How Milan is becoming the new Monaco for rich Britons

Goldman Sachs vice-chair Richard Gnodde made headlines last week for embracing la dolce vita. He’s the most prominent example of a trend that has strengthened since last summer when the new Labour government made clear it would go ahead with a promised crackdown on wealthy foreigners already worried by Conservative changes to rules that once made London the world’s favourite tax haven.

From 2023 to 2028 Swiss bank UBS forecasts there will be a 17% fall in the number of millionaires living in Britain, even before Labour’s changes to non-dom taxation. In the same period, the bank predicts a 9% increase for Italy, which in 2017 introduced a flat tax of €100,000 for foreigners on their worldwide income. It increased to €200,000 last year.

The grumble now is that Milan is becoming too popular. One wealthy exile complains that “there’s two international schools. One of them is a 45-minute ride, and they’re both full. Housing is very difficult to get.” Property prices are soaring, especially in the fancier neighbourhoods of Brera and the Quadrilatero. It’s not One Hyde Park, but, still.

Fleeing non-doms are finding plenty of options. Monaco is the classic; retailer Philip Green and EasyJet’s Stelios Haji-Ioannou moved there decades ago. Yet the principality feels a tad overcrowded and bland nowadays, especially for those accustomed to the vibrant clubbing and cultural scene of Mayfair and the West End. It’s not as dull as Switzerland, of course, but the harbour is gridlocked with mega yachts, the Grand Prix is expensively unexciting, and after the first couple of cocktail parties chez Prince Albert, well, been there, done that.

Milan’s attractions are hard to beat. A thriving business centre, strong on finance, fashion and, increasingly, tech, within easy reach of great skiing, country villas and the playground of Lake Como. It offers top football teams, opera and, as one recent export from London puts it, who doesn’t love Italian food?