REVEALED: Which German cities have the most millionaires?
New research has shown how Germany's millionaires are distributed throughout the country, with one city coming out on top - and it might not be where you expect.
Of the approximately 46 million working people in Germany, nearly 30,000 earn more than €1 million per year. While these high-income earners are spread out across the country, a recent analysis by the Handelsblatt Research Institute has shown how unevenly distributed they are.
The study, conducted using income tax returns for the year 2019, found that there were 27,300 income millionaires in the year under review, marking an increase of about 1,200 compared to 2018. As tax returns are often prepared and audited several years later, the 2019 data is the most recent available.
READ ALSO: REVEALED: Where in Germany people earn the most (and least)
In the list of cities with the most millionaires per 100,000 people, Düsseldorf came out on top, with 172 millionaires per 100,000 taxpayers.
While the figures don't explain why so many high-earners choose to live in Düsseldorf, the city's strong economy and business-friendly environment, its proximity to the Rhine and its rich cultural and leisure offerings - as well as its reputation as a place for high fashion - likely contribute to its popularity.
North Rhine-Westphalia's second most populous city pipped the Bavarian capital Munich to the post, where there were 170 millionaires per 100,000 taxpayers. Baden-Württemberg's capital Stuttgart came in third place, with 142 per 100,000.
At the state level, Hamburg tops the list of the federal states with the most millionaires, with 124 per 100,000 taxpayers.
Meanwhile, Bavaria, known for its picturesque landscapes and mountains, experienced a surge in the number of millionaires, reaching 90 millionaires per 100,000 taxpayers, up from just 49 in 2015.
On the other end of the spectrum, the five eastern federal states - Brandenburg, Saxony, Saxony-Anhalt, Thuringia and Mecklenburg Western Pomerania - continue to rank at the bottom in terms of millionaire density.
Berlin saw the largest increase in millionaire concentration among the federal states within a year: the capital city gained around seven millionaires per 100,000 taxpayers, moving up two places to claim the sixth place. Schleswig-Holstein (plus six) and Bavaria (plus three) also saw notable increases.
READ ALSO: Germany ranks third worldwide in number of 'ultra-rich' residents
A completely different picture emerged when looking at the number of millionaires in smaller districts and urban areas.
Starnberg in Bavaria, located near Munich and the Alps, had by far the most millionaires, with 428 top earners per 100,000 taxpayers. Following closely was the Hochtaunus district near Frankfurt, which is home to many of the Hessian city's top bankers.
The Alps and the Zugspitze can be seen in the background of Lake Starnberg. Starnberg is the district with the most millionaires in Germany. Photo: picture alliance/dpa | Sven Hoppe
Eight out of the top ten districts and cities with the highest density of income millionaires are found in southern Germany. These include Starnberg, Miesbach, Memmingen, and Landshut in Bavaria, as well as Baden-Baden and Heidelberg in Baden-Württemberg.
How rich are Germans in general?
One prominent study that looks into the finances of private households in Germany is the "Private Haushalte und ihre Finanzen" - Private Households and Their Finances - which is conducted by the Bundesbank every three years.
The survey includes assets such as real estate, vehicles, bank deposits, and private pension and life insurance claims, as well as debts like mortgages and loans. The latest survey in 2021 reported that German households reached an average net wealth of €316,500, a record high over the past decade. Notably, between 2017 and 2021, average wealth surged by 36 percent.
The study also highlighted a significant rise in the median net wealth, i.e. the number between the highest and the lowest net worth. In 2021, the median net wealth was €106,600 - a dramatic increase of over 100 percent from 2011, when the median stood at €51,400.
The disparities between the average and median figures also reveal the uneven distribution of wealth: to belong to the wealthiest 10 percent of households, households need to have net wealth of at least €725,900.
READ ALSO: How much do you have to make to be considered rich in Germany?
On a broader scale, the "Sozio-oekonomisches Panel" - Socio-Economic Panel - conducted by the German Institute for Economic Research (DIW) annually surveys nearly 30,000 individuals from approximately 15,000 households. The report from 2019, using SOEP data for 2017, revealed an average individual net wealth of €108,449. In stark contrast, the median value stood at €26,260 - significantly lower than the average.
