Effect Brexitbut also effect facilitated taxation for returns to Italy. The City of London is about to change address and land in Milan.
Goldman Sachs, announced it will move part of its euro swap trading desk from the number 25 of Shoe Ln in London away Santa Margherita in Milan already early next year. In addition, people at the local level will also be hired, adding to the 80 already present.
Same destination and same motivations also for jp morgan, present for over one hundred years in Italy, which is encouraging the transfer of its London bankers to the new spaces in via Cordusio (one step away from the offices of Goldman Sachs). Already the day after the announcement of Brexit Jpm had strengthened the Milanese staff with about twenty people bringing the total to about 200 and now about ten positions have been opened in the various business lines (investment banking, asset & wealth management, commercial bank). It is also on the list of major international investment banks that prefer Milan to London Citigroup, which has been reinforcing its staff in Italy for about 4 years, now counting around 230 people.
Brexit and favorable taxation favor migration
Certainly, the migration of some of the City's cornerstones to Milan was initiated by the announcement of the Brexit in 2016. But that's not all. Just around that time, the Renzi government decided to approve regulations to make the return of "money and brains" to Italy. According to these rules, which also apply to bankers, a person who has not been resident in Italy for at least two years can opt for a favorable regime which in the typical case leads to a 70% reduction on annual earned income for five years. Instead, all the rest of the taxes and social security contributions are paid normally,” he explains Andrea Tavecchio, founder of Studio Tavecchio e Associati, specialized in private clients, heard from Il Corriere. In addition the Gentiloni government introduced another rule, on the so-called “carried interest” that is, incentive tools for the management of funds and companies, which under certain conditions "are taxed as financial income (generally at 26%) and not as income from work (with a rate of up to 43%)" adds Tavecchio. In particular “A Milan a lot of qualified personnel from banks and private equity is being transferred because it is a city that is gaining a name for its infrastructure, efficient private healthcare, universities and foreign schools such as the French, German, English and American ones” he concludes. .
