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Last month, the UK ended its non-domiciled tax regime. This change had been announced in 2024, but its effective date was April 2025. The way this program worked was that if you lived in the UK but were "domiciled" somewhere else, you could limit the amount of taxes that you had to pay in the UK.
Only income and gains earned in the UK and foreign income and gains brought into the UK were taxed. If foreign income stayed abroad, it was not taxed. There was still an annual charge for long-term residents of the UK, but at a high level, this is how the tax regime worked.
The advantage for a rich people is that they could decide to reside in the UK because, hey, London is pretty cool, but at the same time they could nominate a lower-tax country as their domicile. For non-rich people, this became a controversial program, and so it was swapped for tax regime based on residency.
The reason I mention this is because it seems to be having a direct impact on Milan's real estate market. Since 2017, Italy has had a flat tax regime that allows new residents to pay a fixed annual tax rate of €200,000, regardless of how much money they earn abroad.
This has proven to be attractive among rich people and, between 2017 to 2022, the program attracted 2,730 individuals according to the Financial Times. But then the UK made its change and so Italy decided to colloquially rebrand its program to "svuota Londra", which translates to "empty London" in Italian.
It became about taking direct advantage of what the UK had done. And it seems to be working even better. In 2024, approximately 2,200 high-net-worth individuals relocated from the UK to Italy, with Milan being the primary destination. This has created a notable uptick in the luxury property market — more transactions and higher prices.
Whether you agree with these policy decisions or not, they will have an impact on the fortunes of London and Milan going forward. In 2023 alone, it is estimated that individuals holding "non-dom" status in the UK paid almost £9 billion in taxes and contributed to the creation of some 44,000 jobs.
Part of this is now flowing south to Milan.
Note: None of this is tax advice.
Cover photo by ANASTASIIA BUCHINSKAIA on Unsplash
Roncesvalles Avenue is a successful north-south main street in the west end of Toronto. I say successful, because it is truly a great street. It has transit, bike lanes, a fine-grained built form, and lots of interesting retail:
But it is somewhat unique in that a large section of it is a
Boy, population densities can be so misleading. The typical approach is to just take the number of people and divide it by a given area. This then gives you something like X number of "people per square kilometer." The problem with this approach is that there are countless factors that can skew your result.
Hong Kong, for instance, is really dense. But as a city, it also has a lot of green space, mountains, and other undeveloped areas. Only about a quarter of Hong Kong's land is developed. So when you divide total people by its administrative boundary area, it is going to appear less dense than it really is.
One alternative approach is to use a method known as population-weighted density. The way this works is that you take the average densities of smaller more granular subareas and then weight them by the population of each subarea. It is a little more complicated to calculate, but the overall intent is to try and capture a density figure that more accurately reflects what the average person experiences on the ground.
And this is exactly the method that Jonathan Nolan decided to use in his new website CityDensity.com. What his site allows you to do is compare population-weighted densities across various cities, and then see how it tapers off as you move outward from their city centers.
Once again, it is hard to beat Paris' supremely dense mid-rise built form:
Well, that is, until you check out Hong Kong:
Charts: CityDensity.com
Last month, the UK ended its non-domiciled tax regime. This change had been announced in 2024, but its effective date was April 2025. The way this program worked was that if you lived in the UK but were "domiciled" somewhere else, you could limit the amount of taxes that you had to pay in the UK.
Only income and gains earned in the UK and foreign income and gains brought into the UK were taxed. If foreign income stayed abroad, it was not taxed. There was still an annual charge for long-term residents of the UK, but at a high level, this is how the tax regime worked.
The advantage for a rich people is that they could decide to reside in the UK because, hey, London is pretty cool, but at the same time they could nominate a lower-tax country as their domicile. For non-rich people, this became a controversial program, and so it was swapped for tax regime based on residency.
The reason I mention this is because it seems to be having a direct impact on Milan's real estate market. Since 2017, Italy has had a flat tax regime that allows new residents to pay a fixed annual tax rate of €200,000, regardless of how much money they earn abroad.
This has proven to be attractive among rich people and, between 2017 to 2022, the program attracted 2,730 individuals according to the Financial Times. But then the UK made its change and so Italy decided to colloquially rebrand its program to "svuota Londra", which translates to "empty London" in Italian.
