Just over a month ago, Dubai was the undisputed destination for wealthy seeking a tax-free haven. With no income tax and limitless luxury, the city offered an effortless blend of opulence and zero liability.
But as the United Arab Emirates(UAE) comes under Iranian fire, that reputation, cultivated in part by emigrant influencers, is rapidly eroding. Super-rich UK nationals are now looking for a route back to Europe, and Milan,
Italy’s financial centre, is climbing to the top of their list, reports the Guardian.
According to The Guardian, consultants who help multimillionaire families relocate say Italy’s flat-tax regime is the main draw. Foreign residents can pay just €300,000 (£259,620) per year on all overseas income, small change for the world’s wealthiest.
“Italy has the best benefits: a flat tax and good quality of life,” Armand Arton, a relocation consultant, told The Guardian. “People leaving the UAE can see themselves living in Rome or Milan quite easily as international, metropolitan centres.”
Milan is already home to some of Europe’s richest bankers, lawyers and investors. But local property experts say the city is transforming. “We have always been an international city but it is changing,” Diletta Giorgolo, who runs Sotheby’s residential real estate office in the Italian fashion capital, told The Guardian.
“We have had our special tax regime since 2017, but when the UK ended its non-dom status, we saw a wave of new buyers coming to Milan.”
That wave may now become a flood. With Dubai’s security suddenly in question and the UK’s non-domicile tax advantage removed, Milan offers a rare combination: European sophistication, proximity to London and other capitals, and a fixed annual tax bill that billionaires can cover with ease.
As The Guardian notes, the question now is whether Milan can truly become the new home of the ultra-wealthy. With golden visas being phased out across much of Europe, Italy’s flat-tax scheme remains one of the last great bargains for the global elite. For now, the smart money appears to be quietly moving south.
