Italy Receives First Fitch Upgrade Since 2021

On September 19, 2025, Italy celebrated a major financial milestone: Fitch Ratings upgraded the country’s sovereign rating from BBB to BBB+, the first improvement since 2021. The decision underscores growing confidence in Prime Minister Giorgia Meloni’s government, which has successfully reduced the budget deficit and fostered a stable political environment.

The move places Italy three notches above junk status, sending a strong signal to international investors that the Eurozone’s third-largest economy is on a path of fiscal resilience. Fitch emphasized that Italy’s “current policy framework and stable political backdrop” provide the right foundation to meet its fiscal goals, supported by a multi-year planning process aimed at maintaining prudence.

Fiscal Responsibility Meets Investor Optimism

The 2024 budget deficit of 3.4% of GDP came in below the government’s 3.8% target, with projections suggesting that Italy may fall under the European Union’s 3% ceiling a full year ahead of schedule. Economy Minister Giancarlo Giorgetti hailed the upgrade as proof that Italy is “back on the right track,” while Fitch also lifted Italy’s country ceiling to AA+, further cementing its credibility among global markets.

A Magnet for Millionaires and Luxury Investment

Beyond fiscal policy, Italy continues to attract high-net-worth individuals and investors, thanks to its favorable Flat Tax regime for new residents. This policy has positioned the country as a top destination for wealthy foreigners seeking a blend of financial efficiency and lifestyle excellence. The combination of political stability, tax advantages, and cultural appeal makes Italy not only a safer bet for institutional investors but also a magnet for luxury real estate buyers, entrepreneurs, and global nomads.

Outlook: Italy as a Long-Term Investment Hub

With international credit agencies recognizing Italy’s fiscal responsibility, and with ongoing reforms to strengthen economic stability, the nation is reinforcing its status as a long-term hub for investment, tourism, and luxury living. From Rome’s thriving property market to Milan’s role as a financial center, and Tuscany’s enduring appeal for high-end real estate, Italy is uniquely positioned to capture both capital flows and lifestyle-driven migration.

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For further insights into Italy’s luxury market and economic resilience, explore our recent feature on Italy’s Flat Tax regime and its growing appeal for millionaires, which dives deeper into how fiscal incentives are reshaping the country’s demographic and investment landscape.