Thousands of millionaires have left London in the past year, with many relocating to the United States or Asia, driven by high taxes and the impact of Brexit, according to a report released on Wednesday.
This exodus is part of a decade-long trend, fueled by tax hikes, the slow recovery from the 2008 financial crisis, and the contentious departure of the UK from the European Union.
The 2024 World’s Wealthiest Cities Report by Henley & Partners and New World Wealth found that 11,300 dollar millionaires left London in 2024.
As a result, London’s millionaire population dropped to 215,700, down from 227,000 in 2023. The report also revealed that London was overtaken by Los Angeles, which now has 220,600 millionaires.
Andrew Amoils, head of research at New World Wealth, pointed to the growing influence of the United States and Asia in the tech sector, leading many wealthy tech entrepreneurs in the UK to reconsider their location. He added that Brexit likely intensified this trend.
Amoils noted that high capital gains and estate taxes in the UK deter wealthy business owners and retirees from settling there. He also mentioned the decline in the significance of the London Stock Exchange, now ranked 11th globally by market capitalization, and the rise of financial centers like Frankfurt and Dubai.
Tax advisors have reported that many people are relocating to countries with lower taxes, such as Portugal, Spain, Greece, the United Arab Emirates, and Italy, where fixed annual fees can be paid to avoid taxes.
Since 2014, London’s millionaire population has fallen by 12 percent, while Moscow has seen a 25 percent decline due to the ongoing conflict with Ukraine. In contrast, cities like Paris, San Francisco, and Singapore have experienced growth in their millionaire populations.
New York City remains the city with the highest number of millionaires, totaling 384,500.
