Why are successful professionals and retirees packing their bags and leaving certain countries? Which countries rich people are fleeing? And how can their stories be an alert for you?
Recently I came across very interesting data on the countries with the biggest exodus of millionaires. In the top 7, two of them are very curious cases. Today you will discover why people are leaving these countries, and where they are moving to.
Let’s jump straight to the ranking.
Russia
In the first place, the country that lost more millionaires, according to a report from Henley & Partners, is Russia. According to Henley & Partners, Russia had more than 101 thousand high-net-worth individuals.
What is a high net-worth individual? They are the residents with a wealth of USD 1 million or more in investments, not including their own homes. But in a single year, 15 thousand of them left the country.
That is not a surprise at all since this happened already after the invasion of Ukraine and all the sanctions. The fear of asset seizures and increased taxation due to the war effort has made staying in Russia less appealing for the wealthy. In fact, since 2022, many billionaires like Andrei Baronov, Vasily Anisimov, or Ratmir Timashev have even renounced their Russian citizenships and adopted the citizenship of other countries like Cyprus.
China
The second country that lost more wealthy residents is China. And here is more because they have a huge amount of super-rich people there (and it is technically a communist country, which adds to the irony, I know).
China has 823 thousand high net worth individuals. This is 8 times more than Russia, and more than countries like the UK. So in percentage, it is not such a big amount.
Still, political instability has been a major driver. Beijing’s increasing control and unpredictable policy changes have created an uneasy environment. For the wealthy, this unpredictability is a red flag.
Economic concerns are another key factor. China’s economic growth has slowed considerably, and with it, opportunities for high returns. Geopolitical tensions add to the mix. Rising US-China friction has led to fears over the future of international business operations. For the wealthy, maintaining global networks is crucial.
India
The third country that lost more rich residents is India. They lost 8 thousand high-net-worth individuals. Just like with China, India has a lot of wealthy residents since it is the most populous country in the world.
So not much of a surprise they appear in third place.
Hong Kong
In the 4th place is Hong Kong. This small country, (or should I say autonomous zone?) lost 3 thousand high-net-worth individuals. Since the control over Hong Kong was transferred from the UK to China in the 90s, there was a slow but steady increase in control of Chinese authorities over this small territory.
Once it was one of the most economically free places in the world, but now, not anymore… Political uncertainty is a major factor. The 2019 protests and subsequent crackdown have left many feeling insecure about their future in Hong Kong.
The 2020 National Security Law has cast a shadow over personal freedoms. Wealthy residents fear the law’s implications on their business and personal lives. In essence, the combination of political, economic, and social factors has driven many of the wealthy residents of Hong Kong to seek greener pastures.
Ukraine
In the 5th place among the countries that lost more wealthy residents is Ukraine. Ukraine lost 2800 high-net-worth residents, meaning almost HALF of the total wealthy population.
In percentage, this is the highest among all countries in the ranking. The primary reason is the ongoing Russian invasion. Entire wealthy families left, many seeking better educational opportunities for their children abroad. On top of that, war leads to a flight of capital – proof of that is that Russia also lost a considerable number of its wealthy residents, as mentioned before.
But the next country on this list, that is the really curious one. Because it is far from a war zone. Technically, it is a democratic country with a stable economy and plenty of business opportunities. And STILL, they are losing so many of its wealthy residents.
So this country we are talking about is…
Brazil
Brazil lost 2500 of all its high net-worth individuals in a single year. So in ONE year, one in every fifty wealthy Brazilians moved out of the country. In percentage terms, only Russia and Ukraine, two countries in a state of war, had worse numbers than Brazil.
A few weeks ago I made a video explaining why you should NOT move to and retire in Rio de Janeiro. It was a painful video for me to make since I was born in Brazil and it is not comfortable to reveal some negative truths. It is necessary, however, because my channel has a compromise with reality.
The first thing that scares people out of Brazil is violence. That you already know, but this is not the only thing. The Brazilian government is running on a huge deficit. This year, 2024, the public deficit in Brazil rose so much that it is equivalent to the deficit during the COVID lockdowns, when they were giving money for people to stay at home. This huge deficit is creating an unspeakable hunger from the government for more taxes.
Every. Single. Week. People in Brazil hear about more taxation, more taxes, new taxes of all sorts. Inheritance taxes, wealth transfer taxes, VAT taxes, import taxes, and many others. The Brazilian government is even working on creating a SIN TAX called I.S., over products they consider sinful. But that is not only about cigarettes and alcohol as you might think, but also over vehicles, boats, ships, and even soda!
