Although this is a difficult time in terms of economy, Italy has never stopped being positive and is still trying to remain the reference point for the bien vivre. Buying a house here means enjoying the high quality of living and the unique Italian style. That’s the main reason why its locations are really popular also among people from abroad. And how many other places can compete against Lago Maggiore and its surroundings? I’d say few.
The attractiveness of Italy has grown in years and that is also thanks to two measures which have been introduced in the last few years. The first one was created in 2017 and consists in a lighter regime, which aim is to attract the so-called HNWI (acronym for High Net Worth Individuals), i.e. the super rich people. It’s obviously a little group, but nonetheless with a strong economic potential.
They can benefit from a flat-rate tax of 100.000 euros (plus 25.000 euros for each family member who decides to use the same regime) irrespective from the income level. The only condition is that they must be new Italian residents. Those who have taken advantage of this measure in recent years mostly are sport champions, top models, entrepreneurs, and emirs coming from the USA, France, Great Britain, Ukraine, United Arab Emirates and Brazil.
The most looked for properties are undoubtedly the ultra luxury ones, which value has often reached prices higher than 10 Million Euros. People have mostly asked for “pied-dans-l’eau” villas on the northern Lakes in Italy (above all Lago Maggiore and Como), as well as precious apartments in Venice overlooking the Canal Grande and properties in Milan and Rome or in Tuscany and Sicily.
But you don’t have to be super rich to invest in Italy. In 2019, thanks to a rule introduced in the Budget Law, Italy became one of the privileged destinations for foreign retirees who are looking for a place to relax and rejuvenate, obviously at an affordable price. It was introduced a substitute taxation with a rate (aliquota) up to 7%, which applies not only to retirement incomes but also to any other type of foreign income, gained by the retiree after they moved to Italy.
Only under certain conditions can you benefit from this substitute taxation, such as the non-tax residence in Italy in the 5 tax periods preceding the one in which the option becomes effective and the transfer of the residence from countries with which there are current agreements in terms of administrative cooperation.
You also have to take up residence in little municipalities (with no more than 20.000 inhabitants) in the South of Italy, and more precisely in Sicily, Calabria, Sardegna, Campania, Basilicata, Abruzzo, Molise and Puglia. But, after you’ve taken up residence in Italy, you can obviously buy another property there. And maybe you will choose Lago Maggiore, a beautiful and popular land. Many people think that it is convenient to buy a house and rent it… especially on Lago Maggiore!
Just ask Engel & Völkers.