Why are London's millionaires racing to Asia and the US in record numbers?

Over 11,000 millionaires reportedly left London in 2024, marking one of the highest annual outflows of wealthy residents from the UK capital in recent history

London is witnessing a mass departure of its millionaire residents, with over 11,000 leaving the city in 2024 alone. Many of these high-net-worth individuals have relocated to destinations in Asia and North America. While the trend has been building over the past few years, the sharp rise in both volume and pace of these exits has raised concerns.

 

Mounting taxes, Brexit, and economic fallout driving the shift

Annual insights from global wealth advisory firms point to a combination of factors behind this exodus. Chief among them are the UK’s high tax burden, lingering economic impacts from the 2008 global financial crisis, and Brexit, which has diminished London’s appeal as a European financial hub, reported AFP. 

 

Once considered the top city globally for dollar millionaires, London has seen a steep decline in its affluent population since 2014. Over the past ten years, the city has lost 12 per cent of its wealthy residents. According to Henley & Partners’ World’s Wealthiest Cities Report, the capital lost approximately 11,300 millionaires between January and December 2024. New World Wealth, a leading data firm, confirmed these findings. 

Although London still hosts 215,700 millionaires, this is a drop from the 227,000 reported a year ago. For the first time in decades, the British capital has slipped out of the top five wealthiest cities, with Los Angeles overtaking it for the fifth spot. 

Among European cities, London experienced the highest outflow of millionaires in 2024. Moscow came second, losing around 10,000 millionaires, despite the ongoing war in Russia.

 

Billionaire exodus: Mittal eyes exit over tax reforms

Steel tycoon Lakshmi Mittal is reportedly planning to relocate from the United Kingdom after nearly 30 years, following the government’s decision to eliminate the non-domiciled (non-dom) tax status, The Financial Times reported. 

Mittal, originally from India and the driving force behind ArcelorMittal — the world’s second-largest steelmaker — is expected to surrender his UK tax residency before the changes come into force in April 2025. Although a final decision is yet to be made, potential destinations include Dubai, Switzerland, and Italy, all known for offering favourable tax regimes for wealthy individuals.

 

UK targets overseas income of wealthy

The move is seen as a response to the Labour Party’s push to reform the non-dom system, which would subject affluent residents to UK taxes on their worldwide income and assets. This shift has already led to an outflow of a huge number of high-net-worth individuals from the country. 

The non-dom tax regime previously allowed foreign-born UK residents to shield overseas income from British taxes, provided the funds remained outside UK accounts. Under the new rules, led by Labour’s Chancellor Rachel Reeves, the system will switch to a residence-based approach. Foreign income will also be included under inheritance tax provisions. The government estimates this overhaul will raise £2.7 billion a year by 2028–29 and claims it will create a more equitable tax system.

 

Shifting business hubs to Asia, US

Experts point to the increasing dominance of the tech sector in Asia and North America as a key reason behind London’s decline as a preferred base for the wealthy. AFP quoted Andrew Amoils, head of research at New World Wealth, as saying that the growing strength of these regions in innovation and business opportunities has encouraged entrepreneurs and investors to relocate. 

He also emphasised the financial drawbacks of living in the UK, highlighting the country’s globally high capital gains and inheritance tax rates. These conditions, he said, are discouraging not only entrepreneurs but also wealthy retirees from settling in the UK. 

Another sign of London’s waning influence is the shrinking role of the London Stock Exchange, which no longer features among the top ten global exchanges by market capitalisation. Cities like Dubai and Frankfurt are emerging as preferred alternatives for financial and investment activities.

 

Asia and US lead in attracting millionaires

Meanwhile, cities in Asia and the United States are gaining ground as hotspots for affluent residents. The San Francisco Bay Area saw a remarkable 98 per cent increase in millionaire population over the past decade. Singapore also experienced a 62 per cent jump in its wealthy population, AFP reported. 

Out of the top ten cities with the highest number of millionaires, seven are located in Asia or America. These include New York City, the Bay Area, Los Angeles, and Chicago in the US, as well as Tokyo, Singapore, and Hong Kong in Asia. 

New York continues to lead globally, with 384,500 millionaires calling it home, while cities like Dubai, Tokyo, and Los Angeles also recorded notable increases in their wealthy populations.