Italy-a multi-year favorite of the rich and famous-attracts a new wave of ultra-seater arrivals that want to use its investor-friendly environment, the flourishing real estate market and the low tax regime.
Like many other countries on the super rich, Italy has completed the trend. The proper flat taxi regime has attracted hordes of large expenses to the luxury life and the increasingly busy business scene in Milan.
And despite the doubling of the one-off charge, which was paid by people with a high network value for their foreign income to 200,000 euros ($ 233,000) in 2024, this has contributed little to impair the demand for La Dolce Vita.
“You work at the asset level, which is still well over 200,000 a year flat taxes,” Matteo Pella, Senior Broker in Berkshire Hathaway Homessenvices real estate company, told CNBC.
“It is as to say: Oh, you now pay for your coffee. Today it is two euros, tomorrow it will be four euros. You won't give up your coffee.”
According to Henley & Partners, Italy has become a first-class move destination for the rich in Europe this year, which market citizenship and residency-by investment systems.
Although the migration figures of the millionaires have raised some questions and the global wealth flows are known to be troubled, a number of top -class numbers have led to Italy in recent months. These include the richest man and co -owner of the Egypt of the Aston Villa Football Club Nassef Sawiris and the deputy chairwoman of Goldman Sachs, Richard Gnodde.
According to Henley & Partners, the total number of new arrivals with high network value in Italy in Italy this year could be up to 3,600.
Milan Millionaire Boom
The Italian Flat-Tax regime was introduced in 2017 as part of a broader advance of the left-wing government to attract foreign investors and at the same time encourage local talents to return to the country after the debt crisis of the euro zone.
This in turn has triggered a new wave of companies that granted the new asset instrument, especially in the country's financial and fashionable hub, Milan. Among them are the newly opened member club The Wilde and previously Casa Cipriani.
Buyers go through the Galleria Vittorio Emanuele II shopping gallery.
Image Allianz | Getty pictures
“We really thought it was a good time to return to Italy,” Anna Cipriani, member of the member of Casa Cipriani Milano, told CNBC to open the group in 2022.
“Milan has developed a lot over the years,” she said. “It used to be more for its industrial character and of course the fashion houses, while in recent years it has also been more attractive for creative people, for investors and forever [an] International quantity. “
Italy's wealthy arrivals have now led to an increase in real estate prices at some of the most sought -after places in the country, from Tuscany and the Italian Riviera to cities such as Rome, Venice and Florence. Milan and the surrounding region of the lakes have developed into a firm favorite.
“We are currently at high prices,” said Pella, who is based in the BHHS 'Lake Como office.
“We had an increase in five years [of] double -digit percentages. In the coming years we will probably increase 3% to 4% in the Como Lake. “
Real estate prices in Milan have increased by 49% since the country's flat tax regime was introduced in 2017, compared to 10.9% in the rest of the big cities in Italy, according to the Tecnocasa real estate group. Global Property Consultancy Knight Frank now expects that the city's first -class real estate market will record another price growth of 3.5% in 2025.
“It's about those who can afford it, because prices are not necessarily due to their street market logic as an investment,” said Pella.
“You like a property with your intestines. Then of course you make a little math, but you are ready to spend and sometimes hand over, just to secure a unique view or a unique position.”
Uhnw migration
Millionaires have hiked in droves to new residences because more and more jurisdiction offer options for the payment options.
In the past ten years, the number of people moved abroad has almost tripled with a high network value and reached record highs in 2024.
This trend will continue in 2025 and 2026, since a gap between the countries is deepened that want to attract the Uberrich and those who want to clamp down to fight the perceived inequality.
France has thought about expanding its wealth tax, while Switzerland weighs new changes to inheritance tax.
A look at Lake Como, the third largest lake in Italy in the North Lombard region region.
Anadolu | Getty pictures
In the meantime, Great Britain abolished its over 200-year-old non-cathedral tax regime in April, freed the wealthy foreigners who live in Great Britain to pay the British tax on their income and gains overseas. This is followed by a discharge of banks and financiers in London in other European capitals such as Milan after the 2016 Brexit vote.
This has left other countries to close the gap.
“It literally come to us all over the world and say: 'We want the millionaires and billionaires Great Britain. What can we do? How can we bring them to our country?'” Stuart Wakeling, Managing Partner at Henley & Partners UK, said.
While such citizenship and residence regimes can vary greatly and encompass strict investment requirements, part of the vocation of the Italian system is its simplicity. The one -off payment offers foreign persons or citizens who have lived abroad for at least nine years, the liberation of larger taxes to income and financial figures for up to 15 years.
Detachment of prosperity is shared
Italy's new increase in arrivals has nevertheless raised questions about the effects on the broader economy.
Some warned of the deterioration of the inequalities of the assets, whereby the total tax from the regime was minimally concentrated compared to the overall deficit of the country and a large part of the newly generated prosperity in certain areas.
In the meantime, critics suggest that attempts to emulate the system elsewhere could lead to a race down and an erosion of the tax assessment basis.
However, companies are confident that the increasing activity and the creation of new jobs in sectors of finance and private equity via hospitality and services will ultimately use the advantages in Milan and throughout the country.
“It is a kind of bike, you know that again and again. You have all these people and you have all these hotels and you have more and more people who then decide to come to the city, because now that they are more thinking about it,” said Cipriani from private members Club Casa Cipriani Milano.
“If you have many investments in a city, the economy also creates more employment opportunities for people.”
– Gaelle Legrand from CNBC contributed to this report.