Brexit-Italy
Fog in the Channel. Continent cut off!
Visa options for Brits who want to retire or work in Italy
Starting from January 1, 2021, UK citizens need a visa if they want to stay in Italy for extended periods (>90 days any 180 day periods). Which are the most popular visas they can apply for?
Elective Residency Visa
What are the requirements
To request the ERV (officially known as Visto per residenza elettiva), applicants are required to:
- have a suitable accommodation; and
- a minimum “passive” income of not less € 31,000/year (+ 20% for the spouse and 5% for each child)
- 1 year health insurance with a minimum € 30,000 coverage
- some Consulates require a criminal certificate
- letter explaining the reasons for moving to Italy
Note: For a complete list of documents to be submitted, it will be necessary to consult the website of the Consulate where the applicant will submit the application.
Red flags
As set forth in the guidelines of most Consulates, the ERV:
- is for those who wish to reside permanently and with the intention of establishing a permanent home in Italy;
- it is NOT for extended tourism. It is not an end-run around the limited validity of Schengen tourist visas or the visa-waiver program, nor is it for letting you join family members or friends who have accepted temporary jobs in Italy.
How can I prove my economic resources?
The applicant must submit documents proving substantial and steady economic resources, such as:
· Letters from banking institutions stating current available funds . The type of account, the account balance and monthly earnings. These funds must be more than substantial and must generate revenues.
· Documents from other sources that will provide you with additional financial revenues, such as Social Security pension or other type of pension, property ownership and lease agreements, business ownership and related documentation;
· The visa applicant must show solid bank account/s and a set monthly income.
What about the accommodation in Italy?
You do not need to own or purchase a property to be eligible for the visa. A signed rental agreement will suffice but it must be for at least 1 year and duly filed with Registry Office (Ufficio del Registro).
Multiple bookings for houses/hotels, AirBnB contracts and third party offer of hospitality cannot be accepted for this type of visa.
Investor Visa
The Investor Visa can be obtained by: (i) purchasing € two million in Italian government bonds (to be kept for a period of at least two years); or (ii) investing € 500,000 in a company or € 250,000 in a “innovative start-up”; or (iii) donating € one million in philanthropic projects of public interest.
What are the benefits?
- NO MINIMUM TIME: The investor visa does not require, for its renewal, that the holder spends a minimum amount of time in Italy. Indeed, holding an investor visa does not imply by itself the acquisition of Italian tax residence. However, the investor visa holders may (according to the ordinary rules) become Italian tax resident depending on the strength of the ties with Italy
- TAX: in any event, Italy offers a TAX RELIEF SCHEME for new residents who can benefit from a substitute tax on income generated abroad by paying a flat-rate tax of EUR 100,000 for each tax year
- WORK: The Investor Visa allows also to work and can be converted into a work permit, if the individual meets all requirements for conversion
- COMPANY: The application for the Italy Investor Visa Clearance (“Nulla Osta”) can be filed also using a company controlled by the applicant
- NO LANGUAGE TEST: Investor permit holders are exempted from the Integration Agreement obligations, i.e. language test.
Self employment visa
If a person wants to work in Italy and does not have a company that can sponsor an ICT permit permit or cannot find an employer who wants to hire him with a Blue card, the only option left ifs the Self-employment visa (vsito per lavoro autonomo).
Recently, there are many articles, posts and blogs advertising this visa as relatively easy to obtain, luring people to move to Italy and work as free-lancers.
But ….. not as easy as it sounds
· Self-employment visa are subject to yearly quotas which are set by the Government. These quotas are usually very limited (the last Decree issued only 500 quotas for the year 2020);
· there is not a Government database where an applicant can check whether quotas are still available;
· Applicants are lured by the fact that general eligibility requirements are relatively simple: (i) a suitable accommodation; (ii) have financial resources exceeding € 8.500 Euro; (iii) obtain a Police Clearance; and (iv) obtain a certificates from a Gov.t offices confirming the requirements for carrying out the intended activity;
· The final decision on the visa issuance is on the Italian Consulates which have a wide discretion in approving/denying it;
· According to our experience, most Consulates have a very restrictive policy and are very cautious before issuing a visa to an applicant who cannot guarantee to have a stable occupation and substantial remuneration in the country;
· Despite obtaining the necessary clearances in Italy, we see that many applications are rejected by Consulates on various grounds.
