Where are Millionaires Emigrating to? The Best Places to Accumulate and Hang onto Wealth

With recent news reports projecting that more millionaires will leave the United Kingdom than will leave Russia this year, it would be fair to say that the UK is not seen as the best place to accumulate wealth. 2022 alone saw 1,400 high-net-worth individuals emigrate as a result of Brexit-restrictions and inheritance tax measures, and it isn’t just the millionaires who are fleeing: a million people emigrated from Britain during the Covid-19 pandemic in what can only be described as an unprecedented exodus. These statistics are a huge blow for a country that was at one time a magnet for the wealthy, owing in part to its strong rule of law and relative political stability, and begs the question: where is everyone emigrating to?

We at MoneyTransfers.com have discovered that while expats as a whole are looking to move to nations where they can quickly grow their wealth, the priority for millionaires is to settle in economically robust nations, with low crime rates and attractive business propositions. We’ve examined the countries to head to if your aim is to accumulate wealth, followed by the countries that will best protect your assets once you’ve made it:

Where to Accumulate Wealth

According to a recent report from HSBC, these five countries saw expats prosper the most:

1. Switzerland

The tiny mountainous country has been a favourite with expats since 2011 for a multitude of reasons. From a work perspective, Switzerland offers some of the highest salaries in the world, averaging at a monthly net salary of $6,096. The working hours are also highly regulated, with many Swiss employees advocating flexible working. Switzerland’s tax rates get mentioned a lot, but in reality each of Switzerland’s cantons has its own tax laws and practices. Expats will enjoy the outdoor lifestyle, as well as the fact that they are in a great location to visit the bordering countries of Germany, Italy and France.

2. Saudi Arabia

Saudi Arabia is one of the quickest places to grow your wealth, in part due to the attractive packages that skilled expatriates are routinely offered to move to the country. These packages typically offer housing, education and travel allowance, as well as generous healthcare insurance. It isn’t unheard of for expats to employ drivers, domestic maids and gardeners, and while this would be considered lavish in many other countries it is fairly typical in a nation where the cost of living is low, but the standard of living is high. Saudi Arabia changed its residency scheme in 2019, and under the new laws expats can make investments, own property and bring family members into the country to live with them. The fact that there is no personal income tax is another big plus to moving to the country.

3. The United Arab Emirates

One of the main advantages to moving to the UAE is the ability to earn a tax-free income, which enables expats to save for their retirement or invest in property. Wages in the country are high, with the average salary in Dubai hitting $145,000 USD, which is well above the global expat average of $75,000 USD. There are also numerous benefits available to workers, including as a gratuity pay called ‘End of Service Benefits’, given to those that have spent a continuous year working in the UAE upon resignation or termination of their contract, and a retirement visa that is renewable every five years for those with a monthly salary over $5,500 USD.

4. Bahrain

Bahrain is another Middle Eastern country where expats can benefit from paying no income tax. While it is similar to Saudi Arabia and the UAE in this regard, Bahrain is far more progressive when it comes to gender equality, making it an attractive prospect for both male and female expats. It is often referred to as Middle East Light, as while the Islamic faith still sits at the heart of daily life, it is widely considered more tolerant of different lifestyles than many of its neighbours. This may be due to the fact that over half of the population are expats, attracted by the high wages and high standards of living, paired with the low cost of day-to-day life.

5. Hong Kong

Expats who move to Hong Kong tend to see their salary increase by 41%, and those who choose to stay and make a home in this thriving metropolis often cite career progression as the main reason. There are a wide range of international schools in Hong Kong and it is seen as an excellent place to bring up children, with kid-friendly attractions around every corner. Hong Kong has a territorial based tax system and expats only pay tax on money sourced in the country; there is also no capital gains or estate duty tax. Hong Kong is a leading global wealth management hub and as a result expats will find it easy to manage their investments or obtain financial advice.

It seems that if you’re looking to accumulate wealth, the expat lifestyle pays off. Almost 75% of expats report an increase in their income after moving overseas, often owing to a change in tax rates, a fall in the cost of living or an increase in the amount of disposable income.

Jonathan Merry, travel expert at MoneyTransfers.com

Where are Millionaire Expats Heading?

We’ve looked at the countries where it is easiest to accumulate wealth, but once you’ve made your millions, where are the best places to settle down? Data from Henley and Partners suggests that the top five destinations for net inflows of high-net-worth individuals in 2023 will be Australia, the UAE, Singapore, the USA and Switzerland. As millionaires tend to be more mobile than the average person, having the means to move once the need arises, millionaire migration figures are often seen as a telling barometer for the health of an economy. It is therefore less than promising to hear that the largest net outflows of millionaires are projected to come from China, India, the UK, Russia and Brazil. This is where they’re heading:

1. Australia

Approximately 82,000 high-net worth individuals have moved to Australia over the past 20 years (2002-2022) and another 5,200 are projected to join them in 2023. The reason that Australia is so popular is tied to its immigration-based points system, which favours wealthy individuals and those with professional qualifications, such as lawyers and doctors. Of course, there are many other reasons that millionaires are heading Down Under, from the first-class healthcare system to the stunning beaches and scenery. While company and income taxes are typically quite high, a key consideration for many is that there is no estate duty within Australia, so wealthy people can build their businesses and their fortunes for future generations to carry on and enjoy.

2. United Arab Emirates

We know that the UAE is one of the most popular destinations for expats looking to build up their wealth, but it is also clear that those who have already made it are flocking to the country. A net inflow of around 4,500 millionaires is projected in 2023, which happens to be one of the highest on record. Pre-pandemic, the UAE often saw net-inflows of around 1,000 millionaires a year, and this year the majority are thought to be arriving from India. The UAE offers high-net-worth individuals the luxury that they are accustomed to, with top-class shopping malls and restaurants, prime real estate, and over 200 high quality international schools. The UAE is considered to be a safe haven amongst the volatile Middle East and Africa region, and along with Bermuda and Monaco has the most competitive tax rates in the world.

3. Singapore

Singapore has long attracted millionaires from the rest of Asia and this trend looks set to continue in 2023, with a net inflow of approximately 3,200 individuals expected into the city state. Singapore is the largest wealth management hub in Asia and one of the largest hubs for family offices globally. As millionaires usually gravitate towards where their money is held, Singapore has a large draw card. In more recent years, many tech entrepreneurs have moved to Singapore which is an encouraging sign that the state could soon become the Silicon Valley of Asia.

4. USA

Talking of Silicon Valley, the USA has long attracted tech entrepreneurs looking to move their business to the next level by setting up in the California region. This isn’t the only reason that America is set to attract 2,100 high-net-worth individuals in 2023, but it’s certainly a key one for many millionaires emigrating from Asia. Typically, the USA is seen as the world economic leader especially within the entertainment, financial services, media and technology sectors, and with almost all of the world’s wealthiest individuals speaking English as their first or second language, there is no language barrier to contend with.

5. Switzerland

Switzerland is another country where wealth is not only easy to accumulate, but also easy to hang onto once you have it. Approximately 1,800 high-net worth individuals are set to flock to the country within 2023, and while this is not quite as high as in previous years, owing to issues with the Swiss Banking system, there is no denying that the snow-capped country has an appeal that lives on. Switzerland is seen as a tax-haven for the wealthy, and while tax laws vary from canton to canton, the low taxation of foreign corporations is a key draw for millionaires looking to set up shop here.

When it comes to making a decision to move overseas there are many factors that go into the mix, but there is no denying that money is often king among them, especially for the aspirational and the affluent.