Italian luxury: why everyone can feel like a millionaire in Italy!

Everyone can feel like a millionaire in Italy, where the sights, sounds, tastes and warm sunshine are available whatever your income level. But if you actually are a high-net worth individual (HNWI), what are the special benefits of living and buying property here? 

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Italian kitchens

A selling point of any house is when it says “Italian designer kitchen”. Not only do Italians know how to cook, but they also know how to design a great space, where you can create delicious meals. Big names, such as Aster Cucine, Boffi, Alta Cucina, Cesar, and Minotti are just some of the brands producing high-quality kitchens in Italy. Plus, once you have bought your own Italian home, you will be able to visit marble suppliers in person, to choose your dream worktop and flooring.

Luxury cars

Italy boasts strong credentials in manufacturing and engineering, thanks to its strong tradition in luxury cars and boats. Cars you may want to park in front of your Italian home include Ferrari, Alfa Romeo, Maserati, and Lamborghini. Plus, anyone who loves Formula One, won’t want to miss a day at the Monza track, which is just a short drive north of Milan.

Italian fashion

Italy puts the style into “Lifestyle”. When you look good, you feel good. There is no better place to shop for the leading Italian fashion brands, such as Gucci, Prada, Fendi, and Giorgio Armani than in Milan. To relax after a busy morning’s shopping, simply visit one of many luxurious wellness centres. In some parts of Italy, you can even enjoy natural hot springs and thermal baths.

Italian furniture

The “Made in Italy” brand is respected across the world. Particularly in sectors where style and design are fundamental. When it comes to furnishing your Italian home, furniture brands of note include the woodworking elegance of Giorgetti, the timeless style of Cassina, the leather craftsmanship of Poltrona Frau, and the timeless elegance of Maxalto. Once you own a house in Italy you’ll be able to discover your own Italian Interior design style.

Italy’s tax benefits for high-earners

To enhance investments, and attract wealthy individuals to live in Italy, a generous tax regime was introduced especially for high-earners from abroad. Dedicated to those willing to transfer their tax residence to Italy, the tax regime offers a fixed rate substitute tax on all foreign income. The option is valid for 15 years.

Flat-rate tax

To qualify, for the flat rate tax of €100,000 (roughly £87,000) a year, new residents must not have paid taxes in Italy for at least 9 out of the past 10 years. In addition, the regime may also be extended to family members at a fixed tax rate of €25,000 per person. For people earning €1 million a year, it equates to a tax rate of just 10%. Whereas, in some countries, they could be paying income tax as high as 43%.

The measure was intended to boost big spending in Italy, whether it be on luxury homes or Italian brands. In the first year, 98 people were enticed to transfer to Italy. By 2020 the number had grown to 549, and in 2021 the figure had more than doubled to 1,339.

Other tax incentives

The Italian tax system provides numerous tax regimes for people who decide to move to Italy to work or live. For example, if professors and researchers, currently residing abroad, decide to move to Italy, they can benefit from tax incentives related to their income generated in Italy.

A tax incentive is also in place for so-called “impatriate” workers. They are graduates who have worked abroad, students who have obtained an academic qualification abroad, and managers and workers with high qualifications and specializations. More information on tax incentives can be found in this pdf file produced by the Italian Revenue Agency ( Agenzia delle Entrate) 

Redevelopment opportunities

The arrival of wealthy residents has certainly helped revitalise the market for luxury homes, with many of them spending millions on their Italian property. Their love of historic buildings has also spurred the redevelopment of long-neglected historic houses in city centres and on country estates.

The sector of villas, luxury homes and historic houses, is focused on attracting super-rich buyers from around the world. With this growing market in mind, investors are now looking at buying large properties that need renovation, to either resell, split into smaller luxury units, or convert into hotels.

Who is buying luxury Italian property?

High earners

In the past few years, some individuals have become unhappy with how political decisions have affected their livelihoods. In Britain, high property taxes, limits on trade, higher taxation and a rising cost of living have all contributed to people deciding to make the move to an EU country. Many of the super-rich that have come to Italy, are bankers, and managers of large assets. Some have made their fortunes in technology or as entrepreneurs.

Celebrities

Rumours abound about famous people who are supposedly, buying or selling luxury houses in Italy. However, they are often just rumours. The estate agents that deal with celebrity clients are very discrete, so they can enjoy tranquillity and total privacy at their Italian homes.

Need space

Many Italian properties have that outside space everyone craved during COVID lockdowns. For those who were stuck in an apartment in London, browsing Italian property pages, it may have been the push they needed to reassess whether their home was big enough. Plus, if you are going to get a bigger house, why not buy one in a country with better weather too?