Digital Nomad Visa
Main requirements (𝘄𝗶𝘁𝗵 𝗺𝘆 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀):
- the applicant must submit last year income and Consulate will assess whether it is adequate to obtain the visa
- health insurance for medical care and hospitalization valid throughout Italy and for the entire period of stay.
- Proof of having secured accommodation in Italy 𝗪𝗶𝗹𝗹 𝗖𝗼𝗻𝘀𝘂𝗹𝗮𝘁𝗲𝘀 𝗿𝗲𝗾𝘂𝗲𝘀𝘁 𝗮 𝟭 𝘆𝗲𝗮𝗿 𝗹𝗲𝗮𝘀𝗲 𝗮𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 — 𝗮𝘀 𝗶𝘁 𝗿𝗲𝗾𝘂𝗲𝘀𝘁𝗲𝗱 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗘𝗹𝗲𝗰𝘁𝗶𝘃𝗲 𝗥𝗲𝘀𝗶𝗱𝗲𝗻𝗰𝘆 𝗩𝗶𝘀𝗮? 𝗧𝗵𝗶𝘀 𝗺𝗲𝗮𝗻𝘀 𝘁𝗵𝗮 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗻𝘁𝘀 𝘄𝗶𝗹𝗹 𝗻𝗲𝗲𝗱 𝘁𝗼 𝘀𝗶𝗴𝗻 𝗮 𝗹𝗲𝗮𝘀𝗲 𝗯𝗲𝗳𝗼𝗿𝗲 𝗸𝗻𝗼𝘄𝗶𝗻𝗴 𝗶𝗳 𝗮𝗻𝗱 𝘄𝗵𝗲𝗻 𝘁𝗵𝗲𝘆 𝘄𝗶𝗹𝗹 𝗼𝗯𝘁𝗮𝗶𝗻 𝘁𝗵𝗲 𝘃𝗶𝘀𝗮
- At least 6 months of work experience 𝘄𝗵𝗮𝘁 𝗲𝘃𝗶𝗱𝗲𝗻𝗰𝗲 𝘄𝗶𝗹𝗹 𝘁𝗵𝗲 𝗖𝗼𝗻𝘀𝘂𝗹𝗮𝘁𝗲𝘀 𝗿𝗲𝗾𝘂𝗲𝘀𝘁 𝘁𝗼 𝗽𝗿𝗼𝘃𝗲 𝗮𝗱𝗲𝗾𝘂𝗮𝘁𝗲 𝘄𝗼𝗿𝗸 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲? as a digital nomad or remote worker 𝗛𝗼𝘄 𝘄𝗶𝗹𝗹 𝘁𝗵𝗲 𝗖𝗼𝗻𝘀𝘂𝗹𝗮𝘁𝗲 𝗮𝘀𝘀𝗲𝘀𝘀 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝘁𝗵𝗲 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗻𝘁 𝗳𝗶𝘁𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗱𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 “𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗻𝗼𝗺𝗮𝗱𝘀” 𝘀𝗲𝘁 𝗳𝗼𝗿𝘁𝗵 𝗯𝘆 𝘁𝗵𝗲 𝗹𝗮𝘄?
- for the remote worker visa category, additional documentation is required (i) employment contract/offer and a written declaration by the employer; (ii) ID copy and proof of the absence of convictions in the previous 5 years. Will the Consulate accept only a declaration or will also a criminal certificate duly legalized?
