Italy's €300,000 Flat Tax Draws Chinese Property Buyers as Prime Sales Jump 140%
According to property agents, affluent purchasers from Hong Kong and mainland China are increasingly interested in Italian real estate, drawn by the appealing lifestyle and a flat tax system. Nine years ago, Rome implemented this flat tax to attract wealthy individuals; currently, foreign residents can opt to pay a flat annual fee of €300,000 (US$342,000) on their global income. Knight Frank has noted an increase in participation from around 3,000 in 2024 to nearly 5,000 today. Additionally, the consultancy reported a remarkable rise in prime residential sales in Italy, with transactions in the first eight months of 2025 soaring by about 140 percent compared to the same timeframe in 2024. The tax incentive remains a major attraction for affluent investors, particularly from mainland China and Hong Kong.
Key facts
- Italy introduced a flat tax regime nine years ago to attract high-net-worth individuals
- Foreign residents can pay a flat annual tax of €300,000 (US$342,000) on all overseas income under the scheme's latest rules
- Participants in the scheme rose from about 3,000 in 2024 to roughly 5,000 currently, according to Knight Frank
- Prime residential property deals in Italy in the first eight months of the year were up about 140 per cent versus the same period in 2025
- Hong Kong and mainland Chinese investors are increasingly eyeing Italian property
- Property agents cite Italy's lifestyle and flat tax regime as key draws
- Knight Frank is the property consultancy reporting the participation and sales figures
- Interest among mainland Chinese and Hong Kong buyers is on the rise
Entities
Institutions
- Knight Frank
Locations
- Italy
- Rome
- Hong Kong
- China