A record 128,000 millionaires are expected to move to a different country this year, with Canada pegged to be a top destination for upper-crust emigrés.
Driving the news: Canada is projected to add ~3,200 millionaires in 2024, double the amount of last year, making it the fourth-most popular destination for the world’s wealthiest people. Canada has been a millionaire magnet for years, and its pull is growing stronger.
Why Canada? The top reason millionaires move is for tax benefits, which Canada lacks compared to the likes of Switzerland or the US, but it’s not the only reason. Rich foreigners often want to move somewhere with economic and political stability, which Canada provides.
Zoom out: Canada is just one part of the broader millionaire exodus that kicked off in 2022 when Norway upped its wealth taxes. Some European countries have since joined in.
- This year, Italy doubled its flat tax on new wealthy foreigners, and next year the UK will end long-standing rules letting individuals dodge UK taxes on foreign income.
- On the other hand, other nations have welcomed them with open arms. The UAE — the top importer of millionaires this year — has ramped up its incentives.
Why it matters: The benefit of bringing in millionaires is that they like to spend, which can help drive economic activity. But that same proclivity for splashing cash also means that the cost of living often goes up wherever they go.
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