Category: Italy

Italian National - US Immigration E2 visa, L1 Visa

E2 TREATY INVESTOR VISA FOR AN ITALIAN NATIONAL

US Immigration Advisor

Italians are eligible to get a 5-year E-2 Treaty Investor visa which would allow them to be in the U.S. to develop and direct their E-2 company. For every entry on a valid E-2 visa, one can get a period of authorized stay of 2 years. E-2 visa applications are filed directly with the Embassies and Consulates unlike other visa categories, which require prior approval of a petition by USCIS. For a period of time after COVID, applicants had to wait for up to a year to get an appointment for the interview. Now, it appears that they are slowly getting back to normal. For our most recent client, the wait time was around 3 months only from the time of submission of the application.

Looking for an US immigration lawyer? Request free consultation at Davies & Associates or find our closest location around the world. 

This article has been written by Verdie J. Atienza, Esq., Senior Immigration Attorney, Head of E-2 and L-1 Visas Practice Team at Davies & Associates, New York Office.

Verdie J. Atienza is a Senior Attorney in charge of the firm’s L-1 and E-2 visa practice. He is a dual qualified lawyer in New York and in the Philippines and is qualified to practice immigration law in any state in the United States. 

 

Italy Reopens to Travel – Options for Immigration

The End of the Golden Visa?

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It’s yet to be officially approved, but Portugal is about to end its golden visa scheme for foreign investors. This program has been very successful and has attracted many investors from around the world. The scheme, aimed at non-EU nationals ready to invest in Portugal, has attracted 6.8 billion euros since its launch in 2012, with investor choosing real estate investments on the Atlantic coast. Successful applicants were given residency rights and a path to the European citizenship.

The reasons why the Portuguese government might shut down the Portuguese Golden Visa program is mainly related to the country’s house-affordability issue. In fact, the Golden Visa program has led to an increase in property prices, making it difficult for local residents to afford a place where to live. Undoubtedly, shutting down the program would help bring prices back down to a more reasonable level.

However, on a more general picture, despite the fact that the European Commission is trying to limit access to these migration programs, these are in huge demands. A valid and open alternative to the Portuguese program is represented by Italy. The Italian Elective Residence Visa allows non-EU citizens to live in Italy potentially indefinitely, without making any sort of investments. All they need in order to apply for this visa is to prove they have sufficient financial resources – a passive income – to support themselves without working. Passive income usually comes from real estate investments, brokerage accounts, pensions, annuities. Following five years of physical presence in Italy, applicants are eligible for a European permanent residency and, after ten years, EU citizenship. This Italian program targets retirees and high net worth individuals.

Italy is known for its beautiful landscapes, rich history, culture, food, lifestyle, design, and stunning cities like Rome, Milan, Florence, and Venice. Overall, if you meet the eligibility criteria and are looking for a way to experience Italy’s culture, the Italian Elective Residence Visa could be a fantastic option for you.

Davies & Associates works with Italian licensed attorneys (the main office is located in Florence) and has Italian desks in the U.S., India, and Vietnam.

For more information please see the information on our website:

ITALY IMMIGRATION SERVICES

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Italian Immigration Options

Italy Plans “Digital Nomad” Visa to Entice Remote Workers

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The Italian government has announced that remote workers will soon be able to apply for a “Digital Nomad” Visa, permitting them to work in the country for up to one year. The move is part of a package of measures designed to help Italy recover from Covid-19. The hope is that these professionals will come to the country for the Dolce Vita and spend lots of money in the process.

The details are yet to be released, but it is specifically aimed “highly qualified professionals” who are able to work remotely because of modern “technological tools”. The pandemic has upended working practices around the world. While many companies are trying to tempt people back to the office, or permitting hybrid working practices, others have gone fully remote. This adds to a trend that was already growing before the pandemic, and it is these people Italy is seeking to reach.

It is not clear how Italy plans to define “highly qualified professionals” and what the visa criteria will be. There may be a minimum income requirement, an educational-attainment requirement, and/or a job seniority/experience requirement. We will keep you updated as the rules are set.

The visa will be valid for up to one years and it is not yet clear whether there will be options to extend. However, for anyone who falls for the Italian way of life and wishes to remain longer, there are multiple options for staying on. The Elective Residency Visa is currently our most popular Italian option and offers residency to anyone who can prove funds of €32,000/year earned outside of Italy to support themselves.

