Free Newsletter Signup:

About our newsletter ...
  Submit

Already a Subscriber?
To manage your current subscription settings, enter your email address.

  Go
Recent Articles

Life Member: The Top
Trial Lawyers in America

Past Articles

WHERE MILLIONAIRES ARE MOVING

Out of clutter, find simplicity.

From discord, find harmony.

In the middle of difficulty, lies opportunity.

                                                                                Albert Einstein

Individuals with money looking to move to another country are getting a red-carpet welcome. And if you are worth one million dollars or more, the world’s doors are wide open.

Those with money aren’t aligned with or dependent upon any one country: they are totally mobile, moving offshore like never before.

And where are the millionaires moving?

Millionaires on the Move

Today, there is raging debate over immigration policy in the U.S., EU and elsewhere. At the same time, a record 82,000 millionaires moved last year alone, with ease, to another country.  Individuals with money are being courted and cosseted by host countries like never before.

In reality, the true numbers are really much larger. Add to the official numbers the wealthy who have acquired new citizenship, or already spend part of their time in different countries, or own homes in multiple nations, and this makes the numbers significantly larger.

According to market research firm New World Wealth, the number of millionaires moving to another country accelerated 28 percent in 2016 from the previous year, reaching the highest level since reporting on this group. And millionaire migration has grown 60 percent since 2013, the firm’s findings show, and there are no signs that it is slowing down.

There are an estimated 13.6 million millionaires around the world, defined as those having at least $1 million in assets (minus liabilities, and not including their primary residence). New World Wealth’s data includes only millionaires who have physically moved to a country for a period of at least six months.

The contrast between poor immigrants and those that are financially independent reveals a less-noticed form of global inequality, as well as an acceleration of a new culture of those that are borderless, and see the world as their home.

Admittedly, those with money are often more restless by nature. They travel, move or retire with the seasons. But a new wave of millionaire migrants seems to have reached a new level, with wealthy families changing citizenship, sending their children overseas to pursue education, or moving permanently to the nation of their choice.

And in the U.S. alone, 2016 was another record-breaking year for the number of U.S. citizens giving up their U.S. passports. 

According to the U.S. Federal Register, there was a 26% increase in 2016 over 2015, and more than 13 times as high as it was less than two decades ago. But these numbers are only the tip of the iceberg because of the way the numbers are published by the government. A number of independent sources estimate the actual number of Americans expatriating could be as much as five to ten times higher, or as many as 50,000 per year, due to the reporting discrepancies.

Rather than fleeing conflicts or war or economic flight, millionaire migrants nation-shop for the best schools, security, financial safety and lifestyle, according to the report. Technology certainly aids multinationals who increasingly have no nation.

The wealthy today aren’t beholden to any one country. They don’t view their success as being related or dependent upon a single nation. And they are mobile.

Andrew Amoils, head of research at New World Wealth, said he expected the ranks of millionaires on the move to increase significantly during the coming years.

And the map of migration has also changed.

Where are Millionaire Migrants Going?

In the past, the U.S. and U.K. have traditionally attracted the highest number of wealthy immigrants. But there is now a new destination that has lured individuals with assets.

Today - drum roll please - Australia is the world’s top destination for millionaires.

Without risk sounding like a travel blog, moving to Australia means running towards opportunities. Australia is a young country, and the population, economy and opportunities are growing quickly. Many say that Australia today is like the USA 50 years ago … just full of enthusiasm and opportunity.

Australian lifestyle, as well as the country's highly rated health care system, is considered to be in far better shape than those in the U.S. and U.K. It’s also considered a safe place to live and raise children, and it's geographically isolated from conflicts in the Middle East and the refugee crisis in the EU. And Australia is a good base for doing business in the Asian countries such as China, South Korea, Singapore, Japan and India.

Sydney, Brisbane, Melbourne, Perth and other Australian cities have a European / North American way of life, offering every kind of service, work, and fun. Quality of life is even better thanks to a lower population density than most cities, low pollution levels and a modern and efficient infrastructure.

Listed in the 2016 Wealth Report as the number one international destination for a second home was the Gold Coast, in Queensland, Australia. The Gold Coast was rated number one in the world, ahead of  Cote d' Azur, Southern France, and the Spanish island nation of Ibiza, second and third in the ratings.

The Gold Coast is a popular second-home destination, and the arrival of the Commonwealth Games in 2018 kick-started new investment, with a new light rail system and an AU$200 million airport expansion. Competitive prices, compared with Australia’s top cities, plus strong fundamentals – local population growth and expanding tourism – underpin demand along the outrageously gorgeous 57-kilometers of coastline.

The Australian society is very multicultural, young and open-minded. The average age is thirty seven. It’s a place where people from all over the world come to share and contribute to a modern nation living experience: Australia may not have the history of some countries, but surely has a bright future ahead.

An estimated 11,000 millionaires moved to Australia in 2016, with more on the way.

In second place, there were 10,000 millionaires that moved to the U.S. Keep in mind that Australia’s land mass is about the same size as the United States. However, the population of Australia is only 24 million, with the U.S. population being almost fourteen times larger with 325 million. There is plenty of room in Australia to stretch out and grow.

