Why Millionaires Are Moving To Italy

About this video

• Video Title: Why Millionaires Are Moving To Italy
• Channel: CNBC International
• Speakers: None explicitly named as speaking, but the transcript is narrated.
• Duration: 10:53

Overview

This video explores the growing trend of millionaires and billionaires relocating to Italy, driven by the country's attractive flat-tax regime, thriving real estate market, and appealing lifestyle. It discusses the economic implications, the specific tax incentives offered, and the impact on both the Italian economy and its local populations.

Key takeaways

• Attractive Tax Incentives: Italy introduced a flat-tax regime, initially €100,000 and later doubled to €200,000 for new arrivals, which makes it a compelling destination for high-net-worth individuals seeking to pay less tax than in other countries.
• Economic Impact: The influx of wealthy individuals is estimated to bring billions in private capital, boosting sectors like real estate, finance, and hospitality, and creating local jobs.
• Real Estate Boom: Popular destinations like Tuscany, the Italian Riviera, Rome, Venice, Florence, Bologna, and particularly Milan and Lake Como, are experiencing significant property price increases due to this trend. Milan's prime real estate market is projected to see further growth.
• Global Trend: Italy is not alone in this; many countries are implementing or considering similar "citizenship by investment" or "residence by investment" programs to attract foreign capital, while others are increasing taxes on the wealthy.
• Social and Economic Concerns: While the influx of wealth brings economic benefits, it also raises concerns about rising housing costs pricing out locals, exacerbating wealth inequalities, and the concentration of wealth in specific areas, potentially turning Italy into a tax haven.