In this article, we will explore the 25 best countries for wealthy people to move to based on various factors. You can skip our comprehensive analysis and proceed directly to the 5 Best Countries for Wealthy People to Move To.
For wealthy individuals, the world is truly their oyster. With the means and resources to live wherever they choose, searching for the perfect location is often daunting. Some seek better business opportunities, while others want to enjoy a higher standard of living, favorable tax regimes, and low crime rates.
However, the decision to move to a new country can be complicated. High net-worth individuals (HNWIs) may consider various factors, including visa requirements, language barriers, cultural differences, and the availability of professional networks. Therefore, it is essential to conduct thorough research and seek expert advice before making a final decision.
Global Wealth Migration Trends: Where The Rich Are Going
As per the data provided by Henley & Partners, the trend of millionaire migration has increased since 2013. In 2013, around 51,000 millionaires migrated to new destinations, which rose to 57,000 in 2014, and 64,000 in 2015 and further jumped to 82,000 in 2016. The numbers continued to increase, reaching 108,000 in 2018 and 110,000 in 2019.
Despite the pandemic in 2020, there was still migration, with 12,000 millionaires relocating. In 2021, the number increased to 25,000; in 2022, it grew to 84,000. As per the forecast, the trend of millionaire migration is likely to continue, with a projected 125,000 millionaires expected to migrate in 2023. These numbers suggest that private wealth migration is significant and can have a considerable impact on global economics.
A growing number of millionaires are turning to immigration by investment programs for their relocation process. The post-Covid instability has exacerbated security, political, and economic risks and prompted wealthy families to broaden their domicile portfolios as a precautionary step to safeguard their assets, legacies, and living standards.
Emerging Markets, Emerging Fortunes: Investments For The Wealthy
With investors increasingly realizing the significance and potential benefits of a diversified passport portfolio, governments of countries that offer investment migration programs also acknowledge the value of their customized immigration policies for attracting investors.
In the face of domestic economic challenges and volatility in international markets, many sovereign nations are keen to take advantage of such programs’ innovative financing opportunities.
By introducing alternative citizenship and residence programs, many small countries have bolstered their financial independence and enhanced their sovereign equity, reducing public debt and decreasing dependence on debt financing from supranational organizations.
According to another Henley & Partners article, empirical evidence suggests that countries with more receptive foreign trade and investment proactively attract highly skilled professionals and foster innovation. These countries typically experience more substantial passport rankings and faster development rates than those that do not.
Warren Buffett, the CEO of Berkshire Hathaway Inc. (NYSE:BRK-A), has expressed optimism about the potential of immigrants and their impact on the US economy for many years. Over the decades, he has expanded Berkshire Hathaway Inc. (NYSE:BRK-A) into a vast conglomerate, which spans multiple industries.
He had the following to say in a letter released to shareholders back in 2017.
“From a standing start 240 years ago – a span of time less than triple my days on earth – Americans have combined human ingenuity, a market system, a tide of talented and ambitious immigrants, and the rule of law to deliver abundance beyond any dreams of our forefathers.”
Berkshire Hathaway Inc. (NYSE:BRK-A)’s head felt that this combination had enabled the US to achieve unprecedented levels of abundance and progress, exceeding the expectations of previous generations.
Taxing Decisions: The Wealthy Relocation Equation
When wealthy individuals consider relocating, one of the most important factors to consider is the tax implications of their move. HNWIs often face higher tax rates, and some countries offer more favorable tax regimes.
For instance, certain countries provide zero or low personal income tax rates, while others have tax structures that are more beneficial to business owners and investors. Some countries also impose wealth taxes, which may be relevant to HNWIs.
However, it is crucial to understand that tax should not be the only factor in a relocation decision. A country with low tax rates may not provide the best quality of life or business opportunities. It is crucial to consider all factors and seek expert advice before deciding.
Furthermore, it is essential to ensure that any tax planning strategies adhere to the laws and regulations of the origin and destination countries. Failure to comply with tax laws can result in severe penalties and legal consequences. As a result, it is prudent to seek advice from tax experts and attorneys to navigate the complex tax landscape of a potential relocation.
