Milan ($52/sqft, 9.2% vacancy) and Munich ($61/sqft, 6.1% vacancy) compete on different axes: Milan on rent and tax and Munich on talent depth.
Milan ($52/sqft, 9.2% vacancy) and Munich ($61/sqft, 6.1% vacancy) compete on different axes: Milan on rent and tax and Munich on talent depth.
| Metric | Milan | Munich |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Italy | Germany |
| Class A rent (USD/sqft/yr) | $52 | $61 |
| Class A rent (local) | 48 EUR | 56 EUR |
| Vacancy | 9.2% | 6.1% |
| Trend | rising | flat |
| Prime yield | 4.6% | 3.9% |
| Premium flex / seat / month (USD) | $580 | $720 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 27.9% | 33% |
| Metric | Milan | Munich |
|---|---|---|
| Typical term | 6 yrs | 5 yrs |
| Typical rent-free | 5 mos | 3 mos |
| Lease norms | Net leases under the 6+6 standard (six-year minimum with tenant renewal option for another six). Free rent of 4-9 months and TI of €60-€100/sqm typical. | Net leases. 5-10 year terms with break options. Free rent of 3-6 months and TI of €70-€110/sqm typical on a 5-year Class A deal. |
| Tax note | 24% federal corporate income tax (IRES) plus 3.9% regional production tax (IRAP) for a combined effective rate near 27.9%. | 15% federal corporate income tax plus 5.5% solidarity surcharge plus Munich trade tax (Gewerbesteuer) of 17.15% for an effective combined rate of about 33%. Munich's trade tax multiplier is one of the highest in Germany. |
| Metric | Milan | Munich |
|---|---|---|
| Talent index (0–100) | 82 | 90 |
| Talent note | Deep finance, fashion, design, and luxury talent. Strong feed from Bocconi, Politecnico, and the broader Lombardy university system. Multilingual (Italian-English) talent supports international corporate HQs. | Deepest engineering and finance talent pool in Germany. Strong feed from TU München, LMU, and a deep network of Fraunhofer and Max Planck institutes. Cost of living premium versus Berlin and Hamburg is structural. |
Milan: ATM Metro (5 lines), tram, and bus. Trenord regional rail anchors the Greater Milan catchment. Malpensa airport is connected via the Malpensa Express; Linate is closer to the city.
Munich: MVV S-Bahn (8 lines), U-Bahn (8 lines), tram, and bus. Munich Hauptbahnhof anchors regional rail. Munich Airport (MUC) is 35 minutes by S-Bahn from the city center.
Milan is the cheaper Class A market on a USD basis.
Munich has the deeper talent index (90/100 vs 82/100).
Milan has the lower headline corporate tax (27.9% vs 33%). Local incentives can change the effective rate materially.
Milan typical term is 6 years with 5 months free; Munich runs 5 years with 3 months free.
Milan: ATM Metro (5 lines), tram, and bus. Trenord regional rail anchors the Greater Milan catchment. Malpensa airport is connected via the Malpensa Express; Linate is closer to the city. Munich: MVV S-Bahn (8 lines), U-Bahn (8 lines), tram, and bus. Munich Hauptbahnhof anchors regional rail. Munich Airport (MUC) is 35 minutes by S-Bahn from the city center.
Score Milan, Munich and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.