Portugal: A rising star in wealth migration

Lisbon: The Henley Private Wealth Migration Report 2024, released by Henley & Partners on June 18, 2024, offers a compelling snapshot of the unprecedented migration of high-net-worth individuals (HNWIs) worldwide.

This report, produced in collaboration with global wealth intelligence firm New World Wealth, captures the latest trends in millionaire migration, revealing a global shift in the distribution of wealth and power.

In an unexpected twist, the United Kingdom is projected to experience a staggering net loss of 9,500 millionaires in 2024, second only to China. This figure more than doubles the 4,200 departures recorded last year and is a significant leap from the 1,600 that left in 2022. Traditionally, London has been a beacon for wealth, attracting affluent individuals from across the globe. However, recent political and economic instability, coupled with unfavorable policy changes such as the abolition of the non-dom tax regime and increased taxes on private education, have made the UK less appealing to the global elite.

On the other side of the spectrum, the United Arab Emirates continues its reign as the leading destination for migrating millionaires, expecting a record net inflow of 6,700 HNWIs this year. The UAE’s allure lies in its zero income tax, luxurious lifestyle, and strategic geographical location, alongside a rapidly developing wealth management ecosystem. These factors make it an attractive destination for wealthy individuals from India, Europe, and beyond, cementing its status as the world’s top choice for millionaires looking to relocate.

Among the global destinations attracting HNWIs, Portugal stands out for its innovative investment migration programs. Despite the recent closure of its real-estate-linked investment option, Portugal’s Golden Residence Permit Program continues to be highly sought after. This program, alongside others like Greece’s Golden Visa and Spain’s Residence by Investment Program, offers a blend of lifestyle benefits, strategic location, and investment opportunities, making these countries prime choices for affluent individuals seeking new homes. Portugal, in particular, has become a favorite for its quality of life, favorable tax regime, and cultural richness, drawing a steady stream of wealthy migrants.

Globally, an estimated 128,000 millionaires are set to relocate in 2024, surpassing the previous year’s record of 120,000. China’s net outflow remains the largest, with 15,200 HNWIs expected to leave, followed closely by the UK’s significant loss. Interestingly, India’s outflow has decreased to 4,300, suggesting a stabilization of its wealth migration patterns. Meanwhile, South Korea and Russia continue to see departures, though Russia’s numbers have tapered off following the initial surge during the Ukraine conflict.

The movement of millionaires has profound implications for both the countries they leave and those they move to. For destination countries, these wealthy migrants bring not only substantial forex revenue but also contribute to local economies by establishing businesses and creating jobs. This influx can significantly bolster economic growth and development, particularly in nations with welcoming investment migration policies.

The Henley report also emphasizes a growing trend in investment migration, with Henley & Partners experiencing record inquiries from nearly 200 countries. In addition to Portugal, other popular destinations include Malta, with its Citizenship by Naturalisation for Exceptional Services, and various Caribbean nations offering attractive citizenship by investment programs.

The Henley Private Wealth Migration Report 2024 underscores a pivotal moment in global wealth distribution, with countries like Portugal playing an increasingly prominent role. As nations continue to compete for the world’s wealthy, these migration trends not only reflect current economic and political realities but also forecast the shifting tides of global influence. The report offers invaluable insights into the motivations and destinations of migrating millionaires, highlighting the dynamic nature of global wealth and the ever-changing landscape of international finance and migration.