Why Wealthy Families Are Looking To Italy

When you think of tax-friendly jurisdictions, Dubai, Singapore, Monaco and Switzerland probably spring to mind first. Italy? Not so much.

And yet, the home of Renaissance art, world-class cuisine and some of Europe's most coveted coastline has emerged as one of Europe's notable wealth-mobility success stories in recent years.

As part of its Private Wealth Migration Report 2026, Henley & Partners, a strategic partner of Hoxton Wealth, has designed a Global Wealth Mobility Framework to score jurisdictions on their structural attractiveness to internationally mobile wealth. Italy recorded a score of 72.3 out of 100, placing it firmly among countries including the Cayman Islands, Portugal and Cyprus that are ranked as Strong Wealth Mobility Jurisdictions - a tier that reflects genuine, sustained appeal rather than a single standout advantage.

According to CEOWORLD magazine, Italy now ranks third worldwide for new millionaire residents, behind only the UAE and the US, and ahead of Switzerland - a country traditionally synonymous with private wealth.

So what is it that makes Italy so attractive to some of the world’s wealthiest individuals and families?

Since 2017, Italy has offered qualifying new residents the option to pay a single flat annual tax on all their foreign-sourced income, rather than Italy's ordinary progressive rates.

The fee has risen over time - from €100,000 at launch to €300,000 under the 2026 Budget Law (effective from 1st January 2026). This remains in place for 15 years, with existing participants protected at the rate they originally signed up to. After that, standard rates of Italian taxation apply.

Family members can be added for a separate flat annual charge - €50,000 in 2026. The regime also exempts Italian wealth tax, Italian inheritance and gift tax, and Italian financial-asset reporting. This works out considerably simpler and often cheaper than being taxed progressively, making Italy an extremely attractive proposition for genuinely substantial foreign income.

Unlike some competing tax-residency schemes, Italy's flat tax regime doesn't require a minimum investment in local property, government bonds, or business - only genuine relocation and Italian tax residence.

Despite the fee increase this year, demand remains strong with wealthy individuals and families particularly appreciating the simplicity and predictability of this option which are rare finds in global tax regimes.

Separately, Italy also offers a residence-by-investment route - its 'golden visa’.

Applicants can qualify in one of two ways. The Investor Visa Program requires one of the following: a minimum of €2 million in Italian government bonds, a minimum of €500,000 in Italian shares (reduced to €250,000 if investing in innovative start-ups), or a minimum of €1 million as a non-refundable donation to a project of public interest, such as culture, education, ecology, research, or heritage.

Whichever route is chosen, the investment must be maintained for the duration of the visa, and a spouse, children, and dependent parents can be included without any additional investment required.

Alternatively, the Elective Residence Program is aimed at those who can demonstrate a stable annual income from abroad, rather than making a qualifying investment.

Unlike the flat tax regime, neither option requires the applicant to become an Italian tax resident or spend the majority of the year in the country - which is why the two routes suit different circumstances. The flat tax regime is built for those planning a genuine, full-time relocation to Italy; the residence-by-investment route is better suited to those who want the right to live in Italy and travel freely across the Schengen Area, without committing to Italy as a primary home.

Italy's inheritance and gift tax rates are comparatively low by European standards, particularly for close family, which makes it an increasingly attractive base for families thinking about succession as well as day-to-day tax efficiency.

If we take the UK as a comparative example, it’s easy to see the benefits of the Italian system. In both countries, spousal transfers are effectively exempt from inheritance tax, however Italy offers clear advantages when it comes to passing wealth to the next generation.

Italy’s €1 million allowance per child or grandchild plus inheritance tax at just 4% on amounts over the allowance is considerably more generous than the UK’s tax-free Nil Rate Band of £325,000 plus Residence Nil Rate Band on a main residence of £175,000, and fixed-rate inheritance tax at 40% on anything over those thresholds.

Italian residence brings visa-free travel across the Schengen Area and full access to the EU single market - a significant draw for anyone whose life or business spans multiple European countries.

Milan has increasingly positioned itself as a serious European base for family offices and private wealth structuring, adding a genuine business case to what was previously seen mainly as a lifestyle relocation.  A luxury ecosystem comprising private aviation, elite education, high-end services, exclusive retail and private wealth management firms has been established to service the demands of HNW clients.

Tax efficiency is desirable but rarely makes an international relocation exciting, but in Italy the rest of the package definitely does. Excellent food, good wine, world-class cities, culture in spades, comparatively affordable house prices, a genuinely enviable climate and a stunning Mediterranean coastline are the icing on the cake for expatriate families and wealthy individuals moving to the country.

Henley & Partners has reported particular interest from UK-based individuals and families specifically, and the reasons are fairly easy to trace. As highlighted earlier in this series of articles, the UK's abolition of the non-dom regime and changes to inheritance tax have made the UK considerably less predictable for internationally mobile wealth. Italy's flat tax regime and IHT rules offer a more generous alternative - a single, known annual cost rather than exposure to worldwide income and gains at UK rates.

There's also a practical, post-Brexit dimension. British citizens lost automatic freedom of movement across the EU when the UK left the bloc, which means many now weigh EU access more heavily than they once did. Italian residence restores exactly that - visa-free Schengen travel and a genuine EU base – both advantages that have become considerably harder for UK nationals to acquire since Brexit.

Geography and familiarity help too. Italy has long been a favoured destination for British holidaymakers and second-home owners, and established British communities already exist in regions such as Tuscany and Umbria. For many UK families, relocating to Italy isn't a leap into the unknown in the way a move to Dubai or Singapore might be.

Few jurisdictions can offer the package of lifestyle and tax efficiency that Italy does. It's appeal is built on offering something rare in the global financial landscape - a clear, predictable framework that has stayed broadly consistent in structure even as the cost has risen, combined with genuine EU access and an enviable quality of life. 

For UK-connected families in particular, the calculation increasingly comes down to comparing two things: the UK's shifting, less predictable position, against Italy's clearly priced, well-understood alternative.

Hoxton's advisers can help you understand how a move to Italy - whether via the flat tax regime or a residence-by-investment route - would sit alongside your wider financial plan, including any tax exposure that continues after you leave your current location, wherever you are in the world.

For further information, consult our tax guide for expats in Italy or make an appointment with a Hoxton Wealth adviser who can discuss whether migrating your wealth to Italy is an astute move.