Italy has changed its immigration and tax laws to prepare for the implementation of a new investment immigration program.
The European giant is planning three investment classes with a minimum threshold of €500,000, rising to €2 million, with an initial investment period of two years.
In return, investors will be awarded a two-year visa, which can be extended for three years provided the investment is not withdrawn.
Candidates will get access to progressive tax rates on income earned in Italy, plus the privilege of paying an annual lump sum tax of €100,000 on all foreign-sourced income, including through investments and financial assets.
Italy is also looking to attract the return of high-skilled workers to the country by offering income tax breaks.
The new laws were approved in December 2016, and became active in January 2017, although the implementation of the program is still being discussed by Italian lawmakers.
There was an initial target of March 2017 for the program to be active, although it looks like it could take significantly longer.
When the new program does begin, it will see Italy join a growing number of countries offering investment immigration programs.
Such programs are becoming a key source of investment income for countries all over the world, including Portugal, Malta, the UK, Ireland and Cyprus in Europe.
The U.S. and Canada also have avenues for investors to achieve residency.
Key Points of Proposed Italy Investment Program
Investment Streams
- €500,000 investment in corporate bonds or shares in an innovative Italian start-up.
- €1 million investment in approved Italian public interest projects.
- €2 million investment in Italian government bonds.
- €2 million investment in corporation bonds or shares in an established Italian business.
Visa Details
- Investor visa granted for two years, provided investment is held for that period.
- Three-year extension granted provided investment continues to be held.
- Family visa granted to candidate’s family
Who Qualifies for Tax Incentives?
- Candidates who have not paid Italian tax for 9 out of last 10 years.
- Candidates who will change their residence to Italy for tax purposes.
What are the Tax Incentives?
- Progressive rates on income earned in Italy.
- Annual lump sum of €100,000 for foreign-earned income, including investment and financial assets. Add an extra €25,000 per family member).
- Inheritance tax on Italian assets only.
Further reading