Asia is quickly becoming a top choice for the world’s wealthiest people, a trend clearly shown in a recent report from a well-known U.K. migration advisory firm. Japan, in particular, is set to welcome about 600 high-net-worth individuals (HNWIs) in 2025, many of whom are expected to come from China. This major movement of money and skilled people suggests a bigger shift in where wealth is located globally.
The Private Wealth Migration Report 2025, which looks at how wealth moves between countries, shows a clear trend of millionaires leaving nations dealing with tough economic times and growing global uncertainties. China, along with the U.K., India, South Korea, Russia, and Brazil, are among the countries seeing the biggest drops in their millionaire populations. The report explains that this outward movement, especially from China, is due to ongoing economic problems after the real estate market downturn in 2020, and a smart move to reduce risks from global political issues.
In the active Asia-Pacific region, Japan’s strong appeal is clear, though it attracts fewer HNWIs than some other regional economic leaders. Singapore is in the lead, expected to draw an impressive 1,600 HNWIs, followed by Australia with 1,000, and Hong Kong with a solid 800.
Japan’s Lasting Charm and Key Benefits
A research head from a data intelligence partner for the study points to several important reasons for Japan’s strong appeal to wealthy Chinese living abroad. A very high standard of living, excellent healthcare systems, and a widespread feeling of safety and security are major attractions. The main areas these rich migrants typically choose are Tokyo, Osaka, Kyoto, and Kobe. It’s especially worth noting that the Osaka-Kyoto-Kobe area is seeing the fastest growth in its HNWI population, largely because of the region’s quickly developing technology sector.
Beyond lifestyle factors, Japan’s recent strong performance in the stock market has made it even more appealing for business leaders. Also, important personal and family considerations play a big role. Educational opportunities, in particular, are vital for expatriate families, with a major university in Tokyo widely considered the best academic institution in Asia. While a leading university ranking for 2025 places this university fifth in the region, its excellent reputation remains a powerful draw for those focused on their children’s education.
Tax Differences and Regional Competition
However, Japan does have some downsides for the extremely wealthy, especially concerning its tax system. While popular alternatives like Singapore and Hong Kong have much lower tax rates (a top rate of 17% in Hong Kong and 24% in Singapore for high earners), Japan has a higher top income tax rate of 45%. This big difference has, over time, firmly established Singapore and Hong Kong as preferred centers for company headquarters and wealthy individuals looking for more tax-friendly environments.
Yet, Hong Kong’s special status under the control of mainland China adds another layer of complexity for Chinese HNWIs who want to protect their assets from possible political problems. This subtle point might lead some to choose Japan, even with its stricter tax rules.
Interestingly, while Japan is actively attracting new wealth, some of its own HNWIs are also looking for retirement spots abroad. Australia, Thailand, Malaysia, and the U.S. are the most desired choices for this group, with about 300 HNWIs expected to leave Japan in 2025.
Despite these departures, Japan firmly holds its important place in the global wealth picture. The migration report clearly ranks Japan fourth globally in its millionaire count, behind only the U.S., China, and Germany. As of December, Japan had a significant 714,000 dollar millionaires (a slight decrease from 754,800 the year before) and an increased number of 44 billionaires (up from 39). This complex and active movement of people and wealth strongly highlights Asia’s changing and increasingly central role as a key hub for the world’s wealth.
