Montepulciano, Tuscany
Retire in Italy: Residency by Investment and
Italian Golden Investor Visa
Investor Visa for Italy
("Permesso di soggiorno per investitori")
Apply for the Italian investor visa
Description of the Italian Residence Permit for Investors
The
Investor Visa for Italy
("ingresso e soggiorno per investitori") grants a
2-year residence permit
to non-EU nationals and their families (that is, spouses and minor children) against an investment into strategic areas for Italy’s future.
The permit is renewable for unlimited 3-year periods provided the strategic investment is maintained (for at least 5 years).
Italian citizenship
is possible after 10 years.
The Italian passport (which is valid for 10 years) and the Italian national identity card ("carta di identità") give free rights of movement and residence in any of the states of the European Union including Iceland, Liechtenstein, Norway, Switzerland, and the United Kingdom.
Italian passports share the common design of EU Passports - they are of burgundy color with the emblem of Italy (a white five-pointed star) on their cover. Italians are allowed to have two passports if there is a valid reason, such as having a stamp from a country like Israel, which may cause problems with other countries.
The Italian passport gives visa-free travel (or visa on arrival) to 186 countries. Dual citizenship is possible under Italian nationality laws (that is, a second passport is possible in Italy).
| Launch date | 11 December 2016 |
|---|---|
| Promoter | Ministero dello Sviluppo Economico: Secretariat for the Investor Visa for Italy Committee |
| Change of rules | May 2020: "Misure urgente" related to Covid-19 grant a 50% discount for investments into (i) Italian shares and (ii) qualifying Italian startups |
What Are the Key Benefits of Living in Italy?
- Since 2017, Italy provides a special tax exemption regime, the Italian Lump-Sum Tax (here), substituting tax on all foreign income with a yearly lump sum ("imposta forfettaria" or Italian substitute tax) of €100,000 (apply here)
- Under the Italian investor visa program, there is no need to invest into potentially illiquid real estate
- The Italian investor visa benefits from a smart and streamlined application process with approvals issued in 30 days
- The Italian golden visa provides access to permanent EU residency ("carta di soggiorno") after a continuous stay of 5 years in Europe’s third-largest economy
- Under the Italian residence program,
Italian citizenship is possible after 10 years which is, however, a relatively long waiting period in comparison to other residency by investment (RBI) programs such
the
Australian Golden Visa
(citizenship in Australia after 5 years), the
Gibraltar Category 2 residence status
(British citizenship after 5 years), the
Austrian Golden Visa
(citizenship in Austria after 6 years), the
Portuguese Golden Visa
(citizenship in Portugal after 6 years), the
Greek Golden Visa
(citizenship in Greece after 7 years), the
Monaco Golden Visa
(citizenship in Monaco after 10 years), the
Spanish Golden Visa
(citizenship in Spain after 10 years), and the
Swiss Golden Visa
(citizenship in Switzerland after 12 years)
What Are the Key Downsides of the Italian Golden Visa?
- Most Italian banks are unfamiliar with the special requirements and timeline of the Investor Visa for Italy, which makes personal bank account opening (for no-EU citizens) a difficult enterprise
What Are the Physical Presence Requirements in Italy?
| Yearly presence | Absences over 1 year are inadmissable |
|---|
How much Is the Personal Income Tax in Italy?
| Yearly income | Tax rate |
|---|---|
| Income under €15,000 | 23% |
| Income €15,000 - 28,000 | 27% |
| Income €28,000 - 55,000 | 38% |
| Income €55,000 - 75,000 | 41% |
| Income over €75,000 | 43% |
- Additional Italian regional tax applies from 0.7 - 3.33% depending on the taxpayer’s region of domicile
- Additional Italian municipal tax up to 0.9% depending on the taxpayer’s municipality
- Interest, dividends, capital gain are taxed at 26% only
- Interest income derived from Italian government bonds are taxed at a discount rate of 12.5%
How much Is the Net Wealth Tax in Italy?
| Foreign bank accounts (IVAFE) | 0.2% of market value |
|---|---|
| Foreign real estate (IVIE) | 0.76% of market value |
How much Is the Financial Sector Bonus Tax in Italy?
| Bonuses, stock options | 10% extra tax |
|---|
How much Is the Real Estate Tax in Italy?
| Stamp duty | 5% of transfer value |
|---|---|
| Capital gains | 0% if the property is held over 5 years |
| Tax for services (TASI) | 0 - 3.3% depending on municipality |
| Wealth tax (IMU) | 0.76% on taxable value |
> IMU does not apply to the taxpayer’s main residence.
