Top 5 European Cities Millionaires Prefer for Relocation in 2024

A recent European Lifestyle Report reveals that around 83% of individuals earning over $1 million who are contemplating moving to another country favor urban environments due to the cultural and financial opportunities they offer, while 13% are drawn to the tranquility and picturesque landscapes of the countryside.

The report, which surveyed 700 high net worth individuals (HNWIs) from 11 different nations, including the UK and the US, assessed the most attractive European cities and resorts. These rankings were determined using the "European Lifestyle Monitor," which evaluates five essential criteria: economy, quality of life, environment, infrastructure and mobility, and human capital.

Paris secured the top position, particularly excelling in the economy and human capital categories, which take into account factors such as universities, corporate headquarters, and cultural investments. Interestingly, London, often regarded as a premier destination for the super-rich, did not make the top five and was instead ranked seventh.

The trend of wealthy individuals relocating is on the rise, with Henley & Partners, a consultancy that monitors relocation trends, reporting that a record 128,000 millionaires plan to move globally in 2024, up from 120,000 in 2023. Furthermore, it was found that 19% of ultra-high net worth individuals (UHNWIs)—those with assets worth $30 million or more—intend to apply for a second passport or obtain citizenship in another country.

When it comes to priorities, the report highlights that security and privacy are the foremost concerns for millionaires considering relocation, followed by employment, taxes, and education. Younger generations, including Gen Z and millennials, tend to prioritize employment opportunities, whereas older generations are more focused on tax considerations. “Security and taxation are more critical to the ultra-wealthy than other relocation concerns. With growing geopolitical instability and privacy challenges in the digital age, this focus is not surprising," the report's authors noted. They cited the rapid withdrawal of CHF 1.5 billion (approximately $1.8 billion) from Credit Suisse in late 2022 by wealthy account holders as an example of how swiftly affluent individuals can respond to perceived financial risks.

The top five European cities that high net worth individuals are considering for relocation in 2024 are:

1. Paris

2. Berlin

3. Barcelona

4. Vienna

5. Madrid

This follows research by Henley & Partners, which indicated that the UK is losing its status as a haven for millionaires. The UK is expected to lose at least 9,500 high-net-worth individuals in 2024, up from 4,200 the previous year. Historically, during the 1950s and early 2000s, large numbers of wealthy families from Europe, Africa, Asia, and the Middle East moved to the UK. However, post-Brexit, between 2017 and 2023, the UK saw a departure of 16,500 millionaires.

A significant factor driving this exodus is the recent abolition of the non-domiciled tax regime, which had previously allowed foreign nationals to avoid taxation on their international income—a benefit particularly attractive to the wealthy. Additionally, potential increases in private school tuition fees and high property taxes have contributed to the decline. According to the UBS Global Wealth Report published in June, the UK's millionaire population is projected to decrease by 17%, dropping from 3,061,553 in 2023 to 2,542,464 by 2028.

By fLEXI tEAM