Flat Tax and HNWIs: Italy—A New Top Destination for High Net Worth Individuals, Combining Lifestyle, Safety, and Fiscal Advantages
Major wealth holders usually look toward Dubai, New York, Singapore, Hong Kong, or Abu Dhabi for real estate investments. In recent years, however, more and more High Net Worth Individuals choose Italy.
This shift makes perfect sense. The Italian way of life—the famous dolce vita, rich in culture, gastronomy, style, climate, and iconic landscapes—now pairs with two key factors for international investors: safety and targeted tax benefits. Italy offers a fresh, modern appeal that encourages people not only to enjoy the country, but to establish their residence here.
The Savills HNWI Hotspot Index confirms the trend:
-
Rome ranks 19th among the most attractive global destinations,
-
Milan follows in 23rd place,
-
Tuscany reaches 22nd,
all within the world’s Top 30.
Lake Como stands out in 18th place, as investors seek its historic residences—true trophy assets that carry financial, cultural, and emotional value.
Flat Tax and HNWIs: The Central Role of the Flat Tax—Why It Attracts the Super-Rich
Italy’s rise as a new hotspot for international investors is strongly driven by the Flat Tax regime dedicated to new affluent residents. Introduced to attract major foreign wealth, this system offers a significant competitive advantage over other European jurisdictions.
How does the Flat Tax for new residents work?
It is an optional tax regime available to individuals who transfer their tax residency to Italy.
To qualify, the individual must obtain Italian tax residency and must not have been a tax resident in Italy for at least 9 of the 10 tax years preceding the application of the regime.
The regime provides:
-
A lump-sum substitute tax currently set at €200,000 per year on all foreign-sourced income.
-
The tax is fixed and does not increase as wealth or income increases.
-
Valid for a maximum of 15 years.
-
It may be extended to family members defined under Article 433 of the Italian Civil Code (e.g., spouse, children, parents, siblings). An additional €25,000 per year for each member.
-
Italian-sourced income remains subject to ordinary Italian tax rates.
-
It may be revoked at any time without negative fiscal consequences.
In summary, this tax regime makes Italy extremely competitive, allowing international high-net-worth individuals to plan their tax burden with certainty while enjoying the Italian lifestyle and the country’s unique opportunities.
The new budget law introduces a further increase in the substitute tax (flat tax). From €200,000 to €300,000 for the main taxpayer. From €25,000 to €50,000 for each family member included in the option.
A Country Returning to the Center of Global Choices
Beauty. Culture. Lifestyle, and now fiscal convenience. Italy has become a “total experience” destination for HNWIs. Whether it’s a villa on Lake Como, a prestigious apartment in Rome, or a contemporary penthouse in Milan, the country is increasingly positioning itself as the new frontier of high-end real estate investment.
Need to Relocate to Italy?
If you need assistance moving to Italy, Tettamantire Real Estate will be delighted to help you find the right solution for you. Contact us.