1. IMMIGRATION LAW
Non-EU citizens whose stay in Italy is planned to last for more than 90 days are required to apply for a long-stay visa. The stay in Italy may be justified by several reasons but, depending on the reason of the stay, the Italian immigration law provides for corresponding specific kinds of visa which may be issued.In general terms, foreign nationals that are not moving to Italy for the sole purpose of working or studying in Italy tend to use either:
– The investor visa and
– The elective residence visa.

1.1. The investor visa

1.1.1. Applicants are alternatively required to:
– Invest € 2.000.000 in Italian government bonds;
– Invest € 500.000 in equity instruments of an Italian company (€ 250.000 in case the target company qualifies as innovative start-ups);
– Realize a charitable donation of at least € 1.000.000.

The investment must be kept by the individual for the whole duration of the residence permit (that is 2 years plus renewals, if any).
In case of investment in Italian government bonds or equity instruments, the securities must be deposited at an Italian credit institution.

1.1.2. Procedure:
– Step 1: Application to be filed online for obtaining a Certificate of no-impediment (so-called “Nulla Osta”). The Nulla Osta is issued within 30 days from the date of the application;
– Step 2: Investor visa application at the Italian Consulate or Embassy within 6 months from the Nulla Osta issuance. The competent authority has 90 days to issue the visa;
– Step 3: Entry in Italy with the investor visa within 2 years from the issuance (period of visa validity) and application for the residence permit at the competent Police Office. The competent Police Office has 60 days to issue the residence permit;
– Step 4:Investment to be executed within 3 months from the date of entry in Italy.

1.1.3. Main features of the investor visa programme :
– The residence permit is initially valid for 2 years and renewable for three-years periods if the investment is maintained;
– The residence permit may be required by the main applicant family members (spouse, minor children, dependent adult children and dependent parents) and it is not necessary to execute additional investments;
– The investor visa (and the related residence permit) allows the holder to carry out working activities from Italy;
– No minimum stay requirements;
– Italian tax residence not automatically triggered;
– Ability to apply for an EU permanent residence permit after 5 years of continuous residence;
– Ability to apply for citizenship after 10 years of continuous residence in Italy.

1.2. The elective residence visa
1.2.1. Applicants shall demonstrate the availability of:
– A proper lodging;
– Stable and regular economic resources (not less than 31k Euro per year without taking into consideration income deriving from subordinate work activities);
– A health insurance policy covering all risks while in Italy (depends on consular authority).

1.2.2. Procedure:
– Step 1: direct application at the competent consular authority. The visa is issued within 90 days;
– Step 2: Entry in Italy with the elective residence visa within 1 year from the issuance (period of visa validity) and application for the residence permit at the competent Police Office. The competent Police Office has 60 days to issue the residence permit.

1.2.3. Main features of the elective residence visa and residence permit:
– The residence permit is valid for 1 year and renewable for one-year periods as long as the conditions are fulfilled);
– The elective residence visa (and the related residence permit) may be required by the main applicant family members (cohabiting spouse, minor children and dependent cohabiting adult children) provided that the main applicant’s financial resources are sufficient also for the latter;
– The elective residence visa (and the related residence permit) does not allow the holder to carry out working activities from Italy;
– No minimum stay requirements, however, the permit is not renewed if the holder interrupts his/her stay in Italy for a period of six consecutive months;
– Ability to apply for an EU permanent residence permit after 5 years of continuous residence;
– Ability to apply for citizenship after 10 years of continuous residence in Italy;
– Italian tax residence automatically triggered after the renewal.

Special tax regimes are provided by Italian tax provisions for people moving their tax residence to Italy. The eligibility conditions and the features of the principal tax regimes for inbound individual are reported below.

2.1. The special tax regime for HNWIs
Italy’s Budget Law for 2017 has introduced several measures aimed at fostering the attractiveness of the country for human and financial capital from abroad. One of them is particularly relevant for anyone interested in the Italian investor visa: a special tax regime targeted at High Net Worth Individuals holding substantial sources of income abroad.

2.1.1. The regime is applicable to individuals who have not been resident in Italy in at least 9 out of the 10 years preceding the acquisition of Italian tax residence.

2.1.2.Main Features:
– Flat tax of 100,000 euro per year on foreign sourced income and gains (except capital gains on substantial shareholdings in the first 5 tax years)
– No taxation on remittances;
– No gift and inheritance taxes on foreign-situs assets;
– No wealth taxes on assets held abroad;
– No reporting obligations on assets held abroad (except for substantial shareholdings in the first 5 tax years);
– Possible extension to family members against the payment of 25k Euro for each family member;
– Optional ruling to obtain confirmation as to the eligibility, the tax treatment of foreign entities,whether a certain income is foreign source, etc.. Timing: 4 – 6 months;
– Regime valid up to 15 years;
– Option is revocable.

2.2. The special tax regime for inbound workers
This special tax regime is specifically conceived for workers who move their residency from abroad to Italy and intend to work in Italy.

2.2.1. The regime is applicable to individuals who:
– Have not been tax resident of Italy in the prior 2 years;
– Commit to keep Italian tax residence for at least 2 years;
– Carry out working activity mainly in Italy.

2.2.2. Main features:
– 70% (90% for relocations to southern Italian regions) exemption on Italian source income derived from employment activities which generally arises from activities carried on in Italy (also in remote working). Also self-employment or business activities are included in the subjective scope of the regime, subject to EU State aid limitations;
– The Regime is valid up to 5 years and the duration can be extended for a further 5 year-period, provided that one of the following conditions is met:
– Purchase of residential property located in Italy (50% exemption);
– One underage/dependent child also in foster care (50% exemption);
– Three or more underage/dependent children also in foster care (90% exemption);
– Possible application of the regime in case of non-Italian resident employer/client;
– Special rules are provided for professional sportspeople.

2.3. The special tax regime for inbound retirees
As of the year 2019 the Italian Government introduced a new attractive tax regime, applicable to retired individuals who intend to move to Italy.

2.3.1. The regime is applicable to individuals:
– Who have not been Italian tax resident in the prior 5 years;
– Derive a pension income by a non-resident entity;
– Move to an Italian municipality with no more than 20,000 residents in the Southern regions of Italy.

2.3.2. Main features:
– 7% substitute tax on income and gains from non-Italian sources (not limited to pension income);
– No reporting obligations and no annual wealth taxes on foreign-held assets;
– Regime valid up to 10 years;
– No foreign tax credit;
– Income and gains sourced in Italy subject to ordinary taxation;
– No inheritance and gift tax exemption on non-Italian situs assets.

• An unparalleled cultural offer;
• Overall quality of life;
• Long life expectancy and quality healthcare;
• Great climate, stunning landscape and delicious food and wine;
• A strategic logistics hub connecting global markets;
• Skilled and competitive workforce;
• Very attractive special tax regimes for inbound individuals