Italy Residence Permit

Italy Residence-by-Investment Program

The birthplace of the Renaissance, Italy is a country that is rich in culture and history, where art and life intertwine seamlessly. With over 50 UNESCO World Heritage Sites, more than any other country, Italy showcases some of the greatest treasures the world has to offer.

Italy is a founding member of the EU and NATO. Its early economy was based on agriculture, but after it was devastated by the world wars, Italy turned to industries such as textiles, machinery, iron, and steel, which propelled its economy and enhanced development.

Italians are renowned for being experts in the fields of design and clothing manufacturing, and with luxury brands like Armani, Gucci, Prada, and Valentino that are appreciated across the world, Italians are an effortlessly stylish nation that is dedicated to enjoying what can only be described as la dolce vita — the good life.

As a globally recognized tourist destination with major cities including Milan, Rome, and Venice, Italy attracts hundreds of thousands of tourists every year. In addition to its popular urban attractions, historic sites, and black-pebbled beach tourism, visitors are attracted to the country’s fine food and wine and thriving arts scene.

In 2017, Italy introduced a special visa for foreign investors who are committed to making a significant contribution to the country’s economy. The Italian visa entitles applicants to an investor residence permit, allowing individuals who reside in Italy to apply for Italian citizenship after 10 years of residence.

Requirements

To qualify for residence status in Italy, applicants can choose to invest in either of the following two program options:

1. Investor Visa Program

Satisfy one of the following three requirements:

• A minimum of EUR 2 million in Italian government bonds
• A minimum of EUR 500,000 in Italian corporate bonds or shares (reduced to EUR 250,000 if investing in innovative start-ups). Listed or publicly traded shares are also an eligible investment and can be deposited abroad.
• A minimum of EUR 1 million in projects of public interest in Italy, such as culture, education, ecology, immigration management, research and development, arts, and heritage. This is a non-refundable donation.

The investment needs to be maintained during the validity of the visa. A spouse, children, and dependent parents of the main applicant may also request a visa without additional investment.

2. Elective Residence Program

A further qualifying option, the Elective Residence Program is suitable for individuals who can prove their stable annual income at a certain quantity from abroad.

Procedures and time frame

The visa is granted for two years and is renewable for a further three-year period, provided that the investment is maintained. It is expected that the process of

obtaining the visa will take 90–120 days from the date of application. The investment must be made within three months of entry into the country. To obtain the visa, investors must demonstrate a stable income and the purchase or rental of residential real estate in Italy.

Residence requirement

There is no minimum number of days of physical presence in Italy required, but the investor is expected to be reachable at their given address and not stay outside Italy for more than 365 days during the validity of the visa.

Citizenship

An investor can apply for a permanent residence permit five years after the initial visa is granted. Italian citizenship is acquired after five years of permanent residence, that is, ten years after the initial visa is granted. EU citizens are eligible after only four years of residence.

Italy allows dual citizenship.

Taxation

An individual is considered a tax resident if they are registered with the National Register of the Resident Population at their residential address in Italy. If registration does not occur, the individual may still be deemed taxable in Italy if they are physically present for more than 183 days or if their center of vital interests is found to be in Italy.

Taxpayers are liable to progressive income tax rates (from 23% to 43%), depending on their level of income. In addition to income tax, individuals pay regional tax at a rate up to 3.3% and municipal tax of up to 0.9%. The inheritance or gift tax rates vary from 4% to 8%.

Since January 2017, Italy has effected the Tax Consolidation Act, which provides the advantage of full exemption from tax on foreign income, exemption of all assets from Italian inheritance tax, and exemption from the rules for Italian-controlled foreign companies, in exchange for a flat tax of EUR 100,000 per annum. There are no reporting obligations or wealth taxes placed on assets held abroad.

This option is applicable to individuals who have not been Italian taxpayers during nine of the previous ten years and are transferring their fiscal residence to Italy. The general exemption is valid for a maximum of 15 years. The regime can be extended to the applicant’s family members, including parents, siblings, children of any age, and spouse, provided that a substitute tax of EUR 25,000 per annum is paid per person.

Key advantages

• Visa-free travel across Europe’s Schengen Area
• Residence in a country with a rich culture, attractive industries, and major global cities
• No permanent stay in Italy required
• Attractive tax regime
• Access to excellent medical care and education facilities