In 2024, Italy increased the flat tax for the ultra-wealthy people who move to Italy and change their tax residency from €100,000 to €200,000 per year. This tax was introduced in 2017 to attract the wealthy. Now its crease is due to the need to reduce the budget deficit, which far exceeds the allowable EU norms.
Despite the doubling of the tax, for ultra-wealthy people with assets above 30 million dollars, this increase does not represent a significant burden. Their tax payments in proportion to income are still much lower than under standard rates.
The tax increase is unlikely to significantly affect the Italian real estate market. Italy is predicted to continue to be a popular destination for millionaires. In 2024, around 2,200 people with assets of at least a million dollars are expected to move to the country.
Milan remains particularly attractive to the super-rich, which is driving up real estate prices. High demand for luxury properties, especially in central areas, will continue to support the market despite tax increases.
