Key Benefits of Italy Golden Visa

To encourage foreign investment, Italy has introduced favorable fiscal policies for new residents, offering significant tax breaks and incentives such as the Investor Visa for Italy, also known as the Golden Visa. This program is one of Italy’s primary tools for attracting foreign investment, allowing non-EU citizens to obtain a residence permit in exchange for an investment in the country.

(Law No. 232 of December 11, 2016), Italy has established a preferential access channel for non-EU foreign citizens wishing to stay in the country for an extended period.

Key benefits of the Golden Visa

• Freedom of Movement in the Schengen Area: Golden Visa holders can travel freely within all Schengen Area countries without additional visa requirements.
• Flexible Residency: There is no obligation to reside permanently in Italy, offering greater flexibility to investors.
• Path to Citizenship: After 10 years of continuous residence, holders can apply for Italian citizenship.
• Family Incentives: The family members of the Golden Visa holder can benefit from the same residency conditions.
• Healthcare – Access to italian medical care facilities and National Healthcare System Possibility to obtain Italian citizenship after 10 years of residence in the Country
• Favorable tax regime – Granted for 15 years with lump sum flat annual tax of €200,000 on all foreign income, as well as exemptions from inheritance taxes and wealth taxes on assets held abroad.

Investment Options

The following investment pathways are available to italian golden visa investors.

1. Government bonds issued by the Italian State: A minimum investment of €2,000,000. These bonds must have a remaining maturity of at least two years, although it is advisable to purchase bonds (with at least five years of remaining maturity). This is because, once the Italian bonds are cashed out, the investor loses the ability to renew the investor residence permit. However, after five years of continuous residence in Italy, the investor may switch to a permanent residence permit.

2. Shares in Italian Companies/Startups – Investment in shares (or equity) of an existing Italian company, such as S.p.A., S.r.l. or S.r.l.s., requires a minimum investment of €500,000. This amount is reduced to €250,000 if invested in an existing Italian innovative startup. The investment must grant the investor shareholder status in the company, as investments in bonds do not qualify for the investor visa. The funds must be invested in a single company, which must be operational — meaning it has been active for at least one year and has filed at least one financial statement. The investment can be made either by purchasing existing shares from another shareholder or through a capital increase. Additionally, the company chosen for the investment cannot already be controlled by the investor at the time of application.

3. Donation – A philanthropic donation to an Italian non-profit organization, supporting a project of public interest in one of the following sectors — culture, research, migration management, or the restoration of natural or artistic heritage — requires a minimum donation of €1,000,000

Special Tax Regime

New fiscal residents in Italy have the opportunity to apply for a special tax scheme, that lasts for 15 years:

• Foreign-source income will not be taxed at ordinary rates, but at a yearly substitutive lump-sum tax of 200,000 euros.
• All foreign assets will be exempted from Italian inheritance taxes. • No reporting obligations to Italian tax authorities on assets held abroad.
• No wealth taxes on assets held abroad.
• Exemption from Italian CFC rules on foreign companies.
• Flat tax for Family members – The flat taxation on foreign-source income can also be extended to family members, for 25,000 euros per year per each additional family member.

Working rights – Should new residents decide to work in Italy, they could apply for a reduction of 50% over their Italian taxable income from employment or self-employment (within an annual limit of EUR 600,000). Such reduction is granted for a period of 5 years and can be increased to 60% if moving with a minor. Applicants should commit to maintain their fiscal residence in Italy for at least 5 years and should get minimum educational requirements.

Note. Italian golden visa has been suspended for Russian and Belarusian citizens including dual nationals as per the order of the Chairman of the Committee dated 07/14/2023 in compliance with Recommendation C (2022) 2028 of the European Union.

The Investor Visa Committee

The Investor Visa for Italy Committee (the “Committee”) is the inter-institutional body
responsible for ensuring that visa applications meet the requirements provided for by the
law. It is composed of representatives of seven (or eight in certain cases) institutions with
expertise in the migration, financial and business aspects of the investment and donation. project. It is chaired by the Director General for Industrial Policy, Competitiveness and
Small and Medium Enterprises of the Italian Ministry of Economic Development (MISE).

Nulla Osta

Applications for a certificate of no impediment (in Italian, “Nulla Osta”) to the issuing of
an investor visa must be submitted through MISE investor visa portal. The recipient of a Nulla Osta may apply for an investor visa at the Italian Embassy or Consulate of his/her country of permanent and continuous residence within six months of issue.

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