About 8,000 dollar millionaires are likely to move out of India in 2022 — making it one of the top three countries to experience the exodus of the wealthiest, a new study has claimed.

The key drivers for migration are the desire for higher standard of living, better educational and health facilities and also to get away from the stringent tax residency rule and the high rate of individual tax in India, Henley Global Citizens Report, 2022 Q2, stated.

Reeling under the sanctions of the West following the Ukraine war, the Russian Federation tops the list of countries in the flight of high net worth individuals, followed by China and India. Hong Kong, which is increasingly coming under the stringent control of China, and war torn Ukraine make up the top 5.

The review of the migration trends of the world’s wealthiest in 2022, part of the report prepared by investment advisory Henley & Partners with wealth intelligence firm New World Wealth, pointed out that the loss of millionaires was “not a big concern” for India because the country produced far more new millionaires than it lost to migration.

“New World Wealth’s general projections for India are very strong. We expect the high-net-worth individual population to rise 80 per cent by 2031, which will make India one of the world’s fastest growing wealth markets. This will be fuelled by especially strong growth in local financial services, healthcare and technology sectors,” Andrew Amolis, head of research at NWW, wrote.

His report suggests UAE emerging as the top wealth hub. Besides the UAE, the top 10 likely destinations for net inflows of millionaires are Australia, Singapore, Israel, Switzerland, the US, Portugal, Greece, Canada and New Zealand.

According to Bijal Ajinkya, partner in direct tax, private client and investment fund practices in solicitor firm Khaitan & Co, stringent tax rules and reporting requirements along with the desire for stronger passports remain the key drivers for Indians who are favouring the EU countries, Dubai and Singapore for relocation.

She said Singapore was a preferred destination for the tech entrepreneur and also for setting up family offices .

“The Dubai Golden Visa has emerged as a winner in several circles for its ease of procurement and the multiple opportunities it offers. Other investors have turned to Europe and especially Mediterranean countries such as Portugal, Malta, and Greece.”

“They provide a gateway to the EU, an aspirational standard of living and, typically, a low physical residence requirement — which is important to those who continue to prioritise their families or business interests in India,” she wrote in an essay titled New Tides: Wealth Migration and Immigration in India.