The Italian market for luxury property is experiencing one of its strongest upswings in years in 2026. Demand from abroad rose by more than 60 per cent in the first five months of the year compared with the previous year, and interest is no longer confined to the classic second home. A growing share of buyers, around one quarter, plan to relocate permanently to Italy. The countries of origin remain consistent: the United States, Switzerland, the Netherlands, Germany and the Scandinavian countries lead the statistics. This combination of a favourable tax climate, geopolitical shifts and the enduring appeal of the Italian landscape makes Italy one of the most sought-after addresses in the international luxury property market. Those looking to invest in 2026, whether in a villa in Tuscany, a flat on Lake Como or a residence on the Amalfi Coast, will find an active yet demanding market.
Why Italy is in the sights of wealthy buyers in 2026
The reasons behind the current boom are multifaceted. A central factor is the new residents regime ("nuovi residenti"), which subjects wealthy foreigners who relocate to Italy to a flat-rate tax on their worldwide income. From 1 January 2026, this amount stands at 300,000 euros per year, an increase on the previously applicable 200,000 euros. Despite the rise, the regime remains attractive for those with a high-yield asset base, particularly in comparison with France, the United Kingdom and Germany. Especially since the end of the British "non-dom" regime in 2025, Italy has, in the view of several market observers, positioned itself as the natural successor to London for international wealth.
The second factor is market structure. By European standards, the Italian luxury market remains fragmented and less institutionalised than those of London, Paris or New York, which opens up room for negotiation for buyers with a clear vision. As Il Sole 24 Ore reports, citing the latest figures from Luxforsale Finance, the average value of a luxury property transaction involving a foreign buyer stands at over 1.65 million euros. The buyer profile has shifted accordingly. The classic "holiday home purchaser" has given way to an international investor or a family entrepreneur seeking a permanent base, who regards Italy as a long-term location for both life and wealth.
Tuscany and Chianti: the classics for international buyers
Few regions enjoy as prominent a presence in the international luxury market as Tuscany. Between Florence, Siena and Pisa lie the hills that embody the Italian rural idyll for many foreign buyers: avenues of cypress trees, restored farmhouses, ancient monasteries with vineyards, self-contained estates with panoramic views. The Chianti between Florence and Siena forms the heart of the market, joined by the Val d'Orcia around Pienza and Montalcino, the Maremma with its more rugged character, and the Colline Pisane along the coast. According to the Engel & Völkers Market Report 2026 foreign buyers account for more than half of all luxury transactions in Tuscany, with a notable presence of Americans, Germans, British and Swiss nationals.
The appeal of the region lies in the combination of cultural landscape, viticulture and reliable infrastructure. Those purchasing a villa in Tuscany will find restaurants, wineries, small towns with weekly markets and a vibrant arts scene just a short drive away. The pricing structure reflects this, with peak values in the Chianti and around Siena. Alongside classic rural estates, restored monastery complexes and historic podere farmhouses are increasingly in demand, some with a bed-and-breakfast licence or their own wine production. Experienced agents recommend a sounding-out period of at least three months, during which prospective buyers can get to know the region across different seasons.
Lake Como and Lake Garda: the lakes between the Alps and culture
Lake Como has established itself over recent years as one of Europe's most prestigious residential addresses. Bellagio, Cernobbio, Menaggio, Tremezzina and Varenna are the names traded in the international market, home to historic villas from the 18th and 19th centuries that were once occupied by the Habsburgs, then by Italy's industrial elite, and today by an international clientele. The proximity to Milan, the half-hour connection to Milan Malpensa Airport and the region's own airport infrastructure make Lake Como attractive even for buyers who commute between Italy, London, Zurich and New York. Combined with the nuovi residenti regime mentioned above, the region is one of the most active luxury markets in northern Italy in 2026.
Lake Garda is the second classic in the lakes segment and offers a somewhat different character. Whilst Lake Como is defined by villas and prestige, Lake Garda presents a broader price range, from historic estates in Sirmione, Salò and Gardone Riviera to newer luxury apartment complexes along the Riviera dei Limoni. The proximity to Germany and Austria, the easy road access via the Brenner Pass and the mild winters by European standards make Lake Garda particularly attractive for German-speaking buyers. Here too the buyer profile has shifted. Alongside classic holiday home investors, families seeking a second or primary residence in the region are increasingly making their presence felt.
The coastal classics: Portofino, Costa Smeralda, Amalfi
For coastal locations, a handful of internationally recognised addresses stand out. The Ligurian Riviera around Portofino and Santa Margherita Ligure represents the Italian understatement segment, with the highest prices in the region concentrated in a narrow strip between the sea and the steeply rising hills. Acquiring a villa here means purchasing not merely a property but a piece of 20th-century cultural history. Portofino has been associated since the 1950s with figures such as Aristotle Onassis, Elizabeth Taylor and Italy's industrial aristocracy. The address is timeless, yet supply is scarce, which drives prices to the highest levels in Europe. Those wishing to combine yacht chartering with property ownership will find the relevant context in our article on yacht charters in Italy .
