Italy Investment Visa Options for Americans
As Featured on
Contents
- Why Our Clients Like Italy (i.e. The Benefits)
- The Cons of Living in Italy
- Taxes
- Language can be an issue
- Bureaucracy can be painfully slow
- Estate planning can be a hassle if you own property there.
- How to Qualify for an Italian Investment Visa
- The Investment Visa Step by Step
- How to Apply for the Italy Investment Visa
- Warning: Watch out for the Italian Tax Net!
- How can we help?
For our business at least, Italy has been a popular place for Americans looking to settle in Europe. A wonderful laidback lifestyle that appeals to people wanting out of the rat race. Excellent food. A rich history and culture. And it can be surprisingly affordable in certain areas.
US passport holders can spend up to 90 days within a 180-day period in Italy (and other Schengen Area countries) without needing a visa. But what if you want to stay longer? There are plenty of options but one that appeals to our clients is the investment route. That’s what this article is about.
Here’s what to know about getting an investment visa as an American in Italy.
Why Our Clients Like Italy (i.e. The Benefits)
If you have a little money and dream of a life rich in culture and beauty, establishing a second residency in Italy is worth a look. When I talk with clients and ask them why they are considering the move, here are a few of the things I hear:
They like the slower pace that’s more about living and enjoying life.
They appreciate amazing food and fine wine.
They want to spend more time on cultural activities, something Italy has in spades.
They love that it’s possible to live a really good life without breaking the bank.
They like knowing there are good medical options including the publicly funded Servizio Sanitario Nazionale (SSN) system, as well as private care.
Of course, there’s no such thing as perfect, and Italy is no exception.
The Cons of Living in Italy
Taxes
If you happen to fall into Italy’s tax net, you can expect a sizeable bill.
First, you are taxed on worldwide income at progressive rates ranging from 23% to 43%, plus regional and municipal surcharges.
Dividends and capital gains from qualifying investments are generally taxed at a flat rate of 26%, though exemptions or reduced rates may apply in specific cases.
Interest income is also typically taxed at 26%, with lower rates available for certain government bonds or other qualifying instruments.
Italy has a wealth tax on foreign assets too – 0.2% tax on financial investments and 0.76% on real estate held abroad. Fortunately, Italy has one of the lowest inheritance tax rates in Europe, ranging from 4% to 8%, depending on the relationship and value of assets.
By any reasonable standard, Italy is a high-tax country. But the Italian government has realized that it’s not a bad thing to have wealthy foreigners living in the country who then go on to invest and spend money. To address that and make the place more welcoming, they introduced a “flat tax” regime some years ago. In exchange for a yearly flat tax payment of €100,000 (since raised to €200,000) plus €25,000 per dependent, a wealthy foreigner could move to the country and not be sucked into the general tax system.
Because Americans are taxed on citizenship (instead of residency as is common in much of the world), getting residency in Italy and paying the flat tax doesn’t directly help you with your US tax bill. But there is a tax treaty and potential tax credits available to help offset double taxation.
Language can be an issue
As I’ve learned firsthand, English isn’t widely spoken outside the cities, especially in towns where the young are far and few between. However, at least in my experience, the stereotypical hand gestures Italians are known for actually do seem to help with communication.
Before my phone could do the translating, I’ve been able to successfully “hand talk” in supermarkets, restaurants, and with the odd street vendor. Some years ago, I committed the near capital crime of sitting in someone’s reserved lettino (beach chair). I got a talking to in Italian with no idea what was being said. It was only when the hands talking started that I got the message!
Bureaucracy can be painfully slow
This isn’t so much of a problem if you’re just a guest staying at the hotel. But if you have to deal with government bureaucracy or a variety of consumer services (e.g. internet and phone hookup), be prepared for a wait.
Estate planning can be a hassle if you own property there.
America is a common law country. Italy is a civil law country. Two fundamentally different legal systems make estate planning difficult. It’s possible, but we highly recommend working with an expert versus trying to figure it out on your own.
How to Qualify for an Italian Investment Visa
This visa isn’t as popular as similar “golden visa” programs in Greece and Portugal for the simple reason is because qualification through real estate investment isn’t allowed.
(Although, to be fair, Portugal changed the rules in 2023 and doesn’t allow you to get a Golden Visa through real estate anymore either.)
Instead, to qualify for an Italian investment visa, you must choose one of the following qualifying investments:
- Government Bonds: Invest a minimum of €2 million in Italian government bonds.
- Italian Companies: Invest at least €500,000 in shares of an Italian company.
- Innovative Startups: Invest a minimum of €250,000 in an Italian innovative startup.
- Philanthropic Donation: Donate at least €1 million to support public interest projects in areas such as culture, education, or scientific research.
Does a 1 Euro House in Italy Qualify as an Investment?
