Mobile wealth targets key European hubs

The Knight Frank Wealth Report 2026 launched earlier this month, confirms a substantial uptick in the global mobility of wealthy residents, as economic, geopolitical and tax risks mount. 

UK tax reforms, particularly the abolition of the non dom regime, have changed how London is used by the internationally mobile, contributing both to more transient, short-term residence and to a rise in moves away from the city. 

Similarly, across Europe from Portugal, Belgium, Spain to France governments have been considering moves on wealth taxes or tightening residency schemes. 

Meanwhile, the Middle East conflict has displaced some demand, with buyers who had planned to commit to the region instead considering European hubs. 

From enquiries to relocations  

We have taken the pulse from key European markets to assess how wealth is moving and can confirm that exploratory enquiries from wealthy residents are translating into relocation decisions. These include a recent €17 million residential purchase in Madrid by a family relocating due to current geopolitical uncertainty.   

Knight Frank is also seeing some early displacement of demand, with buyers who had planned a move to the Middle East now turning their attention to Europe.  This includes one client who has signed a lease in Monaco, a standard step ahead of purchasing. All prospective buyers must hold a permanent Monaco address before residency is approved, either through a rental contract of at least 12 months or by purchasing a property.  

Tax remains a critical driver  

The UK abolished the non dom regime in April 2025, replacing it with a residence based system under which most UK residents are now taxed on worldwide income and gains, with a limited four year foreign income exemption available only to new arrivals.  

“The non dom changes in the UK have had a noticeable and ongoing effect,” said Knight Frank partner Alex Koch de Gooreynd.  

“Demand started to pick up last year, and this year it’s accelerated further. There’s more hunger in the market.”  

Switzerland, Monaco and Italy lead demand  

Push factors including geopolitical and European taxation pressures are favouring Switzerland, Monaco and Italy at the luxury end of the market.  

Switzerland offers qualifying wealthy arrivals a lump sum tax regime, where tax is based on living expenses rather than worldwide income or assets. Monaco levies no personal income, capital gains or wealth tax for most residents, while Italy allows new residents to cap tax on foreign income at a flat €300,000 per year for up to 15 years, making all three attractive bases or second home locations for internationally mobile wealth. 

In Switzerland, Knight Frank agreed the sale of a €10 million-plus property this year in Verbier to a British buyer seeking a second home within a matter of hours, reflecting strong demand.   

Italy has emerged as another primary beneficiary of shifting international demand, with Milan, Rome and spillover locations such as Lake Como seeing the strongest buyer interest.  

One recently agreed transaction involved a buyer committing approximately €4 million to a permanent move to Tuscany, citing frustration with the UK’s fiscal environment. The property had originally been intended as a second home.  

Monaco also continues to attract global wealth, with €5.9 billion in residential sales and resales recorded last year, remaining stable at the record level reached the previous year (see chart). 

Relative performance 

Top‑end London house price growth remains subdued, reflecting softer demand conditions and changing tax dynamics. 

Last year, average London prime residential prices fell 4.7%, while Europe’s key financial centres such as Zurich, Frankfurt, Paris and Milan all recorded price growth (see chart).

 
Despite tax pressures the UK’s ultra high net worth population has grown over the past five years. According to Knight Frank’s Wealth Sizing Model, numbers of individuals with a net worth of $30 million or more rose by 12%, from 24,871 in 2021 to 27,876 last year. However this rate of growth contrasts with much stronger growth across Europe’s tax friendly markets over the same period, including Monaco (32%), Italy (23%) and Switzerland (39%).  

To Knight Frank’s Rupert des Forges, this relative performance reflects a change in how London is viewed and used by wealth clients: “London is now a dip-in, dip-out city. My clients are deeply connected to it socially and professionally, but some won’t live here because the tax framework no longer works for them. They arrive Tuesday morning, stay till maybe Wednesday night, then head back to Milan, Madrid or Malta for the weekend.”