How Italy’s flat tax regime has sparked a super rich boom in Milan
Italy, a perennial favorite of rich and celebrities, is attracted to a new ultra -wealthy wave of wealthy arrival that wants to benefit from the investor friendly environment, the developing real estate market and the low tax regime.
Since many other countries squeeze the super -rich, Italy disrupts the tendency; The compatible flat tax regime convinced the armies of those who spend a large expenditure on Luxury Life and Milan’s increasing business scene.
And in 2024, although he doubled the accusation of 200,000 euros ($ 233,000) by high -valuable individuals in 2024, he did little to eliminate the demand for La Dolce Vita.
“They’re still working well over 200,000 fixed taxes a year,” Matteo Pella, the senior broker of Homeservice’s real estate company, told CNBC. He said.
“Like: Oh, now you pay for coffee. Today will be two euros, tomorrow will be four euros. You will not give up coffee.”
According to Henley & Partners, who marketed the citizenship and residence plans, Italy has become the biggest place for the rich in Europe this year.
Although there are millionaire migration figures brought some questions to the agendaAnd it is difficult to monitor global ries, a series of high -profile figures have passed to Italy in recent months. Among them is Egypt’s richest man and Aston Villa Football Club Nasf Sawiris, the owner of Nasf Sawiris and Goldman Sachs Vice President Richard Gnodde.
According to Henley & Partners estimates, the total number of new net valuable arrivals in Italy so far can be as high as 3,600.
Milan’s millionaire explosion
In 2017, Italy’s flat tax regime was introduced by the Central Left Government as a part of a wider printing to attract foreign investors, and encouraged home capabilities to return to the country after the Euro zone debt crisis.
This has led to a new wave of business, especially in the country’s finance and fashion center Milano, who wanted to appeal to the new influx of reserves. Among them is the newly opened members Club The Wilde and before that Casa Cipriani.
Casa Cipriani Milan Membership Director Anna Cipriani told CNBC to open the group 2022.
“Milan has developed a lot for years,” he said. “Previously, he was known for his industrial character and of course fashion houses, creators, investors and in the last few years [an] International crowd. “
Shoppers are walking at Galleria Vittorio Emanuele II Shopping Gallery.
Picture Alliance | Getty Images
Meanwhile, Italy’s wealthy arrival has led to an increase in real estate prices in the most desirable places of the country, from Tuscany and Italian Rivieas to Cities such as Rome, Venice and Florence. However, Milan and the surrounding lakes have emerged as a solid favorite.
“We are at the highest prices of all time now,” said Pella in the BHHS ‘Lake Como office.
“We had an increase in five years [of] double -digit percentages. Over the coming years, we will probably look at the Lake Como 3% to 4%. “
According to the real estate group TECNOCASA, the country’s flat tax regime has been introduced in 2017, since the real estate prices in Milan have increased by 49%, compared to 10.9% in the rest of the big cities of Italy. Global Property Consultancy Knight Frank now expects the city’s main real estate market to record 3.5% increase in 2025.
“About those who can meet this, because prices do not depend on the logic of the street market as an investment.” He said.
“They like a property with their intestines. Then they do some mathematics, but they prepare to spend more than just to spend only one example or a unique position.”
UHNW Migration
Millions are deported to new houses, as they offer options to those who want to pay more judicial authority.
In the last decade, it is estimated that the number of high -valuable individuals placed abroad has almost doubled. Save the Heights In 2024.
This tendency seems to continue in 2025 and 2026, because it deepens among countries that want to attract the rich in Uber, and in -depth among those stuck to combat the perceived inequality.
The view of Lake Como, the third largest lake in Italy in the Northern Lombardy region.
Anatolia | Getty Images
While France expands the reserve tax, weighing new changes in the Swiss heritage tax.
Meanwhile, in April, the 200 -year -old Doma tax regime, which exempted the tax payment of wealthy foreigners living in the UK, England for the overseas revenues and gains of the UK, removed the tax regime. Following the 2016 Brexit vote, London -based banks and financies follow the output of other European capitals such as Milan.
This left other countries who wanted to fill the gap.
Henley & Partners England’s executive partner Stuart Wakeling, “literally comes to us around the world and says: ‘We want Britain’s millionaires and billionaires. What can we do? How can we bring them to our country?’ ‘He said.
While such citizenship and residence regimes change greatly and include strict investment requirements, some of the appeal of Italy’s system is simplicity. Payment for one place offers foreign people or citizens living abroad for at least nine years exempt from wider taxes on assets up to 15 years.
The worsening reserve divisions
Italy’s new arrival fluctuation still revealed questions about the impact on the wider economy.
Some have warned from the regime to deteriorate the inequalities of the newly produced deck in certain areas, compared to the general deficit of the country.
By the way, critics Mimicing the scheme elsewhere can lead to a race at the bottom and the erosion of the tax base.
Nevertheless, businesses, finance and private capital to hospitality and services in the sectors in the sectors and new business creation ultimately Milan and wider will benefit throughout the country, he says.
Special Members Club Casa Cipriani Cipriani from Milano, “This kind of wheel, you know, continues to roll.
“When you invest a lot in a city, economy creates more business opportunities for people.”
– Gaelle Legrand from CNBC contributed to this report.
