Congrats are in order! Paris Hilton's younger sister, Nicky, is engaged to banking heir boyfriend James Rothschild! According to Us Weekly, he popped the question in Lake Como, Italy. The couple met in 2011 at model Petra Ecclestone's wedding to James Stunt. We could not be happier for this couple!

"They are both really excited and incredibly happy," a source revealed to Us Weekly.

"They went on a romantic anniversary trip over the weekend," the source explained of the proposal. "He took her out on a boat into the middle of Lake Como and he proposed, got down on one knee and everything. It was incredibly romantic and beautiful."

The source also added, "Last month, he actually flew from England (where he is based) to the States to ask her parents for her hand in marriage!"

How sweet!

This is the second marriage for Hilton, who wed longtime friend Todd Andrew Meister in 2004 at the Las Vegas Wedding Chapel. They split three months later after marrying "on a whim."

It is definitely a big time for the Hilton family! Paris has a new single, "Come Alive," which she teased last month on her Instagram account, and she also made up with former BFF Kim Kardashian in Ibiza at Ricardo Tisci's birthday party.

The reality starlets seem happy and appear to be laughing in a black and white snap. Click here to see!

Kardashian, who is married to Kanye West, captioned the moment, "Reminiscing about the 1st time we went to Ibiza in 2006! @parishilton it was so good to see you & catch up!! Loves it lol."

Former "The Simple Life" star followed suit, writing, "So much fun with @kimkardashian this weekend at @AmnesiaIbiza. The first time we ever came to this magical island was together. Such an amazing trip! Great catching up with you too beautiful!"

Are you excited for Nicky and her fiancé? Sound off in the comments section below!