Apparently, the majority of global millionaires think that Australia has something special to offer. If you’re thinking international, then maybe you should think about Australia too.

Canada ranked third, with 8,000 millionaires, followed by the United Arab Emirates and the tiny nation of New Zealand with a population of only 4.4 million.

Mr. Amoils said Australia was especially attractive given its wide choice of private schools, clean environment, and political and economic stability. If you are interested in a copy of the 2016 Wealth Report, email me for a free copy here (the 2017 report is only available on the New World Wealth site at this link). 

Australia, has created money-for-visa programs to make it easier for wealthy immigrants to move in and become citizens. Five different investor visa programs begin at AU$200,000 (about US$150,000) up to AU$15,000,000 (about US$11,250,000). For those of more modest means, student and work visas are other options. 

In 2012, Australia introduced a “golden-ticket” investor visa program that fast-tracks and eases the residency requirement for a permanent visa. For this program, you’ll need to invest 5 million Australian dollars (about US $3.7 million) to qualify for the program, officially called the Special Investor Visa. Since 2012, more than 1,300 individuals have used the program, according to government statistics.

By comparison, the government also has an investor visa program that allows people to invest 1 million Australian dollars (about US $750,000). That option comes with more restrictions, and it takes longer to get a permanent visa.

The other two top destinations, Canada and the United States, also have generous visa programs for the wealthy. America’s EB-5 program requires a US$1,000,000 investment (or $500,00 in Targeted Employment Areas).

Canada scrapped one of its main investor-visa programs in 2014, but there are other programs available for wealthy foreigners. In Canada, the number of 10-year visas issued to Chinese citizens more than quadrupled between 2012 and 2015, to 337,000.

In New Zealand, the Investor Visa (Investor 2 Category) is an option if you plan to invest a minimum of NZ$1.5 million (about US$ 1 million) over a four year period. If you’re looking to invest NZ$ 10 million or more (about US $7,000,000) then the Investor Plus Visa (Investor 1 Category) could be a better fast-track option.

But according to the research, only one in five migrating millionaires actually use these investor programs for their move. Most still arrive via work visas, second passports, ancestry visas, spousal visas, or family visas.

Once upon a time, taxes were a motivating reason that individuals with wealth sought a new address offshore. Moves to tax havens like Monaco, Switzerland or the Caymans were made to maximize their wealth.

Today, the driving force is a stable country with financial systems that can protect assets, even if taxes are high.

And with President Trump’s immigration policies thus far, there is great uncertainty with what the future holds for tomorrow.

Once last quote:

Imagination is more important than knowledge.

                                                                           Albert Einstein

 

Use your imagination to weave your lifestyle to your objectives.

Becoming a Sovereign Individual

It can be a real challenge today trying to find individual sovereignty - or maintain financial independence - as governments desperately look to empty your pockets in the form of more taxes, more regulations, and more restrictions to the free movement of individuals and their money. Heavy and onerous tax burdens are only part of the problem, as central social planning appears around every corner.

Yet for some, the dream of freedom from government burdens, frivolous lawsuits, excessive taxes, and infringements on personal independence and privacy, is a living reality, free of unwanted intrusions. 

This is where we can help.

For more information on what a Sovereign Individual means – and some of the benefits – visit the Past Article page at our website for The Sovereign Individual Part 1 and Part 2, or click here and here.

Asset protection planning - and international trusts - means different things to different individuals. Protection against frivolous lawsuits, from undeterred ex-lovers, revengeful past acquaintances or business partners, are some common themes. Or protection against government threats, confiscation of assets, and safety from economic risks. And it also means protection for retirement, or providing loved-ones a measure of security after you're gone.

The list goes on, but protecting assets has a strong connection to independence and freedom to do with your assets what you want, without interference from others.

With some extra steps you could live totally tax free - or at a very low tax level - and it would be completely legal. Owning vehicles, real estate, and liquid assets held in company names (owned through your international trust) would also allow you to avoid appearing on government databases, enhance asset protection with integrated estate planning, create greater privacy, and avail opportunities for pre-migration planning to other destinations.

Being a sovereign individual appeals to a wide spectrum of people who dream of being able to live under the radar screen and live life in a manner suited to their needs.

 

You control your own life. Using the diverse concept of hailing flags from different nations places a significant distance between you and bureaucrats who want to determine how you should live your life, and what’s best for you.

 

The book Offshore Living & Investing, 2nd edition, goes into details, with examples, of how to live like a sovereign individual, found here.

 

And whether you and your money stay at home, or go offshore, there are superior international asset protection planning strategies found in the book How to Legally Protect Your Assets, 2nd edition. See why here.

 

The good news is that both of the above two books are now available in either quality softcover or in eBook formats, meaning Kindle or pdf., at reduced prices. To learn more, go here.

 

For more on asset protection and international trust tips, visit our siteDavidTanzer.com.

 

And if you wish to start now and learn how to proceed with a personal consultation to review your situation to accomplish your objectives, then contact me here.

 

But whatever you do, don't wait until it's too late.

 

Until next time……

 

David