Despite popular information, Italy has never tried to reward those investors who bought real estate in the country with a residence permit. It doesn’t matter how expensive. Thus, an Italian residence permit can be obtained without purchasing real estate. Moreover, there are several options. First, let’s look at the program for obtaining a permanent residence in Italy – Residenza Elettiva.
Residence in Italy – Residenza Elettiva
Who is this program for? For those who are in love with Italy and plan to live there most of the year. Because to extend and maintain your residence permit status, you will need to actually be in Italy. It is also called a “residence permit at the chosen place of residence”, and it is impossible to work in Italy or conduct business with such a document. On the contrary, you need to show a sufficient level of income from outside to live prosperously in Italy.
Investor can apply for Residenza Elettiva for the whole family at once, for example, the main applicant + spouse + minor child. So, applicant will need to show a passive (!) annual income of at least €35,000 euros per year for one person + 20% for the spouse, and 5% for each of the children. Such types of income as dividends on securities, income from rental real estate, royalties on copyrights, etc. fit this definition.
First, Residenza Elettiva is issued for a period of 1 year, then it can be extended twice for 2 years. And then applicant may apply for permanent residence in Italy.
Main applicant will also need to confirm your place of residence. That is, attach either a rental agreement or a purchase and sale agreement. Here applicant decides for himself whether it is worth purchasing real estate or whether it is enough to rent.
The main thing to remember is that buying real estate in Italy in itself does not give any privileges, no right to a residence permit, whether it costs at least €500,000 euros, or at least €1 million.
Italy’s Golden Visa so called La Dolce Visa or Italy Investor Visa
Unlike Residenza Elettiva, La Dolce Visa does not have any residency obligations. It also does not oblige the investor to become a tax resident in Italy. This type of visa allows to work or develop further business opportunities in Italy. Even to combine La Dolce Visa with other special tax regimes including the “Flat Tax” scheme. The spouse and minor children may also be included in application.
Investment options for Italy’s Golden Visa
- €250,000 in an innovative startup
- €500,000 in Italian shares
- €1 million donation to projects of public interest in Italy
- €2 million in Italian government bonds
The residence permit will be issued for a period of 2 years and extended if the investment is maintained for another 3 years.
