Goodbye London: The Changing Destinations of the City’s Millionaires

London, long known as one of the world’s most influential financial and cultural hubs, is witnessing a significant migration of its wealthiest residents. According to Henley and Partners’ World’s Wealthiest Cities report, 2024 saw over 11,000 millionaires leave the British capital. This marked a notable decline in London’s high-net-worth population, which now stands at around 215,700 — down from 227,000 in 2023. In fact, since 2014, the number of millionaires in London has fallen by 12%. Meanwhile, other cities are seeing an opposite trend, as the global wealth landscape shifts.

Why Are Millionaires Leaving London?

The migration of millionaires from London is influenced by a combination of high taxation, economic instability, and changing global dynamics. The UK’s tax environment, which includes high capital gains taxes and estate duties, is a major deterrent for wealthy individuals, particularly those in their retirement years or with substantial investment portfolios. For these individuals, the cost of staying in London, both financially and administratively, is becoming less appealing.

Additionally, the long-term economic effects of the 2008 financial crisis and the uncertainties brought about by Brexit have further eroded London’s attractiveness as a base for the world’s wealthiest. The capital’s stock exchange, once the most prominent globally, has seen a decline in its market capitalization, now ranked 11th worldwide. The result has been a shift in the preferences of wealthy entrepreneurs and investors, who now look to other cities that offer more favorable conditions.

Andrew Amoils, Head of Research at New World Wealth, pointed out that the emergence of tech giants in the US and Asia has drawn many UK-based entrepreneurs to relocate. He also highlighted that the complexities and unpredictability created by Brexit have made it more difficult for London to maintain its status as the primary hub for global financial activities.

Where Are London’s Millionaires Heading?

The shift of wealth from London is not only about escaping high taxes. It also reflects broader trends in business, lifestyle, and global mobility. Many millionaires are turning to destinations with more favorable tax environments, better business opportunities, and greater political stability. Popular relocation spots include Portugal, Spain, Greece, the UAE, and Italy, all of which offer significant tax incentives.

Portugal, for instance, has become particularly attractive due to its Non-Habitual Resident (NHR) tax regime. This program allows newcomers to benefit from tax exemptions on foreign income for up to 10 years, making it an appealing choice for those looking to reduce their tax burden. Similarly, Greece and Italy have introduced “golden visa” schemes, where wealthy individuals can secure residency in exchange for investments, such as purchasing property or contributing to the local economy.

The UAE, particularly Dubai, has emerged as another major destination. Dubai offers not only favorable tax policies, such as no income tax and no capital gains tax, but also a thriving business environment and a luxurious lifestyle. These attributes have made it increasingly popular with high-net-worth individuals seeking a more attractive and secure place to live and work.

The Role of Global Shifts in Technology

While tax policies certainly play a role in the migration of wealth, other global shifts are also contributing to the changing map of wealth. The rise of tech hubs in the US and Asia, particularly in Silicon Valley and cities like Singapore, has attracted many entrepreneurs who may have once considered London their base. The growth of these global tech centers has created an ecosystem where entrepreneurs, investors, and employees can easily connect, innovate, and grow their businesses — and these cities now offer more favorable environments than London.

The San Francisco Bay Area, for example, has seen a dramatic 98% increase in the number of millionaires, as the region remains a global leader in tech innovation. Similarly, Singapore has become an increasingly attractive destination, with its wealth population growing by 62% in recent years. The city-state offers a business-friendly environment, lower taxes, and a well-connected financial sector, making it a prime destination for the wealthy.

The Impact of Brexit

Brexit has had a profound effect on London’s status as a global financial and business center. For many wealthy individuals, the UK’s decision to leave the European Union has meant a reduction in the ease of doing business across Europe. The loss of access to the European single market, along with changes in immigration and business regulations, has led many to reconsider their location.

While London has long been a top destination for international business and finance, the uncertainties surrounding Brexit have made it less attractive. As wealthy individuals seek stability, they are looking to cities within the EU that offer similar business opportunities without the political and economic risks associated with Brexit. Cities such as Paris and Frankfurt are seeing an influx of talent and capital, as many companies shift operations to the continent to maintain access to the European market.

London’s Future in a Changing World

The departure of so many millionaires from London raises questions about the city’s future as a global center of wealth and business. While London continues to be a major financial player, its position is increasingly being challenged by other cities offering more attractive tax regimes, political stability, and business opportunities.

For London, the key to reversing this trend lies in its ability to adapt to the changing global landscape. While it remains a cultural and financial powerhouse, it must find ways to remain competitive in an increasingly globalized world. Maintaining its position as a hub for finance, business, and innovation will require offering more favorable conditions for wealthy individuals and entrepreneurs.

In Conclusion

The migration of millionaires from London is a clear sign of changing global dynamics. Factors such as high taxes, the aftermath of the 2008 financial crisis, and the uncertainties introduced by Brexit are pushing wealthy individuals to seek new locations for business and personal growth. Cities like Dubai, Lisbon, and San Francisco are increasingly becoming the preferred destinations for the world’s wealthiest, offering more attractive tax policies, business opportunities, and lifestyles.

For London, the challenge is to adapt to these new realities by offering a more appealing environment for the wealthy and addressing the economic and political concerns that are driving them abroad. While London’s future remains uncertain, its ability to maintain its status as a leading global city will depend on its willingness to evolve in response to the changing tides of wealth, business, and innovation.