Why do the world’s millionaires prefer to migrate to Australia?
Posted on December 19, 2019
Millionaires or High Net Worth Individuals (HNWIs) are most likely to migrate to another country. There are many reasons for this. Migrating to another country gives them an opportunity to invest abroad and expand their business in a foreign country. Some HNWIs move to other countries to facilitate their children’s education. Getting a residency or citizenship in another country allows them to sponsor their children for a work visa or immigration visa without the need for outside help.
Wealthy individuals are exposed to a higher quality of life because of their frequent travels abroad. Moving to another country gives them an opportunity to live this high quality of life. Other reasons to migrate could be favorable tax laws or a better business environment.
Among the countries the world’s millionaires prefer to migrate, Australia has emerged as a favorite destination. A new study by the research firm New World Wealth reveals that Australia has earned this position second year in a row. Traditional destinations like the US and UK are no longer the favorites.
According to the report, around 80,000 millionaires migrated from their home country which is a 20% increase from the migration figures in 2015.
Among the millionaire migrants, 11,000 preferred to move to Australia while 10,000 went to the US while Canada stood at third place with 8,000. One of the factors that make Australia a hot choice is its location. The country makes an excellent base for starting a business in emerging Asian economies like Hong Kong, Korea, Singapore, and Vietnam. The other factors that make millionaires decide in favor of Australia include:
- A robust economy
- A secure environment to raise a family
- Low-cost healthcare
- Strong school system
- No inheritance taxes
The other reasons why Australia finds favor with millionaires are the cities that are among the safest in the world. This is favorable for women and an ideal environment to raise children.
The lack of inheritance tax is another favorable factor. While the country is known for high tax rates, the lack of an inheritance tax which is a state tax paid by persons receiving money or property after someone’s death encourages millionaires to build their wealth.
Millionaires prefer to settle in big cities such as Sydney, Melbourne, the Gold Coast, the Sunshine Coast, Perth, and Brisbane.
To encourage more Australians to come and settle in the country, the government initiated the significant investor visa (SIV) which is part to the business innovation and investment (subclass 188) and the business innovation and investment (permanent) (subclass 888) stream. This visa is specifically designed for high net worth individuals who want to migrate to Australia by investing in the country.
They must be willing to make a minimum investment of AUD 5 million and must be willing to make significant investments for another four years. After this they will be eligible to apply for a permanent residency or PR visa. Also, they need not undergo a points test to apply for this visa. Around 700 SIVs were granted to wealthy individuals at the beginning of this year.
With so many favorable factors it is no wonder that millionaires prefer to settle down in Australia while building their wealth in the country and investing in the country. The government also benefits with more money pumped into the economy. It is a win-win situation for both.