Insights
By: Doris Sommavilla
Why is Italy an increasingly attractive relocation destination for high net worth families?
Factors combine to rank Italy in the top three
While it may not become their permanent home, a relocation destination would typically be a place where an individual or family can establish their tax residence for the medium to longer term. When supporting a family considering relocation, we draw up a list of all the potential jurisdictions that could be suitable for the family to feel ‘at home’ and have an appropriate lifestyle, bearing in mind multi-jurisdictional legal, tax and regulatory implications. Doris Sommavilla, Director in our Family Office division, considers the attractions of Italy as a relocation destination.
Notwithstanding its beauty, Italy can provide a diverse and rewarding lifestyle. Over recent years, Lake Como and Milan, for instance, have gained popularity rapidly among those seeking to experience the Italian lifestyle without losing touch with the international scene. They are both vibrant hubs for international entrepreneurs, their popularity boosted by their proximity to Switzerland, France and connections to the rest of the world.
Today, Italy ranks among the top three destinations for UHNWIs*, primarily due to the appeal of its Flat Tax Regime coupled with a sound health-care system and access to international schools in major cities.
The Italian Flat Tax Regime allows for tax benefits for up to 15 years while retaining a high degree of flexibility in travelling internationally compared to other jurisdictions. More than 3000 high net worth individuals moved to Italy under the Flat Tax regime since its introduction in 2017 and the numbers are increasing every year*
It continues to gain in popularity due to its relative simplicity, reliability and stability. Despite many changes in the political leadership over recent years, the Italian Flat Tax has received continuous political support, something I believe it will continue to enjoy over the medium to long term.
Our approach at Stonehage Fleming is holistic and focused on risk mitigation. For the families we support, we are the custodians of the bigger picture. When it comes to relocation, we are long term-orientated, assisting our families throughout the whole process and beyond the relocation date.
We leverage our global reach, with a presence in 14 jurisdictions and beyond - while we tap into
our local expertise and network, helping families draw up the relocation project with a focus on risks and mitigation tools, helping them execute their plan, ensuring that expectations are met, costs stay within the budget and that high privacy standards are met.
Upon request, we assist on ad hoc projects that involve real estate or the acquisition of loans. We
also help clients with their ‘passion projects’ involving assets like art or wine, introducing them to like-minded local families.
In short, we aim to help families transition as smoothly as possible so that they can feel at home in their new country.
*Source: Maisto e Associati (Giorgia Zanetti and Alberto Brazzalotto in Livin' La Dolce Vita, The Month, May 2023).
Doris Sommavilla is a Director within the Zurich Family Office Division and has wide experience with UHNWIs.