You may have seen on CNN or other news sites the “1 Euro” house program in Italy. Basically, you agree to buy an abandoned or otherwise derelict house in a (usually) rural part of the country. In exchange for the low price, you have to agree to renovate the property within a certain period of time.
We’ve had clients go through and this isn’t always easy or straightforward. Worst of all (at least, according from a residency point of view), it does NOT qualify as an investment. That means you can’t use it to get residency under this program.
The Investment Visa Step by Step
Step #1: Two-Year Residency
The first step is to qualify for a two-year residency. There are no specific requirements for the amount of time you must spend in Italy during these first two years.
Step #2: Three-Year Renewal
After two years, you can renew your visa for another three years. Again, you don’t have to meet any physical presence requirement. However, you must keep the qualifying investment active. If you pull your money, you’ll probably have your visa pulled too.
Step #3: Three-Year Visa Renewal or Permanent Residency
After your initial five years, you have two options:
You can continue renewing your residence permit every three years as long as you keep your investment active. As of now, there is no limit to how long you can renew.
After five years, you can apply for an EU Long-Term Residence Permit (Permesso di Soggiorno UE per Soggiornanti di Lungo Periodo). This gives you indefinite residency rights and certain benefits across the EU. However, it’s expected you’ll spend more than 183 days in the country and become tax resident. (More on that can of worms below.)
How to Apply for the Italy Investment Visa
#1: Choose Your Investment Option
Select one of the qualifying investments—government bonds, an established Italian company, a higher-risk startup, or a donation.
#2: Prepare Your Documents
The main applicant must submit detailed financial documents, while family members focus on proof of relationship and dependency.
#3: Apply for a Nulla Osta (Certificate of No Impediment)
With all your documents in hand, you’ll formally submit your application through a special government website. The committee in charge will review and give you a decision in about 30 days in theory. In practice, it can take longer.
#4: Apply for the Investor Visa at an Italian Consulate
After receiving you Nulla Osta, you must apply for your Investor Visa at the nearest Italian consulate within six months. (You can find the closest Italian consulate to you on our article about Italian Citizenship by Descent.)
#5: Obtain your Residency Permit
Once you have your investor visa, you must go to Italy and apply for your first two-year permit within eight days. You’ll need to make the investment / donation within three months.
#6: Maintain and Renew Your Residency
After that, you renew as you like. If you don’t want to be tax resident but still want the option, you’ll want to renew your paperwork every three years. But if you would like to be a permanent resident, you’ll apply for that when you can.
Golden Visas in Europe: Top 3 EU Residence Programs
What is a Golden Visa in Europe and how do they work? You’ll discover 3 programs, how they work, and how to qualify for one. For more information, visit Golden Visas in Europe.
Warning: Watch out for the Italian Tax Net!
One of the biggest benefits of the investment visa route compared to other Italian residency programs is that you don’t actually need to spend much time on the ground to keep your residency.
But what if you actually do want to move to Italy full time? Or, at least, make it a major part of your life?
In that case, you’re probably going to be sucked into the Italian tax system. And unfortunately, that’s not a pleasant experience.
As a tax resident, Italy will tax your global income, with personal income tax rates reaching up to 43% if you earn more than €50,000 annually. On top of that, regional and municipal taxes can add another 1%–3% to your tax bill.
You’ll need to report your foreign assets to Italy, including bank accounts, real estate, and investments. This overlaps with American FATCA and FBAR requirements, so get to know your accountant — you’re going to need ’em.
That said, there are some legal ways to lower your (Italian) tax bill:
The US-Italy tax treaty can help reduce double taxation. However, on its own, you may still end up with a higher effective tax rate.
You can also generally avoid Italian taxation of foreign income by going through the Italy Flat Tax If you do, you agree to pay a flat tax of €200,000 per year.
There’s also a sweet tax deal for retirees who relocate to Italy because they qualify for a 7% flat tax on their foreign income. But it’s only available if you move to certain municipalities in southern Italy with a population under 20,000.
Or you can use the Foreign Earned Income Exclusion, or FEIE. That’s a tax exemption for Americans living overseas on certain types of income.
No matter how you slice it, tax planning is complex. If you are interested in legally minimizing your tax bill no matter where you end up, feel free to get in touch to book a free, no-obligation consultation with one of our Associates to discuss further.
How can we help?
Foreign residency programs for Americans—especially investment residency programs like the Italy Investment Visa—can be complicated. With our service, we do the heavy lifting for you. We design a plan that meets your needs, build it out for you, and maintain it from year to year to keep it fully compliant with US and international rules.
To explore how we might help you, please book in a free, no-obligation consultation with one of our Associates to discuss further.
About The Author
Need Help?
We have 40+ years experience helping Americans move, live and invest internationally…
Need Help?
We have 40+ years experience helping Americans move, live and invest internationally…
As Featured on
