Once known primarily as Italy’s fashion capital, Milan is rapidly transforming into a magnet for wealthy expatriates and high-level executives, reshaping the city’s economy, culture, and property market.
A Surge in New Arrivals
In March, international removal trucks lining the cobbled streets of Milan’s Brera district signaled the scale of change: an influx of affluent newcomers drawn to Italy’s financial hub. A senior banking executive described the phenomenon as “an explosion of arrivals.”
The shift is driven by Italy’s attractive tax regime, launched in 2016 under then–Prime Minister Matteo Renzi, and intensified after the UK scrapped its centuries-old non-domiciled tax rules earlier this year. The change exposed foreign residents in Britain to steep inheritance and income taxes, prompting many to relocate.
Italy, by contrast, offers a flat €200,000 annual tax on foreign income and assets for up to 15 years, with full exemption from inheritance tax on foreign holdings. Returning Italians and foreign professionals also benefit from a 50% income tax reduction for five years.
High-Profile Moves and Corporate Expansion
Milan has since attracted an array of prominent figures: Egyptian billionaire Nassef Sawiris, co-owner of Aston Villa football club; Richard Gnodde, vice-chair of Goldman Sachs; and Yoël Zaoui, co-founder of Zaoui & Co. Luxury conglomerate heir Frédéric Arnault of LVMH splits his time between Paris and Milan.
Private equity and hedge funds are also expanding. Firms such as CVC Capital Partners, Ares Management, and Point72 Asset Management have established or enlarged offices in the city. Executives cite not just tax advantages but Milan’s connectivity, lifestyle, and investment opportunities in Italy’s family-owned businesses.
Real Estate Pressure
The influx has placed significant strain on Milan’s housing market. Demand for luxury “trophy assets” has surged, with penthouses exceeding $8–10 million in central districts. According to Savills, prime rents have risen more than 14% over five years, outpacing Rome. While Milan still trails London on a per-square-foot basis (€1,520 vs. €1,920), property prices have climbed sharply, fueled by expats accustomed to paying London or Paris rates.
Hotels such as the Four Seasons and Mandarin Oriental have even been used as temporary residences for relocating financiers. Some newcomers unable to find suitable homes in Milan have turned to nearby Switzerland, purchasing estates in Lugano.
A Changing Social and Cultural Scene
The wave of foreign residents has reshaped Milan’s social life. London-style private clubs like The Wilde and Casa Cipriani have opened, with Soho House and galleries such as Thaddaeus Ropac soon joining. Luxury hospitality is also expanding, with Rocco Forte Hotels’ Carlton Milan scheduled to open in November.
While many welcome the vibrancy, some Milanese complain the city feels “less authentic” and socially polarized, especially as new arrivals often earn London-level salaries far higher than locals. Traditional Milanese clubs have expressed skepticism about the relevance of these new social spaces.
Challenges and Concerns
Despite the boom, Milan faces challenges. Air quality, limited green spaces, and heavy bureaucracy remain barriers. Critics note that Italy’s broader economy lags behind global peers, offering fewer opportunities for ambitious younger professionals compared to the US or UAE.
The city’s property boom has also triggered scrutiny. Developer Manfredi Catella, CEO of Coima, and other figures were investigated in July over corruption allegations tied to Milan’s rapid real estate expansion, though most have since been released pending further inquiries.
Outlook
For now, Milan’s status as a global expat hub appears secure. Tax incentives, international connectivity, and Italy’s lifestyle appeal continue to draw in financiers, entrepreneurs, and families from London, Paris, and beyond.
As one private equity executive put it: “I wouldn’t move for Dubai’s zero tax. But Milan offers quality of life, culture, and opportunity — with a dolce vita twist.”
