Luxury homes in milan are increasingly sought after by foreigners.

The luxury real estate market in Italy seems to be recession-proof, and in this regard, Milan stands out as one of the most attractive cities, especially for foreigners. According to the "Wealth Report 2024" analysis published by the international network Knight Frank, specialized in luxury property brokerage, the strong demand from foreigners for luxury homes in Milan has led to a surge in prices across the real estate sector.


Who are the main buyers of luxury homes in Milan? In 2023, luxury property prices in the Lombard capital increased by 1.4% compared to the previous year, averaging over €12,000 per square meter. But who are the foreign buyers? They are generally individuals aged between 45 and 70, mainly businessmen and entrepreneurs who wish to manage their businesses effectively. The purchase purposes are primarily linked to exclusive use as a primary or secondary residence.


Where do investors come from? Besides traditional areas such as EU countries, China, and North America, many African entrepreneurs and businessmen are showing increasing interest in the Milanese luxury real estate market. Large Russian investors, however, are quickly decreasing following the outbreak of the war in Ukraine.


Why Milan?
Milan is a major international financial hub and hosts significant events related to business, finance, fashion, culture, and sports every year. Additionally, it offers a high quality of life and boasts a wide and varied range of dining options. From a real estate perspective, it is one of the few Italian cities that ensures good value retention over time.


Another aspect attracting many foreign investors is the significant tax appeal offered by Italian legislation. Those who have spent 9 out of the last 10 years outside Italy, if they establish their residence in the country by purchasing or renting a property, can access a flat tax of €100,000 per year, plus an additional €25,000 for each family member.
Individuals with incomes exceeding €300,000 are exempt from paying any other tax on income earned abroad in countries with which Italy has a double taxation treaty. There are also benefits regarding donations, capital gains, and successions, not to mention the significant advantages represented by building bonuses, generally higher compared to other countries.