Millionaires are eyeing European cities as they look to relocate – but London doesn’t make the top five, according to a new report.
About 83% of high-net-worth individuals — defined as those earning $1 million or more — who are considering moving countries prefer city life for the cultural and economic opportunities it provides, Knight Frank European Lifestyle Reportpublished on Wednesday, revealed. Meanwhile, 17% said they prefer rural locations and resorts for the natural scenery and slower lifestyle.
Property consultants Knight Frank surveyed 700 high-net-worth individuals from 11 different countries, including the UK and US, on their view of the most attractive European cities and resorts. It ranked 10 cities and resorts based on the “European Lifestyle Monitor” which evaluated them based on five key metrics: economy, quality of life, environment, infrastructure and mobility and human capital.
Paris topped the list and stood out in categories such as economy and human capital, which includes factors such as universities, corporate headquarters and cultural investment. However, London – often seen as a hub for the ultra-rich – didn’t even make the top five, coming in seventh.
Henley & Partners, a consultancy that tracks migration trends, says a record 128,000 millionaires plan to relocate globally in 2024, compared with 120,000 in 2023, according to the Knight Frank report.
Additionally, 19% of ultra-high net worth individuals – those worth $30 million or more – plan to apply for a second passport or obtain citizenship in another country, Knight Frank found.
The top priorities for millionaires when relocating are security and privacy, followed by employment, taxes and education, according to the report. Gen Z and millennials tend to prioritize employment, while older generations are more concerned with taxes.
“Security and taxation are more critical for HNWIs [high-net-worth individuals] despite visa concerns when relocating. With growing geopolitical instability and privacy challenges in the digital age, this focus is not surprising,” the report says.
“Geopolitical tensions and policy changes are driving HNWIs to relocate to more favorable jurisdictions,” Kate Everett-Allen, Knight Frank’s head of European residential research, said in the report. “The rapid withdrawal of CHF 1.5 billion [Swiss francs, or $1.8 billion] by Credit Suisse in late 2022 from wealthy account holders highlighted how quickly wealthy individuals can react to perceived financial risks.
The Top 5
These are the top five European cities that high net worth individuals are considering relocating to in 2024, according to the Knight Frank report:
- Paris
- Berlin
- Barcelona
- Vienna
- Madrid
It comes after a separate report by Henley & Partners showed that the UK is no longer a haven for millionaires, with Britain expected to lose at least 9,500 high-net-worth individuals in 2024, down from 4,200 the previous year.
Henley noted that in the 1950s and early 2000s, large numbers of wealthy families from Europe, Africa, Asia and the Middle East flocked to the UK, but after Brexit, between 2017 and 2023, the UK lost 16,500 millionaires due to immigration.
A major reason behind the exit is the UK recently leaving “non-domicile” tax status. which previously meant that foreign citizens were not taxed on their international income — which was especially popular with billionaires.
Other reasons include potential increases in private school tuition and high property taxes. These changes could see the UK millionaire population fall by 17% from 3,061,553 in 2023 to 2,542,464 in 2028, according to the UBS Global Wealth Report, which was published in June.