London has experienced a notable decline in the number of wealthy residents over the past decade, standing out as one of only two cities in the top 50 where the number of high-net-worth individuals has actually dropped. Several key factors have contributed to this shift, including tax increases, economic instability, and a weakened pound.
Over the last year alone, London saw a loss of 11,300 dollar millionaires, 18 cent millionaires, those with assets of at least $100 million, and two billionaires. These figures reflect a broader trend of wealthy individuals relocating from the capital. According to the annual global wealth report by Henley & Partners, in partnership with New World Wealth, focusing instead on liquid investable assets such as cash, bonds, and shares.
Currently, London is home to 215,700 millionaires, marking a 12% drop in the number of these high-net-worth individuals since 2014. Despite this decline, London still maintains its position as the city with the highest number of millionaires globally. However, this loss is a worrying trend, with approximately 30,000 millionaires leaving the city over the past decade. In comparison, Moscow has seen a departure of around 10,000 wealthy individuals in the same period.
Economic experts have voiced concerns about the potential for a continued exodus under the current Labour government. With tax hikes looming, including the freeze on inheritance tax thresholds and potential increases in capital gains tax, some have warned that Britain could see as much as a fifth of its millionaires leaving the country. These changes have prompted many wealthy to consider relocating to countries with more favourable tax regimes.
One key issue driving the migration of wealthy individuals from London is the planned end to the non-dom tax status, allowing foreign nationals to shield their assets from UK taxes in exchange for an annual fee. Under the new tax regime, those who have been residents in the UK for four years or more will be required to pay UK taxes on their global income, and their assets may also be subject to the UK’s high inheritance tax.
In light of these shifts, other countries, including Portugal, Spain, Greece, and the UAE, have become popular destinations for the wealthy, offering more attractive tax rates or beneficial tax structures.
While London still has the highest number of millionaires, its position as a global wealth hub is facing growing competition. The outflow of wealthy residents signals that the capital may be at a crossroads, with the potential for significant changes in its demographic and economic landscape in the years ahead.
New York tops the global ranking of wealthiest cities by millionaire numbers, with 384,500 millionaires, marking a 45% increase. The San Francisco Bay Area follows closely, with 342,400 millionaires experiencing a significant 98% rise. Tokyo ranks third with 292,300 millionaires, showing a modest 4% growth. Singapore saw a 62% increase, reaching 242,400 millionaires, while Los Angeles follows with 220,600 millionaires, up by 35%. London experienced a slight decline of 12%, with 215,700 millionaires. Paris, with 160,100 millionaires, grew by 5%, while Hong Kong saw a small 3% rise, totalling 154,900 millionaires. Sydney recorded a 28% increase, reaching 152,900 millionaires, and Chicago saw a 24% growth, with 127,100 millionaires.
This list illustrates the varying trajectories of global wealth. Some cities, such as San Francisco and Singapore, have seen substantial growth in their millionaire populations, while London’s figures continue to decline.
