 On 17 May 2008, it was reported Vargas had agreed to sign for Real Madrid, but on 5 July 2008, he joined Fiorentina for a fee of €12 million.Upon arriving in Florence, he struggled in the left back position and was highly criticized.However, after realizing his true potential as an attacking midfielder, he became a crucial part of the "Viola" squad providing crucial assists, giving the squad great speed and acting almost as a third forward.