High-net-worth (HNWI) individuals are increasingly moving to European cities.
Knight Frank’s European Lifestyle Report shows that 83% of those who plan to move abroad are interested in urban areas with rich economic and cultural prospects.
Knight Frank
London, which is often regarded as a top destination for wealthy people, did not make the list of the five best cities.
Based on 700 data points from HNWIs in 11 different countries, the report also highlights the increasing interest for cities such as Paris, Berlin and Barcelona. This is due to factors like economic stability, human capital, and quality of living.
Paris, Berlin and Barcelona are the top three European cities for HNWIs
Knight Frank’s European Lifestyle report, recently published, shows that HNWIs prefer European cities to relocate.
Paris was rated highest in the categories of economy and human resources, which include top universities, corporate head offices, and significant cultural investment.
Berlin and Barcelona were also highly ranked, thanks to their excellent infrastructure and high quality of living.
London, meanwhile, ranked 7th, not meeting the criteria wealthy individuals look for in today’s unsettling global environment.
Priorities include security, privacy and economic stability
Knight Frank’s report indicates that security and privacy are the most important factors for wealthy people when considering a move, followed closely by taxation and education facilities, employment and job opportunities.
These factors have become increasingly important for HNWIs due to the changing geopolitical environment and privacy issues in an age of digitalization.
Henley & Partners conducted a separate study that found 19% of ultra high-net worth individuals, those with a net worth greater than $30 million, plan to obtain a second citizenship or passport in another country. This trend is further highlighted by upcoming plans for UHNWIs to gain re-entry into the United States or apply for obtaining e-passports.
London’s high tax and policy change failing
London has traditionally been a haven for wealthy millionaires. However, this is changing.
Knight Frank’s report shows that London is not among the five most desirable European cities to live in for the wealthy. It ranks seventh.
London has become less attractive due to factors such as the removal of the non-dom status which exempted previously foreigners from paying taxes on their international income.
The rising costs of private education, coupled with high taxes on property, is driving away more millionaires from London.
In 2024, 128,000 millionaires are expected to relocate globally.
Henley & Partners is a migration consultancy that tracks trends. They have reported a marked increase in millionaires who plan to move abroad.
In 2024, a record number of HNWIs (up from 118,000 in 2023) are anticipated to relocate.
This growing trend is a reflection of the shifting attention towards cities that offer better economic prospects and tax systems, as well as higher levels in security and privacy. As geopolitical tensions increase and economic uncertainty increases, wealthy individuals choose to live in more stable cities.
The top European cities for Millionaires
Knight Frank’s report ranks the five European cities where millionaires will be considering relocating in 2024.
- Paris scores high in economics and human capital
- Berlin is known for its economic and infrastructure stability.
- Barcelona offers a good quality of life as well as favourable economic circumstances.
- Vienna: A city that combines cultural riches with economic stability
- Madrid is a city that attracts visitors with its lively lifestyle and strong economic metrics.
Knight Frank
The cities that are listed here stand out because of their quality of life and strong economic foundations. They appeal to people who want both stability and opportunities in an unstable global climate.
As new information becomes available, this post Europe’s Millionaires Move Here and London Isn’t In Their Top 5 Choices may change.
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