Should I be tempted by Italy’s tax break for expats?

Dear TITL,

Your question captures a dilemma that’s becoming increasingly familiar in the post-Brexit era — how to balance the draw of international client coverage with the gravitational pull of London’s capital markets hub. And while Italy’s tax regime for new residents may seem like a compelling incentive, it’s important to consider what you’re optimising for: short-term savings or long-term relevance.

To begin with, you’re absolutely right that relocating to the EU can make client access easier. Since Brexit, many clients — particularly those in regulated sectors or with domestic mandates — prefer to work with bankers inside the bloc. In fact, current regulations may even require at least one EU-based banker to be present in meetings with EU clients.

If your bank supports the move and sees strategic value in having you closer to European clients, Milan could strengthen your position.

However, don’t take this as permission to disconnect entirely from London. Geography remains critical, especially in capital markets. The spontaneous corridor conversations, deal team huddles and last-minute pitch adjustments still happen in person, and most of that activity is concentrated in London.

Working remotely or from another office often means missing those moments, and over time, that could hurt your internal visibility, influence, and ability to deliver results.

This is particularly acute at the director level. It’s a time when you’re expected to originate, lead and prove that you’re ready to take the step up to managing director. Sponsorship, access and internal political capital can be decisive, and they are hard to get when you’re not part of the daily rhythm of the main office. Out of sight, unfortunately, still often means out of mind.

Now, let’s tackle the tax elephant in the room. Italy’s special regime for new residents — under which qualifying individuals can elect to pay a flat €200,000 annual tax on their foreign income — certainly gets attention.

But it also highlights the risk of making career decisions based on fiscal incentives. The rate was €100,000 not long ago. It has now doubled. That alone should remind you how quickly these regimes can change, especially in politically febrile times.

What’s more, such benefits are usually time-limited and subject to eligibility reviews. Structuring your career around a tax perk is like building a house on rented land — attractive in the moment, but not something you can count on for the long haul.

If tax efficiency were the primary goal, you’d be looking at places like Dubai, Hong Kong or Singapore. But you’re not, and that’s telling. You know there’s more to this than a lower headline rate.

What you should be optimising for is strategic position — not just geographically, but within your firm and within your client base. Ask yourself: will the move expand your commercial footprint? Will it allow you to lead more, originate more and deepen your franchise? Will it make you more or less visible to the people who make promotion decisions?

The best relocations are those that align your interests with those of your firm. If moving to Italy helps the bank win more business, and if your leadership is fully behind it, then the move can make sense, even if you lose a bit of proximity to the London HQ.

But if the bank doesn’t see it as a priority, or if the move is primarily about saving on your tax bill, you’re probably trading relevance for tax savings, and that’s rarely a good trade.

In capital markets, your most valuable asset isn’t take-home pay, but rather proximity to the action and the trust of your stakeholders. Choose the path that strengthens your positioning, not just your payslip. The tax tail should never wag the career dog.

Yours for the long haul,

Craig