A striking figure: almost 2,500 high-net-worth individuals have already chosen Italy, generating an estimated €5.3 billion in tax revenue and wider economic impact. And the trajectory suggests far more, with projections reaching €38.4 billion by 2040.
At the heart of this trend is a tax regime that, since 2016, has turned the country into a magnet for High Net Worth Individuals (HNWIs). But who are they, where do they come from, and above all, where are they investing in property?
- Flat tax: how the magnet for large fortunes works
- Who is arriving and why: the Brexit effect and the move away from UK non-dom status
- Where they settle: Milan in first place, Rome second, then the appeal of luxury destinations
- Property and clear figures: the real weight on bricks and mortar
- Flat tax and IRPEF: what flows into public finances
- Who they are: investors, entrepreneurs, private finance
Flat tax: how the magnet for large fortunes works
The attraction rests on a simple but powerful rule related to the flat tax. HNWIs who transfer their tax residence to Italy after spending at least nine of the previous ten years abroad can opt for a substitute tax of €300,000 per year on income generated outside Italy.
The package includes an exemption from monitoring obligations on assets held abroad and from wealth taxes on foreign property and financial investments.
For the duration of the regime, inheritances and gifts relating to assets located outside Italy are also exempt from tax, while ordinary taxation still applies to assets within Italy. It is a framework designed to simplify matters, provide certainty and, in practice, reduce tax friction on global income flows.
Who is arriving and why: the Brexit effect and the move away from UK non-dom status
The most recent snapshot shows almost 2,500 beneficiaries in 2025, a sharp rise from just 94 in 2017. Almost four in ten come from the United Kingdom, a pattern that aligns with the regulatory changes following Brexit and tighter rules around the UK’s non-domiciled regime.
They are followed by France (12.5%), Brazil (8%), the United States (7.3%) and Switzerland (4.7%). The result is a mixed flow: highly mobile European taxpayers, Americans and South Americans diversifying their plans, and Swiss residents attracted by a different balance between quality of life and taxation.
Where they settle: Milan in first place, Rome second, then the appeal of luxury destinations
More than half of the new residents choose Milan (52%). The city offers strong links to global finance, a broad entrepreneurial base, international services, schools, cultural life and a property market that is more liquid than most.
- Rome comes next with 17%, supported by its institutional role, cultural offering and high-end opportunities.
- The remaining share spreads across prestigious hubs such as Florence, Venice and Lake Como, where history, landscape and prime real estate positioning carry weight.
Property and clear figures: the real weight on bricks and mortar
The signal in the luxury housing market is tangible and measurable. Around 44.7% of new residents have purchased at least one property in Italy during the years observed, with an average price of about €3.8 million.
Between 2017 and 2025, this equates to €4.1 billion in property purchases, alongside roughly €90 million in transaction tax revenue.
At the same time, the state collects between €4 million and €9 million per year in IMU (Italy’s municipal property tax) from this group, plus around €100 million in VAT linked to renovation works. The outcome is a steady stream of resources that also feeds through the wider supply chain: construction sites, furnishings, professional services and maintenance.
The outlook to 2040: €16.8 billion in purchases and related tax revenue
Looking ahead, estimates suggest further acceleration. By 2040, the value of property transactions carried out by these taxpayers could reach €16.8 billion, with €616 million in transaction taxes.
Cumulative IMU revenue could range between €150 million and €338 million, while VAT on renovations may rise to €422 million.
Flat tax and IRPEF: what flows into public finances
Alongside property purchases sits the more direct component: the substitute tax on foreign income. Between 2017 and 2025, cumulative revenue is estimated at €771 million, of which €238 million was generated in 2025 alone.
And that is not the full picture. Around a third of new residents also declare income earned in Italy, subject to ordinary IRPEF (personal income tax). Revenue linked to this element increased from €225 million in the initial period to more than €36 million in 2025 and could reach €3.8 billion by 2040.
Adding together substitute taxes, IRPEF, transaction taxes, IMU and VAT on renovation works, total projected economic impact rises from €5.3 billion in 2025 to €38.4 billion by the middle of the next decade.
Who they are: investors, entrepreneurs, private finance
The professional profile of these new residents sheds light on the capital and expertise entering the Italian system. Around 35% describe themselves as private investors. More than a fifth are active entrepreneurs, often with international networks.
Just under 15% come from venture capital and private equity, while roughly 8% work in fund management. Professional athletes account for less than 5%.
It is a mix that creates demand for advanced services, advisory work and wealth management, while also supporting entrepreneurial initiatives and investment in start-ups and small and medium-sized enterprises.
Article seen on Milano Finanza: Paperoni, ecco chi sono i 2.500 super ricchi stranieri che si sono trasferiti in Italia: valgono oltre 5 miliardi