Retiring early

The “Italian lifestyle” has a special appeal to individuals who are professionally accomplished and have reached a time in their lives when they want to enjoy the benefits of being financially secure. They may have previously only dreamt of moving to Italy in their retirement years. However, following Brexit and the pandemic, many are reassessing their lifestyle choices and considering making the move earlier.

Working from home

Thanks to massive technological developments, many more people are now able to work from home, almost anywhere in the world. Italy is also in a great location to take flights and trains to major cities in Europe for business.  The “Bel Paese” particularly appeals to those buying a second home, that they can use for holidays. However, many of them also have in mind a more long-term move, as they approach retirement.

Returning home

Among the house buyers arriving from abroad, it should be noted that several are people returning to their home country of Italy, after a period away at University or following a career path. Some have Italian ancestry and want to discover their roots. Since the UK left the EU, there has been an increase in British people applying for joint citizenship in Italy, through a family connection.

Where are the wealthy buying?

The most sought-after cities are the historic ones, such as Milan, Rome, Florence, and Venice. Estate agents dealing in luxury property have noted a marked interest in the regions of Tuscany, Liguria, Sardinia and the lakes of the Lombardy region. Particularly Lake Como, due to its proximity to both Milan and Switzerland.

Rural areas

A huge property of historical interest in the Tuscan countryside, surrounded by rolling hills and vineyards is still the big dream for many. However, some are realising the benefits of expanding their property search to other regions. Following the examples of actress Helen Mirren, who bought a large Masseria in Puglia, and Ed Sheeran, who bought a farmhouse in Umbria. There is also a growing market in the rural areas of Sicily and Puglia, where entrepreneurs aim to purchase farmhouses and large villas to invest in tourism.

What do home buyers want?

In other countries, individuals might move to a city for business, but in Italy, foreign buyers are more likely to have fallen in love with the history of its architecture and café culture. Italy’s art, history, culture and traditions are very appealing to foreign buyers, as they create a sense of community, often lost in other towns in the world. If you have spent your working life travelling and staying in hotels, the friendly warm welcome you get in Italian neighbourhoods is refreshing.

Quality of life

The majority of foreign buyers long to improve their quality of life. Many are looking for a location with a mild climate, surrounded by fresh air and nature. Fortunately, Italian properties often come with a good size plot of land and are very private.

A view

A stunning view is often top of the wish list. When a house has an amazing view, often the rest of the requirements become less important. The view might be from a penthouse roof terrace in Rome, a sea view balcony in Liguria, a farmhouse terrace in Tuscany, or a villa on Lake Como. Find out more about balconies with views here.

A project

Buyers also like to feel they are getting a good deal and will be able to add value to a property through improvements they make. There are so many properties for sale in Italy with a high price tag, but when you look at the rooms they are very dated and in need of attention. It can be so satisfying to feel that you have rescued a house and created something luxurious, that represents your tastes.

Unique architecture

When money is no object, the choice of properties for sale in Italy is amazing. There are so many incredible architectural styles, castles, trulli, lakefront villas, farmhouses, ski chalets, sea view villas, modern city apartments, masserie, hamlets, countryside manor houses and city palaces (Palazzo) once owned by noble families. You can even buy a large house with vineyards and produce your wine. As singer Sting has done on his estate in Tuscany.

You will see many buildings from different periods in history too, such as Roman, medieval, renaissance, liberty, 13th-century tower houses, Baroque houses, and even cave dwellings. If you want a unique property, Italy is the place to look. Find out more about Italy’s unusual homes here. 

Historic apartments

Historic apartments in cities are much sought after, especially by wealthy business people. If you want to thoroughly immerse yourself in the “dolce vita” in Rome, you need to be located in the historic neighbourhoods. Here you can take a short stroll to enjoy your morning cappuccino and admire the stunning architecture all around as you explore the historic streets.

A wonderful example is, Palazzo Raggi, an 18th-century noble residence and neoclassical pearl. Once the home of an illustrious noble family which hosted cardinals and other historic characters hailing from Italian aristocracy. Now, this six-storey building is being renovated and converted into 29 opulent apartments. It’s not an opportunity that comes up every day, to own part of a historic building, just a stone’s throw from the Spanish steps. Therefore, they are creating a lot of interest.

An investment

Many foreign buyers indicate that they want to invest in a property that can also become a commercial activity. In particular, the demand for farmhouses is growing. The Masserie of Puglia are a good example of farmhouses that are increasingly being turned into hotels, while also producing food from the land, which can be served to guests. A similar structure in Sicily is called a Baglio.

To see a selection of high-value properties for sale in Italy, please visit our property page on Your Overseas Home. Alternatively, contact one of our advisors, who can put you in contact with trusted estate agents.

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