Visit our Italy Practice page for full details on all your Italian immigration options.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

Italy Reopens to Travel – Options for Immigration

Here’s How to Renovate Your Home in Italy for Free

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UPDATE: NOVEMBER 1, 2021: THE ITALIAN GOVERNMENT HAS EXTENDED THE SUPERBONUS PROGRAM TO THE END OF 2022.

Italy’s government is offering a 110% tax credit on certain renovation projects, which essentially means getting to improve your home for free. The so-called “Super Bonus” is available until the end of the year with a chance of it being extended.

Renovations projects eligible for the Italian tax Super Bonus include:

  • Home insulation
  • Centralized heating systems in a condominium
  • Single home heating systems
  • Seismic improvements

The credit can also be extended to the following projects if linked to the above projects:

  • Solar panels
  • Electric car charging points
  • Other energy efficiency project

​

Who is eligible for the Super Bonus

The superbonus is not only individuals that are eligible, but also condominiums and amateur sports associations. For seismic improvements, the property must be located in a qualifying municipality.

Super Bonus Limits
​

According to Nicolò Bolla, our Italian tax adviser based in Parma, Italy, the maximum credit depends upon the type of work involved. In a post, he details some of these caps.

  • Insulation (external coating, floor insulation) cap is  € 50,000 per house or € 40,000 per unit inside a condominium.
  • Centralized heating systems in a condominium attracts a tax credit capped at € 20,000 per house unit as long as the condominium has eight units or fewer or € 15,000 in apartment buildings with more than eight units.
  • In home heating systems (a single unit) the tax credit is capped at € 30,000.
  • The cap on seismic structural improvements is € 96.000 per house unit underscoring both the expense and importance of such a renovation.

How is the Credit Applied

The credit is applied at 110% of the value of the expenditure up to the caps listed above. The credit can be used to offset the tax payable over the next five years.

So if you spend €30,000 upgrading your home heating system, the 100% tax credit amounts to €33,000. Spread that over five years is €6,600 per year credited against your tax.

Trading your Tax Credit

You are permitted to trade the tax credit with a third party resident in Italy. You can also trade the credit with your contractor provided the amount is credited against the payment for the work itself. The credit can be traded partially or in full.

Sworn Statement

You must obtain a sworn statement to be able to utilize the Super Bonus from both a certified accountant and a certified engineer. We advise you to speak with our Italian tax specialist. Any expenses related to obtaining the expenses can also be deducted as part of the Super Bonus (provided you have not already exceeded the cap).

Italian Tax & Property Services

Italy is an attractive place to establish your residence. The Italian government offers various tax credits to attract Retirees, Self-employed Workers, and High-Net-Worth Individuals to establish their tax residency in Italy. Read all about these tax benefits here. Our firm also works with the One Euro Home Project. Watch our expert webinar on One Euro Homes below.

Visit our Italy Practice Group Home Page for all your information about immigration to and from Italy.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

Italian Immigration Options

Italy Launch New Booking Portal for Consular Services

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The Italian Foreign Ministry has launched a new portal for booking consular services appointments at its consultates around the world. Appointments are open to both expatriate Italians seeking citizen services and prospective immigrants applying for Italian residency, citizenship and other services. Called Prenota Online, it is being rolled out worldwide this year. Click here to find your local Prenota site.

Davies & Associates is a one-stop shop for all Italian immigration services. We provide legal assistance with Italian residency, citizenship, tax, property, student visas. We also offer Italian-language support for Italians seeking to move from Italy to the United States. Our Italian presence in the United States is led by Matteo Tisato in Miami. The South of Florida is home to one of the largest Italian expatriate communities in the United States. Matteo is also the key point of contact for our US and global clients seeking Italian immigration and business services. Matteo works closely with our teams located in Florence, Rome and Milan.

Visit D&A Italy Practice Homepage

Cambia il servizio di prenotazione dei consolati Italiani all’estero. Sia che tu sia un cittadino italiano residente all’estero o un cittadino americano che intende fare richiesta per un visto italiano, da oggi potrai utilizzare un nuovo servizio di prenotazione “Prenot@Mi”, il quale sostituisce il servizio precedente aggiungendo funzionalità innovative e semplificate.

