High-net-worth individuals (HNWIs) pursuing global residency programs aren’t just looking for a new home; they want mobility, long-term stability, and financial optimization in jurisdictions that protect wealth. Many believe that Southern Europe has long been the heart of such opportunities. Yet governments across the region continuously refine their immigration and investment processes, convincing investors to re-evaluate their goals.
In the last few years, Europe’s residence-by-investment landscape has undergone a significant transformation. The Spanish government eliminated the Spain Golden Visa in 2025, Portugal tightened its focus on cultural and innovation-based funds, and Greece raised its property investment threshold to €400,000 to attract wealthier investors. With these shifts, the Italy Residence by Investment program emerged as a frontrunner, blending financial stability with a flexible flat-tax regime and long-term access to the EU.
This article helps investors understand the advantages of Italy’s residency options over Greece and Portugal, and identify the most future-ready pathway.
Comparing the Core Frameworks: Italy vs. Portugal vs. Greece
Wealth migration is reshaping Southern Europe’s economic ecosystem, but Italy, Portugal, and Greece consistently lead investor interest according to recent OECD and Eurostat trends in residence-by-investment mobility. Each path offers HNWIs a route to EU residency, but their costs, structures, and long-term advantages are significantly different. More importantly, Italy experienced a massive increase in long-term residence permits among non-EU nationals in 2024.
Investors and retirees are viewing Italy not just as a lifestyle destination but also as a stable foundation for long-term EU access and financial optimization. Table 1 highlights and compares the core features of Southern Europe’s core residency programs.
Table 1 – Southern EU’s Core Residency Programs
| Feature | Italy | Portugal | Greece |
| Minimum Investment | Invest €250,000 in an innovative company or €500,000 in an Italian company (also €1 million donation or €2 million government bond) | €250,000 cultural investment fund (no real estate options under the updated framework) | €400,000 in luxury real estate purchase or investment in Greek government bonds or shares |
| Primary Incentive | Flat-tax regime (€100K – €200K fixed annual tax on foreign income); diverse qualifying routes | Residency with minimal physical stay (7 days/year): fund-based flexibility | A fast-track processing period (usually 2-3 months), a straightforward real estate model |
| Residency – Citizenship Pathway | Can become a permanent resident after 5 years, and citizenship after 10 years. | Citizenship granted after 5 years of legal residence. | Grants citizenship after 7 years of continuous residence. |
| Residency Requirements | 183 days in-country/year for tax residency (less for residence permit only) | Low-presence requirement (~7 days/year) | Must maintain property and a valid permit; annual presence not mandatory |
| Tax Advantages | Fixed substitute tax on foreign income; inheritance & gift-tax benefits; favorable double-tax treaties | Non-Habitual Residency regime for up to 10 years – currently under review | No special tax regime; standard national taxation applies |
| Processing Time | 3-6 months (depending on the consulate) | 6-9 months | 2-3 months |
| Family Inclusion | Spouse, children, and dependent parents | Spouse, children, and dependent parents | Spouse, children, and dependent parents |
| Distinctive Feature | Integration with Residence-by-Investment + Flat-Tax regime | Fund-based innovation; legacy of Golden Visa | Retains direct real-estate route; lifestyle-driven investment appeal |
While Portugal and Greece maintain strong appeal for lifestyle and accessibility, the Italy residence-by-investment framework excels in tax stability, flexibility, and alignment with EU wealth management goals. Many HNWIs want predictability and prestige, and the Italian flat tax regime, or the CR7 Rule, allows qualifying residents to pay a fixed annual rate on foreign income instead of progressive tax rates. A flat tax simplifies compliance while preserving individual privacy, which is ideal for investors managing more complex, multi-jurisdictional portfolios.
How the Italy Residence by Investment program attracts global investors
A recent analysis of Milan’s tax incentives examines how Italy’s updated flat-tax structure is quickly driving new interest among global investors. Meanwhile, Portugal and Greece are making adjustments to their frameworks to appeal to higher-value investors and reduce dependence on speculative property markets. However, Italy’s clever combination of stable taxes, broader investment choices, and favorable double-taxation treaties gives it a decisive advantage to global HNWIs seeking EU access and long-term wealth preservation.
