Special tax regimes and golden VISA.
INTRODUCTION
Whilst not the first country in Europe to do so, Italy caught up with others in offering special golden VISA opportunities, and special tax regimes to attract foreigners to come to live in Italy.
In recent years the EU argued about such schemes as a way to pay lower taxes, as they benefit mostly European citizens. So pushed countries like Portugal to remove their special VISA and tax schemes. Still Italy has them in place, and currently are probably the most attractive in Europe.
GOLDEN VISA
This is an interesting opportunity for any foreigner.
To start, needs to apply through Italian Consulates around the world, and they will approve the request, or reject. Than, only after approval, the person has to do the right investment to get the VISA.
Also is a special VISA as the person is not required to come to live, or even visit, Italy. Can carry on his-her life as usual where he wishes.
There are different types of investments that can be made to get such Golden VISA. The lowest is just Euro 250,000 in an innovative start up. Or invest Euro 500,000 in a limited company in any industry. If the foreigner is an entrepreneur, and owns a company in his-her country, that company can open its branch in Italy, invest Euro 500,000 and the owner can get the Golden VISA. Last ways to get the Golden VISA are either to invest Euro 2,000,000 in government bonds, or to make a philanthropic donation of Euro 1,000,000.
WEALTHY FOREIGNERS SPECIAL TAX REGIME
Another special opportunity is the fixed tax for wealthy foreigners.
To apply for it, the person has to become resident in Italy, therefore best if he-her owns a property, than open bank account, transfer some money to get VISA….
Than the person can apply for the special regime, pay a fixed tax of Euro 100,000 per year.
This is a lot of money for most people to pay as tax. But than can be very little for wealthy foreigners.
Example if the person has an income of Euro 2,000,000 paying Euro 100,000 tax, is just 5% tax. If earns Euro 8,000,000 the tax will be just 1.25% of the income.
Hundreds of foreigners already applied for such tax regime.
FORFAIT TAX REGIME
There is also a special tax regime for normal people, that applies for income of up to Euro 85,000 per year. In this case the person pays a special tax of 5%. That is actually calculated with some deductions, meaning the final tax paid can be as low as 2%!
Such regime is interesting for examples to a person wanting to buy a property to do a B&B business, or a small farm, or a restaurant-shop. If does not expect big income, than is a way to pay very little tax!
7% TAX REGIME FOR PENSIONNERS
This regime has been created in particular to attract European citizens. As in Europe the tax on the pension is paid in the country where the pension is collected. Does not matter where the person lived and paid taxes whilst working.
For foreigners outside Europe, is best to check if your country will tax your pension there, even if you move to live in Italy, or not. If your pension will be taxed in your own country, than you just take the net money to Italy, to use for your living expenses, and you will not be taxed again on it.
This tax regime will be valid for 9 years, than normal tax will be applied to the pension. And is applied only if you will move to live in a town of less than 20,000 inhabitants. As there are so many such “small” towns around Italy, will be easy to move to live in the place of your dreams.
SUMMARY
This is the last article presenting useful info for foreigners wanting to invest, buy property or live in Italy. The articles report general info, always useful to know.
Naturally if you need more information, contact me and will be happy to help. Or if not able to do so, contact other experts that can help.