Australia is among the most popular migration destinations for wealthy people, according to a new report from Washington-based think tank the Migration Policy Institute.

Around 3,500 high-net-worth individuals arrived in Australia in 2022, the report said.

It said that wealthy individuals have bought property and secured residence in new countries in increasing numbers in recent years and the practice has resumed after a brief hiatus caused by the COVID-19 pandemic.

The easing of public health-related border restrictions, global unrest following Russia’s invasion of Ukraine, and economic turbulence have  added to the exodus of wealthy people, largely from Russia, China, India, Hong Kong and Ukraine, the report says.

While small in comparison to overall migration streams, the number of people with a net worth of more than US$1 million moving internationally more than doubled from 51,000 in 2013 to 110,000 in 2018.

“After a dip during the pandemic, about 88,000 high-net-worth individuals were projected to relocate by the end of 2022, and a record-setting 125,000 transnational millionaires were anticipated to be on the move in 2023,” the report said.

“Millionaires and other affluent migrants tend to transcend the debates that guide traditional immigration policy discussions. Unlike migrants arriving as low-skilled workers, asylum seekers, or via other streams, affluent immigrants rarely compete for jobs with the native born, tend not to burden health-care systems and other social services, and likely invest money in local economies,” it said.

The report says that historically, the largest shares of millionaire migrants have come from China and India, but the fallout from Russia’s February 2022 invasion of Ukraine—including an economic freefall and growing domestic unrest—has prompted thousands of Russians to leave their native country and relocate from Western Europe, where many had been living previously.

And according to the UK Ministry of Defence, around 15,000 millionaires had fled Russia as of June, 2022.

The report estimates that 30 per cent of wealthy migrants enter their new countries via investment migration programs.

It says patterns of wealthy migration have changed, due to shifting geopolitical trends. Wealthy migrants have typically been most attracted to countries with secure socio-political environments, which have traditionally included the United States, Canada, Germany, Australia, and the United Kingdom.

“Recently, the international elite seem to be opting for more stable economies, firstly in the United Arab Emirates, which was projected to be the top destination for migrant millionaires globally in 2022, followed by Australia, Singapore, Israel, and Switzerland,” the report said.

“This is partly a reflection of the onward movement of growing numbers of Russian nationals who might face sanctions or political pressure in the West.”

The report cites a Credit Suisse study that estimated that there were 62.5 million millionaires worldwide as of the end of 2021, a number projected to grow to 87.6 million by 2026.

It says purchasing land and other property often provides a safe deposit for high-net-worth migrants to store their savings, especially in global cities with stable politics and currency.

“Singapore, for instance, has long been a favoured destination for investors from mainland China, while London has been so popular with elite Russians that the city is sometimes pejoratively referred to as Londongrad,” the report said.

“These global cities act as hubs for information and capital that transcend national borders. They also typically offer high living standards, good schools, and robust transportation linkages.

“Tax havens such as the Cayman Islands, Monaco, and Switzerland have also traditionally attracted the transnational wealthy. Some countries, such as those in Southern Europe, have generally sought to boost immigration in the face of aging populations, and have taken steps to offer preferential tax regimes and other policies targeting wealthy migrants.

“The recent interest in the United Arab Emirates, particularly its major cities Abu Dhabi and Dubai, encapsulates several of these trends: The country has zero income tax, is centrally located at the nexus of three continents, has positioned itself as a cosmopolitan hotspot, and offers a vibrant economy due to booming oil and gas revenue.

“Meanwhile, the emirates sit largely outside the Western political sphere, offering peace of mind to wealthy Russians and others who might run afoul of sanctions or possible criminal indictments elsewhere,” the report said

It said that affluent migrants often created a broad diaspora network with ties between their old and new countries.

“Emigration can be a powerful way to boost development in origin countries, through the sending of money and other remittances,” the report said.

Most remittances come from high-income countries, with the United States the top sending country with almost $US74.6 billion in formal transfers in 2021, according to the World Bank.

Other top countries for remittances are Saudi Arabia ($US40.7 billion), China ($US22.9 billion), Russia ($US16.8 billion), and Luxembourg ($US15.6 billion).

Remittances far exceed foreign direct investment and development aid in developing countries and tend to increase aggregate demand and gross domestic product (GDP), the report said.

It concluded that migration trends of the wealthy are constantly evolving.

“Uncertainty­ due to global security, political upheaval, living standard concerns, or environmental change can drive migration of transnational millionaires, who hope to secure their legacies, wealth, and lifestyles in stable destinations,” the report said.

“Residence and citizenship programs in destinations help propel these trends, as do signs of socioeconomic stability, global status, and existing migrant networks.”

The report concludes that while they account for a tiny share of the world’s 281 million international migrants, millionaires and other wealthy individuals can play a major role in how migration is perceived and have often loomed large in debates.

“The subsiding of the global pandemic and Russia’s invasion of Ukraine have prompted a new wave of affluent people looking to move across borders, but recent history has shown that these migrants have been on the move for years in increasing numbers,” the report said.

“As trends evolve, so too will policies targeting millionaire migrants, as governments and communities reckon with the promises and perils of new outside wealth,” it said.

Read the full report: Article: Millionaire Migration Rises and Heads to .. | migrationpolicy.org