The Costa Smeralda in north-eastern Sardinia represents the upper end of the Italian market, both in terms of price level and prestige. Around Porto Cervo, Porto Rotondo, Cannigione and the Gulf of Marinella lie Italy's most expensive property zones, with record prices for front-row sea-facing villas. The Costa Smeralda sets itself apart from other coastal regions through its deliberately curated development since the 1960s, rooted in the concept devised by the Aga Khan. Buyers will find a self-contained environment with its own security standards, marinas and golf courses. The Amalfi Coast between Positano, Amalfi and Ravello offers a different register: smaller properties in densely built coastal settings, carrying the prestige that comes with a spectacular backdrop, yet affording considerably less space than Sardinia. Those seeking a glamorous setting in southern Italy away from the Amalfi Coast, along the up-and-coming Italian Adriatic coast, will also find a notable address in the area around Milano Marittima and Cervia.
The cities: Rome, Milan, Florence and Venice
The urban luxury market in Italy is concentrated in four centres, each with its own distinct character. Milan is the most international location, with a strong presence in finance, fashion, design and academia, and the highest new-build prices in the country. The Brera and Porta Nuova districts, the historic centre around the Duomo and the classic Magenta zone rank among the most sought-after addresses. For buyers wishing to combine a genuine Italian residence with international business connectivity, Milano is the obvious choice. The Milano-Cortina 2026 Winter Olympics have provided an additional short-term boost to demand.
Roma is the classic choice for buyers with an eye on history and institutions. The zones around Piazza di Spagna, the Aventino, Trastevere and the Prati area near the Vaticano are the traditional luxury addresses. Unlike Milano, Roma is defined by its historic building stock, with strict heritage requirements and renovation obligations. Firenze attracts primarily international art lovers and families with a long-term commitment to Italy, with prices considerably below those in Milano yet a very stable market segment. Venezia is a special case, where heritage protection is even stricter and location forms the true measure of value. A piano nobile in a palazzo on the Canal Grande ranks among the rarest and most expensive properties in the country.
Legal framework for foreign buyers
Purchasing a property in Italy is, in principle, straightforward for foreign nationals, but it follows clear legal rules. EU citizens may acquire Italian property without restriction, on the same terms as Italian nationals. Non-EU citizens are subject to the so-called reciprocity principle: a purchase is permitted provided that the buyer's country of origin grants Italian citizens the same right of access. Reciprocity is well established for the United States, Switzerland and most other countries of origin represented in the current buyer pool. Canada has been an exception since 2023, as Canadian law prohibits non-Canadians from purchasing property, which makes acquisition difficult for Canadian nationals without an Italian residence permit.
Several essentials are required for any purchase. The Codice Fiscale, the Italian tax identification number, must be applied for before contracts are signed, either at the Agenzia delle Entrate in Italy or through the Italian consulate abroad. An Italian bank account is practically indispensable, even if not a legal requirement. The actual purchase is completed before an Italian notary ("notaio"), who, acting as a public official, verifies the legality of the transaction, collects the applicable taxes and registers the property in the cadastral records. The notarial deed ("rogito") is the final step in a purchase process that typically begins with a preliminary contract ("preliminare") and takes three to six months. As described in a current practical guide to acquisition by foreign nationals , professional preparation should include an Italian solicitor experienced in property law, a tax adviser with an international focus, and, where Italian financing is being sought, a bilingual mortgage broker.
Purchase costs and ongoing taxes
The purchase costs when acquiring a property in Italy range, depending on the circumstances, between 8 and 15 per cent of the purchase price. They include registration tax, cadastral and mortgage fees, notary costs and, where applicable, the estate agent's commission. For residents purchasing a primary residence, the reduced "Prima Casa" regime applies, with a registration tax of 2 per cent; for second homes and buyers from abroad, the standard rate is 9 per cent of the cadastral value. For new builds and purchases from developers, VAT (IVA) is charged instead of registration tax, at 4 per cent (Prima Casa), 10 per cent (second home) or 22 per cent (luxury properties in specific cadastral categories).
Among the ongoing taxes is the IMU (Imposta Municipale Unica), a municipal wealth tax on second homes, which varies by municipality and property category and typically falls between 0.4 and 1.06 per cent of the cadastral value. TARI (refuse collection charge) and any TASI are levied by the local authorities. For residents whose property is their primary home, IMU does not apply. Those who let the property may choose between standard income tax and the so-called Cedolare Secca, a flat-rate tax of 21 per cent (or 26 per cent for short-term lets from the second property onwards). For foreign owners who remain tax-resident in their home country, the provisions of the relevant bilateral double taxation treaty also apply. In all cases, specific cost calculations should be carried out with an Italian tax adviser.
Market developments and outlook for 2026
The Italian luxury property market is, at the start of 2026, in one of its strongest growth phases in recent years. The factors set to drive demand in the coming months include the continuation of the Nuovi Residenti regime, the international trend towards "geographical diversification" among wealthy families, and the enduring appeal of the Italian way of life. Factors that could temper growth include rising construction and renovation costs, the persistent bureaucracy surrounding planning procedures, and the ongoing digitalisation of the notarial system, which has been under reform for several years.
For buyers, this translates plainly as follows: 2026 is an active but selective year. Prices in the absolute top locations remain high and are expected to continue rising, while interesting value can be found in less prominent regions such as Umbria, Le Marche, Piemonte and parts of southern Italy. The Italian summer of 2026 has further demonstrated how significantly tourism has developed as a driving force for regional property markets , opening up new calculations for buyers with letting intentions. Those investing in Italian luxury property in 2026 would do well to equip themselves with patience, professional guidance and a clear sense of their intended use. The rapid decisions of the post-pandemic demand surge are over; the current environment rewards care and thoroughness.
