{"id":263,"date":"2026-01-07T10:33:22","date_gmt":"2026-01-07T10:33:22","guid":{"rendered":"https:\/\/topitalianmortgage.com\/news\/?p=263"},"modified":"2026-01-07T10:33:27","modified_gmt":"2026-01-07T10:33:27","slug":"italy-luxury-real-estate-foreign-investors-flat-tax-2026","status":"publish","type":"post","link":"https:\/\/topitalianmortgage.com\/news\/lifestyle-relocation\/italy-luxury-real-estate-foreign-investors-flat-tax-2026\/","title":{"rendered":"Luxury, Flat Tax 2026 and Foreign Buyers in Italy: Top Locations Where Foreigners Are Investing"},"content":{"rendered":"\n

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<\/strong>. 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Italy’s CR7 Rule Explained<\/strong><\/h2>\n\n\n\n

From this perspective, Italy\u2019s \u201cCR7 Rule\u201d stands out \u2013 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<\/strong>. Already revised in 2025, from 2026, the flat tax for new residents will be \u20ac300,000<\/a>, regardless of the total amount of foreign income.<\/p>\n\n\n\n

The increase to \u20ac300,000 will apply only to individuals who transfer their tax residence to Italy from 1 January 2026<\/strong> onwards. Those who have already moved by 31 December 2025, will continue to benefit from the previous tax conditions.<\/p>\n\n\n\n

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 \u20ac50,000 tax, up from the current \u20ac25,000.<\/p>\n\n\n\n

Who is Interested in the Luxury Segment and Where Do They Come From?<\/strong><\/h2>\n\n\n\n

According to analysis by the portal gate-away.com<\/em><\/a>, demand is not only coming from traditional markets such as the USA and Germany, but also from non-European regions.<\/p>\n\n\n\n

Which price brackets attract the most interest? <\/strong><\/h2>\n\n\n\n

The ultra-luxury segment (properties over \u20ac3 million) remains the most sought-after, with average values rising by around 2.4% year-on-year. Meanwhile, the luxury segment (\u20ac1\u20133 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.<\/p>\n\n\n\n

Where are buyers coming from?<\/strong><\/h2>\n\n\n\n

The largest share of foreign interest in Italy\u2019s luxury property market comes from:<\/p>\n\n\n\n