Transcription
This is what it’s all about: lake view, nature, silence, peace. Real Lake Como vibes. Italy: A long-time favorite of the rich and famous, from Roman emperors to Hollywood stars. You have the seaside, you have the mountains, you have the Alps. The wine, the food, I mean, all of this.
But now, a new wave of the uber wealthy is relocating to the European country, looking to take advantage of its investor friendly environment, thriving real estate market and low tax regime. Italy is set to welcome an estimated 3,600 high-net-worth individuals to the country. And this will have huge economic implications, with estimates suggesting they could bring with them $21 billion in private capital.
Although this kind of data is notoriously difficult to track, investment migration consultancy Henley and Partners estimates that in just three years, Italy has climbed the global rankings as a top destination for the wealthy. Rising from number 11 in 2023, to sixth in 2024 and now third in 2025, overtaking long-time favorites like Singapore, Australia and Switzerland. The defining point of that is that there's a flat rate tax.
As many countries clamp down on the super-rich, Italy has emerged as the top relocation destination in Europe. And that’s impacting everything from the business landscape to the housing market. So why is Italy attracting so many millionaires and billionaires? And could other countries follow its lead?
Italy’s center-left government, back in 2017, introduced a new 100,000-euro flat tax regime to entice wealthy individuals, investors and entrepreneurs to move to the country. Now this was in something of a heyday of citizenship by investment schemes, with the likes of Portugal and Switzerland also looking for new ways to attract the ultra-wealthy.
In 2024, the government doubled its flat tax to 200,000 euros for new arrivals after public criticism over the scheme, with economy minister Giancarlo Giorgetti saying he didn’t want Italy to be in a race to offer “fiscal favors” to the rich. Despite this, the country remains a magnet for those who would be taxed far more heavily elsewhere. They operate at the wealth level, which is still way above 200,000 per year flat taxation. So, it's like saying: "Oh, you're paying your coffee now. Today is €2. Tomorrow is going to be €4. You're not going to give up on your coffee."
The doubling of the flat tax did little to suppress demand, but it did double government coffers. The people that are coming to us are telling us that the main driving force behind the relocation is inevitably tax. Millionaires have been migrating in droves to new residences. Over the past 10 years, the number of high-net-worth individuals relocating abroad has almost tripled, reaching record highs in 2024. And the trend is set to continue in 2025 and 2026.
Many other countries have been clamping down on the uber-wealthy in an attempt to combat perceived inequality and also boost stretched public budgets. So for instance, in France, they have been deliberating expanding the wealth tax. In Switzerland, for example, they're also weighing introducing new changes to inheritance tax.
But perhaps the biggest change came in April 2025 under the U.K.'s Labour government, when they abolished their 200-year-old non-dom tax regime. Until recently, a U.K. resident with a permanent tax home abroad, only had to pay U.K. tax on money earned in the country. Meaning money made elsewhere in the world was untaxed by the British government for up to 15 years. That’s now been replaced by a new residency scheme, which the government says will generate £12.7 billion over the next five years. Critics have questioned that, and they have said that these outflows of wealth are going to impact the U.K.'s economy and also suppress that all important investment and high spending.
There are countries literally around the world who are coming to us and saying: “We want the UK’s millionaires and billionaires. What can we do? How can we bring them to our country?” More countries are now offering citizenship and residence by investment programs. Between 1980 and 2022, the number of CBI and RBI schemes has seen a fourfold increase, led by Caribbean countries like Grenada and Antigua, as well as Malta and Turkey.
Residence by investment is essentially a legal process by which countries will grant residence to foreign individuals in exchange for financial contributions. So that might be tax payments, it might be real estate purchases or other investments. The programs that we offer range from a few thousand up to $8-9 million. We've dealt with Americans, we've dealt with Brits, we've dealt with Middle Easterns. The last statistic we saw that we'd had inquiries from 148 nationalities.
Italy introduced its flat tax system as part of a bigger push to attract foreign investors. It was also hoping to encourage homegrown talent and their money to return to the country, especially after the economic challenges of the European debt crisis. So, Italy's flat tax regime will exempt individuals from their foreign income and gains overseas and they'll only be subject to pay Italian tax on locally earned income.
Now, part of the beauty of Italy's regime is its simplicity. Unlike in other countries where they're expected to meet other stringent requirements, other investment requirements, this is just a one-off annual fee. You just need to move your tax domicile to Italy, which is easy enough for EU residents.
