By Alessia Ajelli
Sometimes called “La Dolce Visa” or “Italian Golden Visa,” Italy’s Investor Visa Program has experienced several changes and enhancements during the last few years, especially after the COVID-19 pandemic.
Though less expensive alternatives exist at the European level for investors who want to obtain a residence permit and possibly European Union (EU) citizenship through passive investments, this residency by investment (RBI) program is a suitable option.
REQUIREMENTS FOR THE ITALIAN INVESTOR VISA
As of today, applicants can choose between different types of investments, each with a unique threshold amount:
- 250,000 euros if they are willing to invest in innovative Italian startups.
- 500,000 euros if they invest in an Italian company (listed or not listed).
- 1,000,000 euros if they invest by donating to a philanthropic project.
- 2,000,000 euros if they invest in bonds of the Italian government.
These amounts have been modified since the program went live in late 2017. The minimum investment required in the case of equity of innovative startups and Italian companies was reduced by half to make the program more attractive to potential foreign investors.
Also, in an aim to increase the number of potential investors to engage in the program, the Italian government introduced over the last years a couple of changes:
A foreign legal entity can also invest, identified by its legal representative, i.e., the person authorized to commit the will of the foreign legal entity, who must be over 18 years of age.
The investor visa holder does not have to spend a minimum amount of time in Italy – i.e., in theory, they could be physically present in Italy for just one day per year and still be able to keep and renew the residence permit if the other conditions are kept (retain the investment and avoid any partial or complete withdrawal).
These changes show the government’s effort to make this program more attractive and competitive than other European RBI options.
LATEST FIGURES ABOUT THE ITALIAN INVESTOR VISA
This strategy could have worked according to the number of applications lodged between 2021 and 2022.
In 2022, the number of applications submitted to the Ministry of Enterprises and Made in Italy doubled compared with the previous year and was 10 times higher than the program's first year. The Committee for Investor Visa for Italy accepted almost 90% of such applications, investments that essentially went to Italian companies, government bonds, and innovative startups.
Also, most of these investors chose to move, or at least establish their domicile, in the north and center of Italy.
Statistics show that many applicants are from Russia and Eastern Europe. However, in July 2023, the Committee for Investor Visa for Italy suspended the program for Russian and Belarusian citizens in compliance with a European Union recommendation. This situation might change, but for the time being, it could change the program's target, leading to other foreign nationals showing interest and applying.
SEVERAL REASONS WHY INVESTORS CHOOSE ITALY’S RBI VISA
The main benefit of this program is that investors gain a residence permit that allows them to stay and live in a European country and move inside the EU and the Schengen Area. It can potentially lead them to obtain a long-term residence permit and, eventually, Italian citizenship.
Another advantage is that investors can enjoy beneficial tax regimes such as the “flat tax,” which provides high-net-worth individuals the benefit of paying 100,000 euros regardless of the income they generate outside of Italy.
Besides the features already described, the procedures and steps to apply for the Italian investor visa were greatly simplified compared with other Italian visas and residence permits. The government created dedicated channels to handle these applications. It provided expedited routes for investor visa holders to complete their inbound process once they land in the country and apply for the final residence permit or when they need to apply for a renewal at the end of the permit's first or subsequent validity periods.
Investor visa and residence permit holders must comply with the legal requirements to keep and renew their residence permits. However, they must make sure that their original investment (must be directed to just one company and cannot be divided) is being kept and obtain from the competent bank institutions the necessary paperwork confirming the same.
Compared with other programs available worldwide or in the EU, Italy’s Investor Visa Program is a valid choice for wealthy individuals interested in investing in the Italian market and obtaining a visa and residence permit to live there permanently and potentially become an Italian citizen. It is also recommended for those wishing to spend time in the Italian territory for leisure, work, or business.
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