Dubai: China, India and the UK are set to see the highest outflow of high net-worth individuals in 2023, a new report said on Tuesday, adding that in UK’s case the flight of HNWIs will be double that of last year.
According to the Henley Private Wealth Migration Report 2023, UK is likely to see a net outflow of 3,200 HNWIs this year, compared to 1,600 last year. The net loss for China is anticipated at 13,500, followed by 6,500 for India.
Leading the list of areas that are set to attract the highest HNWIs are Australia (net inflow of 5,200 millionaires) and the UAE (4,500 millionaires).
Singapore, the US, Switzerland, Canada, Greece, France, Portugal and New Zealand make up the rest of top 10 countries seeing highest net inflow of HNWIs.
Dr. Juerg Steffen, CEO of Henley & Partners, said there has been a steady growth in millionaire migration over the past decade, with global figures for 2023 and 2024 expected to be 122,000 and 128,000, respectively. “In general, wealth migration trends look set to revert to pre-pandemic patterns this year, with Australia reclaiming the top spot for net inflows as it did for five years prior to the Covid outbreak, and China seeing the biggest net outflows as it has each year for the past decade. The notable exceptions are former top wealth magnets, the UK and the US.”
Brexit a bad bet for Britain, US appeal waning
The UK’s peak net outflow year was 2017, following the Brexit referendum in 2016. Prior to this, the country enjoyed net positive inflows of HNWIs. While net losses dropped slightly between 2017 and 2019, the 2023 forecast indicates a far more significant millionaire exit is currently underway.
Prof. Trevor Williams, former Chief Economist at Lloyds Bank Commercial, says the data offers independent corroboration of the trend of HNWIs leaving the UK. “Whatever one may think about the merits of Brexit, this cohort is voting with its feet. Coupled with the policy change to remove permanent non-domiciled taxpayer status, Brexit has made the UK less hospitable and welcoming to HNWIs. It’s now harder for them to move between the UK and EU countries. And evidence shows that the UK’s share of inward investment into Europe has declined since it left the EU, with Germany and France benefiting.”
