London’s ultra-wealthy private equity executives are packing up and heading for Italy, with estate agents reporting unprecedented demand for luxury homes in Milan and along the shores of Lake Como.
The shift follows the UK government’s decision to scrap its preferential tax regime for non-domiciled taxpayers and raise capital gains tax, measures that have triggered a mass departure of high-net-worth individuals.
More than 10,000 millionaires left the UK in 2024, according to New World Wealth and Henley & Partners. Some agents believe the true figure is far higher.
FNLondon reports Milan has emerged as the main beneficiary, with global buyout firms including Ares and Towerbrook recently establishing offices there.
But with prime apartments in short supply, advisers are increasingly directing clients to Lake Como, the picturesque retreat long favoured by celebrities such as George Clooney and Tom Cruise.
“To be honest, there is a lack of property in Milan,” said Danilo Orlando, head of residential at Savills Italy, who has already advised 10 UK investors on relocation plans this year.
“It’s very difficult to find a trophy apartment in Milan right now with all the features these people are looking for.”
In London, meanwhile, agents are feeling the impact of the outflow.
“I manage a portfolio for 37 billionaires. Ten of them have already left,” said Becky Fatemi, executive partner at Sotheby’s International Realty.
She described the situation as more severe than official data suggests, adding: “I think it’s more likely to be double that 10,000 figure.”
Fatemi noted that low-tax destinations are also struggling with limited stock.
“I’m flying out to Monaco every few weeks to find supply. There’s very little available,” she said.
Tax specialists confirm the exodus is accelerating.
“We are seeing a growing number of private equity professionals relocating, and this year has marked a clear step change,” said Jason Clatworthy, managing director at Alvarez & Marsal Tax.
“Italy and Switzerland remain the preferred destinations. I’ve not seen anything quite like this in my career.”
With Lake Como villas now competing with Milan penthouses as relocation favourites, the rush of financiers to Italy reflects both the impact of UK tax reforms and the willingness of a new generation of private equity professionals to move where incentives are most attractive.