Anna Cipriani was among those incentivized to return to Italy. My great grandfather, Giuseppe Cipriani, opened the doors of Harry's Bar, which also became the famous place because it's where he created also their Bellini cocktail and the carpaccio dish. Harry’s Bar was originally founded in Venice in 1931, but over nearly a century, the business expanded into a global hotel and leisure group, with a larger footprint outside Italy than within it.
Anna Cipriani had been living in the U.S. to oversee the launch of its Casa Cipriani members’ club in New York. But in 2022, the group chose to return to Italy for its next destination, creating a hub for businesspeople and entrepreneurs in Milan. We wanted to build a place where a person could build their full days. So we have the entertainment spaces, the restaurants, the spa and wellness facilities, the gym for the workout. We really thought it was a good time to come back to Italy.
Milan did evolve a lot over the years. Before, it used to be known more for its industrial character and, of course, the fashion houses, while over the last few years it became more and more attractive also for creatives, for investors and for international crowd. And then, of course, we had the tax incentives.
Since 2016, Italy has adopted investment-friendly policies through its Industria 4.0 plan, later renamed Transition 5.0: a framework designed to encourage businesses to invest in key sectors, like digital and green infrastructure, in exchange for tax credits and depreciation incentives. They are moving to town but they're also investing. Not only Milan, I mean in Italy in general.
So, what are the most popular destinations for the wealthy in Italy? Sought-after regions include Tuscany and the Italian Riviera. Cities like Rome, Venice, Florence and Bologna are also popular. And unsurprisingly, Milan remains a favorite amongst millionaires and billionaires, due to its role as Italy’s financial hub and close links to Lake Como.
Most of the celebrity of Lake Como started back in the early 2000, when Las Vegas opened up The Bellagio hotel. It's being inspired by this tiny village. We are at all-time high, prices at the moment. In five years we had an increase in double-digit percentages. For the upcoming years, we’re probably going to look at a steady 3-4 percent type of increase here in Lake Como.
And less than an hour away, Milan’s real estate is experiencing its own surge. Property prices in Milan have risen 49% since the flat tax was introduced in 2017, compared to 10.9% across the rest of Italy’s big cities, according to real estate group Tecnocasa. And global property consultancy Knight Frank expects the city’s prime real estate market to record a further 3.5% price growth in 2025. It's about those who can afford it then, because prices are not necessarily down to their street market logic as an investment. They like a property with their guts. Then they do a little bit of math, of course, but they're ready to spend and sometimes to overspend just to secure a one-of-a-kind view or a one-of-a-kind position.
When Italy came out with a 100,000 flat tax opportunity people began considering even more Italy as a logic B plan for their relocation or, asset protection or, tax optimization process. So how is this wealth impacting local life? While luxury lifestyles can sometimes seem removed from the everyday, Jeff Bezos’s wedding in Venice for example, is estimated to have added $1.1 billion to the city’s economy.
The increased activity in finance, private equity, hospitality and other services have, of course, created local jobs. But then there's been the impact on housing prices, which has priced out many locals, particularly as wages have struggled to keep up. That, of course, adds to existing wealth inequalities and there's particular concern that much of the wealth is concentrated in specific areas, and it doesn't filter down around the rest of the country. It's kind of a wheel, you know, that keeps rolling. So you have all these people moving in and you have all these hotels opening and you have more and more people that then decide to come to town because now they think about it more. It’s also proven that when you have a lot of investments into a city, it does boost the economy, creates more job opportunities also for the people.
We are seeing other countries considering similar schemes. Greece back in 2019, introduced its own 100,000-euro flat tax regime, but it also requires an additional 500,000-euro investment as well in property or local equities, etc. Even in the U.K., lobbyists are also pushing for a similar Italian-style flat tax regime.
But it does, of course, raise concerns about this kind of race to the bottom and an erosion of the tax base. However, it’s important to note that rich people moving to Italy under this regime are under no obligation to invest in the country. A move that the Italian court of auditors has warned could turn Italy into a tax haven.
Receipts from Italy's flat tax regime have brought in hundreds of millions of euros. But while helpful, this really is just a drop in the ocean versus Italy's deficit and public debt. For as long as it does stay more attractive than some other countries’ regimes, Italy does look like it will continue to attract a small but lucrative cohort of the wealthy.