The Dolce Vita Advantage: Why Wealthy Families & Investors Are Moving to Italy

Date: 29 Jan 2025

Karen Jones

Tax advisers report that an increasing number of UK-based billionaires are planning to leave the country in response to the tax hikes introduced in Rachel Reeves’ Labour budget. So far, many have relocated to Italy and Dubai.

Italy has become an increasingly attractive destination for wealthy families, investors, and entrepreneurs seeking favourable tax conditions, strategic investment opportunities, and an enhanced quality of life. Recent legislative updates, including improvements to the flat tax regime and new rules on donations and inheritance, further solidify Italy’s appeal. In addition, the country’s trust-friendly legal framework, thriving real estate market, and expanding infrastructure make it a prime location for international relocation and business expansion. With growing interest from both European and American investors, Italy continues to position itself as a key hub for wealth management and cross-border business activities.

Why Italy is becoming the premier destination for wealthy families

Dott.Giuseppe Violetta – TEP, Of Counsel at legal firm Vittorio Emanuele Falsitta & Associati, and founder of the multi-family office Partners SCF, explains why Italy has become a top spot in their picture-perfect landscape. “The relocation process of wealthy families to Italy has been steadily increasing for several years. Recent legislative changes to the flat tax regime have not altered the core framework of the provision, which remains very attractive. Furthermore, as of January 1st, a new set of rules on donations, including those to trusts, and inheritance laws has come into effect, offering particularly favourable conditions, regardless of whether the family has opted for the flat tax regime or for other regimes that are also available.”

Violetta continues,“Notably, under the new regulations, the transfer of foreign assets into a trust before moving to Italy is not taxable in Italy and will not be taxable for resident beneficiaries when they receive capital distributions. Additionally, the updated framework has clarified many uncertainties regarding the ability to plan the generational transfer of significant assets in corporations or partnerships without incurring inheritance or gift taxes, provided certain conditions are met.”

How Italian advisors are streamlining the relocation process

Of Italian advisors Violetta adds, “Most major law firms and family offices in Italy have long been equipped to offer an all-inclusive service to families relocating to the country, facilitating their integration into Italy in a comprehensive way. On the educational front, international schools have long been present in the country, and their number has grown further due to significant investments by international operators in the Italian market, driven by the strong demand.”

A commentator at a private banking operation in New York said of the Italian market, “We are seeing inbound and outbound work with Italy which includes Italian investing and moving to the US, Italian companies expanding in the US market and vice versa.  Americans are moving and investing in Italy with or without the flat tax regime and expanding their business there, for example acquiring businesses.”

Paolo Gaeta at tax and wealth planning firm Paolo Gaeta & Associati, is a chartered accountant. Founded in Naples by the Gaeta family, the firm has established itself as a point of reference for families and entrepreneurs. Gaeta says, “Italy remains a prime destination for foreign investors, particularly those looking to create a trust to manage investments in the country. The option of establishing a discretionary, irrevocable family trust and transferring assets to trustees without incurring inheritance or gift taxes provides a noteworthy competitive advantage. Furthermore, income generated by assets held in trust in Italy is generally taxed at 24%, while subsequent distributions from the trustee to beneficiaries are not subject to additional taxation, enhancing the appeal of this arrangement. This is complemented by a real estate market rich in opportunities, especially in southern regions such as Campania, Puglia, and Sicily, as well as other prime areas for international buyers, including Tuscany, Lombardy, and the Alpine regions. “

EU funding set to drive growth in Italy’s infrastructure and property sectors

Gaeta adds, “Over the coming years, substantial EU funding earmarked for infrastructure development is expected to boost sectors such as construction, transportation, and digitalization, with positive repercussions for overall economic prospects and property values. Against this backdrop, Italy stands out as an attractive and strategic destination, offering a beneficial regulatory framework for trusts and significant potential for growth across multiple sectors.”

Italy’s tax benefits and quality of life leading the way

Alessandro Umberto Belluzzo TEP, barrister and Founding Partner at Belluzzo International Partners adds his thoughts. “The UK government’s proposed reforms to inheritance taxare prompting many high-net-worth individuals (HNWIs), business owners, and entrepreneurs to rethink their long-term financial strategies. We see many UK entrepreneurs wanting to restructure their businesses and estates in anticipation of the reforms. This often involves relocating personal residency to Italy to benefit from the flat tax regime. To do this we usually need to re-assess business structures to look at tax under international treaties and will need to implement estate planning strategies to ensure that future generations inherit assets have reduced tax exposure. This trend is accelerating as more business owners recognize that Italy offers not only financial advantages but also an exceptional quality of life, the famous ‘DOLCE VITA’.”

