Wealthy individuals waving goodbye: The rise of international relocations

I have previously written about the trend of young people wanting to relocate because they see themselves as global citizens with the ability to move freely, as well as those leaving due to political differences or to seek new job opportunities. For the wealthy, the reasons for relocation are varied, but most often relate to taxes and quality of life.

On May 20, New World Wealth, in collaboration with Henley & Partners, released a report on global migration trends. The report highlighted a growing interest among US billionaires in obtaining dual citizenship, which was once considered a luxury. The desire for dual citizenship is increasing, particularly as a form of assurance in uncertain times.

While the US still leads the world in the number of millionaires, other countries, notably China, are rapidly closing the gap. The US has 6,053,302 millionaires, with 6,041,600 having net worths between $1 million and $100 million, 10,835 in the $100 million range, and 867 billionaires. China, by comparison, has 830,436 millionaires: 827,900 in the $1 million range, 2,258 with $100 million, and 278 billionaires.

From 2014 to 2024, the number of millionaires in the US grew by 78%, outpacing China's 74%. The number of millionaires in each country not only depends on wealth accumulation but also on the migration of these individuals. In 2024, 3,800 millionaires are expected to relocate to the US.

The country with the highest number of wealthy individuals moving abroad is China, with an estimated 15,200 millionaires leaving in 2024. The UK follows with 9,500, then India with 4,300, South Korea with 1,200, Russia with 1,000, Brazil with 800, South Africa with 600, Taiwan with 400, and Nigeria and Vietnam with around 300 each.

In reality, the trend of wealthy individuals relocating has been steadily increasing each year, with a slight slowdown during the COVID-19 pandemic from 2020 to 2021. The trend is now accelerating again, and it is expected that 135,000 millionaires will migrate in 2025.

The main reasons for relocating include:

• Safety and security
• Financial concerns
• Taxes and retirement planning
• Job opportunities and business prospects
• Lifestyle factors, including climate, nature, and scenery
• Schools and educational opportunities for children
• Healthcare systems
• Standards of living

The countries receiving these wealthy individuals benefit from their migration in various ways, particularly in terms of foreign currency earnings. Instead of producing $10 million worth of goods for export, these billionaires simply transfer $10 million to spend or invest.

Additionally, new businesses are created by the migrants, as around 20% of them are entrepreneurs or company founders. Most will establish businesses in their new host countries, generating employment for the local population. Furthermore, it’s noteworthy that among the billionaires seeking to relocate, as much as 60% are entrepreneurs or founders of businesses.

The report also highlights the positive impact on stock markets, a point that the Stock Exchange of Thailand (SET) may want to consider when proposing policies to revitalise the market. The report found that many of these relocating millionaires are not only investors in the stock market but also leaders of their own companies listing on the stock exchange. This brings vibrancy to the market, with new businesses entering to be traded, making the stock market more attractive to both local and international investors.

Indirectly, these wealthy migrants also create high-paying jobs in their new countries through their spending power and the salaries their companies pay employees. This leads to high purchasing power, especially in luxury markets such as high-end hotels, fine dining, luxury retail, fashion, high-tech products, upscale real estate, wealth management, and family asset management.

The businesses founded by these billionaire entrepreneurs also contribute to the growth of the middle class, which benefits those around them from the wealth they bring to their new host countries.

Countries around the world are therefore working to attract these billionaires, including the United States, which is the second most popular destination for these wealthy individuals, after the United Arab Emirates (UAE). President Trump has proposed raising the minimum investment required for the Gold Card Visa, which grants permanent residency and potential citizenship, from $800,000 to $5 million. However, this visa will be restricted to certain countries based on the strategic situation of each country (it’s easy to guess which countries might be excluded).

There is one country that has amazed me once again. It is a small country that managed to attract 3,500 billionaires to relocate last year, ranking third in the world. This country likely attracts high-net-worth individuals due to its relatively high cost of living, meaning that only the wealthy can afford to move there. It has been recognised as the most business-friendly country in the world. Can you guess which country it is? It’s Singapore.

It’s time for the government to reconsider plans to attract talent and billionaires. In the past, due to lax law enforcement, we have only attracted the “grey” market. Since we are ranked as one of the most liveable countries, we should aim to attract talented and good people, which requires us to create a secure, stable, and healthy society.

Note: The countries ranking 4th to 10th in terms of attracting billionaires in 2024 are Canada, Australia, Italy, Switzerland, Greece, Portugal, and Japan.