Companies like H&R Block (NYSE:HRB) have ample experience in tax planning and compliance, and their expertise can be invaluable for HNWIs considering a move. H&R Block (NYSE:HRB) provides personalized tax solutions for individuals and businesses, helping them navigate the tax implications of various scenarios, including relocations.
Seeking the advice of trusted tax professionals like H&R Block (NYSE:HRB) can ensure that any tax planning strategies comply with the laws and regulations of both the origin and destination countries, mitigating the risk of severe penalties and legal consequences.
Health, Wealth, and Happiness: Top Priorities for Wealthy Expats
Access to quality healthcare and education are critical components of a happy and successful life. As a result, many immigrants seek opportunities to live and work in countries that offer these resources.
According to a report published by CNBC in 2021, most global expats reported satisfaction with their lives. The report stated that 68% of expats were happy with their jobs, while 66% were satisfied with their work-life balance. The study also found that 48% of expats were content with the cost of living in their new country, and 71% were satisfied with the quality of medical care they received. Regarding making new friends, 48% of expats said it was easy to do so, and 75% expressed general happiness with their lives.
Access to quality healthcare can be a determining factor in the decision to immigrate. The United States is known for its advanced private healthcare system, and many immigrants seek opportunities to access it. However, navigating the complex healthcare system in the United States can be difficult, and immigrants may face unique challenges.
With this context, let’s proceed to the 25 best countries for wealthy people to move to.
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Methodology
We’ve defined ‘best countries for wealthy people to move to’ as ones which have a high standard of living, are attractive to investors and have low income tax rates. In this regard, we selected the top countries from US News’ quality of life index and the IESE Business School’s venture-capital-and-private-equity-country-attractiveness index of 2021. Then, we created a separate index of the top countries on the two lists in descending order based on their income tax rates, in which we retained countries with lower than average income tax rates
Finally, we ranked these countries on this list in descending order based on their averaged out rankings on the three indexes. If two countries had the same ranking, we used their position in income tax rates as the tiebreaker.
Note: Hong Kong was absent from US News’ quality-of-life index as it is considered a special administrative region of China. However, the standard of living in Hong Kong is high, so we’ve solely ranked it on the basis of its income tax rate and investment attractiveness.
25. Luxembourg
Investment Attractiveness Ranking: 36
Tax Friendliness Ranking: 13
Quality Of Life Ranking: 17
Average Ranking: 22
Luxembourg is a small landlocked nation surrounded by Belgium, France, and Germany, covering an area of 2,586 sq. km and home to 645,400 individuals. Luxembourg’s economic foundation was once built on steel manufacturing but has since expanded into becoming Europe’s most dominant investment management center.
24. Italy
Investment Attractiveness Ranking: 27
Tax Friendliness Ranking: 14
Quality Of Life Ranking: 19
Average Ranking: 20
Italy’s quality of life ranking of 19 highlights the country’s strong healthcare, education, and infrastructure. Italy is currently the country with the highest number of UNESCO World Heritage sites in the world, with 58 locations. New locations, such as Bologna’s porticoes, Padua’s fresco cycles, and Tuscany’s Montecatini Terme, were recently added to UNESCO’s prestigious list. The latter is part of the larger “Great Spa Towns of Europe” designation spanning seven countries. Italy’s land area covers 301,230 sq. km, with a population of 58.8 million.
23. Austria
Investment Attractiveness Ranking: 22
Tax Friendliness Ranking: 24
Quality Of Life Ranking: 13
Average Ranking: 19.67
Austria has a population of 8,979,894, including 1,587,251 foreign citizens, almost 17.1 % of the entire population. Its GDP in 2021 was $480.4 billion, driven by small and medium-scale enterprises in sectors such as food, machine and steel, chemical and vehicle, electric and electronic, and wood and paper industries. Austria prioritizes a sustainable environmental and energy policy and promotes peace and stability globally.
22. United Arab Emirates
Investment Attractiveness Ranking: 32
Tax Friendliness Ranking: 1
Quality Of Life Ranking: 26
Average Ranking: 19.67
The UAE’s economy underwent a significant transformation after the discovery of oil in the 1950s, leading to a remarkable shift in society and the economy. As a result, the UAE has now emerged as a prosperous regional hub for trade and tourism, having diversified its economy over the years. The country has a total area of 83,600 sq. km and a population of 9.2 million, with Arabic being the primary language.
