Canada is considered a favorite destination for millionaires on the go. According to a new report, many of them come from conflicting countries.
Canada is among the top 10 countries expected to see a positive influx of millionaire migrants this year, according to the latest Henley Global Citizens report.
Canada should see a positive influx of about 1,000 people with a high net worth (HNWI), who are expected to come mostly from Russia (-15,000), China (-10,000), India (-8,000), Hong Kong -3,000) and Ukraine (-2800), according to immigration advisers Henley and Partners in their second quarterly 2022 migration report.
Canada ranks ninth as a favorite destination, while the top three destinations are: United Arab Emirates (4,000), Australia (3,500) and Singapore (2,800).
Henley describes a “tsunami” of private capital leaving Russia and Ukraine, while emigration to Hong Kong remains high amid authoritarian repression by proxies in Beijing – although it has fallen by 29% compared to 2019. Meanwhile, the blocking of the pandemic from COVID-19 in China causes a jump in emigration.
According to Henley, the rich are increasingly on the move worldwide and 2023 is expected to break records. In 2013, around 51,000 HNWIs relocated countries and that figure jumped to 110,000 in 2019. Migration fell to 12,000 in 2020 due to pandemic constraints, before returning to a forecast of 88,000 this year and an expected record in 2002, 2002
Canada is expected to see a 30% increase in HNWI’s total population over the next decade, the report said. This ranks fourth among the 10 richest countries (average net worth), after India (80%), Australia (60%) and China (50%).
According to Henley, Canada’s major cities – Montreal, Toronto, Calgary and Vancouver – are the most popular destinations for these immigrants.
“Many wealthy people, who saw that their movements were severely restricted during the pandemic, realized the importance of diversifying their wealth and investment and improving their lifestyle. “Increasingly, they are looking for more flexibility and want to better manage risks in the event of a future pandemic, geopolitical crisis or other situation that could affect them and their home country,” Henley said.
The report notes that this sustained influx will occur, although the Canadian government is looking for new ways to tax wealth and luxury goods to pay off the pandemic debt.
A significant factor in the continuing growth is Canada’s growing interest in increasing immigration, the report said.
The federal government has planned 431,645 new permanent residents in 2022, 447,055 in 2023 and 451,000 in 2024, nearly 60% of “economy class” admissions.
Henley says the richest can turn to the country’s start-up visa program.
Canada no longer has its own immigrant program for investors; under the program, migrant investors were able to obtain citizenship for a $ 800,000 five-year government loan, but were not required to set a certain level of income. The government found it providing a “small economic benefit” and rejected it in 2014.
These immigrant investors who own residential properties now report a total average family income of $ 50,000, as opposed to federal skilled workers of $ 105,000 and refugees of $ 85,000, according to Canadian statistics.
A similar provincial program in Quebec has been suspended until at least April 2023.
To make its predictions in the report, Henley said it tracked 150,000 anonymous wealthy people in a database of 62 countries and based its estimates on their movements and spending habits, as well as government immigration data, real estate transactions and a financial analysis.
gwood@glaciermedia.ca
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