As European nations compete more intensely for capital, an increasing number of German millionaires are exploring alternative places of residence and additional citizenships. Henley & Partners, an international consultancy specializing in residence and citizenship programs for high-net-worth individuals, reports a 16 percent rise in inquiries from Germany between the fourth quarter of 2025 and the first quarter of 2026. This trend is driven by debates over taxation, exit taxes, the heavy tax burden, and concerns regarding the country’s business environment—factors that carry greater weight today as mobile capital reacts more swiftly to regulation. Consequently, Germany faces the risk of reduced capital retention, a decline in corporate ties, and the loss of highly lucrative taxpayers.
Why Millionaires Are Considering New Places of Residence
Germany remains a wealthy nation with a robust legal system, excellent infrastructure, and a broad corporate landscape. Yet these strengths are no longer automatically sufficient. Today, wealthy families compare tax regulations, inheritance laws, residency rights, and political predictability. Consequently, loyalty to a location is increasingly becoming a matter of cost-benefit analysis.
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The reported inquiries do not indicate an official wave of emigration. However, they do reveal strategic preparation. Many wealthy individuals are not planning an immediate, complete relocation; instead, they are creating options for themselves because tax policy and regulations appear increasingly unpredictable.
Tax burden makes the conflict politically sensitive
The debate over higher levies directly affects the state budget. According to data from the Federal Ministry of Finance, the top ten percent of earners account for around 57 percent of wage and income tax revenue. Furthermore, this group bears almost the entire burden of the solidarity surcharge. In contrast, the bottom 50 percent contribute only a small share of total income tax revenue.
This distribution explains why higher taxes on the wealthy easily garner political support. Many voters make only a limited contribution to income tax themselves, yet they expect tax relief for low and middle incomes. However, this picture should not be oversimplified, as value-added tax, energy taxes, and social security contributions also affect low-income households.
Capital follows planning certainty and tax rules
Italy demonstrates how targeted regulations can attract wealthy newcomers. The country combines EU access with a flat-rate tax on foreign income. Milan is also gaining prominence as a financial hub as banks, consultants, and international investors cluster there. Consequently, an attractive alternative location within Europe is emerging for entrepreneurs.
Cyprus, Portugal, Greece, and Switzerland are also vying for capital. They rely on residency programs, special tax rules, or a high degree of legal certainty. For millionaires, the tax rate is not the only factor; the decisive issue is whether a state treats wealth in a way that allows for long-term planning.
Germany risks more than just individual departures
Germany will not lose its economic foundation overnight. However, this trend strikes a sensitive nerve. Those who relocate high incomes, equity holdings, and business assets often take investment decisions with them. Consequently, a change of residence can have far greater consequences than a mere change of address.
Policymakers must therefore strike a balance between the demand for fairness and the impact on the country’s standing as a business location. A higher tax burden on the wealthy may appear popular in the short term, but it can drive away capital in the long run. A stable tax system protects more than just the wealthy; it also safeguards jobs, investments, and future government revenue.
Author: Blackout News
Sources: Henley & Partners (16.06.26) – Euronews (22.06.26) – Bundesministerium der Finanzen (03.06.26) – Tagesschau (28.04.26) – Bundeszentrale für politische Bildung (13.04.23)