For years, international investors seeking European residency and tax efficiency have focused on a narrow group of jurisdictions – most notably Portugal, and more recently Dubai. Italy, by contrast, has often been overlooked.

That may now be changing.

Quietly, and with far less publicity than some of its European peers, Italy has undergone a notable economic and fiscal turnaround. For globally mobile entrepreneurs, investors, and internationally minded families, this shift is creating a compelling – and still underappreciated – geo-arbitrage opportunity. 

Italy’s Economic Repositioning: A Quiet Comeback

A decade ago, Italy was frequently cited as one of Europe’s weakest large economies. High public debt, political instability, and slow growth dominated international commentary.

Today, the picture looks markedly different.

Perhaps most tellingly, major international publications have begun to reassess Italy’s trajectory, noting improvements in fiscal discipline, competitiveness, and reform momentum. 

Real Estate: A Contrarian Opportunity

While real estate markets in countries such as Portugal experienced dramatic appreciation over the past decade, Italy’s property market followed a very different path.

In many regions, values stagnated or declined – not due to lack of fundamentals, but rather structural inertia and underinvestment.

For investors, this divergence matters. It suggests:

Southern regions such as Puglia, Sicily, and Sardinia in particular continue to offer lifestyle-driven real estate at valuations that would be difficult to replicate elsewhere in Europe. 

Italy’s Competitive Tax Regimes (Often Overlooked)

Italy has quietly built one of the most targeted and flexible tax regimes in Europe, designed to attract talent, capital, and internationally mobile individuals.

Key regimes include: 

The Impatriate Regime

The 7% Flat Tax for Retirees

The Lump-Sum Tax Regime

Researcher and R&D Incentives

These regimes are profile-specific, not universal – but for the right individuals, they can materially reduce effective tax rates while offering full access to EU residency and services. 

Italy’s Investor Visa: Flexibility Without Immediate Relocation

Italy’s Investor Visa, introduced in 2017, remains one of the more flexible residency pathways in Europe.

Key characteristics include:

Unlike some competing programs, the Italian framework allows applicants to obtain visa approval before committing capital, reducing execution risk. 

Italy vs Portugal vs Dubai: Different Tools for Different Objectives 

These three jurisdictions are often compared, but they serve very different strategic goals. 

Portugal

Italy

Dubai

In practice, sophisticated families increasingly combine jurisdictions, using each for what it does best. 

The Strategic Lens: Why Italy Merits Reconsideration 

Italy is not without challenges. Bureaucracy remains real, and certain sectors — particularly early-stage tech — may face friction compared to other hubs.

However, for individuals earning internationally, spending in euros, and seeking:

Italy now deserves a more prominent place in strategic discussions. 

A Knightsbridge Group Perspective

At Knightsbridge Group, we view Italy not as a “replacement” for Portugal or Dubai, but as part of a broader multi-jurisdictional planning conversation.

The key question is not where is best, but rather:

Which jurisdiction aligns with your objectives, time horizon, and risk tolerance?

Italy’s resurgence — economic, fiscal, and lifestyle-driven — makes it a jurisdiction that serious investors should no longer overlook. 

Interested in Exploring European Residency and Tax Planning?

Knightsbridge Group advises clients on:

For a confidential discussion tailored to your profile, we invite you to contact our advisory team.