Il nostro studio da anni fornisce assistenza legale in materia di immigrazione, assistendo una vasta clientela in materia di residenza, cittadinanza, tassazione, compravendite immobiliari, visti. Offriamo anche supporto in lingua italiana per gli italiani che cercano di trasferirsi negli Stati Uniti. La nostra presenza italiana negli Stati Uniti è guidata da Matteo Tisato, il quale gestisce il nostro ufficio di Miami, in quanto la Florida ospita una tra le più importanti comunità di espatriati italiani nel continente americano. Matteo è inoltre il punto di riferimento per tutti nostri clienti statunitensi e globali che cercano servizi di immigrazione e affari in Italia. Matteo lavora quotidianamente a stretto contatto con i nostri teams situati a Firenze, Roma e Milano.

Italian Residency

The most popular Italian visa category for our firm is the Elective Residency Visa. To apply you need to be able to prove you have at least €32,000/year in funds earned outside of Italy and a place to stay. An alternative pathway to residency is through investment – the Italian government slashed the prices of its Investor Visa last year and now options start from $250,000. A new tax system designed to attract High Net Worth Individuals and retirees as well as self-employed workers was introduced three years ago.

Italian Citizenship

After ten years’ residency a person can apply for Italian citizenship (2 years for EU citizens and a less clear picture for British post-Brexit). An alternative path to Italian citizenship is through lineage. If you are able to prove you have an Italian ancestor you may be eligible for citizenship. This option is especially popular in Latin America – Brazil, Argentina, Venezuela – because of considerable Italian migrant exodus in the early twentieth century.

Other Services

Italy can be quite bureaucratic at times and Davies & Associates network across Italy can help with relocation including explaining all the necessary steps on arrival, and help with finding and signing on a rental or purchased property.

Services for Italians

D&A has helped many Italians move to the United States. The most popular visa is the E-2 Treaty Investor Visa, which allows the holder to move their families to the US to invest in and run a business. Spouses are eligible for work authorization. The visa is renewable indefinitely, so long as the underlying business remains in operation.

Alternative visas are the L-1 Visa for the transfer of a manager or specialized knowledge employee from the Italian office of your firm to the US office (if you do not yet have an office you can create one and apply for the L-1 Visa). The EB-5 Investor Visa requires a $900,000 investment for US permanent residency – it is only used by a small number of Italians each year.

Whether you are looking to move to Italy or you are an Italian living overseas, Prenota will be your online booking system for all future consular appointments. For any questions about Prenota, Italian immigration, or Italian emigration, contact Matteo Tisato for a free consultation.

I nostri servizi per la clientela Italiana
Davies & Associates assiste centinaia di Italiani nel trasferirsi negli Stati Uniti. Nella maggioranza dei casi, la nostra clientela Italiana decide di richiedere il Visto E2, il quale consente all’investitore e alla propria famiglia di trasferirsi in America a seguito di un investimento sostanziale. Questo visto è sempre rinnovabile, a condizione che il business sia operativo.

In alternativa, una soluzione può essere data dal Visto L-1, che si rivolge a Manager d’azienda o lavoratori specializzati che necessitano di lavorare in una succursale americana. Una parte minoritaria decide invece di richiedere direttamente la Green Card grazie ad investimenti di almeno 900,000 dollari.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

Italy Reopens to Travel – Options for Immigration

Italy Reopens to Travel – What are the Options for Immigration?

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The Italian Prime Minister Mario Draghi has just announced that Italy is to reopen its borders from the middle of May as it seeks to welcome back people who have been vaccinated or can produce a negative Covid-19 test. The main aim is to welcome back tourists ahead of the summer season, but it is also good news for anyone seeking a move to the country.

So what are the options for your Italian dream?

Italian Residency Options

Our firm’s most popular Italian visa is the Elective Residency Visa. This offers Italian residency to anyone who can prove they have a minimum of €32,000/year earned outside Italy to live on, and who can also find qualifying accommodation. The visa route was temporarily shut as a result of Covid, but it is now reopen and Italian embassies and consulates are welcoming applications once again.

In order to attract more people to its shores, Italy also offers an advantageous tax residency program. Pensioners are eligible for a flat tax of 7% on their overseas income (e.g. their pensions), high-net-worth individuals can avail themselves of a flat tax of €100,000 per annum, and certain workers can reduce their tax burden by 70% for the first five years they work in Italy. Conditions inevitably apply, please view our Italian Tax Residency page for more details.

