Why the super rich are leaving Dubai for Milan
What's the story
As the United Arab Emirates (UAE) faces Iranian missile attacks, wealthy Britons are looking for alternatives to Dubai. Once a favored destination for affluent individuals seeking tax-free living and lavish spending, Dubai's appeal is fading. Now, Milan, Italy's financial capital, is emerging as a potential new home for these ultra-rich individuals. Armand Arton, a consultant who helps wealthy families relocate via investment citizenship schemes says Italy has the best benefits: a flat tax and good quality of life.
Benefits
Italy's flat-tax regime and its appeal to the ultra-rich
Milan, already home to some of Europe's richest bankers and investors, is attracting super-rich UK nationals. Italy's flat-tax regime allows foreign residents to pay €300,000 a year on all overseas income. This is a small price for the world's wealthiest. Diletta Giorgolo, head of Sotheby's residential real estate office in Milan said, "We have had our special tax regime since 2017, but when the UK ended its non-dom status, we had a wave of new buyers coming to Milan."
Influx
Surge in interest from Gulf region's wealthy elite
Italy's flat-tax scheme has attracted around 5,000 people so far. Initially, many were Italians who had lived in London for a decade. But after the pandemic and the UK's decision to abolish the non-dom agreement, interest surged. Now, a new wave of wealthy migrants from the Gulf region is showing interest in Milan as their potential European base.
Market surge
Impact on Milan's property market
The influx of wealthy buyers has already started affecting Milan's property market. Over the past five years, property prices have shot up by 38%. In November 2025, Milan surpassed Venice as Italy's most expensive city with an average price of €5,171 per sq meter. Giorgolo estimates there are roughly 30-40% more international buyers in the market now than two years ago.
Tax incentives
Tax breaks and criticisms of 'tax dumping'
Italy also offers other tax breaks like Il rientro dei cervelli ("Return of the brains"), which lets new/returning residents who meet certain criteria pay tax on only 50% of their income for five years. But questions remain about how far it can push its flat-tax regime, which has increased from €100,000 in 2017 to €200,000 in 2024, and to €300,000 at the start of 2026. Despite criticisms of "tax dumping," Milan continues to attract luxury brands and cultural institutions.