To understand why Italy has such a strong edge, it helps to see how these advantages translate into tangible benefits:
Table 2: Italy’s Competitive Advantages for Global Investors
| Category | What It Means | Why It Matters for Investors |
| Stable Tax Framework | The Italian flat-tax regime allows new residents to pay a fixed substitute tax of €100,000-€200,000 on foreign-sourced income for up to 15 years, with no obligation to declare global assets. Inheritance and gift taxes limited to foreign-held wealth. | Predictable, long-term financial stability supports multi-jurisdictional wealth planning and provides tax certainty, which are essential for HNWI families. |
| Broader Investment Routes | The Italy Investor Visa offers four primary pathways: €250,000 in an innovative startup, €500,000 in an Italian company, €1 million to a philanthropic cause, or €2 million in government bonds. | Investors can enjoy greater flexibility than with property-only models. Investors can align their participation with each of their goals. |
| Favorable Double-Tax Treaties | Italy has over 90 active double-taxation treaties with major world economies, including the U.S., U.K., Canada, and the U.A.E. | Favorable treaties reduce HNWIs’ exposure to double taxation on income, dividends, and capital gains, which can be critical for international portfolios. |
| Integrated Residency Benefits | Residents can pair the Italy residence by investment program with the flat-tax regime to combine residency access with optimized taxation under a single framework. | Provides improved mobility, positioning Italy as one of the few EU countries offering a fully integrated residency and tax structure. |
These elements make Italy’s investment and tax ecosystem attractive to internationally mobile entrepreneurs, investors, and families. Investors evaluating entry routes can review this detailed Italy Investor Visa guide to learn more about current thresholds, eligibility, and the available tax-aligned investment paths.
The Role of Italy Tax Incentives and Policy Stability
Italy’s ability to attract global investors and HWNI’s isn’t an accident; it’s the result of a deliberate balance between tax innovation and legal continuity. The Italy residence-by-investment pathway has become one of Southern Europe’s most predictable and investor-friendly frameworks. In this case, predictability isn’t undesirable, as it allows global investors to commit to long-term plans with confidence that the conditions will remain consistent.
Let’s expand on this by discussing five ways Italy maintains its stable foundation.
- Continuous policy evolution, not reinvention
Since the creation of the Italian flat-tax regime under Law No. 232/2016, Italy has overhauled its wealth migration architecture. They improved it through amendments, such as Law Decree 113/2024, which adjusted and clarified eligibility for new residents while retaining the program’s essential qualities of transparency and stability. Some key refinements introduced through recent amendments include:
- New annual substitute tax rate: The rate for fixed foreign-income tax was increased from €100,000 to €200,000 for new applicants who relocated after August 10, 2024. This change reflected the program’s maturity without changing its appeal.
- Grandfathering clause for eligible residents: A change that allows participants who entered Italy before the 2024 updates to continue paying the €100,000 tax for the entire 15-year term.
- Clarifying applicant eligibility: Applicants must have been non-tax residents in Italy for at least 9 out of the previous 10 years.
- Improved administrative oversight: These improvements strengthen due diligence efforts and reporting under the Ministry of Economy and Finance, aligning Italy with EU anti-money laundering standards.
This measured approach contrasts with other programs. Portugal’s changes to property-based routes and Greece’s investment thresholds introduced uncertainty for investors seeking long-term residency or eventual citizenship. Italy’s strategy reinforces confidence rather than disrupting it.
- The link between tax incentives and investor confidence
Some say that Italy’s wealth-migration system works because it harmonizes taxation with residency. The Italian flat tax provides predictable liability for foreign-sourced income, while the Italy residence-by-investment program unlocks EU mobility and family security. Here’s what that looks like in practice:
- Schengen area mobility: Participants with long-stay residence permits can freely travel across 27 Schengen area countries for up to 90 days within 180 days. This ability simplifies business dealings, educational needs, and leisurely travel.
- Family reunification benefits: The program allows applicants to include their spouses and dependent children on their residence permits so entire households can live, study, and access Italy’s healthcare system together.
- Access to EU healthcare and education: Once an applicant becomes a legal resident, their families may access Italy’s SSN and educational institutions.
- Permanent residency and citizenship: After five years, families may apply for permanent residence status, and, after ten years, for citizenship.
The program appeals to mobile professionals, entrepreneurs, and financially independent retirees. It combines access to residency with Italy’s tax incentives to attract capital and individuals who want to engage with the economy long-term.
- Legal architecture that reinforces stability
Policy predictability occurs when it’s supported by a transparent legal infrastructure. The flat-tax regime and Italy Golden Visa are both codified in national law and administered through processes managed by the Ministry of Economy and Finance. The Ministry vets applicants through robust due diligence protocols that keep Italy compliant with EU transparency standards.
The Ministry approves applications using these procedures:
- Thorough identity checks: All applications undergo multi-stage identity verification, which is validated by Italy’s centralized financial intelligence systems (Unita di Informazione Finanziaria per l’Italia – UIF) and coordinated with other officials within the EU anti-fraud network.
- Funding validation: Investment capital must have a legal origin traceable through certified documentation, including banking records or audited financial statements.
- Data sharing: Italy participates in the Fifth Anti-Money Laundering Directive (AMLD5), which standardizes how all member states exchange financial intelligence. This collaboration lets Italian authorities verify the legitimacy of funds, deter financial risk, and detect irregularities in real time. Strict data-sharing protocols protect lawful investors and maintain transparency.
