Getting a residence permit in Italy: change of rules in the program
The Italian government has made changes in the citizenship program in exchange for investment. The authorities hope that the innovations will help to attract more funds to support the budget, which has significantly decreased after the pandemic and quarantine. Now getting a residence permit in Italy will cost half as much as the option of investing in business.
According to the new requirements, to invest in a local startup it is necessary to pay 250 thousand euros, and in a company that has been operating on the market for at least 2 years – 500 thousand euros.
The requirements for other options for participation in the program remained unchanged. For a residence permit for Italy will have to pay 2 million euros when purchasing government bonds or give 1 million euros to local charity.
The program in the country was introduced at the end of 2016, but for so many years of operation it has not been as competitive as in neighboring European countries – Spain, Greece, Portugal. They have a lower threshold for a residence permit for investment. Therefore, in order to increase the popularity of this option to attract capital, the Italian authorities decided to revise the conditions.
Experts are positive about the innovations, although they note that the program has a number of shortcomings that stop investors. First of all, it concerns government bonds, investments in which bear minimal risks and on the one hand are quite profitable. However, when compared with the program of Cyprus, it turns out that the latter for almost such a cost makes it possible to obtain full EU citizenship. In addition, buying real estate in Italy, its owner is not given the opportunity to get a residence permit, although in many countries, this model is a success.
To get a residence permit in the country, the foreigner must have a certain amount of capital, document its legal receipt. After entering Italy, the participant is given 3 months to invest in a particular option. Once all the documents have been submitted and the permission given, the person receives a residence permit, which is valid for 2 years, and after its validity is extended for another 3, but only if the minimum investment is maintained. In five years the applicant may apply for an indefinite residence permit. To get the Italian citizenship it is necessary to reside in the country for at least 10 years.
At the same time, the income from investments is subject to a tax of 23%-43%. The country’s legislation provides special treatment for those who declare their income in another country. In this case, the resident pays to the Italian treasury the general tax for himself and his family members.