Billionaires Leaving China... Destination Is Australia with No Inheritance Tax

Investment Immigration Specialist 'Report on the Movement of Wealth'
Interpreted as Due to Xi Jinping's 'Gongdong Buyu'

It is expected that Chinese millionaires will leave China in large numbers for political reasons. On the other hand, Australia was predicted to have the highest net inflow of millionaires.

[Image source=Yonhap News]

On the 13th (local time), Nihon Keizai Shimbun cited the "2023 Wealth Migration Report" by investment immigration specialist Henry & Partners, forecasting that 13,500 high-net-worth individuals from China will emigrate overseas. India ranked second with 6,500, showing a twofold difference compared to China.

This is attributed to Chinese President Xi Jinping's stance that the prosperity of a few is not right, promoting "common prosperity (共同富裕, a society where everyone prospers)," which has caused unease among China's wealthy.

Henry & Partners defines high-net-worth individuals as those possessing assets exceeding 1 million USD (approximately 1.27 billion KRW), excluding real estate. It is estimated that there are 823,800 millionaires in China alone. If they emigrate, hundreds of millions of dollars in assets will flow overseas.

Due to President Xi's policies, it is reported that about 10,800 millionaires left China in 2022, ranking first worldwide.

Dennis Nigh, Director at Henry & Partners, stated, "Those seeking better medical services and political stability are considering emigration," adding, "Since the COVID-19 pandemic, inquiries about immigration from East Asian clients have surged, surpassing the previous peak in 2019."

Jurg Steffen, CEO of Henry & Partners, explained, "The top priorities for the wealthy are political stability, low tax rates, and personal freedom," and added, "Recently, they want to settle in countries that can protect the next generation, such as those with top-tier educational institutions and responses to climate change."

Andrew Amoils, Head of Research at global market research firm New World Wealth, pointed out, "With the slowdown in China's wealth growth in recent years, the outflow of existing wealthy individuals could cause even greater losses for China."

[Image source=Pixabay]

On the other hand, Australia was identified as the country with the highest net inflow of millionaires this year. It is estimated that 5,200 millionaires will move to Australia, an increase of about 37% compared to 3,800 last year. Australia's beautiful natural environment, low population density, high level of public safety, and healthcare system were cited as reasons, but above all, Australia is known for having no inheritance tax.

Amoils explained, "Australia has traditionally been a country with a large influx of millionaires," adding, "While most millionaires came from Asia and Africa, recently, millionaires from high-income countries such as the United Kingdom have also been moving in."