Goodbye, Brazil: Millionaires leaving the country increase by 50% in one year

Brazil is becoming less attractive to high-income families. A study by Henley & Partners, a consultancy that helps millionaires relocate to other countries, estimates that 1,200 people with personal assets above US$1 million plan to leave the country this year.

The number is 50% higher than that recorded in 2024. Another estimate, from the Millenium Institute, indicates that almost a fifth of millionaires have left the country in the last ten years.

According to the Henley & Partners study, among the countries analyzed, Brazil is the sixth most likely to lose millionaires, behind the United Kingdom (16,500), China (7,800), India (3,500), South Korea (2,400), and Russia (1,500). If they do indeed leave Brazil, the millionaires will take with them approximately US$8.4 billion—or R$46 billion, considering the dollar at R$5.48 (as of August 21).

But the economic impact isn't the only one. Leonardo Chagas, an investment and wealth management specialist who contributed to the Millenium Institute, says the loss goes beyond money, as the country is losing brains.

"Entrepreneurs, executives, and investors with the experience to create businesses and innovate are leaving. This 'brain drain' weakens the startup ecosystem and the country's ability to compete globally," he says.

Furthermore, in the expert's view, the elite's departure sends a terrible message to foreign investors. The logic is simple: if Brazilians themselves are abandoning the country, why should anyone from abroad invest here? Thus, the flight of millionaires increases the perception of risk and drives foreign capital away from the country.

Chagas also comments that the mindset of those who remain is also affected. "A culture of risk aversion and short-termism is reinforced. Instead of investing in Brazil, the priority becomes protecting assets and sending money abroad. Engagement with the country's problems decreases, including donations to social projects, which are already low," he says.

Violence is one of the main reasons for leaving Brazil

Among the reasons for leaving Brazil, lack of security is a key one. Chagas states that widespread violence forces these families to live in fear, even when they invest in armored cars and gated communities.

“Concern for the safety of children is often the final trigger for change,” he says.

Other factors besides violence also contribute. According to Henley & Partners, which also lists safety as a priority, financial concerns, taxes, retirement, job and educational opportunities for children, and standard of living influence this decision.

Distortions in the social contract drive away the richest

Leonardo Chagas, from Millenium, also states that, in the Brazilian case, there is a strong perception that the "social contract" has been broken. "High-income people pay high taxes, but they don't receive good public services in return. Therefore, they bear double the costs of health, education, and security," he states.

Another relevant point is the country's political and economic instability. In this regard, Chagas highlights the constant rule changes and currency volatility, which generate "deep fatigue." "Ultimately, the decision is a search for peace, predictability, and a more stable future for the next generation in countries like the United States and Portugal," he states.

Brazil lost almost a fifth of its millionaires in the last decade

According to the Millennium Institute, Brazil lost 18% of its millionaires between 2014 and 2024. In the case of the United Kingdom, which leads the ranking of high-income exodus, the situation is due to measures taken by the Labour Party, elected in 2024.

UK initiatives to “tax the rich” include ending the ability of foreign residents to avoid taxes on overseas income and gains, and increasing taxes on inheritances and capital gains.

"The result was an accelerated exodus of millionaires, seeking to preserve their wealth in countries with greater legal certainty and economic freedom. Instead of increasing tax revenue, the measures have already reduced it by 18%. In other words, it wasn't good for anyone," Millenium stated in a post on its social media.

Exodus of millionaires drains the economy

It's no different here. According to Leonardo Chagas, the movement drains the economy and generates capital loss. And it doesn't stop there: the money that leaves no longer finances new businesses, generates jobs, or stimulates the real estate and consumer markets. As in the United Kingdom, tax revenue also declines.

"The government loses important taxpayers and the money they would otherwise spend on products and services. This fiscal deficit limits the state's ability to invest in improvements, creating a vicious cycle," explains Chagas.

Finally, the departure of millionaires further weakens the luxury market and qualified services, such as architecture and wealth management, which also harms the maintenance and expansion of these sectors.

Brazilians have been seeking alternative destinations

Despite stability, nations like the United States, Portugal, and Italy have created barriers to entry for foreigners, even high-income families. As a result, some Brazilians have also sought other destinations.

The United Arab Emirates, for example, tops Henley & Partners' ranking of nations that welcome high-income families—it's expected to welcome a total of 9,800 millionaires this year. According to the firm, zero personal income tax, world-class infrastructure, political stability, and regulatory framework contribute to its leadership.

Next in the ranking are the United States, Italy, Switzerland, Saudi Arabia, Singapore, Portugal, Greece, Canada and Australia.