From London to Milan: Why Many Non-Doms Are Choosing Italy Over the UK

In recent years, a quiet but decisive shift has taken place among international professionals and high-net-worth individuals who once considered London their permanent base. With the gradual abolition of the UK’s non-dom regime and the tightening of global reporting obligations, many are now looking to Italy as the natural successor — a jurisdiction that combines fiscal predictability, European stability, and an enviable lifestyle.

This movement is not just anecdotal. Private bankers, law firms and relocation advisors are reporting a steady stream of clients who are leaving London and establishing residence in Milan, Florence, or the Italian Riviera — drawn by a combination of opportunity, elegance and clarity.

The End of the UK Non-Dom Era

For decades, the United Kingdom was the go-to destination for internationally mobile entrepreneurs and families seeking a tax-efficient base in a major financial hub. The non-domiciled regime allowed them to reside in the UK while keeping their foreign income outside the local tax net.

However, the system has been progressively dismantled, with time limits, increasing remittance charges and now a complete phase-out. This has left many successful individuals exposed to worldwide taxation in the UK — or forced to relocate to jurisdictions that still respect the concept of fiscal residency rather than global asset control.

As a result, what was once a cornerstone of London’s competitiveness has turned into a deterrent for global investors and entrepreneurs.

Italy’s Flat Tax as the Natural Alternative

Italy’s Flat Tax Regime has emerged as one of the few legitimate replacements for the non-dom system, but with a modern and simplified approach. Instead of complicated remittance rules and escalating charges, Italy offers a clear substitute tax of €200,000 per year on all foreign income, regardless of its amount or origin.

This solution provides both clarity and finality: no wealth tax, no foreign asset disclosure, and no additional levies on dividends, capital gains or offshore holdings. For those accustomed to the UK non-dom framework, Italy offers the same discretion with the added benefits of EU residence rights, Mediterranean lifestyle, and a fifteen-year guarantee of stability.

The Milan Advantage

While Italy’s tax regime applies nationwide, Milan has become the epicenter of this new relocation wave. The city offers an international business environment, direct connections to major global hubs, and a growing ecosystem of financial, tech and professional services.

For many who are leaving London, Milan feels familiar — cosmopolitan, efficient and business-oriented — but with the added appeal of proximity to Lake Como, the Alps and the Mediterranean. The cost of living, even in luxury neighborhoods, remains significantly lower than in central London, and the quality of housing is substantially higher.

Lifestyle, Schools and Connectivity

For international families, the decision to relocate often goes beyond taxation. Italy provides a sophisticated yet relaxed environment, with bilingual schools, top-tier healthcare, and easy access to European destinations. Cities like Milan, Florence and Rome offer English-speaking communities and international networks that make the transition seamless.

The combination of lifestyle and logistics makes Italy a “complete relocation” destination — one that appeals to entrepreneurs, investors and executives alike. Where London increasingly feels restrictive and costly, Italy feels open, elegant and rewarding.

Legal Certainty and International Credibility

A key advantage of Italy’s regime is its transparency and compliance within the EU framework. The Flat Tax is recognized by the Italian Revenue Agency and backed by legislation that provides certainty for fifteen years. This level of credibility distinguishes Italy from smaller, less regulated jurisdictions often viewed as offshore shelters.

For global entrepreneurs, this means they can maintain reputational integrity while optimizing their fiscal exposure. Their international banks, advisors and business partners can engage with Italy confidently, knowing the structure is compliant and sustainable.

A European Home for the Next Generation

The shift from London to Italy is not just about today’s tax efficiency — it’s also about creating a long-term European base for the next generation. Many families who have lived in the UK for decades are using this transition to reposition themselves within the EU, giving their children access to European education, travel and lifestyle.

Italy’s combination of culture, climate, safety and fiscal stability makes it uniquely suited to those who want to blend legacy with comfort.

Ready to Move from London to Milan?

We provide discreet, end-to-end support for individuals and families relocating from the UK to Italy under the Flat Tax Regime. From tax planning and legal setup to real estate, schooling and daily-life integration, we make the transition smooth and precise.

📩 Email: info@knotted.ch

📱 WhatsApp: +41 76 771 30 22