However, as the United Arab Emirates (UAE) comes under Iranian fire, Dubai's reputation as a haven for the global elite is being tarnished. Super-rich UK nationals are now seeking a way back to Europe, and Milan, Italy's financial hub, is climbing to the top of the list. "Italy has the best benefits: a fixed tax and a good quality of life. People leaving the UAE can easily picture themselves in Rome or Milan as international, metropolitan centers," says Armand Arton, a consultant who helps multimillionaire and billionaire families relocate through investment citizenship programs. It's not hard to see why Milan, already home to some of Europe's wealthiest bankers, lawyers, and investors, has become such a popular choice. Under Italy's fixed-tax regime, foreign residents can pay €300,000 annually on all foreign income, a "drop in the bucket" for the world's wealthiest. "We have always been an international city, but that is changing. We've had a special tax regime since 2017, but when the UK abolished its non-domiciled status, we saw a wave of new buyers coming to Milan," says Diletta Giorgolo, who heads Sotheby's real estate office in Italy's economic and fashion capital. Now, as the next wave of wealthy migrants turns its attention to the city, could Milan become the new home of the ultra-rich? The Gulf war has already triggered an exodus of wealthy British citizens, though not all wish to return home. As reported by British media, for many Europeans, Italy is the best option. Unlike the stricter UK rules, new Italian residents who haven't paid taxes in the country for at least nine of the last 10 years don't have to pay tax on their foreign income, instead paying an annual fixed tax of €300,000. They are then taxed on their Italian income and capital gains from investments within five years of choosing the fixed-tax option. Marc Acheson of financial planning firm Utmost Wealth Solutions says Italy's appeal has grown as the UK has become relatively less attractive to the super-rich. Stories in Milan are so widespread that the Italian rule is called the "London loophole" or "evacuate London." "Although Italy had its fixed-tax regime in 2017, at that time it was €100,000 and didn't attract a flood of people. The abolition of the non-dom regime is what really sparked interest, and it happened just as Portugal tightened its rules. The regime is simple, and people like it. Italy is a beautiful country, Milan has a deep financial services sector, many of the things that make London attractive, Milan has too," adds Acheson. Roberto Bonomi, a partner at law firm Withers, adds that Italy has also shed its reputation as a politically unstable destination. Italian Prime Minister Giorgia Meloni, in office since 2022, came to power with openly far-right policies, though she appears to have softened her ideology. "Initially, there was some skepticism, but after nine years, we've shown it's a stable system. Clients are no longer afraid of Italy, and recent events show uncertainty exists everywhere," says Bonomi.
The Sweet Life at a Price According to estimates by Maisto e Associati, an Italian law firm specializing in taxes, around 5,000 people have joined Italy's fixed-tax system so far. "Initially, many applicants were Italians living in London. They typically worked in banking, insurance, or asset management. They had been in the UK for the last ten years and wanted to return to Italy for personal and tax reasons. However, after the pandemic, more people started coming, there was an exponential increase, and then again especially after the Tories announced they would abolish the non-dom agreement," says Marco Cerrato, a partner at the firm. Arton says another wave of interest is now coming from the Gulf. "Italy processes applications quickly. So, it mainly attracts people leaving the region who want to move to Europe and benefit from the fixed tax and quality of life," he added. The influx of the new, wealthy community is already impacting price growth in Milan. Property prices have risen by 38 percent over the past five years, according to real estate agency Knight Frank. Milan recently overtook Venice as Italy's most expensive city, with an average price of €5,171 per square meter in November 2025, according to Italian real estate portal Idealista. Increases are even greater in some of the most sought-after areas, such as Sant'Ambrogio, Brera, San Marco, or Cinque Vie, near the Duomo. Giorgolo estimates there are now between 30 percent and 40 percent more international buyers in the market than just two years ago. "Previously, international buyers were looking for a second home in Milan or maybe on Lake Como, but now they're seeking residency in Italy. They want to be close to good international schools and major airports," she notes. Other tax incentives include "Il rientro dei cervelli" ("The Return of Brains"), which allows new or returning Italian residents who meet certain criteria to pay tax on only 50 percent of their income for five years. Larger reductions are also available for some residents. However, the million-dollar question is whether there is an upper limit to Italy's fixed-tax regime, which increased from €100,000 in 2017 to €200,000 in 2024, and to €300,000 at the start of this year. "The Italian government said they want to increase the fixed tax because they want to build the country; we don't want unfair competition against other countries," says Bonomi. Questions remain about how far Italy can leverage its advantage. Last year, former French Prime Minister Francois Bayrou accused Italy of "tax dumping," claims Meloni dismissed as completely unfounded. Meanwhile, life in Milan is changing rapidly. Like Dubai, galleries, member clubs, and hotels are expanding. The Italian government reduced VAT on the sale and import of artworks from 22 percent to 5 percent, one of the lowest rates in Europe, prompting galleries like Thaddaeus Ropac to expand in the city. In 2024, the luxury Via Monte Napoleone overtook New York's Upper Fifth Avenue as the world's most expensive shopping street. Brands are following the new wave of money, including new outposts for private member clubs Casa Cipriani and Soho House. The same changes are happening in Rome. The Rosewood and Four Seasons hotels are set to open in 2026 and 2027, respectively. "The expat community has brought many changes to Milan, as well as Rome. Milan has always been an international city during major events like fashion weeks, but now it's about expats living here and changing the city year-round," adds Giorgolo. However, whether the city can succeed in dethroning Dubai as the center of the global elite remains to be seen. "I am convinced Dubai will recover from the current security doubt issue. It may no longer suit everyone, but there will still be certain groups who find Dubai very attractive because there simply aren't many other places in the world that offer the same combination of opportunities and quality of life," says Arton.