Another way to quickly obtain Italian residency is through investment. The Italian government offers various cost-effective investment pathways. This includes and investment in a start-up, government bonds, or philanthropic donations. The starting investment requirement is just €250,000 and increases to a maximum of €2 million depending on the type of investment.

Italian Citizenship

It is possible to naturalize as an Italian citizen by virtue of ancestry or residency. Anyone who can document an appropriate Italian ancestor can apply for Italian citizenship. There are millions people in Brazil, Argentina, Venezeula, Mexico and the United States who are eligible for this visa.

Alternatively, if you establish your residence in Italy, for example through the Elective Residency Visa or the Investor Visa, it is possible to eventually become a citizen of Italy. European Union citizens only require two years’ residency in Italy before being eligible for citizens, for people from the rest of the world, you must wait ten years. The situation for British citizens is more complicated because of Brexit. We advise you to speak to our team for clarification on this.

Italian Property

Buying property in Italy can be complicated by bureacracy. Our Italy team can help you navigate each step of the process providing a reliable, bilingual partner to make sure you make the best decisions. Watch the webinar we hosted on the One Euro home program. We gathered key experts on Italy’s €1 Home to provide rounded advice to people thinking of taking advantage of the program.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

E-2 US visa for Brazilan Nations

Italian Ancestry Citizenship for Brazilians: Gateway to U.S. E-2 Visa

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The Italian community in Brazil has assimilated so well over the years that a surprising number of Brazilians are eligible for Italian citizenship without even knowing it. Italian citizenship offers a lot of benefits, including the ability to live and work in Italy and the rest of the European Union, as well as the ability to enter the United States through the Visa Waiver Program and to access its E-2 Treaty Investor Visa program.

Italian Migration to Brazil

During the last decade of the nineteenth century, more Italians emigrated to Brazil than to any other country in the world. It is estimated that over one million Italians moved to the Sao Paulo area and to the southern states of Brazil in the 1890s. Many of them came from the Veneto region of north eastern Italy and were lured by subsidised transportation and the offer of agricultural jobs in coffee plantations.

The numbers fell after the Italian government passed measures to stem the tide in 1902 by ending subsidized transport to Brazil, but high levels of immigration resumed after the end of the First World War. Today, it is estimated that over 30 million Brazilians are descended from these Italian immigrants. 

Italian Naturalization

The process of obtaining an Italian citizenship is called naturalization. It is open to people who can demonstrate an Italian grandparent, great-grandparent or a relevant connection even further back. Our Italian naturalization lawyers, based in Rome, have helped numerous Brazilians obtain Italian citizenship by proving their ancestry and working with the approporiate authorities in Italy to build and file the case. The team has also worked with Venezuelans, Argentinians, Americans, Mexicans, and people from other countries in the same way.

An Italian passport offers the ability to live and work in any European Union country. It also grants visa-free access to 126 countries, as well as the ability to get a visa upon arrival in a further 39. Holders of an Italian passport are eligible for the Visa Waiver Program to the United States. This program allows citizens or nationals of participating countries to enter the United States for up to 90 days without a visa. Brazilian citizens are not currently eligible and must apply for a visa before travelling to or transiting through the United States.

Visit our Italy Practice Homepage

Access to the E-2 Treaty Investor Visa Program

E-2 Treaty Investor Visas permit citizens of specific countries to move to the United States if they invest a substantial amount of capital in an American business (usually > $100,000). The primary applicant must be involved in running the business, but spouses can apply for work authorization in the United States outside of the business. Clients have used the E-2 visa to start-up new businesses, acquire existing business, or expand their current business. Franchise options are available, meaning off-the-shelf business solutions are available if you do not have an E-2 business in mind.

Brazilians are not currently eligible for an E-2 visa, but Italians are. Davies & Associates has successfully packaged Italian naturalization with an E-2 Visa application for a number of Brazilian clients. Please note, that while many Brazilians can claim Portuguese citizenship, Portugal does not hold an E-2 Treaty with the United States. Italians are initially granted an E-2 Visa for up to 60 months, but this can be renewed forever, so long as the underlying business continues to operate and meet its targets.

