By Letara Draghia
Italy is expected to attract 3,600 high-net-worth individuals in 2025, making it the third most popular destination for migrating millionaires after the UAE and the US, according to Henley & Partners’ 2025 Private Wealth Migration Report.
A total of 142,000 millionaires are projected to relocate globally next year, as wealthy individuals flee high-tax or politically unstable regions in favour of countries with better incentives and lifestyle perks.
What’s luring the rich to Italy? The ‘CR7 tax rule’
One of the main reasons for Italy’s rise is its lucrative flat tax scheme, popularly dubbed the ‘CR7 rule’ after footballer Cristiano Ronaldo.
Under this rule, foreign residents can pay a flat €200,000 annual tax on overseas income for up to 15 years. Family members joining them pay just €25,000. Italian-sourced income remains taxed under standard rules.
This setup is especially appealing to wealthy expats with income from investments, capital gains, image rights or foreign inheritances.
Milan emerging as Europe’s tax-friendly financial hub
Milan is becoming a hotspot for international executives and wealthy retirees. High-profile names like Richard Gnodde (Goldman Sachs Vice Chairman) and Nassef Sawiris (Egyptian billionaire) have reportedly settled in the Italian city, according to Euronews.
The city offers not only access to EU markets, but also a growing luxury industry (including new exclusive clubs and 5-star hotels – Rocco Forte and Rosewood), plus an expanding network of international law and finance firms.
Italy is currently home to:
517,000 millionaires (individuals with assets over $1 million)
2,600 centi-millionaires (with over $100 million)
These numbers are expected to grow annually by 1 and 3 per cent respectively. Meanwhile, total investable financial wealth in Italy is expected to hit $9.45 trillion (€8.76 trillion) by 2029.
But not everyone is convinced it’s a good thing.
Supporters argue that rich newcomers boost spending, investment and tax revenues, helping revitalise communities.
Critics, however, fear that it fuels downward tax competition, drives up property prices and widens inequality.
Italy has a lifestyle that many dream of
Italy’s appeal isn’t limited to the ultra-rich. As CNN Travel reported, middle-class Americans like the Smarrellis have also relocated to southern Italy to reduce living costs, saving nearly $3,000 (€2,550) per month since moving from New York to Calabria.
Jeff Bezos and Lauren Sanchez recently tied the knot in Venice amid overtourism protests, meanwhile rural communities continue to offer €1 home schemes aimed at attracting young buyers and foreign settlers.
Should countries like Italy continue offering tax havens for the global elite, or is this an unfair system that squeezes locals out of the housing market?
View all news from Italy.