The trend of high-net-worth individuals (HNWIs) relocating to European cities is gaining momentum.
According to Knight Frank’s latest European Lifestyle Report, 83% of millionaires who are contemplating moving abroad prefer urban environments that offer rich cultural and economic prospects.
Source: Knight Frank
Surprisingly, London, often considered a prime destination for the wealthy, failed to make it into the top five cities on their list.
The report, based on data from 700 HNWIs across 11 countries, also highlights the growing interest in cities like Paris, Berlin, and Barcelona, driven by factors such as economic stability, quality of life, and human capital.
HNWIs favour European cities, led by Paris, Berlin, and Barcelona
Knight Frank’s European Lifestyle Report, published recently, reveals that HNWIs are increasingly favouring European cities for relocation.
Paris emerged as the top choice, scoring highly in categories such as economy and human capital—metrics that include the presence of top universities, corporate headquarters, and substantial cultural investment.
Berlin and Barcelona also ranked highly, owing to their robust infrastructure and favourable quality of life.
Meanwhile, London ranked seventh, failing to meet the criteria that wealthier individuals find attractive in today’s uncertain global landscape.
Security, privacy, and economic stability top priorities
The report by Knight Frank indicates that the primary drivers for wealthy individuals considering relocation are security and privacy, followed by employment opportunities, taxation, and educational facilities.
The shifting geopolitical landscape, combined with privacy challenges in the digital age, has made these factors increasingly critical for HNWIs.
A separate study by Henley & Partners noted that 19% of ultra-high-net-worth individuals (UHNWIs), those worth $30 million or more, are planning to apply for a second passport or gain citizenship in another country, further underscoring this trend.
High tax, policy changes failing London
London, traditionally seen as a hub for millionaires, is experiencing an exodus of wealthy residents.
According to the Knight Frank report, London did not make the top five most attractive European cities for the affluent, landing in seventh place.
Factors like the elimination of the ‘non-dom’ tax status, which previously exempted foreign citizens from paying tax on international income, have made London less appealing.
Rising costs associated with private education and high taxation on real estate are further driving millionaires away from the UK capital.
Record number of millionaires relocating globally, with 128,000 expected in 2024
Henley & Partners, a consultancy tracking migration trends, has reported a significant increase in the number of millionaires planning to relocate globally.
A record 128,000 HNWIs are expected to move in 2024, up from 120,000 in 2023.
The shifting focus towards cities with better economic prospects, favourable tax regimes, and higher levels of security and privacy is evident in this growing trend. Wealthy individuals are increasingly opting for more stable environments as geopolitical tensions and economic uncertainties mount.
Top European cities for millionaires
The Knight Frank report ranked the top five European cities that millionaires are considering for relocation in 2024:
- Paris: High scores in economy and human capital.
- Berlin: Known for its robust infrastructure and economic stability.
- Barcelona: Offers a high quality of life and favourable economic conditions.
- Vienna: Combines cultural richness with economic stability.
- Madrid: Attracts with its vibrant lifestyle and solid economic metrics.
Source: Knight Frank
These cities stand out for their strong economic frameworks, and quality of life, and appeal to those seeking both security and opportunity in a volatile global environment.
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