Italy has always been celebrated for its art, history, and lifestyle. Recently, it has begun drawing a growing cohort of ultra-high-net-worth individuals (UHNWI), not just for its dolce vita, but also for its smart fiscal environment and stable governance.
A new wave of wealth into Italy
According to the Henley Private Wealth Migration Report 2025, Italy is expected to welcome approximately 3,600 millionaires this year. It ranks third globally, just behind the UAE and the United States, as the new epicentre for wealthy migration.
Italy is already home to an estimated 517,000 millionaires (individuals owning over USD 1 million) and 2,600 super-rich with assets exceeding USD 100 million. The number of millionaires in the country is projected to grow by 1% annually over the next few years, while the ultra-rich segment may expand by around 3%.
This influx is no accident. Italy’s flat tax regime for new residents has quietly become one of the most compelling incentives globally: a fixed annual tax of €200,000 on all foreign income, plus €25,000 for each family member. Valid for up to 15 years, the regime has created a uniquely attractive and predictable tax environment for wealthy families planning a relocation.
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The flat tax: A powerful tool for wealthy families
The Italian flat tax regime is open to individuals who transfer their tax residency to Italy and have not been Italian residents in 9 of the previous 10 years. Once granted, it can last for up to 15 years, providing long-term certainty.
Key advantages include:
- Predictability: €200,000 per year, regardless of the size of foreign income.
- Family inclusiveness: spouses, children, and even parents can be added for €25,000 each.
- Exemptions: No wealth tax (IVIE/IVAFE) and no obligation to report foreign assets under the normal monitoring rules.
- No gift/inheritance tax: Under the flat tax regime, the free transfer of foreign assets is not taxable.
- Flexibility: Italian-source income remains taxed normally, but everything else abroad falls under the substitute tax.
For UHNWIs, who often manage global portfolios, private equity holdings, or family businesses abroad, the regime can result in substantial tax savings while reducing compliance complexity.
Why the family office still matters
Relocating to Italy under the flat tax does not mean abandoning established wealth structures abroad. On the contrary, it highlights the importance of having a family office in a strategically chosen jurisdiction.
A family office provides governance, continuity, and long-term vision across generations. With the flat tax, families can optimise this further by positioning their family office in a jurisdiction that maximises efficiency.
Common choices include:
- Singapore and Hong Kong – offering a robust financial ecosystem, favourable tax treatment, and global investment reach.
- Switzerland – still a leader in wealth management, with stability and prestige.
- Cyprus and Luxembourg – popular for family holdings and fund structures, with flexible tax regimes.
By keeping the family office abroad, families ensure that wealth can continue to grow in a tax-neutral or low-tax environment, while their Italian residence ensures personal stability and access to one of the most attractive lifestyles in the world.
The winning combination: Lifestyle in Italy, structure abroad
Consider a family relocating from London, Copenhagen, Oslo or Stockholm to Tuscany. The family pays €200,000 annually under the flat tax, plus €25,000 for each dependent covered. Regardless of whether their portfolio generates €5 million or €50 million in dividends and capital gains abroad, their Italian tax exposure remains capped.
At the same time, their family office—established in Singapore, Geneva, or Nicosia—continues to manage global investments, holding structures, and philanthropic projects. The family enjoys Italian life, while the wealth remains structured for efficiency and protection.
This dual approach—Italian residency plus an international family office—creates stability, predictability, and long-term financial growth.
Strategic planning is essential
Despite its appeal, the flat tax is not a “plug-and-play” solution. Families must carefully evaluate:
- Timing of relocation: The 183-day residency rule in Italy means that moving mid-year has full-year consequences.
- Source of income: Distinguishing between Italian- and foreign-sourced income is key to applying the regime correctly.
- Succession planning: Aligning family governance and inheritance structures with Italian civil law.
- Investment strategies: Ensuring that holdings abroad continue to benefit from low-tax jurisdictions without conflicting with Italian rules.
The real advantage comes when tax advisors, wealth managers, and family office professionals collaborate. With the right structure, wealthy families can design a plan that minimises risk, avoids double taxation, and ensures long-term continuity.
Italy’s future as a hub for UHNWI
Italy is positioning itself as one of the most attractive destinations in Europe for wealthy families. The combination of the flat tax regime, high quality of life, and proximity to global financial hubs is pushing more families to seriously consider relocation.
For UHNWI, the opportunity is not just to enjoy Italian culture and lifestyle, but to integrate Italy into a global wealth strategy where the family office remains the engine of financial growth.
Wealth transfer and succession planning opportunities
One of the most powerful features of Italy’s flat tax regime is its impact on wealth transfers across generations. Since foreign assets covered by the regime are exempt from Italian gift and inheritance taxes, wealthy families can reorganise and transfer their global wealth to children or other heirs without incurring additional taxation in Italy.
This creates a unique window of opportunity for families to align their succession planning with their relocation. Large estates, international holdings, and even family businesses can be passed on to the next generation in a tax-efficient manner, all while enjoying the stability of a predictable €200,000 annual charge.
For UHNWI, the flat tax is not just a personal benefit—it becomes a strategic tool to ensure long-term continuity, asset protection, and intergenerational wealth transfer under highly favourable conditions.
Conclusion
Italy’s flat tax regime has changed the country’s role in global wealth planning. It offers wealthy families certainty: a capped, predictable tax liability on foreign income. But the real key to long-term success lies in combining this opportunity with a strategic family office setup.
By structuring wealth in efficient jurisdictions abroad and leveraging Italy as a lifestyle and residency hub, families achieve the best of both worlds: la dolce vita at home, and financial efficiency worldwide.
For UHNWI, Italy is no longer just a place for holidays, it is becoming a cornerstone of global wealth strategies.
