As we have detailed in earlier blogs, Italy has recently announced the introduction of an attractive resident-non-domiciled type scheme aimed at attracting high net worth individuals. Allied to this there has also been an introduction of a new Visa scheme aimed at allowing wealthy individuals to obtain residence in Italy.
Details of Investment Visa
- The Investment Visa is available by one of three routes:
- The first is an investment of €1m in an Italian company;
- Secondly an investment of €2m in Italian Public Bonds; or
- Finally, a philanthropic donation of €1m into public projects aimed at cultural heritage, and fields of research.
- The investments into the Public Bonds or Italian company must be maintained for a period of at least 2 years.
Terms of Visa
The visa allows a foreign citizen to obtain Italian residence for an initial period of 2 years, but it may be extended for additional 3 year periods. Dependants of the primary investor may also receive residence visas.
Attraction of the scheme
With Brexit looming and the possibility of losing the right to live in Europe as well as constant tightening of the UK’s res-non-dom scheme, the Italian version is bound to prove attractive. A 5 year stint in Italy could not only lead to an Italian passport but also allow for a break from the UK scheme.
Please note that in addition to the res-non-dom scheme, Italy also offers a tax break on Italian source income. The “inbound favourable tax regime” allows for a reduction of up to 50% of the taxes on Italian employment income. To remove uncertainty advance tax rulings may be obtained.
The scheme is one of several now available in Europe as an alternative to the UK scheme. These now include Ireland, Portugal, Malta, Cyprus, Switzerland as well as Spain. We will be having a look at the revised details of these various schemes over the coming weeks.