Italy is joining the growing investment migration movement. The Government of Italy amends its immigration and tax laws, paving the way for the development of a residence-by-investment program in one of the largest countries in Europe.
“The number of investment migration programs available has steadily increased over the last five years and is expected to continue to do so. More and more governments are seeing these programs as an innovative way of driving economic growth, securing much-needed foreign investment as well as enriching their own nation by attracting people to their shores who have proven business success, many talents and valuable networks. For the world’s elite, they provide something that is less tangible and more desirable than any material object – ensuring personal mobility and security.”
In summary, the changes are as follows:
- The general immigration rules have been amended to facilitate the immigration process for non-European nationals, particularly business people and entrepreneurs, who would invest:
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- A minimum of EUR 2 million in Italian government bonds
- A minimum of EUR 2 million in Italian corporation bonds or shares (reduced to EUR 500,000 for investment in innovation start-ups)
- A minimum of EUR 1 million in ‘projects of public interest’ (culture, education, immigration management, research and development, arts and heritage)
The investment needs to be held for a minimum of two years. An ‘investor visa’ is granted for two years and renewable for a further three-year period provided the investment is maintained. A ‘family visa’ is also granted to other members of the investor’s family.
- New rules have been introduced to the current income tax legislation to facilitate the return to Italy of researchers and qualified workers currently living outside of the country
- A substitutive tax regime has been introduced for income produced outside of the country for those persons who have not been Italian tax payers during nine of the previous 10 years and are transferring their fiscal residence to Italy. Under the new regime:
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- Tax payers are liable to progressive tax rates on income produced in Italy
- An annual lump sum tax payment of EUR 100,000 is due on income from foreign investment, foreign financial assets and any other foreign-source income (extended to family members for an additional EUR 25,000 per person annually)
- The option is granted for a maximum of 15 years
- Inheritance tax is only to be levied on assets within Italy
