Italy-retirement
Italy’s Retirement Visa: all that glitters is not gold!
“Visto per residenza elettiva” it seems one of the easiest option but ….
The Italian Elective Residence Visa (Visto per residenza elettiva) is for non EU citizens who have chosen Italy as the country of permanent residence and who are able to support themselves autonomously, without having to rely on employment while in Italy.
Apparently, this visa is easy to obtain: the Law indicates that applicant must only prove:
- to have a suitable accommodation; and
- a minimum income of not less € 31,000/year.
What does it mean “You cannot work”?
While the law simply set forth that that applicants “cannot work”, in the last few years it has become a popular query whether or it is possible to work “remotely”.
Consulates provide more detailed guidelines and specify that:
“the holder of the visa cannot work whether as dependent employees, as self-employed employees or employees working remotely online. You cannot finance your residence in Italy through any type of work.”
How can you prove your 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;
- Some Consulates require the applicants to submit the last 2–3 years tax returns;
- The visa applicant must show solid bank account/s and a set monthly income.
What about the accommodation?
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.
Any other hurdles?
- You need to show that you want to live in Italy: The visa is for those who have chosen Italy as the country of permanent residence. It can be denied and it is difficult to obtain for those who show to have an actity in their country and want the visa only for the purpose of not being limited by the 90/180 day rule;
- Preference to “passive income”: Consulates give a preference to those who have a “passive” income (pensions, revenues derived from investments or properties) versus income deriving from work, like a salary;
- Minimum income is not enough: being able to prove the € 31,000/year minimum income set forth by the law cannot be enough. Consulates expect a “substantial” income and they have a wide discretion to assess whether the applicant’s income is adequate;
- To own a property is not a requirement but can definitvely help;Perma
- You are not allowed to do any kind of work: to run the property as a B&B would be considered “work” and therefore would cause the visa to be denied;
- Better if you show past links with Italy: it can help if the applicant show to have some past links with Italy, such as having attended Italian language courses.
What are the steps after you obtain the visa?
After you obtain the visa and enter Italy you need:
- within 8 days from entry, apply for the “Permesso di Soggiorno” at the Post Office;
- after 1–3 months the Police will summon you and give an appointment for fingerprinting;
- after 2–3 months the Police will inform you that your permit is ready to be collected.
4. You must also register with the CityHall (Comune) where you live and apply for residency.
5. Tax: Residency in Italy brings some tax liabilities and you should contact a tax counsel to obtain necessary advice. The Italian tax agency provide information about possible tax benefits for those who move their residency in Italy. From 1 January 2019, pensioners residing abroad who move their residence to certain municipalities of the Centre and South Italy can benefit from the optional scheme for non-national pensioners(IT), which provides for
𝟳% 𝗳𝗹𝗮𝘁 𝘁𝗮𝘅 𝗼𝗻 𝗮𝗹𝗹 𝗶𝗻𝗰𝗼𝗺𝗲 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗲𝗱 𝗮𝗯𝗿𝗼𝗮𝗱
For more information see Individuals — Personal Income Tax — Irpef — Personal income tax rates and relief — Agenzia delle Entrate (agenziaentrate.it)
5. Healthcare: after you register with the Comune you can apply for registration with the National Health Service. For holders of an ERV registration is not free but they will be asked to pay a charge in proportion to their income.
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 matter.
