US "No Longer" Millionaire Magnet- Bloomberg

The United States has lost its status as a magnet for millionaires, as net inflows of net worth fell by more than 80% last year, compared to pre-pandemic levels, according to a report by London-based immigration consultancy Henley & Partners.

The report attributed that decline to the fact that wealthy Americans “are seeking refuge abroad at an unprecedented rate.”

Mahdi Qadri, President of Henley & Partners in North America, said: “Before, investment immigration programs were attractive to Russians, Chinese, Arabs, and developing countries who suffer from weak passports, the difficulty of visa-free travel, and less economic mobility, but during Covid, the matter differed greatly, Most of our customers are now from developed countries.”

Qadri pointed out that millionaires enjoy the luxury of movement, so their movement may become a criterion for the health of the economy or society, which reflects an “early warning of the future trends of the state.”

From 2014 until recently, the United States topped the net inflows of high-net-worth individuals whose wealth exceeds one million dollars, according to “Henley & Partners” data until 2022, but it fell last year to sixth place, after the UAE, Australia, Singapore, Canada and Switzerland.

Russia, China and India topped the list in terms of the largest outflows.

“The influx continues but there is a huge increase in the number of people leaving” the US, said Andrew Samuels, head of research at New World Wealth, a Johannesburg-based company that co-authored the report.

Samuels noted that most of those leaving are in their 50s or 60s, with some attributing the decision to concerns about taxes or security.

Samuels also confirmed that the backlog of EB-5 applications and non-adjudication has contributed to the decline in the number of millionaires coming to the United States from some countries, especially China.

The United States remains the largest market for private wealth with a value of $65 trillion, followed by China with $21.7 trillion, according to the report, which indicated that there are 770 billionaires in the United States, 9,630 with more than $100 million, and 5.3 million net worth individuals.

Within the United States, millionaires flock to small and medium-sized cities such as Austin, Texas, Greenwich, Connecticut, Scottsdale, Arizona, and Miami, while leaving large cities such as Chicago, Los Angeles, and New York.

Americans also ranked first among all nationalities in applications for residency and citizenship through investment programs pursued by Henley & Partners.

Qadri said that many clients do not have to use investment programs in order to immigrate, but instead prepare a back-up plan that includes residency options in multiple jurisdictions.