Canada is producing more millionaires than ever before. According to Credit Suisse’s latest Global Wealth Report, Canada ranks among the top countries for the number of millionaires, with over 1.7 million individuals holding net worths above USD $1 million. Fueled by rising real estate prices, stock market growth, and asset inflation over the past two decades, the ranks of Canadian millionaires continue to swell.
But despite this statistical wealth boom, many Canadian millionaires don’t feel rich at all. And an increasing number are choosing to leave the country. Why?
Why Millionaires Don’t Feel Rich in Canada
- High Cost of Living and Taxes
- In cities like Toronto and Vancouver, real estate prices absorb vast portions of net worth, leaving cash flow tight despite multi-million-dollar paper wealth.
- Personal tax rates can exceed 50% at provincial top brackets, eating away disposable income.
- Consumption taxes, carbon taxes, and a myriad of fees further erode purchasing power.
- Stagnant Productivity and Limited Opportunities
- Canada’s economic growth per capita has been flat or negative in recent years, and productivity is declining.
- For business owners, regulatory burdens and labor constraints make expansion costly and frustrating.
- Eroding Confidence in the Future
- Rising government debt, concerns about inflation, and policy unpredictability are prompting millionaires to hedge by investing offshore or seeking residency elsewhere.
- Paper Wealth vs. Liquid Wealth
- Many Canadian millionaires are asset-rich but cash-poor. Their net worth may be locked in primary residences or non-liquid holdings, with limited accessible capital to enjoy lifestyle upgrades.
Why Are Millionaires Leaving Canada?
The trend of high-net-worth emigration is accelerating. Reasons include:
- Tax Optimization: Other jurisdictions offer more favorable tax regimes for capital gains, inheritance, and business income.
- Lifestyle Choices: Some seek warmer climates, lower cost of living, or cosmopolitan hubs with global connectivity.
- Political and Economic Concerns: Perceived overreach in government policies, risks to wealth privacy, and economic stagnation have motivated relocation planning.
According to Henley & Partners, Canada ranks among the top five countries experiencing net millionaire outflows, with hundreds to thousands departing annually for countries such as the United States, Portugal, UAE, and Caribbean nations offering citizenship-by-investment programs.
The Offshore Perspective
For Canadian millionaires, the feeling of “not being rich” is rooted in:
- High taxation on income and capital
- Limited after-tax cash flow despite strong balance sheets
- Economic policies that erode confidence in future growth
Offshore banking, second citizenship, and global investment diversification are becoming standard tools to protect wealth and lifestyle options.
Conclusion
Canada may continue to produce millionaires on paper, but wealth is not just numbers on a balance sheet. True wealth is about freedom, opportunity, and security – factors many Canadian millionaires feel are slipping away at home. Their rising numbers mask a deeper trend: growing uncertainty, dissatisfaction, and the desire to secure offshore options to protect what they’ve worked so hard to build.
Image by Chickenonline from Pixabay
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