War leads to mass exodus of millionaires from Russia and Ukraine – The Irish Times

A tsunami of private capital has left Russia and Ukraine, the UK has lost its crown as a center of wealth, and the US is fast fading as a magnet for the world’s rich, according to the latest Henley Global Citizens Report.

The report, which tracks private wealth and investment migration trends around the world, finds that the UAE is expected to overtake the US in attracting the largest net inflows of millionaires globally in 2022.

According to the latest data, destinations that traditionally attracted wealthy investors are losing their appeal. The UK, once touted as the financial hub of the world, continues to experience a steady loss of millionaires, with a net outflow of 1,500 expected by 2022.

This trend began five years ago when the Brexit vote and higher taxes caused more high-net-worth people to leave the country than enter it for the first time. The UK has suffered a total net loss of approximately 12,000 millionaires since 2017.

Russia has seen the largest emigration of millionaires in the past six months, with net outflows forecast at 15,000 by the end of 2022, 15 percent of its individual high-net-worth population and 9,500 more than in 2019, before the pandemic.

Russia’s invasion, in turn, is causing a sharp rise in Ukraine’s high-net-worth departing individuals, who are projected to suffer their largest net loss in the country’s history: 2,800 millionaires, or 42 percent of this cohort. , and a net loss of 2,400 more. than 2019.

Country-specific figures are not available for 2020 and 2021 due to Covid-related lockdowns and travel restrictions.

The top 10 countries in terms of net inflows of high net worth individuals in 2022 will be the United Arab Emirates, Australia, Singapore, Israel, Switzerland, the US, Portugal, Greece, Canada and New Zealand.

Large numbers of millionaires are also expected to relocate to Malta, Mauritius and Monaco.

On the other hand, the 10 countries where the highest net outflows of high net worth individuals are Russia, China, India, Hong Kong, Ukraine, Brazil, United Kingdom, Mexico, Saudi Arabia and Indonesia.

The appeal of another financial giant, the United States, is also rapidly diminishing. The United States is notably less popular with immigrant millionaires today than it was before COVID-19, “perhaps due in part to the threat of higher taxes,” the report notes.

The country continues to attract more high-net-worth individuals than it loses through emigration, with a projected net inflow of 1,500 people by 2022, although this represents an 86% drop from 2019 levels, when there was a net inflow. net of 10,800 millionaires.

In contrast, the United Arab Emirates has become the focus of intense interest among wealthy investors and is expected to experience the largest net inflow of high net worth individuals globally in 2022, with 4,000 forecast.

That would represent a 208 percent increase compared to 2019’s net inflow of 1,300 and one of the largest on record.

Inflows of high net worth individuals are also on the rise in Israel, with a figure of 2,500 forecast for 2022, up 79 percent from 2019.

Australia, a long-term high performer, consistently attracts large numbers of high net worth individuals. More than 80,000 US dollar millionaires have moved to the country in the last 20 years. In 2022, the net inflow is expected to be 3,500, the second highest globally.

Neighboring New Zealand is expected to receive a net inflow of 800 high-net-worth individuals in 2022, and Asia’s top wealth hub Singapore continues to attract millionaires, with net inflows expected to reach 2,800, an 87 percent increase on comparison with 2019.

Wealth emigration is starting to hurt in China, with net outflows of 10,000 high-net-worth individuals expected in 2022.

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