The Knight Frank Tuscany Market Insight 2025 highlights a region that blends timeless charm with modern appeal, attracting ultra-high-net-worth individuals (UHNWIs) from the United States, France, the United Kingdom, Germany, and the Benelux countries.
A Climate of Confidence: What’s Driving Demand?
Amid global economic uncertainty and changing tax frameworks in G7 nations, Tuscany remains a standout destination. Italy’s flat tax regime, which sets a fixed annual tax on global income at €200,000, is encouraging wealth migration. Combined with high-quality healthcare, international connectivity, and top-ranking schools, Tuscany is increasingly seen as a strategic choice for relocation.
The data speaks for itself:
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Foreign residency in Tuscany has grown by 11.2% over the past decade
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Lucca has recorded a 27% price increase over five years
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Florence shows the strongest year-on-year growth at 6%
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Siena and Val d’Orcia present strong value at around €5,000 per square meter, approximately half the price of central Tuscany
Education, Accessibility and Turnkey Appeal
Families considering a move place significant weight on access to top-tier international education. Institutions such as the International School of Florence and private schools in Lucca are currently operating at full capacity. Simultaneously, buyers are showing a clear preference for move-in-ready, energy-efficient homes. These types of properties offer flexibility and ease of resale, avoiding the complexities and costs associated with renovations.
Accessibility is also improving. New flight routes from Pisa and Florence, including direct connections to London, Dubai, Munich and other major cities, are making Tuscany more reachable year-round.
Tax and Legal Considerations for Foreign Buyers
Several legal and fiscal changes are also influencing demand:
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Registration fees are now reduced to 2% when the property is declared as a primary residence, compared to 9% for second homes
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Citizenship eligibility has been revised and now requires direct lineage to an Italian parent or grandparent
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The “Return of the Brains” initiative provides a 70% income tax exemption for highly skilled expatriates
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Capital gains are fully exempt after five years of ownership
Despite some remaining bureaucratic challenges, such as pre-emption rights on agricultural and heritage properties, the legal environment is becoming more transparent and better suited to international buyers.
Outlook: Sustainable Growth Beyond the Pandemic
With Florence expanding its cultural and artistic footprint and Lucca continuing to gain visibility, the northwestern region of Tuscany is poised for sustainable appreciation. For many, investing in Tuscany is no longer simply a lifestyle decision — it is part of a long-term strategic plan that blends quality of life with capital preservation.
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