Millionaires are reshaping their global footprints as many Western governments raise taxes and tighten residency rules. A recent Visual Capitalist study mapped the net flow of high‑net‑worth individuals (HNWI) in 2022, revealing clear winners and losers in the emerging “plan B” migration wave.
Net inflows – where millionaires are moving to
| Destination | Net inflow of HNWI (2022) |
|---|---|
| Australia | 3,500 |
| New Zealand | 800 |
| Singapore | 2,800 |
| Switzerland | 2,200 |
| United Arab Emirates (UAE) | 4,000 |
| United States | 1,500 |
| Canada | 1,000 |
| Portugal | 1,300 |
| (Other European hubs such as Greece – flexible tax regime) | unspecified |
Notes:
- Singapore, despite its high cost of living, attracts ultra‑high‑net‑worth individuals (US$30‑200 million) seeking stable governance and relatively low taxes.
- Switzerland’s lump‑sum taxation can be attractive for those with US$10 million+ assets, offering effective rates of 3‑4 % versus 40‑50 % in the United States.
- The UAE’s rapid property price surge and a flood of company‑formation services suggest the reported 4,000 net inflow may be an underestimate.
Net outflows – where millionaires are leaving
| Origin | Net outflow of HNWI (2022) |
|---|---|
| India | 8,000 |
| China | 10,000 |
| Hong Kong | 3,000 |
| Ukraine | 2,800 |
| United Kingdom | 1,500 |
| Saudi Arabia | 600 |
| Mexico | 800 |
| Brazil | 2,500 |
| (Russia – “SAR Russia” mentioned, number unclear) | unclear |
| Israel (inflow of 2,500 mentioned, direction unclear) | unclear |
Primary drivers of the shift
- Tax pressure: Wealth‑tax proposals in the UK, rising income‑tax rates in Australia and New Zealand, and overall higher marginal rates in many Western economies push HNWI to jurisdictions with lower or no personal income tax.
- Political and regulatory risk: Restrictions on citizens re‑entering Australia, tightening capital‑control measures in China, and geopolitical instability in Russia and Ukraine motivate exits.
- Lifestyle and safety: High‑quality health care, personal security, and the prestige of a “second passport” are cited as decisive factors, especially among Asian investors accustomed to maintaining backup residency options.
- Business environment: Nations offering “entrepreneur residence permits” or favorable corporate tax structures (e.g., Portugal’s crypto‑friendly regime, Greece’s lump‑sum tax for retirees) attract investors looking to diversify assets and operations.
Tax‑efficiency snapshots
- Switzerland: Lump‑sum tax for ultra‑wealthy residents can be a few hundred thousand dollars annually, translating to an effective rate of 3‑4 % on large portfolios.
- United States: Combined federal, state, and local taxes can consume 40‑51 % of income for high earners, without comparable public‑service benefits for expatriates.
- Portugal & Greece: Offer flat‑rate or lump‑sum tax options for retirees and high‑net‑worth individuals, often lower than EU averages.
Emerging low‑tax havens beyond the headline list
- Panama, Cayman Islands, Nicaragua, Montenegro: Attracting a niche of millionaires seeking ultra‑low tax rates and flexible residency programs, though specific migration figures were not disclosed.
- Latin America: Despite safety concerns, some affluent expatriates prefer Mexico or Brazil for lifestyle reasons, yet both countries are experiencing net outflows.
Practical considerations for HNWI
- Residency thresholds: Many “golden‑visa” schemes now require investment levels of US$250 k‑1 M in real estate or business, with some programs seeing a five‑fold rise in American applicants.
- Second citizenship demand: U.S. applications for citizenship‑by‑investment programs have risen nearly tenfold, reflecting a desire for contingency planning.
- Cost of living vs. tax savings: A US$1 million portfolio may not sustain a comfortable lifestyle in high‑cost cities like Singapore or Zurich without additional income streams.
Outlook
The data suggest a diversification of millionaire residence patterns: traditional tax havens (Switzerland, Singapore) continue to grow, while the UAE and select European nations (Portugal, Greece) are emerging as preferred alternatives. Simultaneously, large outflows from emerging economies (India, China, Brazil) indicate a global rebalancing driven by tax, political stability, and personal‑freedom considerations.
For high‑net‑worth individuals, the choice now hinges less on a single “best” jurisdiction and more on aligning tax efficiency, lifestyle preferences, and risk mitigation across multiple potential homes.
