The world’s millionaires, responding to a number of economic factors, including lower tax rates, are pulling up roots and hauling their money to new destinations, leading with the United Kingdom, Singapore and the US.
The United Kingdom has ranked as the premier global destination for migrating millionaires since 2003, with a net inflow of 114,100 millionaires, according to a new report from New World Wealth, which gathers its information from a database on 120,000 wealthy individuals from around the world.
London, which is often described as the financial center of the world, has the most millionaires of any city, with 339,300.
The report defines “millionaires” – otherwise known as “high net worth individuals” (HNWIs) -as individuals with net assets of US$1 million or more, excluding their primary residences. A ‘domicile’ refers to the country that an individual describes as their permanent home.
Countries that gained the most millionaires, 2003-2013
1 UK 114,100
2 Singapore 45,000
3 US 42,000
4 Australia 22,200
5Hong Kong 22,200
Source: New World Wealth, March 2014
Singapore, which has seen 45,000 millionaires storm its gates since 2003, thanks in a large part to its modest tax rates, ranked second in attracting the world’s millionaires.
The United States, where much of the world’s global wealth is created, together with the world’s currency reserve, ranked third, gaining 42,400 millionaires.
Equally as important as where the wealth is going is determining where it is coming from. According to the report, China – with a net outflow of 76, 200 HNFIs – have resettled the most millionaires during the 10-year period.
The report revealed Chinese millionaires, which topped the migration list, were mostly migrating to Hong Kong, Singapore and the United Kingdom. Indian millionaires reportedly showed a preference for the UK, U.S. and Australia, while French and Italian millionaires were relocating their wealth to the UK and Switzerland.
“It is rather difficult to flaunt your wealth in China, so many wealthy Chinese choose to migrate,” Andrew Amoils, senior analyst of the New World wealth report, told RT. “Many go to Hong Kong, but since the special administrative district is still controlled by China, many opt to go elsewhere, oftentimes to the United Kingdom.”
Meanwhile, India came in second place with a net outflow of 43,400 millionaires, followed by France, Italy and Russia.
Russia, with an estimated 82,300 HNWIs in 2013, saw some 14,000 millionaires leave the country in the 10-year period.