These 5 European cities are attracting millionaires — excluding London.

A new report shows that while millionaires are considering European cities for relocation, London does not rank among the top five choices.

High-net-worth individuals who are considering relocating prefer city living for the cultural and economic benefits, while 17% opt for rural and resort areas for their natural surroundings and slower pace of life, according to Knight Frank's European Lifestyle Report, published on Wednesday.

Knight Frank, a real estate consultancy firm, surveyed 700 high-net-worth individuals from 11 different countries, including the U.K. and U.S., to determine their view of the most attractive European cities and resorts. The firm ranked 10 cities and resorts based on the "European Lifestyle Monitor," which evaluated them on five key metrics: the economy, quality of life, environment, infrastructure and mobility, and human capital.

Despite being commonly perceived as a hub for the wealthy, London did not make the top five cities in the world, ranking seventh, while Paris stood out in categories such as economy and human capital, including universities, corporate headquarters, and cultural investment.

In 2024, a record 128,000 millionaires are planning to relocate globally, compared to 120,000 in 2023, according to the Knight Frank report, says Henley & Partners, a consultancy that tracks migration trends.

A study by Knight Frank revealed that 19% of ultra-high-net-worth individuals, defined as those with a net worth of $30 million or more, are considering obtaining a second passport or citizenship in another country.

According to the report, the main priorities for millionaires when relocating are security and privacy, followed by employment, tax, and education. In contrast, Gen Z and millennials prioritize employment, while older generations focus more on taxation.

The report stated that for high-net-worth individuals, security and taxation are more important than visa concerns when relocating. This is due to the increasing geopolitical volatility and privacy challenges in the digital age.

""HNWIs are relocating to more favorable jurisdictions due to geopolitical tensions and policy changes, as shown by the swift withdrawal of CHF 1.5 billion from Credit Suisse by wealthy account holders in late 2022, highlighting their quick reaction to perceived financial risks," said Kate Everett-Allen, Knight Frank's head of European residential research, in a report."

The Top 5

According to the Knight Frank report, the top five European cities that high-net-worth individuals are considering relocating to in 2024 are:

1. Paris
2. Berlin
3. Barcelona
4. Vienna
5. Madrid

A report by Henley & Partners revealed that the U.K. is no longer considered a haven for millionaires, with an estimated 9,500 high-net-worth-individuals expected to leave the country in 2024, compared to 4,200 in the previous year.

In the 1950s and early 2000s, the U.K. attracted a large number of wealthy families from Europe, Africa, Asia, and the Middle East. However, between 2017 and 2023, the U.K. lost 16,500 millionaires due to migration.

The U.K.'s recent decision to abolish the 'non-dom' tax status has led to a significant increase in the number of foreign citizens leaving the country, as they no longer enjoy tax exemptions on their international income.

The U.K. millionaire population could decrease by 17% from 2023 to 2028 due to potential increases in private school tuition fees and high taxation on real estate, according to the UBS Global Wealth Report released in June.