How much Is the Corporate Income Tax in Italy?
| Income, capital gains | 27.9% |
|---|---|
| Banks and financial institutions | 27.5% |
| Non-operating entities | 34.5% |
What Are the Conditions to Get the Italian Investor Visa?
Applicants for the Italian investor visa (golden visa) must meet the following conditions:
1) Investment of €2,000,000 in Italian sovereign bonds with remaining maturities of over 2 years via an Italian bank - CCT / CCTeu / CTZ / BTP / BTP Italia (here).
> Italian 5-year government bonds currently (23Q2) yield 3,50% p.a. Italy’s credit rating is BBB as per S&P.
OR
2) Investment of €500,000 into Italian listed or unlisted shares ("società costituita e operante in Italia") via an Italian bank.
> The Italian golden visa investor cannot invest into a portfolio of Italian stocks but must pick one single company.
OR
3) Investment of €250,000 into eligible Italian start-up (here).
OR
4) Philanthropic donation of €1,000,000 in support of an Italian project of public interest in the cultural, educational, environmental sector.
> Combining the 4 routes is inadmissible.
> The use of credit is not allowed.
> Investments inside a given category, yet directed at a plurality of legal entities, are permitted only in exceptional circumstances.
> Investments into securities must be supported by a Letter of Validation of the statement of account signed by an authorized representative of the institution (bank, investment fund, etc.) from whose account the transaction has been made.
What Are the Required Documents to Get the Italian Golden Visa and Residence Permit?
- Passport with a remaining validity of 2 years and 3 months at the moment of visa application at the respective foreign consulate
- Official bank letter declaring the sum is immediately transferable to Italy and that the bank complies with international AML standards
- Brief CV in English (education and work experience)
- Written declaration pledging to make the qualifying investment within 3 months of the entry date into Italy
- Proof of assets (3-month bank statement) for the qualifying investment and sufficient resources to stay in Italy (here) - €8,263 p.a.
- Absent a 3-month bank statement: Documentation on source of funds (gift deed, will, etc.) verified by an accountant, lawyer, notary
What Are the Costs of the Italian Investor Visa?
| Due diligence and handling fee | €15,000 (includes personal bank account opening in Italy) |
|---|
What Are the Required Steps to Apply for the Italian Residence Permit?
- Formal application (in Italian or English) for a Certificate of no Objection ("nulla osta"); supporting documents in foreign language must be translated and certified
- Within 30 days: an eligibility check with notification of the decision is issued – if positive, a Certificate of no Objection is issued
- Within 6 months: application for a 2-year entry visa for Italy ("visto per investitori") at the Italian consulate of the applicant’s place of permanent residence
- Within 8 days upon visiting Italy: Candidates must apply for a 2-year Italian residence permit ("permesso di soggiorno per investitori") at the police station ("Questura") of their place of residence and present photocopies of all passport pages and 2 passport photos
- Within 3 months upon visiting Italy: The strategic investment must be made and maintained for the entire Italian residence permit validity period. A "Certification of Investment" must be sent to the Secretariat of the Investor Visa for Italy Committee.
- Within 30 days: Upon formal approval, the 2-year Italian residency permit for investors is released
- After 2 years of residence: Application for a 3-year renewal via a Certificate of no Objection for Purposes of Renewal ("nulla osta al rinnovo") to be submitted 60 days prior to the expiry of the current Italian residence permit
- After a continuous stay in Italy of 5 years: Application for the permanent EU Residence permit ("permesso di soggiorno CE di lungo periodo"). Applicants for permanent Italian residence must provide proof of sufficient Italian language skills: A2 as per the Common European Framework of Reference (here).