Italy has become a prime destination for ultra-wealthy individuals seeking favorable tax policies, a vibrant real estate market, and luxury lifestyle opportunities. While many countries tighten regulations for high-net-worth individuals, Italy’s flat-tax system continues to draw investors and wealthy migrants, particularly to Milan, a growing financial and cultural hub.
Despite increasing the one-off charge for foreign income to €200,000 in 2024, demand has remained robust. Matteo Pella, a senior broker at Berkshire Hathaway HomeServices, explained to the media that the tax increase is negligible for this demographic. “It’s like saying: Today it’s two euros, tomorrow it’s going to be four euros. You’re not going to give up on your coffee,” he said.
High-Profile Arrivals and Market Impact
According to Henley & Partners, Italy has seen an influx of wealthy individuals this year, potentially reaching 3,600 new arrivals. Notable examples include Nassef Sawiris, Egypt’s richest man and co-owner of Aston Villa Football Club, and Richard Gnodde, vice-chair of Goldman Sachs.
The flat-tax regime, introduced in 2017 to attract foreign investors and repatriate domestic talent after the eurozone debt crisis, has catalyzed business growth, especially in Milan. Luxury clubs like Casa Cipriani Milano and The Wilde have opened to cater to this new wealth, reflecting Milan’s evolution from an industrial city to a hub for creatives, investors, and international residents.
Milan Real Estate Boom
Italy’s wealthy migrants have driven property prices to historic highs. Locations like Tuscany, the Italian Riviera, Rome, Venice, and Florence have all seen increases, but Milan and the lakes region have emerged as favorites.
Pella noted that Lake Como property prices have experienced double-digit growth over five years, with projected 3–4% increases annually. In Milan, prime real estate prices have surged 49% since 2017, far outpacing the 10.9% growth in other major Italian cities. Knight Frank forecasts an additional 3.5% growth in Milan’s luxury property market in 2025.
Pella adds, “They like a property with their guts…sometimes willing to overspend to secure a one-of-a-kind view or location.”
Interested in buying a new property? Visit Mortgage Daily.
Global Ultra-High-Net-Worth Migration Trends
The trend of wealthy individuals relocating abroad has nearly tripled over the past decade, reaching record levels in 2024. Policies in other countries, including France’s potential wealth tax expansion, Switzerland’s inheritance tax adjustments, and the U.K.’s abolition of its non-dom regime, have fueled a migration to more favorable environments like Italy.
Stuart Wakeling, managing partner at Henley & Partners U.K., told the media: “Countries around the world ask us: ‘We want the U.K.’s millionaires and billionaires. How can we attract them?” Italy’s flat-tax system appeals due to its simplicity: a one-off payment offers tax exemption on income and assets for up to 15 years for qualifying foreign residents.
Economic Implications and Wealth Divide
While this surge stimulates luxury sectors, finance, and hospitality in Milan, it has also prompted concerns over wealth inequality. Critics argue that the overall tax contribution from the flat-tax regime is small relative to Italy’s budget deficit, and the benefits are concentrated in select regions.
Nonetheless, businesses remain optimistic that the influx of wealth will create jobs and broader economic growth. Anna Cipriani from Casa Cipriani Milano commented, “When you have a lot of investments into a city, the economy creates more job opportunities also for the people.”
Sources:
CNBC: Italy’s flat-tax attracts wealthy migrants
Henley & Partners: Global high-net-worth migration