L-1 Visas Brazil

The L-1 visa program allows companies operating in the United States to bring skilled workers at the executive or managerial levels from overseas. It also allows for owners of small businesses to expand their business in the United States and transfer an executive member of staff to the United States to manage that business. Brazilians are currently eligible for L-1 visas that last for an initial period of up to two years, whereas Italian citizens are granted L-1 visas for up to five years. Both are able to renew their L-1 visas for up to a maximum of 7 years for an L-1A visa. After this time you must return to Brazil / Italy or transition to another visa to remain in the United States.

EB-5 Visa Brazil

Not all route into the USA go through Italy. Brazilian nationals are eligible to apply for the EB-5 immigrant investor visa program without needing to first take Italian citizenship. This visa offers a quick route to a green card for a $900,000 investment that creates and sustains ten American jobs. Davies & Associates is a leader in this field and has never had an EB-5 application rejected in our many years of service. 282 visas were issued to Brazilians in 2019 out of annual quota of just over 700. Whilst that leaves a lot of spare capacity, the example of India shows just how a country can go from the low hundreds to exceeding the quota in just two years. Countries exceeding their EB-5 visa quota enter a waitlist.

Researching your Family Tree

Acquiring an Italian passport opens up so many opportunities for Brazilians citizens. Through our offices and partners in Italy, my team has helped many Brazilians successfully claim their ancestral right to Italian citizenship, and we have continued to work with clients to get them access to the United States and beyond. So, start researching your family tree today, and please feel free to contact us to discuss your needs and eligibility.

To discuss your interest in Italian citizenship or any Italian residency, tax or property issues, please contact Matteo Tisato, the Italian-speaking Senior Immigration Analyst. [email protected]

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

New Italian “Permit of Stay” for Victims of Natural Disasters

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By Matteo Tisato, Senior Immigration Analyst, Italy Practice Group.

A new Italian permit of stay (permesso di soggiorno) can be obtained by those who have been affected by severe natural disasters or other calamities in their countries.

Italy and Sweden are the only countries offering this specific protection. In general, persons eligible for this immigration status are third-country nationals who, while not fulfilling the criteria for refugee or subsidiary protection, could not be returned to their country of origin because of environmental circumstances.

Our Italian team in Florence and Rome can now assist you in applying for this permit. The competent Italian authority will make a determination based on the documentation provided at time of filing and will independently check the current situation of your country of origin. Unfortunately, the processing time to obtain this permit is still unclear. This Permit solution is valid for a period of 6 months and can be extended until the situation in those countries improves and it is safe for you to travel back.

If the Immigration authority does not extend your status, you may qualify for different permits and change your status while you are in the country. For sample, you can change your status to work, student, or family permits.

The Permit for natural disasters and calamities gives you extensive rights, including work authorization in Italy, enrolment in the Italian health care system (SSN), and access to the Italian public education system.

Our team in Florence and our Italian desk in Miami are already working on these solutions and are available to answer all your questions.  

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

Italy’s Annual Quota for Non-EU Migrant Workers Tops 30,000 in 2020

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By Matteo Tisato

Each year the Italian government announces how many working visas will be available under its “quota system”. The government releases a Flow Decree establishing a number of available working visas across two main categories.

For 2020 there will be a total of 30,850 non-European workers who will be able to enter Italy regularly.

The 30,850 visa quota is split as follows:

  1. 12,850 visas are available to non-seasonal subordinate jobs, and self-employers, of which 6,150 working permits are available to those who are already in Italy and apply for the conversion of their Permit of Stay (Permesso di Soggiorno);
  2. 18,000 visas are available to seasonal workers in the transportation, constructions, and tourism fields, of which 4.500 are reserved for those coming from Albania, Algeria, Bosnia-Herzegovina, South Korea, Ivory Coast, Egypt, Ethiopia, Philippines, Gambia, Ghana, Japan, India, Kosovo, Mali, Morocco, Mauritius, Moldova, Montenegro, Niger, Nigeria,  North Macedonia, Senegal, Serbia, Sri Lanka, Sudan, Tunisia, Ukraine. For 2020/2021, three more countries have been included: Bangladesh, Pakistan, and El Salvador. Of this category, a sub quota of 6,000 permits are limited those working in the agricultural field. 100 visas are available for those who resides in Venezuela and have at least one Italian ancestor.

There are many different reasons our clients want to move to the boot-shaped peninsula in the Mediterranean Sea.

