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AfrAsia Bank and New World Wealth have released the latest Global Wealth Migration Review 2020, which looks at recent wealth migration trends, while also commenting on the potential impact of the coronavirus outbreak on future wealth migration.
Wealth migration figures are a very important indicator of the health of an economy, AfrAsia Bank said. The group specifically targeted high net worth individuals (HNWIs) with a wealth of $ 1 million or more.
“For example, if a country is losing a large number of HNWIs due to migration, it is probably due to serious problems in that country, such as crime, lack of business opportunities, etc.
“It can also be a sign of bad things to come, as HNWIs are often the first to leave; they have the means to leave unlike middle class citizens. If you look at the collapse of any major country in history, it is usually preceded by a migration of wealthy people out of that country. “
In contrast, the countries that attract HNWIs tend to be very healthy and typically have low crime rates, good schools, and good business opportunities.
Common reasons HNWIs move:
- Safety, especially the safety of women and children.
- Lifestyle: climate, pollution, space, nature and landscapes.
- Financial concerns.
- Schooling and education opportunities for your children.
- Job and business opportunities.
- Taxes.
- Health Care System.
- Standard of living.
- Oppressive government.
The group’s data shows that a significant number of wealthy South Africans are leaving the country, with more than 100 HNWI wealth outflows recorded over the past year.
Global citizenship firm Henley & Partners has reported a sharp increase in inquiries from South Africa in the third quarter compared to the first quarter of 2020, with a nearly 50% increase in inquiries overall as the pandemic it spread all over the world.
“The tumultuous events of 2020, including the unplanned hiatus during the grand shutdown, have caused people from all walks of life to reassess their circumstances and rethink how they want to lead their lives and, for those lucky enough, choose where they want to live. opting for investment migration, ”said Amanda Smit, Managing Partner and Head of Southern, Eastern and Central Africa.
“Many are taking stock and making sure they are better prepared for the next pandemic or major global disruption. The incessant volatility in terms of wealth and lifestyle has led to a significant change in the way high net worth investors around the world perceive alternative residency and citizenship. “
Smit said wealthy and proactive South Africans who have invested in alternative residency or citizenship for their families are in a better place to weather potential future storms.
Destinations
New World Wealth said the most popular countries for HNWI migration in the past year were:
- Australia,
- UNITED STATES,
- Switzerland,
- Canada,
- Singapore,
- Israel,
- New Zealand,
- UAE,
- Portugal
- Greece.
Australia tops the list possibly due to its points-based immigration system that favors wealthy people, business owners and people with professional qualifications, especially lawyers, accountants, doctors and engineers, New World Wealth said.
Commenting on the impact of the coronavirus outbreak, the group said that it will likely be more difficult to get HNWIs to buy into traditional investor visa programs. As a result, many programs are expected to lower their entry requirements in 2020/2021, he said.
“We expect Australia, the United States and Switzerland to remain the preferred HNWI destinations globally for the next decade. We also hope that New Zealand will emerge as a major HNWI destination in the future. ”
Read: The UK Is Making Changes To Their Visas In October – What South Africans Need To Know
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