What We Do
How We Can Help
What We Do
We are a team of experienced financial consultants and tax planners specialized in providing tax planning services for Italian Golden Visa applicants
La Dolce VISA
La Dolce Visa offers no real estate investment option, but now Italian laws exempts golden visa investors from the physical presence requirements until now imposed on holders of all categories of Italian residency visas. This change has reduced the physical presence day-count requirement for Italy’s investor visa to zero. The change has moved the Dolce Visa from a position of clear disadvantage compared to its competitors to having the most lax physical presence requirement among all EU golden visas.
The second impactful change introduced in has to do with what juridical person makes the investment. Individuals can now apply and make qualifying investments through their companies, thereby significantly reducing the financial risk of private individuals. The applicant can be a physical person (the norm among golden visas) or, alternatively, the CEO/Legal Representative of a foreign company. This allows, technically, for the investment to be made through the applicant’s company.
For those willing to become tax residents in Italy there is the new EUR 100,000 flat tax on global earnings regime also offers considerable advantages to high-income individuals.
The Italian Golden Visa is a type of residence permit for non-EU citizens who make a significant investment in Italy. It grants the holder the right to live and work in Italy for a renewable period of two years, and after five years of residence, the holder may be eligible to apply for permanent residency. The specific requirements and investment amounts can vary depending on the type of investment.
The Italian Golden Visa offers several tax advantages for non-EU citizens who make a significant investment in the country. One of the main advantages is the ability to apply for a flat tax rate of 100,000 euros per year on worldwide income, for a period of up to 15 years. This flat tax rate can be particularly beneficial for high net worth individuals who have income from multiple sources and countries, as it can simplify the tax filing process and potentially lower the overall tax burden. Another tax advantage is the ability to claim deductions for certain expenses, such as those related to the purchase of the real estate or the capital investment in an Italian company, which can lower the overall taxable income. Additionally, the Golden Visa holder may also be eligible for reduced tax rates on certain types of income, such as capital gains and dividends, which can further lower the overall tax burden. It’s important to note that the specific tax advantages and requirements may vary depending on the type of investment made, and it’s recommended to consult with a tax professional for more information.
All Italian residence visas require that the applicant maintain a home in Italy. The law requires that the applicant have a ‘suitable’ house in proportion to the amount of people who will live there. So, for example, if you have declared to the consulate that you will be bringing four family members and your rental agreement shows you will be living in a studio apartment, that won’t be accepted.
Italy’s La Dolce Visa is a residency by investment program created by the government to help attract more high-net-worth individuals to Italian shores. The program’s premise is simple; investing in the Italian economy through one of the government-approved routes awards an investor and their family members with a residence permit. To qualify for the program, an investor must:
a. Be over 18 years of age
b. Have a clean criminal record
c. Submit a full application
d. Intend to make a qualifying investment within three months of obtaining residency
The initial residency permit is issued for two years, however, an investor must make their investment within the first three months of obtaining their residence permit to maintain its validity. Italy’s La Dolce Visa offers applicants four investment categories to choose from:
i. A 2 million EUR investment in government bonds.
ii. A 500,000 EUR investment in an Italian incorporated company.
iii. A 250,000 EUR investment in an innovative Italian startup; or
iv. A 1,000,000 euros philanthropic donation to support public interest in the fields of culture, education, immigration management, scientific research, or the preservation of cultural and natural heritage.
It is worth noting that applicants can only invest in one entity, and cannot distribute their investment amongst various companies or bond options, even if the aggregate reaches the minimum investment amount. Investors can profit from their investments except for the donation as it is a charitable contribution; however, they can use that donation on their tax returns.
Applicants looking to invest in companies or startups have a wide net of flexibility in terms of the company framework and activity. Applicants can choose a company that meets their preferences and fiscal objectives, and we can help applicants structure company or startup investments to match their preferred level of risk, meet their goals, or even end up providing investors with tangible assets.
One of Italy’s La Dolce Visa’s greatest allures is its simplified process. The entire procedure is divided into three main phases; an online application, a physical application, and after-landing procedures.
Phase 1: Online application, this phase consists of three steps and can be completed online via any laptop, smartphone, tablet, etc. The steps are:
● Create a user on the designated online portal
● Fill out all the required forms and verify them through signatures
● Apply for a Nulla Osta (letter of no impediment)
Phase 2: Physical application, after receiving the Nulla Osta, an investor must then apply for a landing visa to go and collect their residence permit in Italy. This is done at the nearest embassy. In this phase, an investor must:
● Collect all the required documentation as per the embassy’s checklist
● Conduct a medical test if required
● Submit a completed visa application with all supporting documents to the embassy
Once the visa is issued, the investor has three months to travel to Italy to collect their residence permits.
