Upsilon Gallery is set to become the latest international art dealer to establish a presence in Milan, as the Italian city continues to attract galleries hoping to capitalize on its emerging status as a global art hub. German-Argentine dealer Marcelo Zimmler, who founded Upsilon Gallery, will open his first continental European location in Milan on November 18, following successful launches in London and New York.
The new Milan gallery will occupy a 200-square-meter space located just off Via Monte Napoleone, positioning it in the heart of the Quadrilatero district, which serves as the city's premier fashion and luxury shopping destination. This strategic location places Upsilon among a growing number of established galleries testing Milan's potential as it seeks to evolve from a regional hub into a major global art capital. Other notable galleries that have recently expanded to Milan include Thaddaeus Ropac, Cardi Gallery, and Robilant & Voena.
While Milan has long possessed the fundamental elements necessary for a thriving art market – including substantial wealth, strong design heritage, and rich historical foundations – previous attempts to establish the city as a major art center have faced challenges. As art critic George Nelson recently noted in On Balance, Italy's art scene has experienced similar momentum before, describing past efforts as "a false dawn."
However, Zimmler believes the current moment represents a genuine turning point for Milan's art market prospects. Speaking during a walkthrough of the Osvaldo Mariscotti exhibition at his Upper East Side gallery space, Zimmler explained his reasoning: "Milan is a key cultural and financial hub – essential ingredients for a thriving art market. With our growing base of collectors in Italy, and Milan's proximity to Zurich and Paris, it's a seamless choice for us."
Zimmler points to two significant policy changes that have fundamentally altered the economic landscape for art sales in Italy. The first is Italy's surprising decision to dramatically reduce the value-added tax (VAT) on art sales from 22 percent to just 5 percent. The second factor is the increasing influx of wealthy British residents who are relocating from the United Kingdom to escape new tax regulations in their home country.
These macroeconomic shifts are already having measurable impacts on the market. Rome implemented the eurozone's lowest VAT rate on art transactions in June, and by August, real estate agents were actively promoting Milan's favorable flat-tax advantages to disenchanted London-based financiers. "They've been working on that reform for years," Zimmler noted, "and everyone expects it to have a positive effect on sales."
The gallery's inaugural Milan exhibition will feature a local chapter of Osvaldo Mariscotti's acclaimed Valley series, strategically timed to coincide with companion shows currently on display at Upsilon's London and New York locations. This coordinated approach reflects what Zimmler describes as a "three-part project" that "connects our cities in one conversation." The Milan presentation will showcase four canvases accompanied by a bilingual catalog edited by renowned art critics David Ebony and Alex Grimley.
Upsilon's expansion strategy reflects a broader shift in how contemporary galleries approach the art market. Founded in 2016 as an online platform, the gallery has evolved into what Zimmler calls a "hybrid operation" that functions as part traditional dealership and part media venture. While Thaddaeus Ropac's arrival in Milan signals institutional weight and established market presence, Upsilon's entry may indicate a more nimble, entrepreneurial approach to gallery operations.
Zimmler has developed a business model that relies as heavily on events, partnerships, and brand collaborations as it does on direct art sales. "Galleries are empty most of the time," he explained during the New York interview. "So we make the space available – for talks, wine tastings, even readings. It's about creating experiences." This philosophy of maximizing space utilization and creating diverse cultural programming extends directly to the Milan location.
The new Milan gallery's design elements deliberately reference and complement the city's architectural heritage, featuring Ceppo di Gré flooring and marble detailing that echo local building traditions. The location's proximity to luxury retailers like Prada and Bulgari is intentional, as Zimmler sees natural synergies between the art world and the luxury goods sector. "Art is a luxury good by definition," he stated. "It makes more sense for us to collaborate with other luxury categories than to open a café."
Looking ahead, Zimmler plans to leverage Milan's reputation as a design capital by staging design-focused exhibitions during Salone del Mobile, the city's internationally renowned furniture and design fair. He is already developing collaborative projects with artists like Hanna Lim, whose ceramic work effectively bridges the gap between traditional craft techniques and contemporary fashion sensibilities.
The success of Milan's latest art market expansion remains uncertain, particularly given the city's previous false starts. The last time Italy appeared poised for a significant art market boom occurred when major gallery Gagosian opened a Rome location in 2007, but the initial enthusiasm ultimately exceeded the market reality. Despite these historical precedents, dealers like Zimmler remain optimistic about the current opportunity. "We have a knack for opening when the macro conditions are not at their best," he said with characteristic humor. "If you can make it work now, imagine when things actually improve."