- The applicant will need to prove to meet the same requirements for the Blue Card permit, eg 3 years University diploma or — if not available — to prove adequate professional experience by submitting a copy of previous job contracts or payslips.
- Family: the law set forth the visa is extended to applicant’s family (but only spouse and childern up to 18), but most likely 𝘁𝗵𝗲 𝗳𝗮𝗺𝗶𝗹𝘆 𝗺𝗲𝗺𝗯𝗲𝗿𝘀 𝘀𝗵𝗮𝗹𝗹 𝗻𝗼𝘁 𝗯𝗲 𝗮𝗯𝗹𝗲 𝘁𝗼 𝗼𝗯𝘁𝗮𝗶𝗻 𝘁𝗵𝗲 𝘃𝗶𝘀𝗮 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗼𝗯𝘁𝗮𝗶𝗻𝗶𝗻𝗴 𝗮 𝗽𝗿𝗶𝗼𝗿 𝗣𝗼𝗹𝗶𝗰𝗲 𝗰𝗹𝗲𝗮𝗿𝗮𝗻𝗰𝗲 𝗶𝗻 𝗜𝘁𝗮𝗹𝘆 (𝘁𝗵𝗮𝘁 𝗰𝗮𝗻 𝘁𝗮𝗸𝗲 𝟮-𝟯 𝗺𝗼𝗻𝘁𝗵𝘀).
Addition hurdles
- Applicants cannot apply while in Italy but need to return to their country of residency.
- in most Consulates it is very difficult to book an appointment for filing the visa application and when available appointments can be given after some months;
- the processing time for the visa is up to 90 days (remote workers) and 120 days (digital nomads) and the Consulate will keep the passport while the application is pending. The term is not imperative and the Consulate can also take more time to decide on the visa issuance.
- visa issuance/denial is discretionary on each Consulate, the law set forh, in fact, that no prior clearance is required in Italy. While this is apparently positive, in reality it leaves total discretion to each Consulate to decide upon the visa issuance with the consequence that the outcome of the application will become extremely unpredictable and — also due to the high volume of applications that shall be lodged — there will be many denials.
EU Blue Card permit (local employment)
The EU Blue Card permit allows a company to hire with a local employemnt contract non-EU highly specialized workers. It can be applied for at any time of the year, as it is not subject to the limitations of the immigration quotas. The application is to be submitted by the Company which is interested to hire the worker and not by the worker.
Intra-company assignment
If you are hired by a UK company that has a subsidiary/branch in Italy, you can obtain a work permit whereby you will remain hired in UK but temporarily assigned in Italy for max 5 years
𝗟𝗮𝘀𝘁 𝗯𝘂𝘁 𝗻𝗼𝘁 𝗹𝗲𝗮𝘀𝘁 …… 𝘁𝗮𝘅 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀!
Italy offers several tax benefits and incentives to new residents:
- 7% income tax: Pensioners residing abroad who move their residence to certain municipalities of the Centre and Southern Italy can benefit from the optional scheme for non-national pensioners, which provides for a substitute tax of 7% on all income generated abroad
- Tax benefits for impatriate workers: income from employment and self-employment generated in Italy by workers who move their residence in Italy is granted very favorable condtions and benefits
f4a91a80–8ed0–92a5–0186–424a9013bfc3 (agenziaentrate.gov.it)
- Yearly flat tax € 100 K: Individuals transferring their tax residency in Italy can also apply for a special yearly flat tax of € 100,000. To qualify for the option the applicant must not have been resident in Italy for at least nine tax years during the previous 10 years.
Individuals — Tax regime for new residents — Agenzia delle Entrate (agenziaentrate.gov.it)
Disclaimer: The information provided on this article (i) does not, and is not intended to, constitute legal advice; (ii) are for general informational purposes only and may not constitute the most up-to-date legal or other information (iii) this website may contain links to other third-party websites. Such links are only for the convenience of the reader; (iv) readers should contact their attorney to obtain advice with respect to any particular legal or tax matter.
