There are millions of millionaires in Germany. A millionaire, sometimes referred to as a “high net worth individual” or “HNWI”, is someone with assets of at least one million US dollars. It is possible to become a millionaire within your own country. However, it’s much more difficult than becoming an international millionaire. First, you must be aware that many individuals who are considered millionaires are not financially independent. These people might instead have very large debts or they may be heavily dependent on inheritance or other financial support from relatives or partners.
If you want to be one of the few millionaires in Germany who are self-made, you must be prepared for hard work and smart saving techniques. It’s a million dollar question – How many millionaires in Germany? This article will give you an overview of the current situation in Germany.
A new report says Germany has the third largest number of dollar millionaires in the world – and the rich are growing. At the end of this year, however, the outlook could be different.
The number of dollar millionaires in Germany grew significantly last year, according to the World Wealth Report 2020 by the consulting firm Capgemini.
The research estimates the number of Germans with assets of one million dollars or more at 1.46 million (the World Wealth Report calculates in dollars for international comparability), reported Spiegel on Thursday.
This group grew by more than 100,000 people, or 8.6 percent, compared to the previous year.
It means Germany has the third largest number of dollar millionaires after the USA and Japan, according to the ranking.
Show me the money, Germany!
According to the latest Global Wealth Report by Boston Consulting Group (BCG), the number of millionaires living in Germany has doubled in the past 20 years. The report, which was released last Thursday, revealed there are around 400.000 millionaires living in Europe’s economic powerhouse, making it the country with the seventh-highest number of millionaires in the world.
Germany also ranks third in the number of people with assets totalling 100 million dollars or more, coming only behind China and the US. Last year, Germany had 2.400 people who fit into this group.
Global wealth
According to BCG’s study, the number of millionaires on the planet has tripled over the past two decades. The study found that there are more than 24 million people worldwide who are worth 1 million dollars (891.820 euros) at the end of 2019. Back in 1999, this number was just 8,9 million.
Over the last 20 years, all regions around the world have seen a significant increase in the number of millionaires. This is especially true for developing economies in Asia, Africa, the Middle East, Latin America and Eastern Europe, which have seen their share of personal wealth grow from a tenth to a quarter of global wealth in the last two decades.
According to the study, the world’s millionaires owned 50 percent of global wealth in 2019.
Number of millionaires worldwide growing
It comes despite Germany only just escaping recession in 2019. Calculated over the year, the economy as a whole grew by only 0.6 percent.
Nevertheless, Germany’s development at the top of the wealth distribution ranking is fully in line with the global trend: the rich are getting richer – and at a much faster rate than everyone else.
Germany is home to 114 of the world’s billionaires , according to Forbes.
There are an estimated 2,153 billionaires in the world, according to Forbes.
Approximately 114 of those live in Germany, making it the country with the third-highest concentration of billionaires after the US and China.
The richest people in Germany are Beate Heister and Karl Albrecht Jr. ,heirs to the Aldi supermarket fortune, worth an estimated $34.3 billion. Others German billionaires include the CEO of supermarket chain Lidl and part owners of automaker BMW .
The 11 richest Germans are worth a combined $197 billion.
Here are the 11 richest people in Germany right now, ranked.
2019 German billionaires list top 30
A potential lurch to the left in Germany’s election on Sunday is scaring millionaires into moving assets into Switzerland, bankers and tax lawyers say.
If the centre-left Social Democrats (SPD), hard-left Linke and environmentalist Greens come to power, the reintroduction of a wealth tax and a tightening of inheritance tax could be on the political agenda.
“For the super-rich, this is red hot,” said a German-based tax lawyer with extensive Swiss operations. “Entrepreneurial families are highly alarmed.”
The move shows how many rich people still see Switzerland as an attractive place to park wealth, despite its efforts to abolish its image as a billionaires’ safe haven.
No country has more offshore assets than Switzerland and inflows accelerated in 2020, to the benefit of big banks such as UBS (UBSG.S), Credit Suisse (CSGN.S) and Julius Baer (BAER.S). Geopolitical tensions and fears of the COVID-19 pandemic’s economic fallout made Switzerland’s political stability attractive.
Bank for International Settlements data show deposits of German households and companies at banks in Switzerland climbed almost $5 billion to $37.5 billion in the first quarter of 2021, and this does not include shares, bonds or financial products.
More recent figures are not available, but insiders say the inflows have continued. “I have booked an above-average amount of new money as in the past three months,” said a veteran client adviser at a large Swiss bank who deals mainly with Germans.
“Many wealthy people, especially entrepreneurs, fear that there will be a lurch to the left in Germany – no matter how the elections turn out,” says Florian Dürselen, head of Europe at wealth manager LGT Switzerland.
One top Swiss banker said: “I know a number of German entrepreneurs who want to have a foothold outside Germany if things get too red (leftist) there.”
Conclusion:
Germany is a powerhouse in Europe. They have an economy that’s the 4th largest in the world, and it’s also one of the strongest economies in Europe. There are a lot of people living in this country, and like in most industrialized countries, there are a lot of millionaires and billionaires, and some even wealthier than that.