Tag: Tax Residency

Grenada Citizenship by Investment Programme

Top 4 reasons to choose the Grenada Citizenship by Investment Programme

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By Maxine Philavong

Grenada: a beautiful island, tiny island in the Caribbean. Filled with white sandy beaches, lush green vegetation and buzzing coral reefs, many miss out its numerous advantages due to its small size. But those who are looking for investment and citizenship opportunity should not overlook the “Island of Spice.” Indeed, Grenada is home to the Grenada Citizenship by Investment Program, a government sponsored program that provides rapid access to the United States E-2 Investor Treaty.

The E-2 Treaty Investor Visa allows a person to move to the United States with their spouse and dependent children for the purposes of owning and operating a business. Only citizens from certain countries are eligible for the visa.

Grenada is the only Caribbean country which holds the coveted E-2 visa treaty with the US, allowing citizens to apply for a non-immigrant visa and reside there. This is an incredible opportunity as many countries such as China, Russia, India and countries of the Gulf region do not have an E-2 treaty with the US, you can obtain your citizenship of Grenada first then apply for USA E2 Visa.

Grenada Citizenship itself provides many benefits in its own right, some even calling Grenada citizenship the “golden visa.” This includes no residency requirements, no tax on worldwide income, as well as citizenship of a politically and economically stable country. The Grenada Citizenship by Investment Program is just the icing on the cake when it comes to the island’s many advantages.

Grenada’s citizenship by investment program is one of the most cost effective in the world. Here are our top 4 reasons why clients might be interested in choosing the Grenada Citizenship by Investment Program:

  1. Fast Processing Times

Processing times for the Grenada CBI programme are extremely fast. It usually takes less than three months and there’s no requirement to visit. And, if you want to then obtain an E-2 visa, the timings are also favorable. The E-2 visa can take as little as six months. This means that you could be holding Grenadian citizenship and living in the US within just nine months.

  • Lower Capital Investment

The Grenada Citizenship by Investment cost is one of the most effective in the world. Investors have two main options: a $150,000 donation to Grenada’s National Transformation Fund or an investment in real estate that starts from $220,000. Through our strong presence on the island, D&A is able to help our clients navigate the investment opportunities. Upon request, our senior staff will visit the island with clients and introduce them to key stakeholders including members of government, as well as investment fund managers and real estate developers.

  • Worldwide income is not taxed

Grenada does not tax income outside the country. This means earnings you make from business interests or property outside Grenada are not likely to be included. And, if it comes to the E-2 visa, you would not be taxed on worldwide income by the US either. The E-2 visa is a non-immigrant visa. US permanent residents / Green Card holders are taxed on worldwide income. The D&A team includes tax attorneys who can advise you. D&A has forged close relationships with all the stakeholders in Grenada’s Citizenship by Investment Programme and have been successful in helping people from around the world achieve citizenship of this forward-looking country.

  • Keep your existing citizenship

Grenada permits dual citizenship, meaning that you do not necessarily need to give up your existing citizenship when you acquire Grenadian citizenship. It all depends upon the rules of the other country or countries. India, for example, does not allow dual citizenship. It does, however, allow you to hold Overseas Citizen of India (OCI) status. This offers similar benefits to citizenship with some restrictions, e.g. on the rights to own land or run for political office.

Contact D&A today to learn more about the Grenada Citizenship by Investment Programme

The Grenada Citizenship by Investment programme requirements are strict but simple. Applicants must have a clean criminal record and be able to verify their source of funds. With D&A’s support, the whole process can run fast and smoothly. A well-prepared application combined with the efficiency of the Grenadian authorities, means that processing time takes an average of just two months.

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.

E-2 US visa for Brazilan Nations

Italy Flat Tax for HNWIs Leads to 784 New Tax Residents

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The Italian authorities have announced that 784 high-net-worth individuals have applied for tax residency in Italy over the first three years of the program. The reason? A €100,000 flat tax on income for up to fifteen years.

The country with the most applicants (10%) was Great Britain, followed by France (58 applicants), the United States (20 applicants) and Russia (19 applicants).

Italy’s attempts to attract foreigners to obtain tax residency does not stop with high-net-worth individuals. The country has attempted to attract retirees to switch their tax residency with the lure of a 7% annual flat tax on overseas income (e.g. pension), with an emphasis on retiring to the southern regions of Italy.

Italy is also seeking to attract more people of working age, especially the self-employed. A generous tax incentive for workers includes a 70% reduction in income tax on Italian income for five years, with the potential to increase and extend the discount if settling in the South or bringing family members.

In addition to tax residency, Italy offers a range of residency and citizenship options. The country offers and investor visa program, and recently offered substantial discounts to attract more investors to obtain residency.

Other options include obtaining the European Blue Card for highly skilled workers, or obtaining an Elective Residency Visa if you can prove you have a steady income of at least €32,000.

An alternative pathway to Italy is by claiming a right to citizenship through an Italian ancestor. Given high levels of emigration in the early twentieth century, a surprising number of Americans, Brazilians, Argentinians, Venezuelans and Mexicans can claim Italian citizenship.

Given the favourable flat tax and the high quality of living, it is little surprise that Italy has registered almost 800 new HNWI tax residents. It is also understandable that Brits are among the highest applicants, given that British citizens will lose their automatic access to reside in European Union countries after Brexit.

As with anything to do with tax, there is considerable nuance in the details. It is vital to engage tax counsel before planning your move. Please contact Matteo Tisato in our Italy team to discuss your specific circumstances 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.