According to reports from several media outlets, Italy has once again confirmed its status as one of the most desirable destination for international buyers and investors in 2025. From this perspective, it is important to highlight that Italy’s luxury residential real estate stock is limited, especially in the most sought-after locations. This scarcity is driving the appreciation of existing properties, creating significant opportunities for urban regeneration projects and the redevelopment and enhancement of historic buildings.
Surprisingly, among the new hubs of global wealth, Italy stands out as one of the most popular emerging destinations for the ultra-wealthy. Its high quality of life, rich cultural heritage, renowned cuisine, and stunning landscapes have placed it third globally. These factors are further complemented by safety and fiscal benefits, particularly for foreigners looking to establish permanent residency in Italy.
Italy’s CR7 Rule Explained
From this perspective, Italy’s “CR7 Rule” stands out – a special tax incentive dubbed after football star Cristiano Ronaldo, who played for Juventus and was among the first to benefit from it. This favourable tax regime allows new residents in Italy to pay a flat tax on foreign-sourced income. Already revised in 2025, from 2026, the flat tax for new residents will be €300,000, regardless of the total amount of foreign income.
The increase to €300,000 will apply only to individuals who transfer their tax residence to Italy from 1 January 2026 onwards. Those who have already moved by 31 December 2025, will continue to benefit from the previous tax conditions.
The revision will also concern the flat tax regime for family members of high-net-worth individuals relocating to Italy. From 2026, they will be required to pay a €50,000 tax, up from the current €25,000.
Who is Interested in the Luxury Segment and Where Do They Come From?
According to analysis by the portal gate-away.com, demand is not only coming from traditional markets such as the USA and Germany, but also from non-European regions.
Which price brackets attract the most interest?
The ultra-luxury segment (properties over €3 million) remains the most sought-after, with average values rising by around 2.4% year-on-year. Meanwhile, the luxury segment (€1–3 million) has seen a slight decrease (-0.71%). These figures highlight how dynamic these markets are and the careful attention buyers place on selecting the right property.
Where are buyers coming from?
The largest share of foreign interest in Italy’s luxury property market comes from:
- United States (24.9%)
- Germany (17%).
Alongside these traditional markets, several countries are showing strong growth: Belgium (+22%), Spain (+18%) and Hungary (+41%). The United Kingdom accounts for 6% of total demand, with a moderate increase of +1.44%.
Although still a smaller share overall, notable growth is also seen from the United Arab Emirates (+34%) and Turkey (+5%). In contrast, interest from Australia and Canada has slightly declined by -21.9% and -39.3% respectively.
In the luxury segment, Italy accounted for 9.3% of total demand, with a remarkable growth of +49.6%. This includes all buyers who, whether visiting for holidays or work, decide to purchase a home in the Bel Paese.
While classic destinations like Tuscany and Lombardy continue to lead the market, significant growth has also been recorded in less conventional regions, including Lazio, Campania, and Abruzzo.
Most Sought-After Locations in Italy’s Ultra-Luxury and Luxury Segments
For the ultra-luxury segment, the top destinations are:
- Lake Como – 22.2% of demand, with a striking +78% increase
- Amalfi Coast – 8.1%
- Argentario – +35%
- Lake Garda – +44%
In major cities, the luxury segment sees the most demand in:
- Rome – 9.1%
- Florence – 5.8%
- Milan – 5.3%, which has also seen growth in the ultra-luxury sector
It is worth noting that alongside these prominent cities, smaller towns and coastal destinations are experiencing strong growth, including Spoleto (PG) and San Teodoro (SS), reflecting a broader diversification of the Italian luxury real estate market.
Most Sought-After Property Types in Italy’s Luxury Market
Among foreign buyers in Italy, the most in-demand property types are:
- Villas – around 43% of all requests
- Farmhouses (“Casolari”) – 7.5%
- Masserias – 3%
In addition, country homes have seen strong growth, with demand increasing by +33%, reflecting a rising interest in rural properties.
Credit Intermediation: Expertise and Reliability you can Trust
Buying a property in Italy can be challenging for international buyers due to complex bureaucratic procedures, language barriers, and difficulties accessing local bank financing. In this context, Top Italian Mortgage serves as a trusted and knowledgeable ally, offering tailored support and deep market expertise, enabling international clients to navigate the entire process smoothly and securely.