A notable surge in India’s affluent population, along with projections of an 80 percent increase in high-net-worth individuals (HNIs) by 2031, has been unveiled. As HNIs continue their search for more promising prospects, around 6,500 individuals are expected to depart the country this year, compared to 7,500 in 2022, according to The Henley Private Wealth Migration Report 2023.
Dubai and Singapore emerge as prominent choices
Among the favored destinations for wealthy Indian families, Dubai and Singapore emerge as prominent choices. Known as the ‘5th City of India,’ Dubai offers an enticing combination of a government-administered global investor ‘Golden Visa’ program, an advantageous tax environment, a thriving business ecosystem, and a secure and tranquil setting.
Remarkably, Portugal continues to captivate affluent individuals worldwide, drawing substantial wealth from the Indian diaspora. Despite the recent discontinuation of the Portugal Golden Residence Permit Program, which previously enticed significant investments in Portuguese real estate and other ventures, the country’s allure remains unwavering. In particular, Lisbon has emerged as one of the most coveted cities among investors, thanks to its vibrant cultural scene, stunning architecture, and favorable business environment. Offering a desirable lifestyle, favorable tax policies, and a rich heritage, Portugal continues to be an enticing destination for affluent individuals seeking a prosperous investment haven.
Juerg Steffen, CEO of Henley and Partners, emphasizes that a growing outflow of millionaires often indicates waning confidence in a country, as HNIs tend to be the first to react and make decisions based on evolving circumstances. The mobility of affluent families and their transnational movements can serve as early indicators of a country’s economic outlook and future trends, offering valuable insights.
Australia Reclaiming its position
Wealth migration trends are reverting to pre-pandemic patterns, with Australia reclaiming its position as the top destination for net inflows, while China continues to experience the highest number of HNIs leaving its borders. The report identifies Australia, the UAE, Singapore, the USA, and Switzerland as the primary preferences for wealthy families considering relocation, while China, India, the UK, Russia, and Brazil are expected to witness significant net outflows of millionaires.
Notably, nine out of the top ten countries attracting the most HNIs this year offer investment migration programs, often referred to as golden visa programs, which serve as attractive magnets for foreign direct investment. Singapore, Switzerland, and the UAE have established themselves as renowned safe havens for living and wealth preservation, along with being thriving business hubs offering favorable fiscal jurisdictions, advantageous corporate tax rates, and exemptions from wealth and inheritance taxes, as highlighted in the report.
Furthermore, the report sheds light on the decreasing number of HNIs leaving India, while witnessing a substantial increase in HNIs departing from China and the UK in recent years. China’s slowing wealth growth, coupled with the banning of Huawei 5G by major markets such as the USA, UK, and Australia, has posed significant challenges to its future growth plans centered around the hi-tech sector.
In the case of the UK, the report reveals that approximately 12,500 millionaires left the country between 2017 and 2022. Factors contributing to this trend include high capital gains tax and estate duty rates, which rank among the highest globally, alongside the diminishing prominence of the London Stock Exchange on the global stage.