The renowned international gallery Thaddaeus Ropac has opened a new branch in Milan, marking a significant expansion into Italy's growing contemporary art market. The gallery, which already operates locations in Salzburg, London, Paris, and Seoul, has chosen the prestigious Palazzo Belgioioso as its Milan headquarters, signaling confidence in Italy's emerging position as a major European art hub.
Elena Bonanno di Linguaglossa, who heads the Milan operation, explains the strategic decision behind the expansion. "We want to build a platform for our artists in Italy and strengthen contacts with museum directors and private collectors locally," she said. The gallery's inaugural exhibition features a carefully curated dialogue between German artist Georg Baselitz and Italian master Lucio Fontana, designed as a tribute to the city. Notably, only about one-third of the works in this museum-quality exhibition are available for sale, demonstrating the gallery's commitment to cultural engagement beyond commercial interests.
The timing of Thaddaeus Ropac's Milan opening coincides with significant changes in Italy's art market taxation. In early July, Italy reduced its value-added tax on art sales from 22 percent to just 5 percent, making it the most competitive art market in the entire European Union. The country also lowered import taxes for artworks from outside the EU from 10 percent to 5 percent. "Even compared to France's 5.5 percent VAT rate, this can make a huge difference for high-value works," Bonanno di Linguaglossa noted.
These tax reforms are already reshaping Italy's art landscape, according to gallery leaders. The new legislation is encouraging both domestic and international collectors to make purchases in Italy, driving up revenues for Italian galleries and likely spurring additional gallery openings. Italian auction houses are also benefiting from the reduced tax burden on sales commissions. "We are experiencing a real boom in the Italian art market right now," Bonanno di Linguaglossa observed.
Milan's emergence as a contemporary art hotspot reflects broader economic and cultural factors that distinguish it from Rome. The northern city benefits from the industrial wealth concentrated in Lombardy and Veneto regions, creating a substantial collector base. "Milan is generally richer because industry is located in Lombardy and Veneto," Bonanno di Linguaglossa explained. "Besides, Milanese people live more in the present and future. Since all of Rome is practically an open-air museum, how could one not prefer to look toward the past there?"
The influx of new wealth into Milan has been accelerated by generous tax incentives for foreigners who relocate their residence to Italy. However, this prosperity comes with challenges, as real estate prices have risen sharply, making it more difficult for newcomers to find suitable gallery spaces. Despite these hurdles, the concentration of money and avant-garde culture continues to attract contemporary art businesses to the city.
The art market expansion occurs against a backdrop of evolving collector behavior. Some significant collectors in Italy are temporarily reducing their acquisitions following the price surge that occurred during and after the COVID-19 pandemic. "There was euphoria during and shortly after the coronavirus pandemic, a buying frenzy that caused art prices to rise," Bonanno di Linguaglossa explained. "Collectors now understand this development, which is why they are reducing their new acquisitions."
For galleries navigating this changing landscape, relationships with public institutions have become increasingly important. These partnerships help mitigate market risks and prevent the formation of speculative bubbles. The next exhibition at Thaddaeus Ropac's Milan location will feature works by Valie Export and Ketty La Rocca, continuing the gallery's commitment to presenting significant contemporary artists to Italian audiences.
The Milan art scene's growth reflects a broader trend of contemporary art following capital and cultural vitality. With Italy's newly competitive tax structure and Milan's concentrated wealth, the city appears positioned to become a major player in the European contemporary art market, potentially challenging established centers like London and Paris.
