Why Italy Is Attracting Millionaires and Billionaires in 2025

A Surprising Destination for Billionaires: When one thinks of tax havens, the usual names come to mind: Dubai, Monaco, Switzerland, or the Cayman Islands. Yet, in 2025, the unexpected leader emerging in this field is Italy.

While Italy has always attracted visitors with its climate, cultural treasures, and cuisine, it is now increasingly drawing the world’s wealthiest individuals for a very different reason: a highly competitive tax regime that rivals long-established financial safe havens.

Italy’s Rise in the Wealth Migration Rankings

According to a new CEOWORLD magazine study, Italy now ranks third worldwide for new millionaire residents, trailing only the United Arab Emirates and the United States. Approximately 3,600 high-net-worth individuals relocate to Italy annually, surpassing Switzerland—a country synonymous with financial stability and discretion.

This surge reflects a shift in global wealth migration patterns, where lifestyle appeal and fiscal incentives increasingly weigh as much as traditional secrecy or banking strength.

The “CR7 Rule”: A Game-Changer for Wealthy Expats

The catalyst behind Italy’s newfound status is a measure introduced eight years ago, informally known as the “CR7 rule.”

• Flat Tax Advantage: Non-domiciled individuals can opt to pay a flat €200,000 annual tax on foreign income, regardless of its size, for up to 15 years.
• Family Extension: Relatives can benefit as well, at a reduced rate of €25,000 per person annually.
• High-Profile Case: The regime gained global attention in 2017 when football icon Cristiano Ronaldo moved to Juventus, taking advantage of the measure.

This system offers a blend of predictability, competitiveness, and exclusivity, making Italy an attractive alternative to Switzerland, London, or offshore jurisdictions.

Who’s Moving to Italy?

The list of new Italian residents reads like a who’s who of global finance, sports, and business:

1. Renaud de Planta and Bertrand Demole (Pictet banking group) — both relocating from Switzerland.
2. Lewis Hamilton, Formula 1 champion — establishing residence in Milan.
3. Nassef Sawiris, Egyptian billionaire (net worth: ~€9 billion) — opting for Italy under the flat tax regime.

These examples illustrate how Italy is now firmly embedded in the global wealth migration map.

The Real Estate Boom: Milan, Rome, and Lake Como

The inflow of billionaires has left a visible mark on Italy’s urban landscape.

• Milan, Rome, and Lake Como are the top destinations, driving an unprecedented surge in luxury real estate demand.
• In Milan, prime real estate prices have skyrocketed, with some areas exceeding €34,000 per square meter.
• This trend is reshaping local economies, fueling a luxury ecosystem of high-end services, exclusive retail, and private wealth management firms.

While this strengthens Italy’s global prestige, it also raises questions about social and economic duality.

The Double Standard: Billionaires vs. Middle Class

The flat tax regime highlights a stark contrast in Italy’s fiscal landscape.

• Wealthy expatriates: Pay a predictable, capped amount, regardless of global income.
• Middle class Italians: Face one of the heaviest tax burdens in Europe.

Italy’s average effective tax rate is 20.9%, the highest among the EU’s five largest economies and well above the European average of 16%.

This “two-speed system” is both Italy’s strength and weakness: it attracts billionaires, but underscores the challenges faced by its working and middle-class citizens.

Beyond Tax: Why Italy Works for the Ultra-Wealthy

The Italian model is compelling not just for fiscal reasons. For high-net-worth individuals, it combines:

• Quality of Life: World-class cities, Mediterranean lifestyle, cultural richness.
• Geostrategic Location: Easy access to European, Middle Eastern, and North African markets.
• Political Stability of EU Membership: Unlike traditional tax havens, Italy offers the credibility of being part of the Eurozone.
• Luxury Infrastructure: Private aviation, elite education, and healthcare services tailored for global elites.

In short, Italy has managed to package lifestyle and tax efficiency in a way few jurisdictions can match.

A Balancing Act for Policymakers

Italy’s government faces a delicate balancing act:

• On one hand, the flat tax boosts foreign investment, real estate, and luxury sectors.
• On the other, it risks deepening inequality and resentment among ordinary taxpayers.

As more countries compete for global wealth migration, Italy must consider whether the benefits — capital inflows, job creation, global prestige — outweigh the perception of favoritism toward the ultra-wealthy.

Conclusion: A New Chapter in the Global Wealth Map

Has Italy become a tax haven? The evidence suggests yes — but not in the traditional sense of secrecy and opacity. Instead, Italy represents a modern, lifestyle-driven haven, offering billionaires a mix of fiscal certainty and cultural magnetism.

For global wealth managers, policymakers, and investors, Italy’s rise signals a new reality: the competition for the world’s wealthy is no longer about hiding money offshore but about attracting people, capital, and influence onshore.

Italy, with its unique blend of art, lifestyle, and tax incentives, is positioning itself at the very center of that competition.