Economic and geopolitical uncertainties continue to haunt art-market players in the new year, with perhaps the notable exception of Thaddaeus Ropac. Against recent waves of closures and layoffs within the trade, the influential Austrian gallerist has ambitious expansion plans in 2025, with a new space to open in central Milan, Italy’s financial capital and a major seat of fashion and design.

Ropac’s new Milan space, due to open in early autumn, will be the gallery’s seventh outpost. Ropac’s first Italian base will occupy more than 3,000 square feet on the first floor of the historic Palazzo Belgioioso, just an eight-minute stroll from the iconic Duomo di Milano. The gallery will also be able to showcase outdoor sculptures at the Piazza Belgioioso, a public square outside the complex.

Industry veteran and former Lévy Gorvy Dayan senior director Elena Bonanno di Linguaglossa will serve as the executive director of the Milan outpost, the gallery announced on Thursday.

“To open a gallery, work on a program, build a team, and to go to a new place is a long-term plan. It does not really matter if you do this during a period that is strong and positive or going through a downturn,” Ropac said in a phone interview.

Elena Bonanno di Linguaglossa. Courtesy Thaddaeus Ropac gallery, London · Paris · Salzburg · Seoul
Photo: Adriano Mura.

He admitted that business has been challenging for the last two years, but that has not stopped the gallery from seeking opportunities for growth. Ropac cited the gallery’s 2021 opening of its Seoul space, a plan that went ahead despite lockdowns. “Those are temporary situations,” he said. “Our first motivation is, how can we reach more people for the artists we represent? How can we do more projects [that] excite our artists? Our motivation is not just to increase our business, which, of course, we also want to [do].”

The gallerist noted that having the “ultimate European gallery” has been part of a dream, and opening a new space in Italy is only a natural move after having opened spaces in Salzburg, London, and Paris. “We feel that Milan has a moment. We want to be there as one of the first international galleries,” he said, citing the experiences of being one of the first international players to open in Seoul.

Milan, which has played a significant role throughout art history and is home to many artists, has emerged as a more attractive option for expansion compared to Rome, Venice, and even Naples. In addition to its central geographical location in northern Italy, which is just a short flight away from other art cities in Europe, Milan is a financial capital with strong cultural offerings from design and fashion to contemporary art thanks to strong regional fairs like Miart. Additionally, along with nearby cities such as Turin and Bologna, it belongs to the country’s wealthiest region full of active collectors, according to Ropac.

Although Italy’s Value Added Tax (VAT) rate on art sales is not as favorable as some other EU countries—it currently stands at 22 percent on secondary-market sales, versus under 10 percent in France and Germany—a new EU directive that went into effect January 1 will force the Italian government to reconsider its tax regime.

Yet Italy has gained popularity among wealthy European individuals, particularly those from the U.K., where high-net-worth individuals are reportedly fleeing the country after it went ahead with the plan to cancel tax exemption of overseas income for “non-dom” residents by April this year. Despite the Italian government last year doubled the “flat tax” on the overseas income of wealthy new residents to €200,000 ($218,180) per annum, the country is still said to be appealing to some Europeans because of its low inheritance tax rate, which is between four percent and eight percent. The U.K., in comparison, has an inheritance tax rate of 40 percent above a £325,000 ($400,000) threshold.

Despite the U.K.’s embattled financial position post-Brexit, Ropac still has faith in London. “I know the market is worried about this. I am less so because I believe in London, as critically, [it is] is still the biggest European market,” he said. “There is this healthy rivalry between Paris and London but to be honest, the latter’s art market is still far bigger than any other place in Europe. The gallery will absolutely stay there.”

Gallerist Thaddaeus Ropac in Seoul. Frieze Seoul 2023. Photo by Lets Studio. Courtesy of Lets Studio and Frieze.

Ropac, who has been in the business for 43 years and calls himself a defender of physical spaces for galleries, said this year may prove “the beginning of a comeback” in the art market as inflation rates ebb, although looming tariffs under incoming U.S. president Donald Trump and geopolitical uncertainties remain. In addition to Europe, he said he wants to explore further opportunities in Asia, despite the the current political crisis in South Korea and China’s slowed economy growth.

“I think the first half of 2025 might still be challenging,” said Ropac. “But at the end of the year, I would say we will have a better year.”

In addition to launching its new space, the gallery will continue showcasing international artists in its physical spaces while exploring innovative approaches to engage younger audiences and address environmental challenges. In December, it appointed Laura Springer as global head of environmental sustainability to lead its new department and develop a comprehensive climate action plan.

Just before the holidays, the gallery also opened its first pop-up in St. Moritz in Switzerland. In collaboration with Georg and Emily von Opel, the space is currently showing an exhibition of works by Hans Josephsohn, which runs through February 28. Ropac noted he was not a fan of the idea of pop-up previously but his view has changed—if the right proposal comes along.