This article is from the Australian Property Journal archive
INVESTMENT migration enquiries from high net worth investors into Australia have “skyrocketed” ahead of proposed changes to rules about individuals’ tax residency, while both Sydney and Melbourne feature in the top 20 wealthiest cities in the world.
The latest Henley Global Citizens Report from international residence and citizenship by investment advisory firm Henley & Partners shows Sydney ranks 11th on the list of cities with the most millionaires, while Melbourne came in at 17th.
The USA dominated the top 10, with New York in first – it is home to a whopping 345,600 millionaires – the San Francisco Bay Area in third, and Los Angeles & Malibu, Chicago and Houston also in the top eight.
Tokyo was second, London fourth, Singapore fifth, and China pair Beijing and Shanghai rounded out the top 10.
Giving investment migration insights, Scott Moore, managing director and head of the Indonesia and Philippines offices at Henley & Partners said enquiries from the Oceania region have “skyrocketed, and particularly in Australia owing to impending changes to rules about individuals’ tax residency”.
As it stands, those spending fewer than 183 days per year in Australia are unlikely pay tax in the country. However, proposed new rules could include a secondary test to establish tax residency.
“This would consider aspects such as whether an individual has the right to reside in Australia, owns local assets, has family members in the country, and the extent of their general economic ties to Australia. While these changes have not yet been implemented, families are aware of the need to plan ahead to minimize the effects of future developments on their wealth and income,” Moore said.
Dr. Juerg Steffen, CEO of Henley & Partners, points out that 14 of the top 20 wealthiest cities in the world are in countries that host formal investment migration programs and actively encourage foreign direct investment in return for residence or citizenship rights.
“The right to live, work, study, and invest in leading international wealth hubs such as New York, London, Singapore, Sydney, and Toronto can be secured via residence by investment.
“Individuals of talent and means should not limit their lives and business interests to one country. Being able to relocate yourself, your family, or your business to a more favourable city or have the option to choose between multiple different residences across the world is an increasingly important aspect of international wealth and legacy planning for private clients.”
The biggest growth in enquiries in the Oceania region in the September quarter has come from New Zealand, with Henley & Partners processing more than 50% of the enquiries it received in the whole of 2021.
The millionaire populations of Dubai, Mumbai, and Shenzhen are growing quickly, and each is expected to break into the top 20 wealthiest cities by 2030.
Cities with strong oil and gas industries have performed especially well this year, such as Riyadh, Sharjah, Luanda, Abu Dhabi, Doha, and Lagos. This has been mainly due to stock market rises in these markets and a big increase in Brent crude prices.
Other cities currently in the top 20 are Hong Kong, Frankfurt, Toronto, Zurich, Seoul, Dallas & Fort Worth, Geneva and Paris.