21. Malaysia
Investment Attractiveness Ranking: 23
Tax Friendliness Ranking: 4
Quality Of Life Ranking: 31
Average Ranking: 19.33
Malaysia has established itself as a dominant force within the Asian region. Its sophisticated infrastructure, demonstrated by its 35th position on the aggregate logistics performance index, includes modern airports, seaports, and highways. This infrastructure creates a favorable environment for businesses seeking to expand their regional operations.
20. Spain
Investment Attractiveness Ranking: 20
Tax Friendliness Ranking: 18
Quality Of Life Ranking: 18
Average Ranking: 18.67
With the third largest number of UNESCO sites in the world – 49, Spain ranks highly in investment attractiveness, tax friendliness, and quality of life. It offers a balanced lifestyle, combining business opportunities with a comfortable and enjoyable way of life. From the vibrant city of Madrid to the peaceful Mediterranean coast, Spain caters to diverse experiences, making it a popular destination for expats worldwide.
19. Poland
Investment Attractiveness Ranking: 28
Tax Friendliness Ranking: 6
Quality Of Life Ranking: 22
Average Ranking: 18.67
Despite being frequently overlooked as a destination for expats, Poland presents numerous benefits for individuals seeking to relocate. In 2021, the Polish Investment and Trade Agency (PAIH) assisted with nearly 96 foreign investment projects, resulting in a combined value of almost 3.5 billion euros. A significant proportion of these projects were associated with the BSS sector, accounting for nearly half of the total.
18. Belgium
Investment Attractiveness Ranking: 21
Tax Friendliness Ranking: 22
Quality Of Life Ranking: 11
Average Ranking: 18
Belgium is one of the best countries for rich people to relocate to. Recently, Belgium has emerged as one of the prime European countries for investment. Offering no trade restrictions, Belgium provides a gateway to a vast market of 500 million European consumers within a 500-mile radius. Additionally, Belgium has an exceptional infrastructure, ranking fourth in the world on the aggregate logistics performance index.
17. Ireland
Investment Attractiveness Ranking: 24
Tax Friendliness Ranking: 11
Quality Of Life Ranking: 16
Average Ranking: 17
Solid reasons back Ireland’s position as one of the best countries for relocation. As one of the most business-friendly nations globally, Ireland continues to attract substantial FDI in proportion to its GDP. In 2021, Ireland recorded net investment inflows that accounted for 19.2% of its GDP, underscoring its appeal to investors.
16. China
Investment Attractiveness Ranking: 7
Tax Friendliness Ranking: 17
Quality Of Life Ranking: 25
Average Ranking: 16.33
China possesses numerous positive attributes that make it a desirable country to relocate to. The country has made significant investments in infrastructure, innovation, and technology, essential for promoting continued economic growth. In addition, China’s low average trade-weighted tariff rate of 3.2% is a significant attraction for businesses looking to engage in importing and exporting goods.
15. Netherlands
Investment Attractiveness Ranking: 12
Tax Friendliness Ranking: 23
Quality Of Life Ranking: 8
Average Ranking: 14.33
The Netherlands stands out as one of the best countries to relocate to, particularly for those interested in investing in the agritech industry. The country’s highly educated workforce is well-equipped to support growth and innovation in this sector. Additionally, the Netherlands boasts a business-friendly regulatory framework that facilitates market entry and expansion.
14. Norway
Investment Attractiveness Ranking: 17
Tax Friendliness Ranking: 20
Quality Of Life Ranking: 5
Average Ranking: 14
Norway has a robust infrastructure that ranks in the top 20 on the aggregate logistics performance index. In 2021, the country saw net inflows of investment that accounted for 2.2% of its GDP, highlighting its appeal as a destination for investors. The government further supports business expansion and foreign investment through incentives, creating an attractive environment for economic growth.
