The UAE will welcome 4,500 new millionaires this year.
India is expected to witness an exodus of millionaires and may lose 6,500 high-net-worth individuals (HNWIs) in 2023, according to the Henley Private Wealth Migration Report 2023, which tracks wealth and investment migration trends worldwide.
China has been ranked first in terms of the outflow of millionaires from the country this year. It is predicted to lose 13,500 HNWIs, followed by India, which has secured second place. However, despite having the second biggest exit numbers in the report, India's position is likely to improve since last year when its outflow of millionaires was 7,500. Andrew Amoils, Head of Research at New World Wealth points out, "these outflows are not particularly concerning as India produces far more new millionaires than it loses to migration."
According to Henley and Partners, millionaires or high-net-worth individuals (HNWIs) are people with investable wealth of $1 million or more.
Dr. Juerg Steffen, CEO of Henley & Partners, says that millionaire migration has grown steadily over the past decade with around 1,22,000 and 1,28,000 millionaires expected to migrate globally in 2023 and 2024, respectively.
Why the migration from India?
According to Sunita Singh-Dalal, Partner, Private Wealth & Family Offices at Hourani, “prohibitive tax legislation coupled with convoluted, complex rules relating to outbound remittances that are open to misinterpretation and abuse, are but a few issues that have triggered the trend of investment migration from India”.
The latest report states that Henley and Partners has recorded the highest number of enquiries for investment migration schemes in the first quarter of this year with significant demands coming from Indians and Americans.
Where are the millionaires moving?
Dubai and Singapore remain preferred destinations for wealthy Indian families. The former, also known as the "5th City of India", is particularly attractive for its government-administered global investor "Golden Visa" program, favorable tax environment, robust business ecosystem, and safe, peaceful environment.
The report has predicted that Australia will witness the highest net inflow of millionaires in 2023 at 5,200. The UAE, which had a record-breaking influx of HNWIs in 2022, will welcome 4,500 new millionaires this year. Singapore's net inflow of HNWIs is expected to be 3,200 in 2023 while the US will add 2,100 people to its millionaire club. Other countries on the Top 10 list for net HNWI inflows are Switzerland, Canada, Greece, France, Portugal, and New Zealand.