These measures enhance the integrity of the system while preventing misuse of Italy’s investor and tax-residency pathways. To understand how such transparency measures also apply to long-term citizenship processes, read this article on the Italian Citizenship Law. It offers deeper insight into how legal oversight and due diligence influence Italy’s migration frameworks.
- Market impact and investor behavior
Cities like Milan, Rome, and Florence have record-high property transactions from non-EU buyers, indicating this trend isn’t speculative, but rooted in long-term residency and investment planning. Italy’s stable policy infrastructure can be translated directly into market confidence:
- Italy’s real-estate market attracted €5.2 billion in investments for luxury and mixed-use assets in major urban areas during the first half of 2025, a 50% year-over-year increase.
- The Italian luxury real estate market was valued at $16.38 billion (€14.07 billion) in 2024 and is predicted to grow at a 4.6% CAGR through 2033, reflecting the reality of continuous foreign demand.
Further analysis of tax incentives in Milan highlights how Italy has integrated more favorable tax policy into urban development strategies to attract global investors and reinforce its stable foundation for private capital.
Comparing stability across Southern Europe
While both Portugal and Greece remain respectable players in wealth migration, recent policy changes have given Italy a clear advantage. Here’s how Italy is edging out other frameworks:
- In late 2023, the Portugal Golden Visa program officially eliminated the real-estate investment option, marking the country’s shift away from property-driven routes toward more productive capital and job-creation investments.
- The Greece Golden Visa has also undergone significant changes, introducing a new tiered threshold for high-demand areas, including Athens and Mykonos. Now, investing in these regions requires a minimum of €400,000 and a maximum of €800,000. These changes were intended to reduce real estate speculation, but are likely more of a barrier to entry for non-EU investors.
- Italy offers potential investors a diversified portfolio of company equity, government bonds, and philanthropic contributions to nurture long-term wealth and succession planning.
Italy is intent on building a durable ecosystem of tax-resident investors, entrepreneurs, and families that refrains from chasing short-term capital inflows. Understanding Italy’s legal and fiscal infrastructure is only half the challenge. Success comes from aligning them with personal and business goals through expert navigation.
How Global Investors Apply the Italy Residence by Investment Strategy
When used appropriately, Italy’s RBI program is a versatile tool, adaptable to multiple wealth strategies. Global investors can achieve their goals through the country’s quality of life, whether they’re optimizing taxes, pursuing mobility, or establishing legacy assets. Yet, global investors come in various forms, which is why it’s best to understand how Italy’s RBI can be applied to different scenarios.
The Entrepreneur: Relocating for growth and access
Suppose a tech founder based in Singapore decided to relocate their business operations to Milan to leverage Italy’s flat tax regime and simplify their global income reporting. With predictable taxation and access to Schengen markets, the founder gains financial clarity and a foothold in the EU technology sector.
The Retiree: Turning lifestyle into long-term stability
A financially independent retiree from Ontario, Canada, decides to secure permanent residence in Tuscany using the Italy Elective Residency Visa. This individual can pair the ERV benefits with Italy’s flat tax system to better manage their pensions and foreign investments. As a result, they only have to deal with minimal tax complexity, allowing them to enjoy healthcare access and lifestyle consistency.
The Investor family: Building legacy through tangible assets
An entrepreneurial family with offices based in Dubai decides to incorporate Italy’s RBI program into its succession planning. They do this to invest in equity and philanthropic initiatives – not speculative real estate – to gain EU residence and long-term wealth diversification. Their children also benefit from the EU’s educational pathways and the likelihood of citizenship opportunities through continued residency.
Together, these examples reveal the flexibility of the Italy residence-by-investment program. It’s not a one-size-fits-all path, and it’s adaptable to entrepreneurial, lifestyle, and family goals simultaneously.
Take Advantage of Italy’s Strategic Edge With Arrivo Italy’s Guidance
Italy’s approach to residence-by-investment represents a union of stability, opportunity, and sophistication. While neighboring nations are redefining their visa frameworks, Italy has refined its model to balance competitive tax benefits with legal consistency, investment diversity, and cultural appeal. This also means that global investors, entrepreneurs, and retirees must understand that Italy isn’t just a relocation destination; it’s a base for protecting wealth, expanding mobility, and building a legacy.
Arrivo Italy role: Creating actionable plans
Though Italy’s policy landscape supports global HWNIs and their goals, Arrivo Italy helps clients transform these processes into transparent, achievable strategies. Our specialists incorporate tax residency planning, investment structuring, and family migration solutions in our tailored advice to ensure compliance, efficiency, and long-term security. Through strong partnerships with trusted legal, tax, and real estate professionals, Arrivo Italy provides end-to-end support from the initial conversation to settlement.
When you work with our team, you’re positioned for sustainable growth under Italy’s residence and citizenship framework.
Take the next step
Your mobility plans deserve structure and dedication, not guesswork. Contact Arrivo Italy to explore how the Italy Residence by Investment program supports your financial goals and lifestyle vision while you build your legacy.