13. Denmark
Investment Attractiveness Ranking: 14
Tax Friendliness Ranking: 25
Quality Of Life Ranking: 2
Average Ranking: 13.67
Denmark is one of the best countries for the affluent. It exhibits a service-based stable economy and a low unemployment rate of 3.2%. Its comprehensive and generous social welfare system provides a safety net for citizens. Denmark is a liberal and welcoming society with a diverse cultural scene in Copenhagen. Despite its size of 42,926 sq km, Denmark flaunts picturesque landscapes and charming towns, making it easy to explore.
12. Sweden
Investment Attractiveness Ranking: 13
Tax Friendliness Ranking: 26
Quality Of Life Ranking: 1
Average Ranking: 13.33
Sweden is a leading European destination for foreign direct investment, with 9.2% of its GDP from foreign investment in 2021. Top-notch infrastructure and high innovation are among the reasons why Sweden is so appealing to investors. Its aggregate logistics performance index ranks Sweden in the top third of countries, while the country’s innovation performance is 136% of the EU average, making it one of the highest in Europe.
11. New Zealand
Investment Attractiveness Ranking: 18
Tax Friendliness Ranking: 9
Quality Of Life Ranking: 10
Average Ranking: 12.33
New Zealand is an excellent destination for those looking to move to a country with a thriving high-tech market. The government and private equity firms provide generous funding for innovation. Early-stage investment increased by 78% in the first two quarters of 2021 compared to 2020, and 42% of this investment went to high-tech startups, making New Zealand an ideal location for those interested in technology and innovation.
10. Australia
Investment Attractiveness Ranking: 8
Tax Friendliness Ranking: 15
Quality Of Life Ranking: 9
Average Ranking: 10.67
Australia has emerged as one of the most business-friendly countries globally. As the largest economy in Oceania, Australia offers a conducive business environment to organizations looking to expand their operations. Several of the world’s largest multinational companies have a presence in the country like Cisco Systems, Inc. (NASDAQ:CSCO), Oracle Corporation (NYSE:ORCL), and Intel Corporation (NASDAQ:INTC).
9. Singapore
Investment Attractiveness Ranking: 6
Tax Friendliness Ranking: 3
Quality Of Life Ranking: 23
Average Ranking: 10.67
Singapore is widely acknowledged for its exceptional quality of life, complemented by its favorable business environment and one of the world’s lowest tax rates. The country’s highly skilled and educated labor force enhances its competitiveness as a global business hub. Furthermore, its strategic location provides businesses and investors seamless access to the dynamic Asia Pacific market, further augmenting its charm.
8. Germany
Investment Attractiveness Ranking: 4
Tax Friendliness Ranking: 19
Quality Of Life Ranking: 7
Average Ranking: 10
Germany’s strong infrastructure and top-ranking logistics performance index, with a number one position, make it an attractive destination for relocation. The country’s capital markets are among the world’s best, and the plan to lower the minimum capital amount for companies to go public from $1.34 million to $1.08 million demonstrates a commitment to business growth and development.
7. United Kingdom
Investment Attractiveness Ranking: 2
Tax Friendliness Ranking: 16
Quality Of Life Ranking: 12
Average Ranking: 10
The United Kingdom stands as a pinnacle of investment opportunities, ranking an exceptional 2nd in investment opportunities, according to private equity country attractiveness index. The UK also plays host to companies like Cisco Systems, Inc. (NASDAQ:CSCO), Oracle Corporation (NYSE:ORCL), Intel Corporation (NASDAQ:INTC). Furthermore, the country boasts world-renowned universities, attracting scholars and students from across the globe.
6. United States of America
Investment Attractiveness Ranking: 1
Tax Friendliness Ranking: 8
Quality Of Life Ranking: 21
Average Ranking: 10
The United States of America provides the best platform for investment and business opportunities, underpinned by its formidable economic strength, highly skilled workforce, and welcoming regulatory environment. Among the countries with the most corporate headquarters in the world, the US takes the lead, with significant players like Cisco Systems Inc. (NASDAQ:CSCO), Oracle Corporation (NASDAQ:ORCL), and Intel Corporation (NASDAQ:INTC).
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Disclosure: none. 25 Best Countries for Wealthy People to Move To is originally published on Insider Monkey.