The Shifting Landscape of Millionaires Migration in 2024

The Rising Tide of Millionaires in the UAE

The magnetism of financial havens shifts with each passing year. And 2024 heralds the United Arab Emirates as the premier destination for enticing millionaires. As per a fresh study by Henley Private Wealth Management delving into the migration patterns of the wealthy.

The UAE’s allure stems from a trifecta of attractions: a nil income tax rate, a lavish lifestyle, and an enticing golden visa program. All poised to entice a whopping 6,700 new millionaires this year alone.

Although the influx of Russians to the UAE has tapered recently. This has been cushioned by a surge in European and British immigrants.

Factors Driving Millionaires Migration Worldwide

Henley’s report unveils a staggering 78% spike in millionaire residents in Dubai, the UAE’s bustling metropolis, over the past decade.

Following a distant second and third in Henley’s rankings are the USA and Singapore. Expected to draw in net flows of 3,800 and 3,500 millionaires this year, respectively.

A slew of European nations also dot the top 10 leaderboard. Italy claims the sixth spot, trailed by Switzerland, Greece, and Portugal in descending order.

“An unprecedented wave of 128,000 millionaires is anticipated to relocate globally this year. Eclipsing the prior record of 120,000 set in 2023,” stated Dominic Volek, Group Head of Private Clients at Henley & Partners.

“As the world grapples with a convergence of geopolitical strains, economic ambiguity, and societal upheavals, Millionaires are voting with their feet in record numbers.”

UK and China Bid Farewell to Millionaires Henley’s study projects China to witness the most substantial exodus of millionaires in 2024. With a net outflow of 15,200.

Traditional hotspots for millionaires departing China include Singapore, the USA, and Canada, with Japan emerging as a newcomer to watch.

Following China on the departure roster is the UK, expected to witness an exodus of 9,500 millionaires, more than doubling the exodus from 2023.

Historically a beacon for affluent families from Europe, Africa, Asia, and the Middle East, the UK, particularly London, saw this trend shift during the tumultuous post-Brexit period, shedding a total of 16,500 millionaires.

“The signs were evident well before Jeremy Hunt, the Chancellor of the Exchequer, aimed to neutralize the Labour opposition by announcing the scrapping of Britain’s 225-year-old non-dom tax regime in March, allowing extensive overseas wealth to evade UK taxation,” noted Alec Marsh. Contributing Editor at Spear’s Magazine.

“It was a warning to the global affluent, signaling Britain’s right-leaning party’s willingness to tamper with established norms for short-term political gain.”

Following the UK on Henley’s roster is India, with a projected net outflow of 4,300 this year, a slight decrease from last year’s tally of 5,100.

Other nations featured on the list include Brazil, Vietnam, South Africa, and Nigeria.

Henley notes that departing millionaires from these countries often seek better infrastructure, such as healthcare and educational services.

The lure also extends to work and business prospects, as well as broader lifestyle factors like climate and retirement policies.

Future Trends in Global Millionaires Migration

The migration of millionaires can reverberate through a country’s economic fabric, potentially leading to decreased tax revenues and fiscal constraints.

Moreover, a substantial chunk of high-net-worth individuals are entrepreneurs. Their presence injecting vitality into countries via innovation, services, and job opportunities.

“By attracting affluent residents and their investments, vital sectors like real estate, renewable energy, technology, and tourism tend to thrive.” Highlighted Dominic Volek.

“An inflow of capital and skilled professionals can significantly contribute to the economic renaissance of a region.”

Nevertheless, a high concentration of millionaires can inflate living costs, potentially displacing lower-income individuals from certain areas.