Austrian art dealer Thaddaeus Ropac is making a bold bet on Milan's art market potential. On September 20, he opened his newest gallery in the Italian fashion capital, strategically timing the launch just two weeks after Italy implemented a reduced 5% VAT rate on art sales and imports – the lowest in the European Union. The dealer believes this tax advantage, combined with other favorable economic changes, will transform Milan into a major art market hub.
Ropac's optimism stems from multiple factors aligning in Milan's favor. The UK government's recent abolishment of non-domiciled tax status has forced wealthy UK residents with homes elsewhere to pay taxes on foreign income, prompting an influx of millionaires to relocate from London to Milan. These wealthy individuals are drawn by Italy's generous tax-break schemes for expatriates, creating a growing pool of potential art buyers in the city.
"Sometimes I just get lucky," Ropac told The Art Newspaper from his chicly decorated office above the new Milan gallery, which occupies the first floor of the historic Palazzo Belgioioso. "When I told some of the Italian dealers I know in London I was opening this gallery, they said, 'You're crazy. We're leaving Italy.' But I just had a gut feeling about Milan."
The dealer's intuition has proven reliable in the past. When he opened a gallery in Seoul in 2021, colleagues questioned his decision, suggesting Hong Kong would be a better choice. Today, Seoul hosts Frieze art fair and major galleries including Pace and White Cube. Similarly, his 2012 decision to open a space in Pantin, on the outskirts of Paris, seemed risky at the time, but the area has since transformed from a suburban district into a trendy art destination as part of Greater Paris's rebranding.
Ropac began considering Milan three years ago, well before the recent tax changes in both the UK and Italy. "We came here because we feel it's an amazing place. Our artists are inspired, and people do great shows," he explained. While he maintains a tight-knit community of global collectors who follow his program internationally, he's also focused on developing local audiences and markets for his artists' work.
Italy's collector base is stronger than many realize, according to Ropac, with most concentrated in the northern regions. High-profile collectors including fashion designer Miuccia Prada, pharmaceutical entrepreneur Luigi Rovati, and Pirelli CEO Marco Tronchetti Provera have all opened museums in Milan. However, many other significant collectors operate quietly in the region, with Ropac estimating around 20 high-level collectors in Milan and Turin alone, many connected to fashion and related industries.
The dealer describes Milanese collectors as "a bit older, and very sophisticated." Over recent years, some have begun acquiring works by his top-tier contemporary artists, including Georg Baselitz (whom Ropac is currently showing alongside Lucio Fontana in Milan), Anselm Kiefer, and Adrian Ghenie. "Arte Povera added a lot of sophistication to the art collecting community in Milan," Ropac noted, adding that Minimal art has also been popular among locals, most notably with the late Giuseppe Panza di Biumo, who was Europe's largest Minimal art collector.
Laura Colnaghi Calissoni, president and CEO of textile group Carvico and a prominent Milanese collector, observes that many of her peers still focus on older art, with only a handful concentrating on modern and contemporary works. "This is possibly a result of the restricted market we've had in Italy for so long," she explained. "With the 5% tax, it's opening things up, so that is likely to benefit other areas of the market."
Colnaghi and her late husband began collecting about 40 years ago, focusing on 1960s art, primarily Italian but also American and British Pop art. Their collection includes works by Richard Hamilton, Peter Blake, Allen Jones, Peter Phillips, Antony Donaldson, Gerard Lange, Derek Boshier, Andy Warhol, Jim Dine, and Ed Ruscha, with Italian artists Fontana, Alberto Burri, and Piero Manzoni at its center. She's now expanding into contemporary art, acquiring pieces by Elmgreen & Dragset, Paola Pivi, Yan Pei-Ming, and Mike Lee.
The Italian art market may receive additional boosts in the future. Currently, Italy maintains strict export rules requiring government authorization for artworks over 70 years old to leave the country. "Together with curators and directors of very important museums, we are trying to develop a strategy to change this," Colnaghi said. "When our art goes abroad, it's always very good publicity for our country and for our artists. It's better than keeping it hidden in private collections with no visibility, or even worse, keeping it in warehouses."
London-based collector and cultural advisor Sigrid Kirk identifies several connection points between London and Milan, including the fashion industry and design sector. "And now, of course, you have this art corridor," she added. Kirk believes Italy's VAT changes will accelerate the non-dom exodus from London. "I know so many friends who are going to Milan. Some are going to Rome, but Milan is a hub where you've got young artists, but you've still got these important links to Turin and Bologna and these other really important art and manufacturing centers."
Kirk also notes the opening of several members' clubs in Milan, creating social infrastructure similar to London's art scene. "I think there is an echo of how London works in Milan," she concluded. "It's an exciting time for all of us." With favorable tax policies, an influx of wealthy expatriates, and a sophisticated local collecting community, Ropac's latest venture appears well-positioned to capitalize on Milan's emerging status as a major European art market destination.
