Strengthening Our Global Connections: Key Insights from the Alliott Global Alliance EMEA Conference

Baumgartners recently attended the Alliott Global Alliance EMEA Conference in Milan, gaining valuable insights into international tax planning, global mobility, wealth transfer trends and the growing role of artificial intelligence in professional services.

Key discussions included Italy's attractive tax regimes for new residents, cross-border advisory opportunities, and how firms are leveraging AI while maintaining professional judgement and client trust.
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At Baumgartners we believe that delivering exceptional advice requires more than local expertise. Through our membership of the Alliott Global Alliance (AGA), we maintain strong relationships with leading accounting and legal firms across the globe, giving our clients access to trusted advisers wherever business and personal opportunities arise.

This week, Partners Alex Vrahos and David Baumgartner attended the Alliott Global Alliance EMEA (Europe, Middle East and Africa) Conference in Milan, Italy. The conference brought together professionals from around the world to discuss some of the most significant trends shaping the future of advisory services, including international tax planning, global mobility, intergenerational wealth transfer, and the growing role of artificial intelligence.

Below are some of the key insights and takeaways from the conference.

1. Italy's Attractive Tax Regimes for New Residents

One of the most interesting discussions centred on Italy's ongoing efforts to attract internationally mobile individuals, retirees and high-net-worth families through a range of favourable tax incentives.

a) Italy's Flat Tax Regime
Italy's flagship incentive provides a simplified and highly predictable tax outcome for wealthy individuals relocating to the country.

Under the regime:
• A fixed annual tax of €300,000 (approximately AUD $490,000) applies to all foreign-sourced income, regardless of the amount earned.
• No progressive tax rates apply to foreign income.
• Eligible family members can be included for an additional fixed annual tax of €25,000 per person.

For families looking to establish a European base while maintaining international investments and business interests, the regime can provide significant certainty and simplicity. Similar programs are also available in countries such as Switzerland and Greece.

b) Pensioner Regime
Italy also offers an attractive regime for retirees receiving foreign pensions.

Key features include:
• A flat 7% tax rate on foreign pension income.
• Availability for up to 10 years.
• No wealth tax on foreign assets.
• Simplified tax compliance obligations.

These concessions continue to position Italy as an attractive destination for retirees seeking a European lifestyle without excessive tax complexity.

2. Planning Before Relocation is Essential

While these opportunities can be attractive, international relocations require careful planning. Matters such as managing an exit from Australian tax residency, avoiding dual residency issues, and restructuring entities / assets prior to migration can have significant tax consequences.

Through our Alliott Global Alliance network, we can connect clients with trusted local advisers who can assist with every stage of the relocation process and coordinate advice across jurisdictions.

3. Global Mobility Continues to Grow

As businesses increasingly operate across borders, global mobility was another major theme throughout the conference.

The Alliott Global Alliance has become a genuine alternative to larger international advisory networks, having participated in numerous global mobility tenders over the past 12 months and securing several significant engagements.

For businesses relocating employees internationally, access to experienced accountants, tax advisers and lawyers in multiple jurisdictions is critical. Equally important is receiving practical, personalised advice without the complexity and cost often associated with larger global firms.

Conference discussions focused on developing greater consistency across member firms in service delivery, scope, pricing and technical competency to ensure clients receive a seamless experience regardless of where they operate.

4. The Great Wealth Transfer and the Changing Role of the Trusted Adviser

A particularly thought-provoking presentation was delivered by Citibank's Head of Global Client Services on the topic: "The Advisor's New World: Navigating Wealth, Mobility and New Asset Classes."

The presentation explored several major trends reshaping the advisory landscape:
• The largest intergenerational wealth transfer in history.
• Increasing global mobility of families and business owners.
• Growth in digital assets and alternative investments.
• The impact of artificial intelligence on decision-making and advisory services.

The key message was clear: while technology and investment markets continue to evolve rapidly, the importance of trusted relationships and collaboration between advisers remains paramount.

As families, businesses and assets become increasingly international, clients need advisers who can coordinate expertise across multiple jurisdictions and disciplines.

5. Artificial Intelligence in Professional Services

Artificial intelligence was unsurprisingly one of the most discussed topics among member firms.

While adoption is accelerating, most firms are taking a measured and pragmatic approach, focusing on areas where AI can enhance efficiency while maintaining appropriate professional oversight.

Current applications include:
• Improving the clarity and readability of written communications.
• Streamlining bank feed and transaction processing.
• Supporting billing and debt collection workflows.
• Automating lower-level administrative and data processing tasks.

However, conference participants also highlighted several risks associated with AI-generated advice, including:
• Fabricated or inaccurate information ("hallucinations").
• Incomplete analysis.
• Incorrect conclusions.
• Uncertainty regarding legal admissibility and professional responsibility.

The consensus among firms was that AI is proving valuable as a review and productivity tool rather than a replacement for professional judgement. Human expertise, critical thinking and experience remain essential components of quality advice.

Another emerging challenge is measuring return on investment. Many firms are investing significant time and resources into AI initiatives, making governance, oversight and performance measurement increasingly important.

What This Means for Our Clients

Our ongoing participation in international forums such as the Alliott Global Alliance conference helps ensure that Baumgartners remains at the forefront of emerging developments affecting business owners, investors and families.

By maintaining strong global relationships, we are able to:
• Stay informed about international tax and business developments.
• Provide access to trusted advisers across the world.
• Coordinate cross-border advice efficiently.
• Deliver practical, globally informed solutions tailored to our clients' needs.

Whether you are considering an international relocation, expanding your business overseas, managing globally held assets or planning for future generations, our team can help connect you with the right expertise both locally and internationally.

At Baumgartners, we are committed to bringing together the right people from around the world to help our clients navigate local and global opportunities with confidence.