Let’s be honest: a country where the government is looking for preposterous ways to put their hands in YOUR pocket is not a good country for either high-net-worth individuals or for expats who want to retire abroad. Still, there are a few bubbles in Brazil that are still good for foreign retirees, and recently I made a video about Florianópolis, which is like a Brazilian Florida. But Florianópolis is an exception.
And closing our list of the countries that are losing their rich residents is also the only one located in Western Europe. It is…
The United Kingdom.
The UK lost 1500 high-net-worth individuals in a year. In percentage terms, this is not much, since the UK has an estimated number of 737600 wealthy individuals. But it is still surprising when you consider that European countries are famous for attracting wealthy people, not for losing them.
Portugal, for example, gained 1300 wealthy expats. These are rich people who decided to move to Portugal, and this is not an isolated case. Greece also gained more than 1100 rich immigrants. Switzerland received 2200 extra wealthy residents. And those are only some of the examples.
So why did the United Kingdom LOSE its rich residents while other European countries attracted wealthy people? First, the obvious: the UK does not have the pleasant weather and splendid coastline Portugal or Greece have, so they cannot attract so many expats who just want to retire close to a beach and drink red wine. I cannot imagine someone doing such a thing in places like Swansea. But Switzerland also does not have any sandy beaches or pleasant weather (unless you love skiing).
So why did the UK lose its rich while Switzerland attracts them? Let’s see some statistics: First, the income taxes for someone earning 200,000 per year in the UK is approximately 39.6%. In Switzerland, it is around 25%, but in some cantons, it might be much lower. The inheritance tax in the UK is 40%. In Switzerland, in many cantons, it is ZERO.
But it is not only in the taxing sense that the UK looks unattractive. The robbery rate in the UK is 120 per 100,000 people per year. While in Switzerland, it is less than 20, meaning 83% lower. The rape rate in the UK is 52 per 100,000 people per year. In Switzerland, it is 8.5, so almost 84% lower. And many other statistics would easily show why the rich are attracted to Switzerland and not to the UK.
So you got it. But if all these wealthy former residents from Russia, China, India, Hong Kong, Ukraine, Brazil, and the United Kingdom are leaving…. to where are they going?
Where are these wealthy expats moving to?
There is one country in the world that is attracting more wealthy individuals than ANY OTHER.
The UAE.
In a single year, they attracted 6700 high-net-worth immigrants. This is more than four times the amount the United Kingdom LOST. But why?
Let’s dive into the reasons behind this trend, because there might be some good opportunity here for you. The first is that tax-free living is a major draw. The UAE offers ZERO income tax, making it incredibly attractive for the wealthy. Another good advantage is the absence of wealth taxes. Many countries charge taxes on an individual’s total net worth, including property, investments, and other assets. For example, Spain imposes a wealth tax between 0.2% to 2.5% of an individual’s net assets. In the UAE, there is no such tax.
The UAE also does not have an inheritance tax. As you already know, in the United Kingdom, inheritance tax can be as high as 40%. Safety is another positive aspect. The homicide rate in the UAE is 0.5. This is comparable to Switzerland and lower than countries like Norway or Iceland. In the entire country, there are less than 50 homicides per year. A single city in France, Marseille, has a similar amount of murders.
World-class infrastructure is another hook, especially when you consider their transportation network and their state-of-the-art airports. And talking about airports, the strategic location of the UAE is a key factor. It sits at the crossroads of Europe, Asia, and Africa, making it a global hub to fly to almost anywhere in the world. Political stability in the UAE is also a significant draw.
Yes, they are not a democracy, BUT… you cannot deny that their monarchy is extremely stable. I lived in Qatar for some time, a country very close to the UAE, and I am not saying that the Emirates is perfect. Far from that. There are cultural and climate aspects that must be taken into consideration. But the low taxes and the other perks are a good reason the UAE attracts so many wealthy expats.
Do you know which Latin-American country eliminated most of the violence, has wonderful beaches, fantastic nature, kind people, and is still very inexpensive?
El Salvador! Discover more about this country and its impressive improvement here.
By the way, their president just announced an opportunity for foreigners to become permanent residents of El Salvador with multiple incentives. It sounds like a very attractive idea, and they have Bitcoin as a legal tender!
Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author.. You can find him on X here.
