London Loses Ground as Wealthiest City as Millionaires Seek Greener Pastures

London has fallen from grace as one of the world’s wealthiest cities, experiencing a notable exodus of high earners over the past year. The UK capital has lost 11300 dollar millionaires, a percentage decrease that only Moscow can rival.

According to a recent report by advisory firm Henley & Partners, the city now hosts 215700 dollar millionaires, a striking 12 per cent decline since 2014. This shift has been attributed to a combination of rising taxes, the effects of Brexit, and a depreciating pound.

Meanwhile, cities like Paris have seen a resurgence in the number of affluent residents, which stands in sharp contrast to London’s demographic struggles. In the past decade, London has lost approximately 30000 millionaires, underscoring a troubling trend for the UK’s economic landscape.

The newly introduced tax regime for non-domiciled individuals further compounds the situation. Wealthy foreigners are now subjected to UK income and capital gains taxes, prompting many to look to other nations with more favourable taxation policies.

High net worth individuals seem to be relocating to jurisdictions offering lower tax burdens or fixed annual fees to mitigate their tax liabilities. Countries such as Portugal, Spain, and several others are proving attractive alternatives.

Despite the drop in millionaire numbers, London retains its position as the fourth most expensive city globally, with property prices per square metre continuing to climb. However, its prestige as a financial hub is under threat from emerging cities that blend lifestyle benefits with investment opportunities.

Overall, the decline in London’s millionaire population raises critical questions about the city’s future as a centre for wealth and investment. The financial ecosystem appears to be shifting, with the allure of competing values becoming harder for affluent individuals to resist.