Top 5 European cities millionaires are moving to — and none are London

Millionaires are eyeing up European cities as they look to relocate — but London doesn’t make the top five, according to a new report.

Some 83% of high-net-worth individuals — defined as those earning $1 million or more — who are considering moving countries favor city living for the cultural and economic opportunities it provides, Knight Frank’s European Lifestyle Report, published on Wednesday, revealed. Meanwhile, 17% cited a preference for rural and resort locations for the natural scenery and slower lifestyle.

Real estate consultants Knight Frank surveyed 700 high-net-worth individuals from 11 different countries including the U.K. and U.S. about their view of the most attractive European cities and resorts. It ranked 10 cities and resorts based on the “European Lifestyle Monitor” which evaluated them on five key metrics: the economy, quality of life, environment, infrastructure and mobility, and human capital.

Paris topped the list and stood out in categories including economy and human capital, which includes factors like universities, corporate headquarters and cultural investment. However, London — often thought of as a hub for the super-rich — didn’t even make the top five, coming seventh.

Henley & Partners, a consultancy that tracks migration trends, says a record 128,000 millionaires are planning on relocating globally in 2024, compared with 120,000 in 2023, according to the Knight Frank report.

Additionally, 19% of ultra-high-net-worth individuals — those worth $30 million or more — are planning to apply for a second passport or gain citizenship in another country, Knight Frank found.

The main priorities for millionaires when relocating are security and privacy, followed by employment, tax, and education, according to the report. Gen Z and millennials tend to prioritize employment, while older generations are more preoccupied with taxation.

“Security and taxation are more critical for HNWIs [high-net-worth individuals] than visa concerns when relocating. With rising geopolitical volatility and privacy challenges in the digital age, this focus is unsurprising,” the report said.

“Geopolitical tensions and policy changes are driving HNWIs to relocate to more favourable jurisdictions,” Kate Everett-Allen, Knight Frank’s head of European residential research, said in the report. “The swift withdrawal of CHF 1.5 billion [Swiss francs, or $1.8 billion] from Credit Suisse in late 2022 by wealthy account holders highlighted how quickly affluent individuals can react to perceived financial risks.”

It comes after a separate report by Henley & Partners showed the U.K. is no longer a millionaire haven, with Britain expected to lose at least 9,500 high-net-worth-individuals in 2024, up from 4,200 the previous year.

Henley noted that in the 1950s and early 2000s, large numbers of rich families from Europe, Africa, Asia and the Middle East were flocking to the U.K., but post-Brexit, between 2017 to 2023, the U.K. lost 16,500 millionaires to migration.

A major reason behind the exodus is the U.K. recently scrapping its ‘non-dom’ tax status which previously meant foreign citizens were not taxed on their international income — which was especially popular with billionaires.

Other reasons include potential increases to private school tuition fees and high taxation on real estate. These changes could see the U.K. millionaire population dwindle by 17% from 3,061,553 in 2023 to 2,542,464 in 2028, according to the UBS Global Wealth Report, which came out in June.