As the tensions and violence in the Gulf region spark an exodus from Dubai, many of the city’s wealthy former residents are heading to Milan. Though the city may not be the new Dubai, said Eastern Eye, it has become a “strategic second home for global elites” and a “compelling alternative for those prioritizing European stability.”
Obsession with reinvention Italy’s flat-tax regime means that foreign residents pay $353,830 a year on all overseas income, which is “small change for the world’s wealthiest,” said The Guardian. Interest in living in Italy was taking off even before the Iran war, after Britain scrapped its non-domiciled status (a former tax classification for residents whose permanent home is outside the U.K., allowing them to pay U.K. tax only) and Portugal tightened similar rules.
But “tax policy alone does not explain the surge,” said the Economic Times. Italy’s “strong legal framework, EU membership and relatively stable economy” also make it a “compelling choice” for the privileged. As wealthy families move to “safer European bases,” Milan, in particular, is enjoying “historic spikes” in luxury real estate sales, with property prices in the city rising by 38% over five years.
“Unlike more poetic cities like Rome or Venice,” said The Times, Milan “actually works” and doesn’t have an issue with “overtourism.” Its “strategic location” offers “easy access to the lakes, mountains and coast,” and there’s an “obsession” with “reinvention,” so there’s “always something new to see or do.”
Hotels, restaurants, bars and private members’ clubs are “cranking up the standards of hospitality” in Milan, which is also home to the Borsa Italiana stock exchange, leading banks and global fashion houses. And the “tap-in, tap-out” metro means commuters and visitors can “whizz around the city quicker than ever,” while a new “superfast” railway links the city center and Linate airport.
Tax dumping Whether Milan can permanently dethrone Dubai in the affections of the super-rich “remains to be seen,” said The Guardian. There are “still questions” about “how far Italy can push its advantage,” and French former Prime Minister François Bayrou has accused Italy of “tax dumping,” an allegation that Italian Prime Minister Giorgia Meloni dismissed as “utterly baseless.”
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