  • working
  • establishing residency / desire to live in Italy
  • investment opportunities in the real estate market
  • studying and cultural experiences
  • retirement
  • tax benefits

Of all of these, work is one of the most popular motivations. A good 25% of people who contact us are interested in moving to Italy because of its employment opportunities and fair labour conditions.

We all know Covid-19 has had a catastrophic impact on the employment rate in Europe and worldwide. Even before the pandemic, Italy was still struggling to recover from a deep economic crisis, which hit the youth employment especially badly.

However, over the last 2 years, the government made up a series of reforms to the labour market, also allowing people to retire earlier.

For those foreigners who have an employer available in sponsoring them, the Italian labour market offers excellent rights and public benefits.

Benefits of being employed in the Italian labour market

  • First, each employer is insured under the Italian Social Security legislation;
  • Second, the average working week does not exceed 40 hours and overtime is forbidden when it exceeds 250 hours per year;
  • Third, each employer is entitled to have at least a month (four weeks) of paid annual leave, and 11 public holiday days;
  • Fourth, the parental leave is very well regulated in Italy and both mothers and fathers can take a leave up to six months until the child turns 12;
  • Fifth, in case a contract is terminated, all the employees are entitled to a very well-regulated and extensive severance pay;
  • Sixth, workers are entitled to sick leave with full remuneration (most of the time) and have the right to maintain their job while they are sick.

Contact our Italy Team to discuss in greater detail.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

Tax Incentives for Investing and Renting Residential Properties in Italy

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By Matteo Tisato

The lure of Italy is undeniable. Stunning landscapes, historic cities, culture, design, culinary tradition. Before Covid-19 hit Italy so badly in early 2020, Rome was the country’s most popular destination with almost 27 million of visitors every year, or 6.4 percent of the total, followed by Milan and Venice (both 2.8 percent), and Florence (2.4 percent).

However, in the recent years, Italy has become an excellent place attracting not only tourists but international investors as well, who are finding always more opportunities and great deals even on tax regimes.

Today we dig into the international real estate business and want to share something that most potential investors in the real estate market do not know: A 10% flat rate for incomes coming from renting out residential properties. 

A 10% flat rate for incomes coming from renting out residential properties. 

If in most cases a rate of 21% is applied to these incomes, for lease contracts that meet certain requirements it is possible to qualify for a 10% flat fee, which is certainly more convenient for the investors/owners. Here are the main criteria to qualify for this special taxation regime:

  • Firstly, the residential lease must be in the form of 3 plus 2 years, or Interim contracts (up to 18 months) or student contracts (up to 36 months).
  • Secondly, the 10% flat rate applies only to leases for which the maximum amount is not freely established by the parties but is determined in accordance with agreements made by the local authorities and the most representative tenant organizations.
  • Thirdly, the 10% flat rate applies exclusively to homes located in specific areas, including the biggest cities such as Bari, Bologna, Catania, Florence, Genova, Milan, Naples, Palermo, Rome, Turin, and Venice. Buying a property in these cities may also include further reductions on IMU, which is the Italian property tax.

International investors are always more interested in investing in the Italian real estate by taking advantage of the above tax regime. In addition, house expenses are usually paid by the tenant, and these include water-sewer taxes, condominium taxes, gas, electricity, Internet/Wifi, and Tv/cable tax.

In addition to reduced rental taxes, Italy offers a range of tax benefits to attract foreign workers and retirees. This includes a generous time-limited reduction on income tax for workers who move their tax residency to Italy. As well as a 7% flat tax on overseas pensions for retirees who switch their tax residency to Italy. Conditions apply.

Italy also attracts high-net-worth-individuals (HNWIs) through a €100,000 flat tax for up to 15 years. This has proved popular with 784 people taking up this offer over the past three years. The majority of HNWI applicants (10%) are from the United Kingdom, where Brexit uncertainty coupled with Italy’s generous tax provisions, have spurred people to act.

For anyone interested in moving to Italy, there are a range of options available. Including the investor visa – for which the Italian government has just reduced the investment amounts; the elective residency visa – for which you need to prove annual stable income in excess of €32,000; the European Blue Card – for highly-skilled individuals; and naturalization by proving Italian ancestry.

Learn more in our podcast.

Contact Us to discuss your case.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.