March 05. What amount will be required to obtain Italian citizenship and what are the advantages of Italian taxation – in these and other issues decided to understand the correspondents of the "Political class".
Italian authorities have often wondered about competition with Switzerland for wealthy immigrants. But only at the end of 2016, a number of laws were passed that determined the conditions for obtaining a residence permit and the tax regime for foreign citizens who decided to become tax residents of Italy.
At the beginning of 2017, it seemed that the investor visa was already decided, and it is possible to collect a package of documents and move. However, according to the" Italian tradition " it took almost a year before a press conference was held in mid-2017, at which the Minister of economic development of Italy announced an online platform for applying for a new entry visa for investors (visto investitori).
How to obtain a visa
Immediately I would like to note that this visa is suitable only for those foreign citizens who plan to invest a fairly large amount in the Italian economy. There are four investment options (and it is forbidden to combine them):
- investments in government bonds – the amount of investment of €2 million;
- investments in the capital of companies registered and operating in Italy - the amount of investments €1 million;
- investments in the capital of innovative start-UPS - the amount of investment €500 thousand;
- philanthropic donations to culture, education and scientific research – the amount of investment €1 million
At the same time, the investor is obliged:
- sign a Declaration (commitment) for the targeted use of investments within 3 months of entry into Italy;
- provide documents confirming the fact that he is the true owner of the invested funds.
Visa holder visto investitori receives a residence permit (Permesso di soggiorno per investitori) for a period of 2 years with the possibility of further extension for 3 years and obtain permanent residence in Italy.
How to get a residence permit in Italy
Obtaining this status is inextricably linked with the verification of the fact that the investment was made in a timely manner (3 months) and in full.
A residence permit may be revoked ahead of time if it is established that the investor has not fulfilled his / her commitment to the terms or intended use. The extension of the Statute provides that initially the investments that are stored at the time of renewal of the residence permit.
The petition for a visa investor can be filed by a person 18 years or older. Members of the investor's family also receive a residence permit.
Which option to choose
When assessing the attractiveness of an investment instrument, most investors agree that the €1 million donation and investment option in Italian companies may prove to be the most popular.
The donation was the inheritance of the wealthy "supporters of Italy". As for investments in Italian companies, it is not difficult to establish a company in Italy, it is not associated with large costs, and the subsequent financing of your own company – a great way to use the funds (for example, for the purchase of profitable real estate).
If we analyze the rest of the investment options, the yield and liquidity of government bonds in Italy is questionable, and the search for Italian startups – quite an exciting experience, but not for everyone.
In General, the prospect of obtaining an Italian residence permit as a result of investing €1 million looks quite doubtful, as this amount is much higher than the costs in Portugal, Luxembourg and Spain.
Therefore, even though the Italian authorities and associated with the visa investor expectations, assessment of demand for visas is very contradictory. It is advisable to sum up the first results not earlier than the end of 2018.
The status of "tax resident"
Together with visa, the Italian authorities has been the issue of tax residency, which suggests that they are seriously concerned about the question of creating special conditions for large taxpayers.
Italian authorities provide an opportunity to limit the payment of a single tax rate of €100 thousand on all income received outside Italy.
This option is only suitable for individuals who have become Italian tax residents and have not been Italian tax residents for 9 of the last 10 years.
In order to obtain the status of tax resident in Italy, a person must be registered in the local municipality and actually stay in Italy at least 183 days a year.
The law does not establish restrictions related to the citizenship of the person. The exceptions are those in respect of which are "budget investigation".
Members of the taxpayer's family can also use a single tax. For them, the tax amount per year is €25 thousand.
This tax regime can only be applied for 15 years. At the end of the specified period, this mode is canceled without the right to restore.
The additional advantages associated with the application of a single tax are as follows:
- the taxpayer does not pay the IVIE (tax on real property belonging to him by right of ownership outside of Italy) and IVAFE (tax on financial assets owned by the taxpayer outside of Italy);
- the taxpayer is exempted from the obligation to fill in the sections of the Italian tax return related to disclosure of financial assets outside Italy and foreign investments.
Importantly! These exemptions apply only to jurisdictions in which income is included in a single tax rate.
In the end, if we compare the Swiss and Italian conditions for obtaining a residence permit and the status of a tax resident, the Italian conditions benefit.
By the way, who are interested in obtaining citizenship without investment, we advise you to read the article on obtaining French citizenship.