Italy, long a favorite destination for the global elite, is witnessing a surge in ultra-wealthy arrivals. Investors are being drawn by its investor-friendly tax regime, booming property market, and luxury lifestyle — at a time when other countries are tightening tax rules for high-net-worth individuals (HNWIs).
Italy’s flat-tax magnet
Unlike the UK, France, and Switzerland — which have either tightened or are weighing stricter wealth taxes — Italy has doubled down on its appeal. Its flat-tax regime, launched in 2017, allows foreign residents or returning nationals to pay a fixed €200,000 annual levy on overseas income, regardless of the total amount earned. The scheme remains one of the simplest and most generous in Europe, offering tax exemptions for up to 15 years.
According to Henley & Partners, Italy could welcome as many as 3,600 new HNWIs in 2024 alone. Recent high-profile relocations include Nassef Sawiris, Egypt’s richest man and co-owner of Aston Villa FC, and Goldman Sachs vice-chair Richard Gnodde.
Milan at the center of a real estate boom
The influx of capital has fueled a sharp rise in property prices. Data from Tecnocasa shows Milan’s housing market has soared 49% since 2017, compared with a 10.9% increase in other major Italian cities. Knight Frank now expects Milan’s prime real estate sector to grow another 3.5% in 2025.
Lake Como, Tuscany, Rome, and the Italian Riviera also remain hotspots for luxury buyers, with many investors prioritizing lifestyle and exclusivity over conventional investment logic.
Matteo Pella, senior broker at Berkshire Hathaway HomeServices in Lake Como, explained:
“They buy with their gut. Of course, they do the math, but many are ready to overspend to secure a unique view or location.”
Global millionaire migration intensifies
The rise in Italy’s appeal comes amid record levels of millionaire migration. Over the past decade, global HNWI relocations have nearly tripled, reaching all-time highs in 2024. Analysts expect the trend to accelerate through 2025–26, as more jurisdictions compete to attract the world’s wealthiest.
Meanwhile, others are closing the door:
-
The UK scrapped its 200-year-old non-dom regime in April, prompting an exodus of financiers and family offices.
-
France is debating an expansion of its wealth tax.
-
Switzerland is considering changes to inheritance tax.
This divergence has left Italy, along with a handful of other jurisdictions, well positioned to capture the relocation market.
Inequality concerns
Despite the economic activity generated by luxury spending and job creation in Milan’s financial and hospitality sectors, critics argue that Italy’s flat-tax scheme risks widening wealth inequality. The actual tax revenue collected remains small relative to the country’s fiscal deficit, while most of the benefits are concentrated in elite neighborhoods.
Some experts also warn of a potential “race to the bottom,” as countries try to outcompete one another with increasingly favorable terms for the super-rich.
Still, businesses in Italy remain optimistic. Anna Cipriani, director of membership at Casa Cipriani Milano, said the inflow of wealth is driving a positive cycle:
“When you have people moving in, hotels and clubs opening, and more international investors showing interest, the economy creates more opportunities for everyone.”
