Prime 5 European cities millionaires are transferring to — and none are London

Millionaires are eyeing up European cities as they give the impression of being to relocate — however London would not make the highest 5, in keeping with a brand new report.

Some 83% of high-net-worth people — outlined as these incomes $1 million or extra — who’re contemplating transferring international locations favor metropolis residing for the cultural and financial alternatives it supplies, Knight Frank’s European Life-style Report, printed on Wednesday, revealed. In the meantime, 17% cited a choice for rural and resort places for the pure surroundings and slower way of life.

Actual property consultants Knight Frank surveyed 700 high-net-worth people from 11 completely different international locations together with the U.Okay. and U.S. about their view of essentially the most engaging European cities and resorts. It ranked 10 cities and resorts based mostly on the “European Life-style Monitor” which evaluated them on 5 key metrics: the economic system, high quality of life, surroundings, infrastructure and mobility, and human capital.

Paris topped the checklist and stood out in classes together with economic system and human capital, which incorporates elements like universities, company headquarters and cultural funding. Nonetheless, London — typically regarded as a hub for the super-rich — did not even make the highest 5, coming seventh.

Henley & Companions, a consultancy that tracks migration developments, says a report 128,000 millionaires are planning on relocating globally in 2024, in contrast with 120,000 in 2023, in keeping with the Knight Frank report.

Moreover, 19% of ultra-high-net-worth people — these price $30 million or extra — are planning to use for a second passport or achieve citizenship abroad, Knight Frank discovered.

The primary priorities for millionaires when relocating are safety and privateness, adopted by employment, tax, and schooling, in keeping with the report. Gen Z and millennials are inclined to prioritize employment, whereas older generations are extra preoccupied with taxation.

“Safety and taxation are extra crucial for HNWIs [high-net-worth individuals] than visa issues when relocating. With rising geopolitical volatility and privateness challenges within the digital age, this focus is unsurprising,” the report mentioned.

“Geopolitical tensions and coverage modifications are driving HNWIs to relocate to extra beneficial jurisdictions,” Kate Everett-Allen, Knight Frank’s head of European residential analysis, mentioned within the report. “The swift withdrawal of CHF 1.5 billion [Swiss francs, or $1.8 billion] from Credit score Suisse in late 2022 by rich account holders highlighted how shortly prosperous people can react to perceived monetary dangers.”

It comes after a separate report by Henley & Companions confirmed the U.Okay. is now not a millionaire haven, with Britain anticipated to lose not less than 9,500 high-net-worth-individuals in 2024, up from 4,200 the earlier 12 months.

Henley famous that within the Nineteen Fifties and early 2000s, giant numbers of wealthy households from Europe, Africa, Asia and the Center East had been flocking to the U.Okay., however post-Brexit, between 2017 to 2023, the U.Okay. misplaced 16,500 millionaires to migration.

A significant purpose behind the exodus is the U.Okay. just lately scrapping its ‘non-dom’ tax standing which beforehand meant overseas residents weren’t taxed on their worldwide earnings — which was particularly fashionable with billionaires.

Different causes embody potential will increase to non-public college tuition charges and excessive taxation on actual property. These modifications may see the U.Okay. millionaire inhabitants dwindle by 17% from 3,061,553 in 2023 to 2,542,464 in 2028, in keeping with the UBS International Wealth Report, which got here out in June.