Countries With the Highest Number of Millionaires Emigrating In 2023
The international movement of affluent families and individuals can say a lot about a country’s economic state. Rich people will have the resources to leave and move abroad whenever necessary, and high emigration of millionaires can suggest imminent economic and political issues.
Losing a high number of wealthy people can also have an impact on the economy, as they take their wealth generation as well as skills and influence with them.
A report from Henley & Partners shows the number of millionaires that have left countries in 2022 and the projection for 2023. Here, a millionaire is defined as someone with an investable wealth of at least $1 million, who took up residency in a new country and lived there for at least six months.
Below, we investigate why wealthy people are leaving these countries.
China is the location with the highest number of millionaires emigrating in 2023. In 2022, 10,800 millionaires left the country and in 2023 it’s forecast that 13,500 will emigrate. It’s estimated that China had around 780,000 millionaires at the end of 2022, which made it the third wealthiest country in the world.
One of the reasons millionaires might be leaving China is due to a campaign announced by the Chinese Government to target income inequality. As part of this campaign, there was increased regulatory scrutiny of private companies and a call for private firms to donate to charity to share the wealth.
It’s also thought that China’s response to Covid-19 may have been too severe. By locking down parts of the country that were affected by the virus, including Shanghai, businesses were impacted and disrupted. As the lockdowns are now finished and Covid-19 restrictions ease, millionaires are leaving the country at a fast rate.
India has the second-highest number of millionaires emigrating in 2023. In 2022, 7,500 millionaires emigrated, and it’s projected that a further 6,500 will leave this year.
The report states that India is set to produce more millionaires than it loses, so the exodus shouldn’t affect the country’s overall wealth. However, it is still worth looking at the reasons why so many rich people are leaving India.
It’s thought that prohibitive tax legislation and complex rules surrounding outbound remittances could be pushing millionaires to leave India. Whilst the top level of tax was recently cut from 42.7% to 39%, tax collected at source on foreign remittances was increased from 5% to 20%. Safety, security, and climate change are also all concerns that may have caused millionaires to begin moving from India.
The UK is the country with the third highest number of millionaires leaving. In 2022, just 1,600 millionaires emigrated but it’s forecast that 3,200 will leave by the end of 2023.
It’s thought that increased scrutiny of wealthy foreign nationals alongside more severe tax rates has caused the rich to leave the UK. In addition to this, the country has seen a lot of political upheaval with uncertainty for the future of British politics.
Brexit and new migration rules have also had an effect on millionaires in Britain, and the complex rules could have also caused many to simply leave the country rather than deal with the bureaucracy.
Russia has the fourth highest number of millionaires leaving the country. In 2022, 8,500 millionaires emigrated, and it’s projected that 3,000 more will leave by the end of 2023.
The main reason for so many rich people leaving Russia is thought to be due to the political instability, Vladimir Putin’s regime and the invasion of Ukraine. This has seen sanctions put on Russia and assets frozen, which have affected both businesses and individuals. It’s thought that many may have personal opposition to the war in Ukraine, and so are leaving Russia based on this.
Brazil has the fifth highest number of millionaires emigrating. In 2022, 1,800 millionaires left the country and it’s projected that a further 1,200 will leave in 2023.
It’s thought that millionaires are leaving due to a political movement to the left, which is prioritising fighting inequality and wealth distribution. The country has also seen issues with the economy, including growing national debt and uncertainty in the political sphere. There all seem to have contributed to the millionaires emigrating out of Brazil.
Hong Kong has the sixth highest number of millionaires leaving the region. In 2022, 2,400 millionaires emigrated, and it’s forecast that 1,000 will leave by the end of this year.
It’s thought that severe Covid-19 restrictions and a turn away from “democratic norms” could have both contributed to the exodus last year. One of these restrictions saw young children who were Covid-positive separated from their parents. This was seen as too harsh by many and pushed people to leave the region. There have also been concerns about freedom of speech and political interference in schools.
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