Super-rich looking to migrate to greener shores: More than 8,000 high net worth individuals are leaving India this year

The Henley Global Citizens Report 2018 predicts:

According to the 2018 Henley Global Citizen Reports, it is estimated that up to 8,000 high net worth individuals will leave the country this year for a better economy.

With the uptick booming in the early 1990s, drawing millions to the shores of the Gulf and North American regions for better living conditions, entrepreneurs and the super-rich seek to migrate to foreign nations to explore global opportunities.

The hope for a better standard of living combined with strict Indian tax regulations for business, as well as the desire for a stronger passport are among the important aspects driving the affluent populace outside the Indian subcontinent.

The report argues that the number of US dollar millionaires making millions in India will increase by a staggering 80% over the next 10 years. While the US will only see a 20% increase, France, Italy, the UK and Germany together will have a 10% increase.

“The overall prosperity prospects for India are very strong. We project that the number of HNWI (High Net Worth Individuals) will increase by 80% by 2031, making India one of the world’s fastest growing wealth markets during that period. This will be driven by particularly strong growth in the local financial services, healthcare and technology sectors,” added New World Health, Research Director, Andrew Amoils.

Why is this trend important?

What we must note is that the general Indian vibe is thinning every day for the new trendy generation to explore economic opportunities outside of their industrial base, finding the new school looking to reap the rewards of technological advancement alongside traditional tycoons they don’t The Indian markets are a worthy place for growth.

Moreover, the joy that promises better education, lifestyle, health facilities, and opportunities for their future generations continues to draw the rich out of the country.

“Increasingly stricter tax residency rules (introduced in 2020 and 2021) without easing individual tax rates for HNWIs, coupled with the desire for visa-free travel, are also persistent key drivers for alternative residency and citizenship.” commented Bijal Ajinky, Partner in Direct Tax, Private Client and Investment Funds at Khaitan and Co.

Where are our rich going?

Europe, North America, Dubai and Singapore are among the top magnets, attracting plutocrats with the promise of a better life. Renowned for their robust digital markets and economic diversity, Singapore and Dubai have been traditional favorites for decades.

Dubai, which has introduced its Golden Visa that guarantees multiple options amidst its low tax rates, is a formidable candidate that is attracting our country’s wealthy.

According to the Henley Private Wealth Migration Dashboard, Islamic State will attract the largest influx of HWNIs internationally this year (at least 4,000).

While Singapore remains a youth favorite due to its commendable technological growth and world-class financial advisers, the nation currently sits third behind Australia with a HWNI inflow of at least 2,800 this year.

Followed by Israel with 2,500 points, closely followed by Switzerland and the USA with 2,200 and 1,500 points respectively.

“We’re also starting to get significant interest from families across Asia who want to make Singapore or the United Arab Emirates their established base. Countries that offer excellent infrastructure for wealth preservation are likely to remain popular destinations.” commented Nirbhay Handa, Group Head of Business Development at Henley & Partners.

The new predictions from the reports argue that the net inflow rate from US dollar millionaires this year will average a loss of up to 8,000 HNWIs. The reports also indicated that while the wealthy initially intended to leave the country, there is an equal tendency to return once India’s standard of living improves.

The figures must not frighten the Indian economy, which produces more billionaires every year than are lost through migration.

“Challenges for Indians include strict exchange controls on remittances, inheritance taxes on foreign assets and Indian residency regulations targeting statelessness. Indians are increasingly turning to legal and financial advisors for differentiated advice on overcoming these obstacles through the use of private foundations, holding companies, separate wills for different jurisdictions, and so on. Individuals are advised to start planning well before they intend to move capital to avoid any unpleasant surprises.” added Ajinky.

Part of this group also looks to European nations such as Portugal, Malta and Greece given their high standard of living and low physical recruitment, an attractive trait required of those wishing to maintain their wealth or family in India.

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