Why are millionaires leaving London? Here's the surprising truth behind

One of the biggest trends of recent times has been the increasing number of millionaires leaving London for other global cities, particularly the United States and some areas of Asia. As per the recent World's Wealthiest Cities Report published by advisory company Henley & Partners and data intelligence firm New World Wealth, around 11,300 millionaires left London in 2024. This represents a dramatic change in the status of the city as a global financial and cultural center for the rich.



London and Moscow falls in Global Rich List position

London, which used to be the favourite of the wealthiest people in the world, has lost its standing in recent years. The report indicates that London now holds 215,700-dollar millionaires, having hosted 227,000 in 2023. The decline has left London behind Los Angeles with 220,600 millionaires, relegating London to number six on the list of the wealthiest cities in the world.

While London's high-net-worth individuals have been decreasing, so have Moscow's. Since the Russian invasion of Ukraine started in 2022, Moscow has lost its millionaire count significantly by 25%. This places Moscow level with London in experiencing a radical shift in its status as a financial center. The combined impact of geopolitical instability and economic uncertainty has caused high-net-worth individuals to seek stability in other global cities.




Reasons behind millionaires leaving London


Millionaire departures from London are not an isolated phenomenon but part of a broader trend based on a combination of economic, political, and social factors. There are some prominent factors behind the trend, forcing high-net-worth individuals to rethink their decisions and migrate to other cities globally.

• Rising tax rates and economic stagnation

One of the major reasons why millionaires are migrating away from London is the increasing tax burden. The UK has among the highest tax rates in the world, particularly in areas like estate taxes and capital gains. High-net-worth individuals are sensitive to such taxes and seek regions with less strict tax terms under which they can retain and grow their wealth. As the UK economy has never fully recovered from the 2008 financial crisis, the richest citizens are seeking areas with greater economic prospects.

• The impact of Brexit on business and trade

The decision by the UK to leave the European Union, commonly known as Brexit, has had far-reaching effects on the country's economy and international business scene. The uncertainty surrounding trade agreements, the loss of free movement for labor, and the disruption to international supply chains have made London less attractive for international businesspeople, investors, and entrepreneurs. Brexit has also damaged the role of London as an entry to Europe because it is no longer open to giving access to EU markets in the same way as it was before. For most members of the prosperous class, this has caused a reevaluation of where they are living in the UK, especially when put up against other cities in the EU that continue to offer secure trading relationships.

• The emergence of US and Asian tech hubs

The second fundamental cause of millionaire flight is growing US and Asian dominance in the technology industry. Singapore, Silicon Valley, and other leading technological hotspots are now the points of wealth creation, particularly for tech entrepreneurs. The high-technology growth of these markets is attracting talent and capital, drawing in wealthy people from traditional finance centers like London. According to Andrew Amoils, New World Wealth Head of Research, the development of these tech hubs has caused some of the UK's richest tech entrepreneurs to reconsider their home base. They are moving to locations where the tech industry offers more opportunities, investor access, and a better entrepreneurial climate.

• High taxes and financial pressures in the UK

In addition to the economic recession, high tax levels in the UK are also a dissuader for wealthy entrepreneurs and pensioners.
The UK's estate duty and capital gains tax are two of the highest in the world, according to Amoils. These taxes discourage high-net-worth individuals from staying in London, particularly when compared to other regions offering more favorable tax plans, including Dubai, Switzerland, and Singapore. To entrepreneurs, the burden of tax can become overwhelming, causing them to end up poor in the long term and driving them to seek better tax-efficient havens.




Importance of the London Stock Exchange

The London Stock Exchange (LSE), previously a global financial behemoth, has steadily declined as a force worldwide.
Based on the recent report, the LSE is now ranking 11th globally in terms of market capitalization, a measure of its reduced significance in the global economy. No longer the top attraction for foreign investors and wealthy individuals, the reduced significance of the LSE is causing some to look for alternatives in other financial centers.

Although the financial power of London has reduced, Frankfurt, Dubai, and New York have emerged as new hub cities. Frankfurt, Dubai, and New York now offer robust finance services, a good regulatory climate, and reduced tax rates, attracting increasingly more global investors and high-net-worth customers.





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