Belluzzo adds, “Now is an opportune time for entrepreneurs and HNWIs to consider relocating to Italy. By leveraging the flat tax regime and the UK-Italy DTT, individuals can protect their wealth, secure their estate for future generations, and enjoy a superior lifestyle.” I ask if Milan is the only destination. “At the moment the majority of people are moving to Milano and they get a second home around Lake Como, Liguria (Santa Margherita) or the mountains like Courmayeur. Others are moving to Rome, Florence and Tuscany. There are also other cities that could be more strategic like Verona, Bologna and Turin which are only one hour away from Milan by train but they have not yet had the same exposure as Milano. Foreigners don’t know anything about these other cities. In my opinion you can live in Bologna, Verona or Torino while working in Milan with less money and stress.” 

Marco Sandoli, Partner at Alma LED, who are a tax consultancy, adds his view, “Italy recently has doubled the flat tax from € 100,000 to € 200,000 on foreign income for wealthy individuals who transfer their tax residence to Italy. However, this has not reduced the country’s tax appeal. The Italian Res Non Dom regime is for 15 years but can be revoked without any penalties, offering maximum flexibility. Italy has seen significant increase in inflows from the United Kingdom following the final approval of the tax reform, which abolished the UK’s non-domiciled regime as of April 2025 and made unfavorable changes to inheritance tax and the regime applicable to offshore trusts. The peak of transfers from the UK is expected by the end of March, as the new tax regime will come into effect in April.”

Sandoli continues, “One of the most appealing elements of Italy compared with UK pertains to the inheritance tax regime. Outside the non-dom regime, UK’s inheritance tax rate is 40% above a 325,000 pound threshold, while the Italian inheritance tax rate is between 4% (above one million for spouse and heirs in the direct line) and 8%, but the flat tax regime exempts foreign assets from inheritance tax. Another attractive feature is the trust taxation regime, which has recently been reformed, providing maximum planning flexibility.”

Professor, Dr Stefano Grilli an international tax partner at Deloitte in Milan, who has a PhD in International and European Tax Law and his associate Silvia Barba share their view on Italy’s dominance as a relocation destination. “Despite the increase in the flat tax, our most recent experience seems to confirm that Italy can still be considered a key destination for HNWIs open to relocate elsewhere. Most of them are indeed looking at Italy not only for the tax benefits available under the Regime, but also for the context where they aspire to live.”

Grilli explains further, “Focusing on a purely tax perspective, the possibility to preliminarily assess their eligibility for the Flat Tax Regime, as well as the relevant implications thereunder for instance, for their existing and planned holdings in corporate structures, trusts, foundations, as well as corporate offices, working activities, or even carried interests and crypto-assets with the Italian tax authorities, via tax ruling procedure and under specific timing, is always welcome, as it guarantees certainty.”

Grilli adds, “In this respect, it should be reminded that the flat tax increase did not impact applicants already benefitting from the Regime, nor the family members who can still move to Italy and enjoy the same tax treatment of the new main applicants by paying only 25k per year. Furthermore, the Italian tax authorities seem everyday keener to share their official interpretation on new Italian provisions of law with worldwide taxpayers (recently, the guidance on the new rules to establish Italian tax residence was issued with an English courtesy translation), de facto acknowledging the interest that the Italian tax system is having and showing a renovated sensibility and attention towards non-Italian citizens looking for la dolce vita.”

Stefano Loconte, Founding Partner at Loconte & Partners based in Milan but with offices also in Rome, Padua, London and New York, adds his comments around European investment. “Italy is a jurisdiction that is attracting many people who look for a great place to live where taxation is also low. The reasons behind this phenomenon are attributed to the Italian legislator who in the past few years has taken many steps in tax reforms and with the introduction of special tax regimes for individuals. The recent changes made to the Italian Regime for New Residents do not affect the positive scope of the regime, especially compared to other European tax regimes. Also, the special visa to attract new non-EU investors represents a unique chance to invest in strategic assets for Italy’s economy and society. Also, at the same time, some Italian cities have become important business centers. No doubt that the city of Milan now represents the main hub for tech and service sectors such as banking, finance, fashion and design. It is also a perfect place to raise a family. In fact, the city offers an excellent and a wide range of foreign and international schools and keeps on growing in the real estate sector. This is why it is still the right moment to transfer to Italy, and especially to Milan.”

In conclusion, Italy’s combination of favourable tax policies, strategic investment opportunities, and exceptional quality of life continues to attract wealthy families, investors, and entrepreneurs from around the world. Recent legislative updates, particularly in areas like the flat tax regime and inheritance laws, have further solidified the country’s appeal as a premier relocation destination. With an attractive regulatory framework for wealth management, a thriving real estate market, and a growing infrastructure sector, Italy offers unmatched potential for international business expansion and personal wealth preservation. As the allure of the “Dolce Vita” lifestyle grows, Italy stands poised to remain a top choice for high-net-worth individuals seeking both financial benefits and a superb living experience.

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