1 — Russia

Leading the list for the most millionaires lost is Russia. According to Henley & Partners, the nation previously had over 101,000 high-net-worth individuals. A high-net-worth individual is defined as someone with investments exceeding USD 1 million, excluding their primary residences.

In just one year, 15,000 of these individuals left the country. This exodus is unsurprising, given that it followed the invasion of Ukraine and the resulting sanctions. The fear of asset confiscation and rising taxes tied to the war effort has made life in Russia increasingly unappealing for its wealthy citizens. Notably, numerous billionaires, including Andrei Baronov and Vasily Anisimov, have renounced their Russian citizenship in favor of countries like Cyprus.

2 — China

The second nation experiencing a loss of affluent residents is China, which saw 10,000 wealthy individuals leave. With 823,000 high-net-worth individuals, this figure may seem small in proportion. However, political instability, increasing governmental control, and unpredictable policy shifts have created a tense environment for the rich, prompting many to seek alternatives.

3 — India

The third country on our list is India, which lost 8,000 high-net-worth individuals. Given its status as the world’s most populous nation, it's no surprise that India ranks high on this list.

4 — Hong Kong

In fourth place is Hong Kong, which has seen a departure of 3,000 wealthy individuals. Since the handover of sovereignty from the UK to China, the region has witnessed a gradual tightening of control by Chinese authorities. Political unrest, highlighted by the protests of 2019 and the subsequent imposition of the National Security Law in 2020, has left many residents feeling insecure about their future.

5 — Ukraine

In fifth place, Ukraine has lost 2,800 high-net-worth residents, representing nearly half of its wealthy population. This exodus is primarily driven by the ongoing Russian invasion, prompting many affluent families to seek safer environments for their children’s education and future.

6 — Brazil

Brazil ranks sixth, with 2,500 high-net-worth individuals having left in a single year. This statistic translates to about one in every fifty wealthy Brazilians migrating elsewhere.

The primary reasons for this exodus include rising violence and an overwhelming public deficit that has led to increasing taxation. The Brazilian government has been exploring various new taxes, including those on inheritance and luxury goods.

7 — The United Kingdom

Finally, the United Kingdom has lost 1,500 high-net-worth individuals in one year. While this number may seem small relative to the estimated 737,600 wealthy individuals in the UK, it’s unexpected given the country’s reputation for attracting affluent residents.

In contrast, nations like Portugal, Greece, and Switzerland have seen increases in wealthy expats. The UK struggles with higher income and inheritance taxes, alongside a significantly higher crime rate compared to Switzerland, which makes it less appealing for wealthy individuals.

Where are these wealthy expats moving to?

Amidst these departures, one country stands out as a prime destination for affluent individuals: the UAE. In just one year, the UAE welcomed 6,700 high-net-worth immigrants, significantly surpassing the number of wealthy individuals lost by the UK.

The UAE’s appeal lies in its zero income tax, absence of wealth taxes, and low crime rates, making it an attractive haven for those seeking a new home. Additionally, its strategic location and world-class infrastructure enhance its allure.

In conclusion, while many wealthy individuals are leaving countries like Russia, China, India, Hong Kong, Ukraine, Brazil, and the UK, the UAE continues to attract them with its favorable conditions.

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Levi Borba is the founder of expatriateconsultancy.com, creator of The Expat channel, and a best-selling author. Connect with him on X.

Originally published at https://expatriateconsultancy.com on July 17, 2024.