What attracts well-off foreign buyers to Italy?

More and more wealthy professionals from countries such as Great Britain and the United States, but also France and Germany, are deciding to buy property in the most beautiful parts of Italy. According to the Financial Times, there are many aspects that attract this target group to Italy. Let's find out what exactly attracts well-off foreign buyers to Italy.

Remote working in Italy

First of all, needless to say, Italy is beautiful in itself, and for wealthy foreigners of a certain sensitivity it has an almost mythological charm. There are many billionaires who dream of owning a large property in Italy, even one of historical interest, a villa in the Tuscan countryside or even an entire medieval village. The Italian lifestyle has a special appeal for this group of people, who are now professionally fulfilled and financially well-off. They often dream of it as the perfect retreat for their retirement years, but also as a new place to work from if they can afford to carry out their work from anywhere in the world, something which is increasingly possible due to the coronavirus pandemic. 

Tax benefits for foreigners buying a house in Italy

Italy has a favourable tax regime for certain (mainly rich) foreigners who decide to buy or rent a house in Italy. This includes those who can afford to pay the Treasury a lump sum of 100,000 euros per year, thus protecting themselves from any further taxation. This preferential regime combined with the previous point tips the scales in favour of Italy when it comes to choosing paradise abroad for a foreign millionaire.

Low interest rates on mortgages in Italy

Those who prefer to buy (and often renovate with very expensive interventions) a house in an Italian village, preserving their capital and taking out a mortgage, can count on very low mortgage interest rates, ensuring great liquidity at very close to zero repayment costs. This is very useful for those who want to continue to invest capital in other profitable activities without having to shift it to a property purchase.

Geographical location

The professionals consulted by the Financial Times, Savills and Knight Frank note a strong interest of rich foreigners in the areas of Tuscany, Liguria, Sardinia and the area surrounding the Lombard lakes, in particular Lake Como, chosen for its proximity to both Milan and Switzerland. 

The Draghi government and the revaluation of property investments

According to the British newspaper, the wealthiest foreigners buying a house in Italy are not so much concerned about earning an income from their new purchase as they are about not making an investment that will subsequently be devalued. From this point of view, the Draghi government has given a strong boost to the credibility of the real estate market in the eyes of foreigners: subsidies for renovation and the government's push towards investment in structural redevelopment are all guarantees that over the next ten years real estate investment in Italy can be revalued.

• Article seen at: A home office in an Italian haven (Financial times)