Milan’s ‘Empty London’ Tax Bet Pays Off as UK Wealth Exits Soar

Italy’s plan to lure rich foreigners from the UK is known in private wealth circles as “svuota Londra” or “empty London.” Judging by the recent wave of departures, it’s working.

In just the past six weeks, a slew of well-heeled residents have left the UK in the fallout from Britain’s main political parties moving to scrap the preferential tax regime for non-domiciled taxpayers, or “non-doms.” Italy, and especially finance hub Milan, is emerging as an early winner after the favored status formally ended last month, attracting a range of wealthy emigrants from hedge fund managers to ex-CEOs and Middle Eastern billionaires.

Italy’s commercial capital — once seen ...