Millionaires are eyeing up European cities as they appear to relocate — however London does not make the highest 5, in response to a brand new report.
Some 83% of high-net-worth people — outlined as these incomes $1 million or extra — who’re contemplating shifting international locations favor metropolis residing for the cultural and financial alternatives it gives, Knight Frank’s European Way of life Report, revealed on Wednesday, revealed. In the meantime, 17% cited a choice for rural and resort places for the pure surroundings and slower life-style.
Actual property consultants Knight Frank surveyed 700 high-net-worth people from 11 completely different international locations together with the U.Ok. and U.S. about their view of essentially the most enticing European cities and resorts. It ranked 10 cities and resorts primarily based on the “European Way of life Monitor” which evaluated them on 5 key metrics: the financial system, high quality of life, atmosphere, infrastructure and mobility, and human capital.
Paris topped the checklist and stood out in classes together with financial system and human capital, which incorporates components like universities, company headquarters and cultural funding. Nonetheless, London — usually 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 document 128,000 millionaires are planning on relocating globally in 2024, in contrast with 120,000 in 2023, in response to 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 training, in response to the report. Gen Z and millennials are likely to prioritize employment, whereas older generations are extra preoccupied with taxation.
“Safety and taxation are extra important 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 adjustments 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 rapidly prosperous people can react to perceived monetary dangers.”
The High 5
These are the highest 5 European cities high-net-worth people are contemplating relocating to in 2024, in response to the Knight Frank report:
- Paris
- Berlin
- Barcelona
- Vienna
- Madrid
It comes after a separate report by Henley & Companions confirmed the U.Ok. 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.Ok., however post-Brexit, between 2017 to 2023, the U.Ok. misplaced 16,500 millionaires to migration.
A serious motive behind the exodus is the U.Ok. not too long ago scrapping its ‘non-dom’ tax standing which beforehand meant international residents weren’t taxed on their worldwide revenue — which was particularly standard with billionaires.
Different causes embody potential will increase to non-public faculty tuition charges and excessive taxation on actual property. These adjustments might see the U.Ok. millionaire inhabitants dwindle by 17% from 3,061,553 in 2023 to 2,542,464 in 2028, in response to the UBS World Wealth Report, which got here out in June.