Changing demographics and modified settlement patterns have reshaped the socio-economic context of Southern Europe at the turn of the century. Within this context, Italy has become one of the major European destinations for migrants; their numbers have more than tripled during the years 2000–2010. This paper analyses the changing demography of (legal) migrants to Italy, as well as their settlement patterns and spatial distribution over time. Since the onset of the new millennium, immigrant populations in Southern Europe in general, and in Italy in particular, have been experiencing rapidly increasing volumes and rapidly changing demographics. The feminization of foreign population, its changing age structure and ethnic composition are some of the most striking features. Meanwhile, noteworthy changes have been registered in the spatial distribution of immigrants. Different ethnic groups follow different settlement patterns and register different levels of spatial dispersion. Though the migrant population in Italy remains more concentrated in the north, disparities between north–centre and south have decreased over the last decade. Analysis at a lower spatial level (Nomenclature of Units for Territorial Statistics level 3) shows a higher variability across time and counties, partly due to a changing ethnic composition and the increased numbers of immigrants.