 movements can be seen above all from the more developed countries towards the so-called “larger economies” such as the United States of America, the United Arab Emirates, Saudi Arabia, and Germany, in addition, obviously, to movements due to wars.

Starting from the most recent data released by UN DESA (United Nations Department of Economic and Social Affairs)[1] referring to year 2021, it emerges that among the first destination countries of the over 281 million "migrants" in 2020 there were, in order: United States of America, Germany, Saudi Arabia, Russia, United Kingdom, United Arab Emirates, France, Canada, Australia, Spain, and Italy.

More updated global data will be available at the end of 2024, when the new Report will be released.

As concerns movement of so-called High Net Worth Individuals (HNWIs), on the other hand, thanks to a research activity carried out in collaboration with the private sector[2] on new data to understand migration flows better,  we see that the number of millionaires[3] who have moved to a new country increased from 84,000 in 2022 to 120,000 in 2023, exceeding pre-COVID-19 levels by around 16%, which stood at 110,000 in 2019. Estimates in June 2024 predict that around 124,000 millionaires/ultra-millionaires will move by the end of the year and around 135,000 in 2025.

There are various reasons that lead millionaires to move: personal safety and financial security, tax advantages, retirement, business and work opportunities, lifestyle, climate and landscapes, education and opportunities for children, healthcare system, quality life standards.

An analysis of the origin and destination countries shows that millionaires move mainly from China, the United Kingdom, India, South Korea, Russia, Brazil, South Africa, Taiwan, Nigeria and Vietnam, heading towards the United Arab Emirates, the United States America, Singapore, Canada, Australia, Italy, Switzerland, Greece, Portugal, and Japan.

Due to the control over the local economy promoted by Xi Jinping, approximately 15,300 Chinese millionaires and ultra-millionaires are expected to move in other countries in 2024, many of whom could head to Canada where, in British Columbia, the Chinese community has grown considerably in the last ten years.

Another origin country being worth mentioning is certainly the United Kingdom where, due to the political choice of the Conservatives to abolish the res non-dom status and the consequent tax advantages, it is estimated that around 9,500 millionaires and ultra-millionaires could migrate.

Looking at destination countries, the United Arab Emirates, despite the collapse in transfers from Russia due to the Ukraine invasion, UAE has a powerful attraction for HNWIs from India and UAE are expected to double their inbounds by the end of the year compared to the United States, which however remain among top positions also thanks to a slight economic recovery and the recent positive earnings on Wall Street.

The position of Canada is surprising since, besides benefitting from the inflows of Chinese millionaires, has seen an increase in the number of native millionaires, i.e. those who have been able to exploit the boom in the local oil and metallurgical industry.

Worthy of attention as destination countries, although not in the top 10, are Saudi Arabia, Malta, Mauritius, Monaco, Spain, France and New Zealand thanks to their strong attractive capabilities. Specifically, in fact, among these there are four of the so-called “Safe Haven 8 List”, i.e. the States that have positively transformed their respective economies by encouraging the so-called “wealthy” to move there: Malta, Mauritius, Monaco and New Zealand who join Australia, Switzerland, the United Arab Emirates and Singapore.

 
[1] IOM (“International Organization for Migration” Geneve) – “World Migration Report 2024”  
[2] Henley & Partners’ Private Wealth Migration Report 2023
[3] Analyses are based on individuals with liquid investable wealth of at least USD 1 million (Source: New World Wealth)