Is Milan becoming Europe's new financial hub?
The well-heeled are increasingly fleeing Europe’s traditional financial hubs for Italy’s, such as Milan. It’s not hard to see why


Milan has always been Italy’s financial centre, but it has never had much of a role on the global stage, and as Italy’s economy has stagnated over the last 20 years, even its domestic role has not amounted to very much. Over the last few months, however, there are signs that Milan’s reputation is starting to change.
Last week, we learned that the private equity firm Three Hills Capital Partners was backing plans to open a private-member’s club in Milan, modelled on London’s Soho House chain. Its aim is to provide a networking hub for all the finance professionals moving to the city. The hedge fund Capstone opened up an office in Milan in January, and Eisler Capital, Andera Partners, Arcmont Asset Management and Certares Management have all established a presence in Milan over the past few years.
Major global banks, such as Goldman Sachs and JPMorgan, are expanding their trading operations there too, and Barclays moved into a new office in the city in 2022. Meanwhile, initial public offerings (IPOs) on the stock market are recovering.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Milan won the listing of the footwear brand Golden Goose, with a float worth almost $2 billion, and although its private equity owners pulled the deal at the last minute due to political turmoil across Europe, it is still likely to list in Milan eventually. In total, there were 39 new listings in Milan last year; admittedly, that is hardly a fantastic total, but it is more than London managed. Add it all up, and one point is clear. Milan is seeing a significant revival as a major financial centre. There are three reasons for that.
First, it has some very generous tax breaks, so long as you are not Italian. Anyone moving to the country can opt to pay a flat rate of €100,000 on their global income, and the rest of it is tax-free. Sure, that might seem like a lot of money to most of us, but if you are earning £1 million a year, as a small group of very successful people in finance do, then it is a pretty good deal. You pay £84,000, the current rate, in tax, and the rest you can keep.
It is a lot less than the 45% in income tax you would pay in London, especially if the new Labour government changes the rules on “carried interest” for private equity executives so that the money they make is taxed as income instead of as a capital gain. Italy has crafted a smart set of tax breaks that make it an attractive destination for genuinely high-earners, but that limit the numbers. With taxes going up everywhere else, that is going to make Milan an increasingly attractive choice.
How does Milan compare to its Europe counterparts?
Next, other financial centres have started to become a lot less welcoming. London is the most obvious example, with a crackdown on non-doms, the taxation of private equity partners and possibly a big increase in capital gains tax as well. It had already been turned into a relatively high-tax location under the Conservatives, but under Labour it will become even less friendly towards finance. Its main rival in Europe – Paris – is going the same way.
Germany may well be heading for the same sort of political crisis as France, which will make Frankfurt less attractive as well. Against that backdrop, a low-tax Italy, with relative political stability, looks very appealing.
Finally, Italy is growing again. By the end of 2023, its economy was 4.3% larger than before the pandemic, the strongest recovery of any of the major European countries, and ahead of Britain, Germany and France. It is forecast to expand by another 1% this year. Hardly a turbo-charged rate, but still significantly ahead of the 0.7% rate forecast for the eurozone as a whole.
After two decades of stagnation, that is a significant change. Sure, it received huge funds from the rest of the EU as part of the Covid Recovery Fund, and as that wears off its growth may weaken again. Even so, it means that the local economy is stronger and generates more business. Add in a great lifestyle, with excellent food, lots of stylish shops, and easy access to stunning lakes and beaches, and Milan has a lot going for it. Piece by piece, Milan is turning into a genuine alternative to London, Paris and Frankfurt – and it may soon turn into a real threat.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years.
He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.
-
What will the unravelling of US-China trade mean for the economy?
What will a US-China decoupling mean for the global economy?
-
Scottish Mortgage: why we’re turning to private companies and China for exceptional returns
When it comes to delivering growth, Scottish Mortgage will stop at no end in its hunt for exceptional long-term returns - this includes China, unicorn companies and sectors such as space exploration
-
Two ways to tap into monopoly profits from airports
Most investors can’t get their hands on airports. Here are two ways you can
-
Fat profits: should you invest in weight-loss drugs?
The latest weight-loss treatments could transform public health and the world economy. Should you invest?
-
How investors could profit from Ramsden Holdings' four-part growth strategy
Ramsdens Holdings offers a diversified set of financial and retail services and a juicy yield, says Dr Michael Tubbs
-
How to invest in the booming insurance market
The insurance sector is experiencing rapid growth after years of stagnation. Smart investors should buy in now, says Rupert Hargreaves
-
Out of America's shadow: Why Trump's tariff chaos may be good for non-US stocks
Opinion Upending global investment and trade could benefit other countries at the expense of the US market, says Cris Sholto Heaton
-
BP's 'long, painful decline' – and why next year could be even tougher
Opinion Long-suffering shareholders in oil giant BP have been pushing for change. It won’t come soon enough, says Matthew Lynn
-
Investment trusts tap the profits in exotic and obscure global markets
Opinion Peter Walls, manager of the Unicorn Mastertrust fund, highlights three investment trusts as he shares where he'd put his money
-
Falling revenues and mounting debt spell trouble for Jumia Technologies
Struggling African e-commerce platform Jumia Technologies looks headed for the exit, says Dr Matthew Partridge.