Rome Times

The Eternal Voice of Italy
Thursday, Apr 03, 2025

Billionaires Exit London for Milan Amid Changes in Tax Regulations

Notable shifts in residency among wealthy individuals fueled by new UK tax policies and attractive options in Italy.
The trend of billionaires leaving London has gained momentum as high-profile figures seek more favorable tax regimes due to changes in UK policy.

Lakshmi Mittal, the Indian steel magnate, is reportedly considering relocating from the United Kingdom following the Labour government's decision to abolish the non-domicile tax status, which has allowed many wealthy foreign nationals residing in the UK to avoid paying UK taxes on their overseas income.

Mittal, who has lived in the UK for thirty years and was ranked last year as having the seventh largest fortune in Britain, estimated at £14.9 billion (approximately €17.5 billion), has communicated to his circle that he is likely to depart to a jurisdiction with less stringent tax regulations.

His potential relocation destinations include Dubai, Switzerland, or Italy.

Mittal, who controls 40% of ArcelorMittal, the world's second-largest steelmaker, and has been notably involved in the troubled Ilva case in Italy, boasts numerous properties globally, including a chalet in St. Moritz, Switzerland, and several residences across Europe, the United States, and Asia.

His London residence, situated in Kensington Palace Gardens, was acquired in 2004 for £67 million and was once the most expensive home in the world, equivalent today to about £121.5 million when accounting for current exchange rates and inflation.

The Labour government's overhaul of the non-domiciled tax regime, which has existed for over two centuries, was confirmed in the financial legislation introduced by Chancellor Rachel Reeves last October.

This policy shift has encouraged various affluent individuals to explore alternative locations with more favorable tax offerings.

In addition, the government has ended the use of offshore trusts to avoid the 40% inheritance tax, further prompting wealthy residents to reevaluate their domicile.

Italy, particularly Milan, has become an attractive destination for these wealthy expatriates due to a flat tax regime introduced in 2017. As reported, approximately half of the 4,500 individuals benefiting from this flat tax scheme have opted for Milan as their primary residence.

This system imposes a fixed annual tax of €100,000 on foreign income, which is set to double to €200,000 in 2024. Despite this increase, Italy continues to draw a rising number of high-net-worth individuals.

The influx of affluent newcomers is starting to have a significant impact on the local real estate market, driving up luxury property prices and putting pressure on the broader market as well, prompting criticism from local residents.

Bernard Arnault, the 76-year-old founder, chairman, and CEO of LVMH and the world’s fourth-richest individual with an estimated net worth of $176.7 billion, is also considering Milan as a potential new residence.

In December 2022, Arnault acquired the historic Casa degli Atellani on Corso Magenta, a Renaissance building known for housing Leonardo da Vinci's vineyard, gifted by Ludovico il Moro in 1498. Reports suggest he initially explored converting Casa degli Atellani into a hospitality establishment but is now leaning towards making it his primary residence—a decision potentially influenced by Italy's tax benefits for new residents.

In January 2023, Arnault publicly dismissed speculation about relocating LVMH's headquarters, indicating that while proposed tax measures in France could prompt relocations, there were no plans to shift the company.

However, this does not preclude him from altering his personal residency and tax domicile.
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