London has seen a significant outflow of millionaires, with new figures revealing that the proportion of super-rich residents in the capital has fallen more than anywhere else except Moscow.
The latest annual global wealth report shows that London is one of only two cities in the top 50 where the number of wealthy individuals has decreased over the past decade.
The decline has been attributed to several factors, including tax hikes, economic uncertainty, and the depreciation of the pound. Over the past year alone, London lost 11,300 dollar millionaires, along with 18 centimillionaires—individuals with assets of at least $100 million—and two billionaires. The report, conducted by Henley & Partners in collaboration with New World Wealth, defines wealth as liquid investable assets, such as cash, bonds, and shares, excluding property wealth.
London’s wealthiest residents are increasingly moving elsewhere, with the city now having just 215,700 millionaires. This marks a 12% drop in the number of millionaires since 2014. Despite this, London still has the highest number of millionaires of any city globally.
Over the last decade, about 30,000 millionaires have left London, compared with 10,000 from Moscow. Economic experts have warned that, under the current Labour government, Britain could lose as much as a fifth of its millionaires due to increased taxes, a freeze on inheritance tax thresholds, and potential rises in capital gains tax.
In addition, concerns over the end of the non-dom regime, which allowed wealthy foreigners to shelter their assets from UK taxes for an annual fee, have spurred many of them to relocate. The new tax system requires these individuals to pay UK taxes on global earnings after four years of residence, and their assets could be subject to UK inheritance tax (IHT), one of the highest in the world.
Countries like Portugal, Spain, Greece, and the UAE have become popular destinations for the wealthy, offering lower taxes or more favorable tax schemes.
As the trend of millionaires leaving continues, London’s position as a wealth hub faces a significant challenge.
Top Ten Wealthiest Cities by Number of Dollar Millionaires and Change Over the Past Decade:
- New York: 384,500 (+45%)
- San Francisco, Bay Area: 342,400 (+98%)
- Tokyo: 292,300 (+4%)
- Singapore: 242,400 (+62%)
- Los Angeles: 220,600 (+35%)
- London: 215,700 (-12%)
- Paris: 160,100 (+5%)
- Hong Kong: 154,900 (+3%)
- Sydney: 152,900 (+28%)
- Chicago: 127,100 (+24%)
Source: New World Wealth for Henley & Partners
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