It became about taking direct advantage of what the UK had done. And it seems to be working even better. In 2024, approximately 2,200 high-net-worth individuals relocated from the UK to Italy, with Milan being the primary destination. This has created a notable uptick in the luxury property market — more transactions and higher prices.
Whether you agree with these policy decisions or not, they will have an impact on the fortunes of London and Milan going forward. In 2023 alone, it is estimated that individuals holding "non-dom" status in the UK paid almost £9 billion in taxes and contributed to the creation of some 44,000 jobs.
Part of this is now flowing south to Milan.
Note: None of this is tax advice.
Cover photo by ANASTASIIA BUCHINSKAIA on Unsplash
Roncesvalles Avenue is a successful north-south main street in the west end of Toronto. I say successful, because it is truly a great street. It has transit, bike lanes, a fine-grained built form, and lots of interesting retail:
But it is somewhat unique in that a large section of it is a
Boy, population densities can be so misleading. The typical approach is to just take the number of people and divide it by a given area. This then gives you something like X number of "people per square kilometer." The problem with this approach is that there are countless factors that can skew your result.
Hong Kong, for instance, is really dense. But as a city, it also has a lot of green space, mountains, and other undeveloped areas. Only about a quarter of Hong Kong's land is developed. So when you divide total people by its administrative boundary area, it is going to appear less dense than it really is.
One alternative approach is to use a method known as population-weighted density. The way this works is that you take the average densities of smaller more granular subareas and then weight them by the population of each subarea. It is a little more complicated to calculate, but the overall intent is to try and capture a density figure that more accurately reflects what the average person experiences on the ground.
And this is exactly the method that Jonathan Nolan decided to use in his new website CityDensity.com. What his site allows you to do is compare population-weighted densities across various cities, and then see how it tapers off as you move outward from their city centers.
Once again, it is hard to beat Paris' supremely dense mid-rise built form:
Well, that is, until you check out Hong Kong:
Charts: CityDensity.com
This obviously isn't a fatal flaw. It remains a wonderful street. And there are lots of examples of thriving one-sided retail streets. Ocean Drive in Miami Beach immediately comes to mind (notwithstanding the fact that locals tend not to go to it).
But conventional retail wisdom does dictate that two sides are better than one. Consider this 2023 report by Cushman & Wakefield ranking the top global main streets across the world. All of the streets that I have been to before are two-sided:
5th Avenue in New York between 49th and 60th (above 60th is, incidentally, when the street converts to single-sided because of Central Park)
Montenapoleone in Milan
The main street of Tsim Sha Tsui in Hong Kong
New Bond Street in London
Avenues des Champs-Élysées in Paris
Grafton Street in in Dublin
Passeig de Gracia in Barcelona
Bloor Street in Toronto
These are all two-sided retail streets.
None of this is to say that the west side of Roncesvalles has nothing going on. It has a diverse mixture of uses, including churches, libraries, apartments, and many other things. But I think there is still an argument to be made that it has been hamstrung by restrictive zoning.
That said, Roncevalles is defined as a "major street" in Toronto's Official Plan and so it does fall under the city's new Major Street Study. Maybe that changes things.
This obviously isn't a fatal flaw. It remains a wonderful street. And there are lots of examples of thriving one-sided retail streets. Ocean Drive in Miami Beach immediately comes to mind (notwithstanding the fact that locals tend not to go to it).
But conventional retail wisdom does dictate that two sides are better than one. Consider this 2023 report by Cushman & Wakefield ranking the top global main streets across the world. All of the streets that I have been to before are two-sided:
5th Avenue in New York between 49th and 60th (above 60th is, incidentally, when the street converts to single-sided because of Central Park)
Montenapoleone in Milan
The main street of Tsim Sha Tsui in Hong Kong
New Bond Street in London
Avenues des Champs-Élysées in Paris
Grafton Street in in Dublin
Passeig de Gracia in Barcelona
Bloor Street in Toronto
These are all two-sided retail streets.
None of this is to say that the west side of Roncesvalles has nothing going on. It has a diverse mixture of uses, including churches, libraries, apartments, and many other things. But I think there is still an argument to be made that it has been hamstrung by restrictive zoning.
That said, Roncevalles is defined as a "major street" in Toronto's Official Plan and so it does fall under the city's new Major Street Study. Maybe that changes things.
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