The DIW report also showed an encouraging trend in Germany's wealth landscape as, between 2012 and 2017, the average net wealth per person increased by nearly 22 percent.
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Of the approximately 46 million working people in Germany, nearly 30,000 earn more than €1 million per year. While these high-income earners are spread out across the country, a recent analysis by the Handelsblatt Research Institute has shown how unevenly distributed they are.
The study, conducted using income tax returns for the year 2019, found that there were 27,300 income millionaires in the year under review, marking an increase of about 1,200 compared to 2018. As tax returns are often prepared and audited several years later, the 2019 data is the most recent available.
READ ALSO: REVEALED: Where in Germany people earn the most (and least)
In the list of cities with the most millionaires per 100,000 people, Düsseldorf came out on top, with 172 millionaires per 100,000 taxpayers.
While the figures don't explain why so many high-earners choose to live in Düsseldorf, the city's strong economy and business-friendly environment, its proximity to the Rhine and its rich cultural and leisure offerings - as well as its reputation as a place for high fashion - likely contribute to its popularity.
North Rhine-Westphalia's second most populous city pipped the Bavarian capital Munich to the post, where there were 170 millionaires per 100,000 taxpayers. Baden-Württemberg's capital Stuttgart came in third place, with 142 per 100,000.
At the state level, Hamburg tops the list of the federal states with the most millionaires, with 124 per 100,000 taxpayers.
Meanwhile, Bavaria, known for its picturesque landscapes and mountains, experienced a surge in the number of millionaires, reaching 90 millionaires per 100,000 taxpayers, up from just 49 in 2015.
On the other end of the spectrum, the five eastern federal states - Brandenburg, Saxony, Saxony-Anhalt, Thuringia and Mecklenburg Western Pomerania - continue to rank at the bottom in terms of millionaire density.
Berlin saw the largest increase in millionaire concentration among the federal states within a year: the capital city gained around seven millionaires per 100,000 taxpayers, moving up two places to claim the sixth place. Schleswig-Holstein (plus six) and Bavaria (plus three) also saw notable increases.
READ ALSO: Germany ranks third worldwide in number of 'ultra-rich' residents
A completely different picture emerged when looking at the number of millionaires in smaller districts and urban areas.
Starnberg in Bavaria, located near Munich and the Alps, had by far the most millionaires, with 428 top earners per 100,000 taxpayers. Following closely was the Hochtaunus district near Frankfurt, which is home to many of the Hessian city's top bankers.
Eight out of the top ten districts and cities with the highest density of income millionaires are found in southern Germany. These include Starnberg, Miesbach, Memmingen, and Landshut in Bavaria, as well as Baden-Baden and Heidelberg in Baden-Württemberg.
How rich are Germans in general?
One prominent study that looks into the finances of private households in Germany is the "Private Haushalte und ihre Finanzen" - Private Households and Their Finances - which is conducted by the Bundesbank every three years.
The survey includes assets such as real estate, vehicles, bank deposits, and private pension and life insurance claims, as well as debts like mortgages and loans. The latest survey in 2021 reported that German households reached an average net wealth of €316,500, a record high over the past decade. Notably, between 2017 and 2021, average wealth surged by 36 percent.
The study also highlighted a significant rise in the median net wealth, i.e. the number between the highest and the lowest net worth. In 2021, the median net wealth was €106,600 - a dramatic increase of over 100 percent from 2011, when the median stood at €51,400.
The disparities between the average and median figures also reveal the uneven distribution of wealth: to belong to the wealthiest 10 percent of households, households need to have net wealth of at least €725,900.
READ ALSO: How much do you have to make to be considered rich in Germany?
On a broader scale, the "Sozio-oekonomisches Panel" - Socio-Economic Panel - conducted by the German Institute for Economic Research (DIW) annually surveys nearly 30,000 individuals from approximately 15,000 households. The report from 2019, using SOEP data for 2017, revealed an average individual net wealth of €108,449. In stark contrast, the median value stood at €26,260 - significantly lower than the average.
The DIW report also showed an encouraging trend in Germany's wealth landscape as, between 2012 and 2017, the average net wealth per person increased by nearly 22 percent.
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