Phase 3: After landing procedures, once an applicant lands in Italy they must conduct the following actions:
● Collect their residence permit within the validity of their visa
● Make a qualifying investment within three months of getting their residence permit
The residence permit is initially issued for two years, and it is perpetually renewable for three years at a time as long as the investor maintains their investment.
An investor can liquidate their investment if they obtain permanent residence status, which is achieved by living as a tax resident (six months a year) for five consecutive years in Italy. Once a permanent resident, an investor can recoup their investment or sell it, as their residence permit is no longer tethered to it.
The Italian La Dolce Visa is gaining popularity due to a variety of reasons; recent changes to the investment criteria have made the program more attractive, the awareness of the need for a contingency plan among high net-worth individuals has increased, and more Western nationalities are now looking to familiar countries in Europe to set up a second foothold. There are numerous benefits that La Dolce Visa offers investors, but the most common ones are:
- The country itself: No country in the world can claim the same historical and cultural pedigree as Italy, and the country’s pleasant climate, beautiful cities, and unique lifestyle are enough to attract people from all over the globe.
- The timing of the investment – La Dolce Visa’s framework makes it uniquely interesting, as investors only make their investment after approval, ensuring that they do not freeze funds for extended periods of time.
- Enhanced global mobility – By owning an EU residence permit, a person can travel visa-free within the Schengen Area, increasing their global mobility score by 26 countries.
- Tax benefits – New tax residents in Italy can benefit from its Special Tax Regime (STR) that caps income tax on all foreign income at 100,000 EUR and provides exemptions on inheritance and gift tax.
- A pathway to citizenship – Those who decide to reside in Italy as tax residents for ten consecutive years can petition the government for citizenship. Considering that the Italian passport is ranked 4th worldwide and includes visa-free travel to a staggering 189 destinations, including the USA, UK, Canada, and more, gaining citizenship is a massive benefit.
There are other benefits, of course, such as the ability to add family members and giving them the right to live, study, and work in Italy. Or that the Italian La Dolce Visa gives entrepreneurs the chance to set up shop in one of the world’s leading economies and most vibrant markets. Or that applicants and their family members will have access to the Italian healthcare and education systems, which are among the best in the world.
Elective Residence VISA
La Dolce Visa is not the only way to live in Italy, the Elective Residence Visa Italy is another Italian Visa program, this Visa lets You live in Italy or retire in Italy and live without working. If you have stables and consistent passive incomes from your home country you (and your family) can come to Italy and enjoy the famous Italian “Dolce Vita.
The Elective Residence Visa Italy (Residenza elettiva in the Italian language) is a 1-year Italian Visa that allows You to enter Italy for a long-term visit and it can be renewed every 2 years. It applies to foreigners who intend to relocate to Italy and if they can do so by financially supporting themselves autonomously – without working in Italy.
The Italian Elective Residence Visa is for foreigners – retired persons, persons with high self-sustaining incomes and financial assets like HNWIs – who have chosen Italy as the Country of permanent residence [or long-term relocation, we add] and who can support themselves autonomously, without having to rely on employment while in Italy, whether as dependent employees, as self-employed employees or employees working remotely online. You cannot finance your residence in Italy through any work.
A typical example is retired people. They have pensions (so certainly stable and continuous passive incomes). They aim to relocate to Italy to live and enjoy life.
Which Benefits Will I Have from the Elective Residence Visa Italy?
- Free Education.
- Free Registration with National Health Care.
Let’s see in detail what are the requirements for qualifying for the Italian Elective Residence Visa.
- Passive Incomes from 32,000€/ Year; Passive incomes like financial resources, other than employment, can be reasonably expected to be stables and continuous over time. Commons examples are dividends, pensions, royalties, rents, stable incomes from a long-term investment, etc.
- Italian Home with no Minimum Value, you must provide evidence that you have a place to stay in Italy for long-term permanency.
- Basic Health care Insurance with € 60,000 coverage. Italy has a universal healthcare system that covers Italian residents, so, until you are a resident, you need personal coverage. Almost € 60,000 full coverage
Before starting the entire with the Elective Residence Visa procedure, it’s imperative to check the potential eligibility with the Client.
