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Millionaire migration: the five countries/cities to capture most HNWIs in 2016 revealed

New World Wealth report reveals where millionaires have been hanging their hats and what drove them away from their previous countries of residence.

Money makes the world go round

Money flows show high net worth investors (HNWI) asset allocation trends but where these investors choose to live, or not, can shine a light on some expected advantages a market can offer.

In its latest annual analysis of wealth trends, global market research group New World Wealth’s Wealth Migration Trends in 2016 report found that global wealth migration accelerated with approximately 82,000 millionaires choosing to migrate to another country compared to just 64,000 in 2015.

The following slides reveals which countries and cities have been welcoming fresh wealth to their shores and which countries have seen a money drain as millionaires moved to new countries.

We also reveal what future wealth migration trends the analysis unearthed.

Note: In this report the terms millionaires and HNWIs are used interchangeable and refer to individuals with net assets of more than $1 million or more. The information was gathered using: interviews with wealth and migration intermediaries; property registers and sales; tracking of HNWI movements in the media; investors’ visa programs; interviews with around 800 global HNWIs a year.

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Aussie attraction

Australia topped the list of countries that attracted the most millionaires in 2016, according to the New World Wealth annual report.

Aside from an attractive lifestyle and the strong growth the country has experienced over the past decade, the report outlined a number of reasons why HNWIs may be preferring Australia to the US and UK.

  • Australia has one of the best healthcare systems in the world. In the UK, the NHS is deteriorating, whilst in the US the mandated healthcare insurance (Affordable Care Act enacted in 2010) has not turned out well for wealthy and middle class patients.
  • Australia’s location makes it a good base for doing business in emerging Asian countries such as China, Hong Kong, Korea, Singapore, Vietnam and India.
  • The country is relatively immune to the turmoil in the Middle East and the related refugee crisis in Europe.
  • In addition, Australia has lower inheritance taxes than the US and much lower inheritance taxes than the UK.

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Canadian chic

While Canada came third overall in the country ranking, Vancouver topped the list of cities that saw the largest arrivals of millionaires in 2016.

Meanwhile, Sydney comes in second place after Australia came first in the country list.

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French fright

On the other end of the spectrum, the report revealed that countries like France, Turkey and Brazil lost large numbers of HNWIs in 2016, which it claims is a ‘very bad sign and generally shows serious problems in a country’.

’The large outflow of millionaires from France (over 12,000 millionaires is 2016) is notable – France is being heavily impacted by rising religious tensions between Christians and Muslims, especially in urban areas,’ stated the report.

‘We expect that millionaire migration away from France will accelerate over the next decade as these tensions escalate.

‘In our view, other European countries where religious tensions are starting to emerge such as Belgium, Germany, Austria, the UK, Holland and Sweden will also be negatively affected in the near future.

Of further concern, since 2000, France has experienced a net outflow of over 60,000 millionaires. Around 6,000 left in 2014, 10,000 left in 2015 and 12,000 left in 2016. This shows that wealth migration away from the country is accelerating.’

Note: loosing HNWIs is a very bad sign and generally shows serious problems in a country.

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Brexit burden

Notably, in the six months since the Brexit vote, very few HNWIs have left the UK and HNWIs continue to come into the country, said the report. This provides a positive sign of things to come.

‘Going forward, we expect HNWI migration into the UK to continue, despite the Brexit. In particular we expect large HNWI inflows from France, China, India, the Middle East and Africa into the UK.’

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Trend trackers

Finally, the New World Wealth report revealed what recent and future trends their investigation brought to the fore.

  • Brazilian HNWIs moving to Portugal
  • Indonesian HNWIs moving to Singapore
  • Turkish HNWIs moving to UAE
  • UK HNWIs moving Australia
  • Nigerian HNWIs moving to UK
  • French HNWIs moving to UK, Canada, Australia and USA

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