Buyer appetite for Tuscany strengthens
Knight Frank’s assessment of current market conditions across Tuscany’s prime residential markets
3 minutes to read
What’s the macro picture?
Italy is now home to 40,010 individuals with over US$10 million in net assets and over 573 billionaires according to The Wealth Report 2025. A global trade war, geopolitical tensions and major tax and policy changes in key G7 nations are driving ultra-high-net-worth individuals (UHNWIs) to re-evaluate their location.
Tuscany continues to rank highly with foreign buyers. According to Istat, the number of foreign residents living in Tuscany has increased 11.2% in the last decade. Lucca outperformed over the last decade but with 4.3% annual growth, Florence recorded the strongest increase in the 12 months to January 2025.
While Italy’s flat tax is estimated to have attracted some 5,000 applicants to date, the numbers remain relatively low compared to the 70,000 UK based non-doms, many of whom are reviewing their domicile following the regime’s abolition in April 2025.
What impact will economic uncertainty have on the market?
Global wealth is increasingly mobile. While Italy ranks highly on UHNWIs shortlists due to its lifestyle, accessibility and education we are entering a period where people’s horizons will be shorter, and budgets reduced as they try to adapt to the uncertainty.
Many individuals may choose to hold onto more cash to remain agile in case they spot opportunities. Alternatively, they might invest smaller amounts in lower value properties to test different markets before committing larger budgets once they’ve decided on a final destination.
What tax and policy changes have been made?
Firstly, since 2023, it pays for foreigners to name their property in Italy as their primary residence as it will incur a 2% registration fee rather than 9% for second homes.
Secondly, as of March 2025, Italy has also changed its citizenship rules. The new decree restricts eligibility to individuals with at least one parent or grandparent born in Italy. An Italian passport currently ranks third in the world for visa-free or visa-on-arrival travel according to the Henley Passport Index.
Finally, Italy’s “Return of the Brains” programme offers a 70% tax exemption for highly skilled foreign workers and expatriates, reducing taxable income to 30% for five years, extendable under certain conditions.
Education a key draw
For families considering a move, Tuscany’s schools and universities are exemplary. The world-renowned International School of Florence (ISF) is currently full with a waiting list in operation, whilst in Lucca, the Gruppo Esedra owned schools, as well as the International School in Siena (IS), are top choices.
New flight routes
Pisa and Florence Airports offer flights to 118+ destinations with new routes opening this summer: Florence to Nice and Belgrade; Pisa to Sofia, Warsaw and London Southend. Plus, there will be increased services to London, Copenhagen, Munich, Frankfurt as well as new year-round flights to Dubai.
Areas to invest
Siena and the Val d’Orcia region, with prime property prices around €5,000 per sq m – almost half those in central Tuscany – are generating interest. Buyers are increasingly seeking a ‘podere’– a hilltop villa with panoramic views of the Tuscan countryside.
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