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The rich of the world are more and more in motion.
Last year, about 108,000 millionaires migrated across borders, an increase of 14% over the previous year and more than double their 2013 level, according to New World Wealth, based in New York. Johannesburg. According to the research firm, Australia, the United States and Canada are the main destinations, while China and Russia are the biggest losers. The UK saw about 3,000 millionaires leave last year with Brexit and the tax reasons mentioned.
Wealth migration figures point to the current situation – criminality, lack of business opportunities or religious tensions – but can also be a key indicator for the future, said Andrew Amoils, Research Manager at New World Wealth.
"This can be a sign of bad things to come because wealthy people are often the first people to leave – they have the means to leave unlike middle-class citizens," he said.
Australia is at the top of most "wish lists" for immigrants because of its perceived security, lack of inheritance tax and close trade ties with China, Japan and South Korea. South. It also stands out for its sustained growth, after escaping the financial crisis and remaining unscathed and avoiding the recessions of the past 27 years.
The United States was the second most popular destination in 2018, with preferred options being New York, Los Angeles, Miami and San Francisco Bay.
The tightening of China's control over capital flows in recent years has placed many of the country's wealthiest citizens into tax collisions, resulting in the displacement of assets and people. Some wealthy Asians also settle in developed countries looking for more comfort or to improve the education of their children.
The exit of wealthy individuals from China and India is not particularly worrying from an economic point of view as many more new millionaires are created than leaving, said New World Wealth.
"Once the standard of living in these countries has been improved, we expect the return of many wealthy people," said Amoils.
Emerging market volatility continued to fuel movements as Turkey lost 4,000 millionaires last year, the third year in a row. About 7,000 millionaires left Russia last year while the country was under sanctions imposed for its annexation of Crimea.
The desire for intimacy also encourages the rich to reconsider their place of residence.
Under the Common Reporting Standard, launched by the Organization for Economic Co-operation and Development in 2017, banks and other financial institutions report foreign account holders' data to their local tax authorities. The authorities automatically exchange relevant information with their foreign counterparts every year, allowing governments to focus on tax cheats. More than 100 jurisdictions have joined CRS, setting a new precedent for global offshore asset data exchange.
This trend is reflected in the growth in demand for second passports and residences.
"Many wealthy people are looking for ways to reduce the risks of spreading information about their accounts," said Polina Kuleshova of Henley & Partners, which provides citizenship advice and publishes rankings such as Quality index of nationality.
According to Knight Frank's Wealth Report, published in 2019, 26% of millionaires worldwide will begin planning for emigration this year.
Citizenship and residency programs are important businesses: currently, the sector accounts for about $ 2 billion a year, according to Knight Frank. It also raises concerns and criticism.
The Organization for Economic Co-operation and Development is studying the risks of abuse of these programs. In October 2018 he published a blacklist of 21 countries, including Malta and Cyprus, which he said undermined international efforts to combat tax evasion.
This article was written by Alex Sazonov, Washington Post reporter.
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