Global Wealth Migration and Europe’s Prime Property Markets in 2024

In a world of shifting political and economic landscapes, wealthy individuals are voting are relocating to more favorable jurisdictions that offer safety, privacy, and financial advantages. 

Based on the report by Henley & Partners, 128,000 millionaires are predicted to relocate in 2024, which is 8,000 more than in 2023. High-net-worth individuals (HNWIs) are increasingly seeking out countries that not only meet their lifestyle preferences but also provide favorable conditions for wealth preservation and growth. 

Europe, with its rich cultural history, stable economies, and prime property markets, is a key destination for this global wealth migration. In this post, we’ll dive into the latest trends, insights, and predictions around why HNWIs are moving, where they’re going, and what it means for the future of Europe’s property markets.

Why Are High-Net-Worth Individuals Relocating?

The rise in global wealth mobility isn’t just about escaping taxes anymore. While tax benefits still play a role, security and privacy have become the top priorities for many wealthy individuals, according to the Knight Frank European Relocation Survey. 

This survey, which gathered insights from over 700 HNWIs, highlights that concerns about geopolitical tensions, government stability, and access to high-quality healthcare and education are becoming more important than ever.

83% of HNWIs expressed a preference for city living due to the economic and cultural opportunities cities provide, while 17% favored rural or resort locations. For those who are moving, it’s not just about avoiding tax burdens, but about finding a place where their wealth, family, and future are secure. 

Interestingly, while the older generations (Boomers and Generation X) still prioritize tax benefits, millennials and Gen Z are more focused on employment and education opportunities. This shift in generational priorities is shaping the future of real estate investment and property trends across Europe.

Top European Cities and Resorts for HNWIs

When it comes to relocation, not all cities and resorts are equal. Some places are standing out as particularly desirable for HNWIs looking to relocate.

Cities

According to the report, Paris tops the list of most desirable cities for relocation, followed by:

• Berlin
• Barcelona
• Vienna
• Madrid

These cities are known for their rich cultural offerings, economic stability, and overall quality of life. 

For example, Paris remains a global hub for art, fashion, and finance, which makes it a magnet for affluent individuals seeking a sophisticated urban environment. Meanwhile, cities like Berlin and Vienna offer a mix of innovation, history, and access to top-tier education and healthcare.

Resorts

On the resort side, Verbier in Switzerland takes the crown, with its luxury alpine lifestyle drawing wealthy individuals from around the world. 

Monaco, with its glamorous Mediterranean setting, is also a top contender, followed closely by the South of France, Chamonix, and Marbella. 

These locations aren’t just vacation spots but homes for the ultra-rich. They offer a combination of exclusive amenities, stunning views, and high-end properties.

The Knight Frank report also highlights that prime residential prices in locations like the Algarve, Lake Geneva, and Monaco remain high, but for good reason – they offer unparalleled living standards and easy access to global business hubs.

How Taxes and Visas Are Shaping Relocation Choices

Taxes remain a critical factor for many HNWIs when deciding where to relocate, but it’s not as straightforward as you may think. Property taxes are often a bigger concern than wealth taxes. Countries like France, Italy, and Spain are making policy changes to attract wealthy residents while balancing fiscal pressures.

For example, property taxes (including capital gains tax) are more influential in relocation decisions than inheritance taxes or wealth taxes. Women, in particular, are more concerned with inheritance taxes, while men are focused on income taxes.

On the visa front, the Digital Nomad Visa is currently the most popular route for HNWIs, allowing individuals to work remotely in a foreign country while enjoying a relatively relaxed tax regime. Countries like Portugal and Greece have introduced Golden Visas, which allow wealthy individuals to secure residency (and eventually citizenship) by investing in real estate. 

According to the report, 19% of UHNWIs (ultra-high-net-worth individuals) are planning to apply for a second passport or new citizenship in 2024, making visas a key component of wealth migration strategies.

Policy Shifts Impacting Europe’s Property Market

Governments across Europe are recognizing the value of attracting HNWIs and have begun adjusting their policies accordingly. The Knight Frank report points out that several countries are introducing or abolishing tax regimes to make themselves more appealing to wealthy individuals. 

For example:

• Spain has abolished regional wealth taxes in areas like the Balearic Islands, Madrid, and Andalucia, while simultaneously tightening Golden Visa routes.
• The UK is set to abolish its non-dom tax regime by 2025, a significant change for HNWIs who have used this regime to avoid paying taxes on their overseas income.
• Switzerland has proposed a 50% inheritance tax on wealth exceeding CHF 50 million, although this is still under debate and may not pass.

These changes, along with a host of other country-specific policies, are shaping the flow of wealth into Europe and will continue to influence where HNWIs decide to settle.

Looking Forward: The Future of Prime Property Markets in Europe

So, what does the future hold for Europe’s prime property markets? 

According to the Knight Frank report, Europe’s wealth population is set to increase by 22% by 2028, with countries like France, Portugal, and the UK seeing significant growth in their ultra-high-net-worth populations. This growth is expected to push demand for prime real estate even higher, with price growth forecasted in cities like Berlin, Dublin, and Geneva.

Additionally, mortgage costs are starting to come down, thanks to rate cuts by the European Central Bank (ECB), which makes property investments more attractive for both residents and new arrivals. This is expected to boost demand for prime real estate across Europe’s major cities and resorts.

Europe Is Leading the Charge in Global Wealth Migration

The combination of policy shifts, tax incentives, visa opportunities, and prime real estate value has made Europe a top destination for global wealth migration. 

Whether it’s the appeal of cosmopolitan cities like Paris and Berlin, or the allure of luxury resorts like Monaco and Verbier, HNWIs are continuing to flock to Europe in search of security, privacy, and opportunities to grow their wealth.

As Europe continues to evolve its tax and immigration policies, and as prime residential markets bounce back from the pandemic, the continent will likely remain a key hub for the world’s wealthy individuals in the years to come.

If you’re considering investing in Europe’s prime property markets or looking to relocate, keeping an eye on these trends will help you make informed decisions that align with both your financial goals and lifestyle aspirations.

Why Verbier Could Be Your Perfect Home?

Verbier, located in the majestic Swiss Alps, is a premier destination for HNWIs seeking both luxury and adventure. 

Known for its world-class on-piste and off-piste skiing, Verbier offers more than just winter sports. Its dual-season appeal makes it a year-round playground, with summer activities like hiking, mountain biking, and cycling drawing in outdoor enthusiasts. 

This unique ability to offer adventure across all seasons has made Verbier one of the most desirable places to live for affluent global citizens.

Beyond its natural beauty and recreational opportunities, Verbier stands out for its infrastructure and family-friendly amenities. The area is home to a number of prestigious international schools, making it an attractive choice for families seeking a high-quality education for their children. 

The presence of a lively international community further enhances the resort’s appeal, creating a cosmopolitan atmosphere where residents from around the world come together. Accessibility is another strong point, with 141 flight routes to nearby airports, ensuring easy travel for international residents.

Verbier also benefits from Switzerland’s renowned quality of life. The country’s world-class healthcare, safety, and stable political environment make it a secure and comfortable place to live and do business. The local Alpine cuisine and luxury dining experiences are just added bonuses to an already high standard of living. 

While prime property prices in Verbier reflect its exclusivity, the strong demand for real estate shows no signs of slowing down, making it both a desirable home and a sound investment for HNWIs. Our list of Verber real estate for sale has high-end, luxury chalets and apartments which will make your life in Verbier an Alpine dream come true.