Italy attracts wealthy Chinese property buyers with food, fashion – and flat tax

Italy is attracting affluent Chinese property buyers due to its quality of life, flat tax system, and fashion and food offerings, according to property agents. Rome implemented a flat tax regime nine years ago to entice high-net-worth individuals, with the latest rules permitting foreign residents to pay a flat annual tax of €300,000 on all their overseas income.

The number of participants in the scheme has increased from approximately 3,000 in 2024 to around 5,000 currently, according to Knight Frank. The property consultancy has witnessed a surge in sales of prime residential properties, with a 140% rise in deals during the first eight months of the year compared to the same period in 2025.

Buyers are primarily from the United Kingdom, United States, Switzerland, France, India, and the Netherlands, but interest from Hong Kong and mainland Chinese buyers is growing as well, says Anna Ward, Knight Frank's international residential research lead. About one-third of Knight Frank's prospective Italian property deals in the autumn pipeline are linked to tax-related relocations, the consultancy reported.

Demand for Italian property is also coming from European second-home buyers and international investors expanding their existing holdings in Italy, agents say. The flat tax regime continues to attract globally mobile wealth, with over 60% of prime international inquiries through Knight Frank driven by tax considerations. This reflects the broader trend of demand evolving from the introduction of the flat tax, post-Covid lifestyle shifts, and the removal of favorable tax regimes elsewhere.

Many non-EU residents relocating to Italy under the flat-tax regime need visa arrangements, often combined with property acquisition and broader investment activities. Italy's investor visa is an attractive complement to the flat tax, open to non-EU citizens investing in various ventures with a €250,000 entry threshold. The Italian market is rising, and luxury Italian lifestyle destinations are attracting Asia's wealthy, says Juwai IQI CEO Kashif Ansari, who expects more Chinese, Hong Kong, and Asia-Pacific buyers to invest in Italian real estate.