Italy's appeal: why relocating and investing in Italian real estate is growing in popularity

A growing number of individuals and families are turning their sights on a move to Europe, and Italy is at the top of the list. This desire for international mobility has expanded to include not just the ultra-wealthy but also those seeking protection from border closures or taking up new work opportunities. 

Post-pandemic, global mobility has become a priority: 13% of UHNWIs plan to secure a second passport or overseas status, and many are pairing that with property investments. Italy’s appeal is clear: generous tax incentives, cultural richness, security, employment opportunities and a strong real estate market. A great choice for those seeking both personal enjoyment and long-term value.

Real estate investment trends in Italy

The focus is primarily on two areas: luxury residential properties in major cities and resorts in specific regions.

For luxury residential investments, the search is concentrated on prestigious properties in cities such as Milan (first and foremost), followed by Rome, Venice, and Florence. Secondary cities like Lucca, Siena, and Verona attract interest due to their beauty and proximity to airports.

Recently, new investment models have emerged in Italy, adopted from other countries, particularly the United States. These include so-called “mixed-use” operations, where a single asset serves dual purposes throughout the year: used personally by the buyer for part of the year and rented out for the remainder, managed by specialized operators.

Another strong trend in the Italian market is the rise of “branded residences.” These are high-end residential units paired with exclusive services and associated with a brand, which may come from the hospitality, fashion, or luxury sectors. These operations are more complex, involving both real estate contracts and property management agreements with developers. 

Why is succession planning particularly complex when it involves properties in multiple countries?

The presence of real estate assets in multiple jurisdictions configures an asset ecosystem that requires long-term succession planning capable of preserving value across generations, minimizing tax erosion and preventing potential family conflicts.

The EU Regulation No. 650/2012 was a big step forward in making cross-border inheritance rules more consistent across Europe. It sets clear guidelines on which country’s law applies when someone passes away and decides which authority should handle the process. 

While the Regulation is a big step forward, it doesn’t cover everything. Key areas like how inheritance shares are defined, the rights of forced heirs, limits on freedom to test, and inheritance taxes are still left to individual countries. These have very different rates (from 0% to over 50%) and regimes, such as the rules on registration of real estate, the rules on community of property and property regimes between spouses.

Italy's legal system offers a range of tools to manage real estate assets and ensure their smooth generational transfer. The choice depends on factors such as complexity, flexibility and suitability for the specific situation. But at the heart of these strategies lie two key instruments: corporate vehicles and wills. 

How can families decide which structure best fits their circumstances and goals?

A trust is still one of the smartest ways to plan for your estate and succession. When you place assets into a trust, they’re no longer part of your personal estate - and they don’t become the trustee’s property either. Instead, they sit in a separate, purpose-built structure. This setup brings major advantages: it shields assets from your personal creditors, keeps them safe from family disputes or divorces, and offers privacy and flexibility when deciding how and when beneficiaries receive their share.

How do you balance the legal aspects, taxation, governance and family dynamics?

Adopt a holistic, long-term approach

• Managing international real estate assets and globally mobile families requires more than just investment strategy - it demands a comprehensive succession plan. This plan should preserve value across generations, minimize tax erosion, and proactively prevent family conflicts. 

Leverage legal tools thoughtfully

• The choice of legal instruments (e.g., agreements, wills, trusts) should be tailored to the complexity and goals of the family’s asset ecosystem. Trusts, in particular, offer strong asset segregation, protecting wealth from personal creditors, family disputes, and providing privacy and flexibility in asset distribution. 

Balance governance and family dynamics

• Good governance structures help manage family interests and reduce the risk of disputes. Tools like trusts can isolate assets from disruptive events (divorces, generational conflicts) and clarify roles and expectations among family members. 

Prioritize flexibility and confidentiality

• Structures should be flexible enough to adapt to changing family needs and to protect privacy. Trusts and certain corporate vehicles can provide these benefits, especially in complex or high-profile situations.