Italy continues to offer attractive pathways for foreign nationals seeking residency and citizenship. The Investor Visa for Italy program grants residency to individuals who invest in government bonds, Italian companies, or philanthropic projects. Additionally, the Elective Residence Visa caters to individuals with substantial financial means who wish to reside in Italy without engaging in employment.
Citizenship & residency policies
In recent years, Italy has streamlined its naturalization process, reducing the processing time for citizenship applications from 48 months to 24 months. This change aims to enhance efficiency and appeal to prospective applicants.
Furthermore, Italy has introduced the Digital Nomad Visa, allowing remote workers from non-EU countries to reside in Italy for up to one year, provided they meet specific income and accommodation requirements. This initiative reflects Italy’s commitment to adapting to the evolving global workforce.
Individuals interested in relocating to Italy should consult with immigration professionals to understand the various visa options and ensure compliance with application requirements.
Encouraging foreign investment
Italy offers several tax incentives to attract foreign investors and high-net-worth individuals. The Flat Tax Regime allows new residents to pay a fixed annual tax of €100,000 on foreign income, regardless of the amount earned. This regime is available for up to 15 years and extends to family members for an additional €25,000 per person.
Additionally, Italy provides a 70% tax exemption on employment income for individuals who transfer their tax residence to Italy, increasing to 90% for those relocating to southern regions. This benefit applies for up to five years and can be extended under certain conditions.
To further stimulate economic growth, Italy has implemented tax credits for investments in research and development, as well as incentives for startups and innovative enterprises. These measures aim to foster innovation and attract international business ventures.
Prospective investors and expatriates should engage with tax professionals to explore these incentives and develop tailored financial strategies.
Connect with us for more information and how these issues might impact you & your organization.