Bloomberg quotes Dominic Lawrance on the appeal of Italy for non-dom individuals considering relocating from the UK

Italy's financial capital, Milan, is emerging as a significant beneficiary in the aftermath of the UK's decision to end its non-dom tax regime. 

Milan, once considered a secondary financial hub, is capitalising on this opportunity by offering a flat tax rate of €200,000, which allows wealthy expatriates to avoid Italian taxes on overseas earnings. This system mirrors the UK's former non-dom regime, making Milan an attractive destination for those looking to maintain a foothold in Europe while enjoying a sunnier lifestyle and proximity to London.

The influx of affluent individuals into Milan is part of a broader trend known as "svuota Londra," or "empty London," which reflects the city's growing appeal as a tax-friendly haven. Italy's non-dom regime, introduced in 2017, has already attracted partners at private equity and investment firms, and the recent UK tax changes have provided fresh impetus for relocation. 

Dominic Lawrance, Partner, estimates that 60% of his clients that are leaving the UK are heading to Italy.

Speaking to Bloomberg, Dom says:

We should be following Italy’s lead...in the eyes of some, Italy took the best parts of the UK non-dom system and simplified it through the flat-rate levy based on residency instead of the more complex legal concept of domicile.

Read the full piece in Bloomberg (subscription required).