The reasons behind affluent individuals choosing to relocate abroad are myriad, encompassing familial considerations, personal preferences, governmental regulations, security, business prospects, and more.
This week, the U.S. economic news website "24/7WALL ST.," drawing from its proprietary research and analysis, has meticulously ranked the top ten countries from which billionaires depart.
10th Place: Japan
According to the reports from the U.S. economic news website 24/7WALL ST., the exodus of millionaires from Japan is attributed to exorbitant living costs, excessive congestion, and coping with new regulations to combat high inflation.
The website notes that housing costs in major Japanese cities like Tokyo rank among the highest globally, prompting a natural inclination among individuals to relocate overseas for asset preservation. The Japanese government, in an effort to revitalize local areas, offers financial support for those residing or commuting within the 23 wards of Tokyo to relocate to other regions.
Furthermore, the site analyzes that due to currency policies leading to a substantial depreciation of the yen, wealthy individuals have ceased investments in the Japanese market, opting to leave the country.
9th Place: South Africa
Since 2021, there has been a significant wealth drain across various sectors of South Africa's economy. Many billionaires have either lost wealth or departed from the country. Nevertheless, it was still ranked as the world's safest tax haven in the 2020 Financial Secrecy Index.
8th Place: Mexico
The website states that the wealth of Mexico's affluent has grown 117 times faster than that of non-affluent individuals. Meanwhile, the left-wing government that took office in 2018 has intensified efforts to combat tax evasion and illegal activities among the wealthy.
The new legislation deems tax evasion as organized crime and has passed a law categorizing severe tax evasion as a national security threat. Consequently, billionaires are increasingly relocating abroad, exploiting tax loopholes, engaging in tax evasion, and expressing concerns about the future of the legal system.
7th Place: South Korea
South Korea stands as one of Asia's most successful economies, having undergone explosive growth in the past several decades. Many billionaires are departing South Korea, transferring their wealth to places with lower living costs. South Korea exhibits high capital mobility, allowing for effortless movement abroad.
6th Place: Hong Kong
With the backdrop of a policy-shifting China, assets in Hong Kong find it challenging to feel secure. The reasons for billionaires leaving Hong Kong mirror those of millionaires departing the Chinese mainland: concerns about heightened control over Hong Kong, apprehensions of military conflicts, and more stringent regulations and oversight as China strengthens its influence.
5th Place: Brazil
Billionaires in Brazil are also departing the country due to economic and political uncertainties, along with unreliable domestic investments. Unpredictable political landscapes have led to economic conflicts and severe turmoil within the government. Corruption and crime persistently plague the Brazilian government, eroding confidence in any economic reforms.
Brazil's extreme income inequality is compelling the government to address the issue, but for affluent individuals driven by greed and sensitivity, this proves more challenging. Wealthy individuals capable of relocating abroad are choosing to move to the United States, where financial institutions are more stable, and the political atmosphere is more trustworthy.
4th Place: Russia
The Western imposition of stringent economic and political sanctions on Russia, primarily due to Russia's invasion of Ukraine and other heinous crimes against humanity, has affected many oligarchs (super-rich individuals). These sanctions prevent many oligarchs from leaving the country, with assets frozen, trade with the West halted, and various restrictions imposed. As a result, affluent individuals facing these limitations are clandestinely fleeing the country.
3rd Place: United Kingdom
The impetus for millionaires relocating abroad from the United Kingdom is the country's exit from the European Union, known as "Brexit." One of the paramount considerations for emerging billionaires is political and economic stability, coupled with a predictable future. Few entities embody stability, strength, and predictability more than the European Union. Prior to Brexit, a significant exodus of billionaires occurred from the UK. However, when the UK referendum voted to leave the EU, many existing laws became null and void, prompting the affluent to take action. Travel, trade, banking, and other activities within the EU became more arduous and costly.
2nd Place: India
For billionaires leaving India, the primary reasons for their decisions include high taxation, complex legal obstacles for remittances and starting new businesses overseas, and corruption. Other factors include security and safety concerns, along with the impact of climate change. Most millionaires leaving India head to Australia, where conditions are more favorable for the wealthy. Given India's vast population, even with billionaires departing the country, there are enough new billionaires emerging annually to replace them.
1st Place: China
Over the past decade, billionaires have been leaving China in droves, a trend exacerbated by the COVID-19 pandemic. Considering China's massive population, the government's control, and the state-led capitalism, this is not surprising. China has territorial disputes with most neighboring countries, political conflicts with Hong Kong and Taiwan, and ongoing economic and hegemonic rivalry with the United States. All these factors contribute to a stringent wealth legal system.
China is poised to experience the largest-scale billionaire exodus this year. With the end of the "Zero COVID" policy and the relaxation of travel restrictions, billionaires eager to immigrate in search of tax havens are leaving en masse. The destinations for Chinese billionaires are Australia, Singapore, the United Arab Emirates, and the United States. The allure of substantial tax loopholes, lenient financial regulations, and stable markets is drawing in the super-wealthy.