It is an important step we take with our clients, as it’s mandatory to lower the chance of a rejection of the Visa from the Italian Consulate.
Each case it’s different – and each person has a different financial situation, which’s not always in line with the Elective Residence Visa for Italy. So it’s impossible to have some standardized parameters. We processed all applications on a case-by-case basis, and we will offer the Client tailored and dedicated assistance.
Special tax regime (STR) for inbound workers
Individuals meeting the following requirements can benefit from the partial exemption from ordinary taxation of employment income, self-employment income and business income. The requirements are:
- Being non-tax resident of Italy for the 2 years before the arrival to Italy;
- To commit to stay and to live in Italy for at least two years;
- To work in Italy 183 days at least;
- Individuals moving to Italy are no longer requested to have a specific qualification or a specific role, as provided by previous versions, and/or to be employed by an Italian resident employer, thus the panel of individual potentially benefitting of the STR became wider.
The STR version currently in force generally provides for the exemption of 70% of the income for five years: the first year of tax residency and the following four. Individuals moving the residency in Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia or Sicily will benefit from the exemption of 90% of the income, since the first year of tax residency and for the following four.
When one of the below listed is met:
- to have one child under the age of 18 or dependant, even in pre-adoption foster-care OR
- to buy a property in Italy, after the transfer to Italy or during the twelve months previous the transfer
the individual can benefit from the exemption from taxation of the income at the rate of 70% for the first five years and for the further five but applying the 50% exemption rate.
Special Tax Regime (STR) for professional sportsmen
The Italian legislator introduced a special provision for professional sportsmen, granting the chance to apply the special tax regime for inbound.
Professional sportsmen are eligible for a five-years 50% exemption on Italian sourced income. The qualification as professional or amateur sportsman depends on Law n° 91/1981 (Law on Professional Athletes) and not on the actual circumstances of the athlete.
Finally, it is important to underline that the partial exemption is only applicable to employment income, self-employment income and personal business income produced in Italy and that the further requirements and enhancements cannot apply to sportsmen. Depending on the nature of the contract, sponsorship income (or other kinds) may not be eligible for the application of the special tax regime.
Special Tax Regime (STR) for High Net Worth Individual
Individuals becoming an ordinary tax resident of Italy and never being qualified as a tax resident of Italy during nine tax years over the previous ten can opt in for the STR for HNWI. The option grants flat taxation amounting to 100,000 euro, each year, on foreign income, regardless of the amount of foreign income produced during the tax year. The same treatment would be applicable to their family members, whose foreign income would be subject to a flat 25,000 euro tax (for each member). The regime will apply for fifteen years from the first year of tax residency.
Any other Italian sourced income, produced under the qualification of non-domiciled tax resident individual, is subject to the ordinary taxation applicable to the kind of income considered. Capital gains realized during the first five years under the new tax regime on foreign investments and deriving from the sale of qualified shareholdings: are not subject to the flat tax but rather to the ordinary Italian taxation.
The qualification under the new tax regime gives the opportunity to avoid the following taxes and tax filing obligations for the income subject to the flat tax:
- wealth tax on the investment held abroad, saving 0.2% per year on the value of financial investment and 0.76% per year on the original cost of the real estate properties held abroad;
- filing of the declaration of investments held abroad;
- current Italian Inheritance and Gift Tax (from 4% to 8% depending on the degree of kinship).
Special Tax Regime (STR) for retired people
Retired people moving their tax residency to South Italy and receiving pension benefit can opt in for a STR granting the following:
- Any foreign sourced income earned by the taxpayer is subject to a 7% flat rate tax. The taxpayer cannot recover the double taxation on income subject to Italian substitutive taxation;
- Foreign financial investments and real estate placed abroad are exempted from wealth taxes and the disclosure of such investments is not due by the taxpayer as long as the special tax regime is applied by the taxpayer.
- The option can be adopted starting from the year when the taxpayer becomes tax resident of Italy and is valid for the 9 consecutive following years (10 years total).
In order to opt in, the individual should meet the following requirements:
- Being a retired person, entitled to receive a foreign pension;
- Being qualified as non-tax resident of Italy for the 5 years preceding the transfer to Italy;
- To become tax resident of Italy in one of the Southern Regions (Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Apulia) and into a Municipality with less than 20.000 inhabitants.