Italy and the Riviera dei Fiori: the perfect destination for wealthy investors and residents, fleeing from UK tax pressure.
In recent years, the global fiscal landscape has undergone significant transformations. The United Kingdom, a traditional haven for high-net-worth individuals due to its non-domicile taxation system, has announced substantial changes to this regime, prompting many wealthy individuals to consider new destinations.
Among the most attractive destinations for those seeking a beneficial alternative, Italy, and particularly the Riviera dei Fiori, stands out for its unique mix of tax benefits, quality of life, and luxury real estate investment opportunities.
Why are more and more wealthy individuals leaving the UK?
The non-dom tax regime has made the UK a privileged hub for high-net-worth individuals for a long time. However, recent reforms aim to reduce tax advantages by imposing higher taxation on foreign income. This has prompted many entrepreneurs, investors, and wealthy retirees to seek more advantageous alternatives.
Thus, Italy, with its favorable tax regime for new residents, has become one of the most attractive destinations for those looking to optimize their tax position without compromising quality of life.
The non-dom status and recent legal changes.
The term non-dom refers to a person who is a resident in the UK but whose permanent domicile, for tax purposes, is located outside the country. This status pertains exclusively to taxation and is not linked to citizenship, nationality, or residency, although these factors may influence it.
Under current rules, a non-dom pays taxes in the UK only on income generated in the country, while foreign income is not subject to taxation unless transferred to a UK bank account. This has made the system advantageous for wealthy individuals, allowing significant and completely legal tax savings.
However, the UK government has announced a substantial reform of the non-dom status. As early as March 2024, then Chancellor Jeremy Hunt outlined a plan to gradually eliminate the tax regime. In October 2024, the Labour government confirmed that, starting in April 2025, the non-dom status will be abolished and replaced by a residency-based system. This change will have a significant impact on those who have benefited from foreign tax optimization so far.
According to a report from the analysis firm New World Wealth and Henley & Partners, in 2024 over 10,000 millionaires left the UK, a 157% increase from the previous year. A considerable portion of these individuals are looking for new jurisdictions with more favorable taxation, and Italy – with its new-resident regime – is among the most sought-after destinations.
The Italian tax regime: an opportunity that cannot be missed.
To encourage the inflow of new wealthy residents, Italy offers a special tax regime for so-called new residents. Introduced in 2017, this system allows foreign citizens who move to Italy to benefit from a fixed annual tax of €200,000 on income earned abroad, regardless of the amount. This means that anyone with assets and investments outside Italy can manage their tax situation more efficiently. In addition to this regime, Italy offers tax incentives for retirees and foreign entrepreneurs, with significant reductions on taxes for locally generated income and incentives for those investing in the real estate sector.
Riviera dei Fiori: a luxury oasis of privacy for new residents.
If Italy is already an attractive option for many, the Riviera dei Fiori represents the perfect blend of luxury, favorable taxation, and well-being. Located in the western Liguria region, this enchanting area offers breathtaking scenery between the sea and the mountains, an ideal climate all year round, and a very high quality of life. An additional strategic advantage is the proximity of the Riviera dei Fiori to Nice International Airport, one of the main hubs connecting to Europe and the rest of the world. Located about 40 minutes by car from Bordighera and less than an hour from Sanremo, Nice Airport offers direct flights to major global destinations, making this area particularly attractive for investors and professionals who require frequent travel. The ability to quickly reach key locations like London, Paris, Dubai, and New York without long domestic travel is a decisive factor in choosing the Riviera as a primary or secondary residence.
The cities of Bordighera, Sanremo, and Ospedaletti have always been a destination for an exclusive clientele, attracted by elegant historic villas, sea-view apartments, and luxury services available in the area. Here, it is possible to live with absolute privacy, while enjoying privileged access to international locations like Monte Carlo, Nice, and the French Riviera.
The real estate market in the Riviera: a strategic and secure choice.
The combination of favorable tax regimes and the intrinsic value of the real estate market in the Riviera dei Fiori makes this region an unbeatable option for those looking to move to Italy with a safe and profitable long-term investment. The luxury properties available here perfectly match the needs of a sophisticated clientele seeking exclusive residences in an unparalleled natural and cultural setting. If you want to learn more about the tax advantages for those moving to Italy, we recommend reading an article where we discuss it in more detail:
Tax incentives for foreigners transferring their residency to Italy: the flat tax option.
A growing sector: data and prospects.
According to the Gabetti Group, property sales in the province of Imperia increased by 39% in 2021 compared to 2020 and by 87% from 2013 to 2021. In Sanremo alone, there was a growth of 34% from 2020 to 2021 and 128% from 2013 to 2021. In the municipalities of the Riviera dei Fiori, transactions increased by 43% in the last 5 years.
The total value of the luxury real estate market in Italy has surpassed €53 billion, with 80% of buyers of properties over 1 million euros coming from abroad. Additionally, according to Italy Sotheby’s International Realty, in 2023 the turnover of the luxury real estate sector increased by 15% compared to the previous year, with transactions exceeding €400 million.
(Source: Immovare.it and Coldwell Banker)
Another key factor in the flourishing of the market is the growing demand for eco-sustainable and energy-efficient properties. New constructions in the Riviera dei Fiori are increasingly geared toward LEED and NZEB (Nearly Zero Energy Buildings) certifications, meeting the needs of environmentally conscious investors.
Prospects for the future of the Riviera dei Fiori real estate market are idyllic. The demand for luxury properties continues to grow, driven by an international clientele increasingly interested in settling in a place dotted with rare beauty spots.
The introduction of favorable tax policies and the increase in investments in local infrastructure, such as improvements in transport networks and urban regeneration, further contribute to the appeal of the Riviera. Market experts predict a rise in property prices in the coming years due to limited supply and sustained demand from select buyers. Additionally, the growing interest in sustainable and technologically advanced properties will lead to an expansion of the market towards innovative and customizable housing solutions.
Why choose Domus for your real estate investment?
With a deep knowledge of the local real estate market and solid experience assisting international clients, Domus is the ideal partner for those looking to buy a property on the Riviera.
From selecting the most prestigious properties to managing bureaucratic and tax procedures – including post-sale assistance, during renovations, and even choosing furniture – our team guarantees a personalized service tailored to meet every request.
A unique investment opportunity: contact us now!
The recent changes to the UK tax regime are driving many wealthy individuals to seek a new destination for their future. Italy – and particularly the Riviera dei Fiori – stands out as one of the best choices for those looking to combine tax advantages, quality of life, and prestigious real estate investments.
If you’re also thinking of moving to one of the most charming areas of the Mediterranean, contact us today to learn more or if you wish to request a personalized consultation.