Austrian art dealer Thaddaeus Ropac is opening a new gallery in Milan, his seventh location, despite initial concerns over Italy's high value-added tax (VAT) on art, which was Europe's highest at 22 percent. The Italian government slashed the VAT to 5 percent in June after pressure from art market players, making it the lowest in the EU. The gallery, spanning over 3,000 square feet in the 18th-century Palazzo Belgioioso, opens on September 20 with a show featuring Georg Baselitz and Lucio Fontana, followed by exhibitions of Valie Export and Ketty La Rocca. Elena Bonanno di Linguaglossa will serve as executive director.
This expansion matters because it signals Italy's growing appeal as an art market hub, driven by favorable tax changes and a post-Brexit influx of wealthy Europeans. Milan already hosts established galleries like Cardi Gallery, Kaufmann Repetto, and Massimo De Carlo, as well as major institutions like Fondazione Prada and Pirelli HangarBicocca. The city's low inheritance tax and flat-tax regime for non-domiciled residents are attracting collectors and dealers, positioning Italy as a competitive alternative to the UK. Ropac's move reflects a broader trend of international galleries expanding into Italy, underscoring the country's renewed relevance in the global art world.