Tax Advantages and Luxury Lifestyle Lure High-Net-Worth Individuals

Italy is poised to attract 3,600 millionaires in 2025, solidifying its position as the third most popular global destination for individuals seeking tax advantages and a high-quality lifestyle. According to a recent report by Henley & Partners, a company specializing in consultancy for citizenship and residency programs, more than 142,000 millionaires worldwide will relocate in 2025, with Italy ranking behind only the United Arab Emirates and the United States.

The decision to relocate to Italy is driven by geopolitical tensions and increasing global tax competition. The number of high-net-worth individuals ready to relocate has more than doubled in the past decade, with Italy’s favorable tax regime playing a key role in attracting this demographic. The CR7 rule, introduced in 2017, allows non-domiciled residents to pay a fixed annual tax of €200,000 on income generated abroad for a period of 15 years, making Italy an attractive destination for international millionaires and managers.

Milan, in particular, has emerged as a hub for international high finance, with the recent abolition of the tax regime for “non-doms” in the United Kingdom prompting many millionaires to move to Italy. The city’s tax advantages, quality of life, and quick access to European markets have made it an attractive destination for individuals such as Elio Leoni-Sceti, Bart Becht, Richard Gnodde, and Nassef Sawiris. In addition to the favorable tax conditions, Milan is experiencing a growth in luxury services, with new exclusive clubs, high-end hotels, and an expansion of international law firms.

Italy’s financial wealth is also a major draw, with a total wealth of approximately $6.9 trillion in 2024, ranking eighth in the world for investable financial wealth. According to the 2025 Global Wealth Report by Boston Consulting Group (BCG), 40% of this wealth is invested in equities and mutual funds, 25% in deposits and currencies, 18% in life insurance policies and pensions, and 8% in bonds. BCG predicts an average annual growth of 6.5% until 2029, with financial assets potentially reaching $9.455 trillion.

However, not everyone is convinced that the arrival of millionaires is beneficial for Italy. Some critics warn of the risks of downward tax competition and the inflationary impact on the real estate market and services. Despite these concerns, Italy remains a popular destination for high-net-worth individuals seeking stability and a good quality of life, with its Mediterranean climate, cuisine, proximity to the sea and mountains, and lower cost of living compared to London or Monaco.