Choosing a residence permit program in Italy.

It's no secret that the possibility of a long-term stay in Italy is associated with the implementation of one of three programs:

• the so-called chosen place of residence (Residenza Elettiva), when wealthy financially independent persons, refusing active labor (employment) in Italy, must demonstrate to the immigration authorities their assets and passive income outside Italy,
• business immigration or, in other words, programs where the basis for obtaining a residence permit is the job placement of an applicant in an Italian company, “transfer” to a representative office or branch of a foreign company registered in Italy, registration of a candidate for a residence permit as an individual entrepreneur in Italy, or implementation of an investment start-up of the project,
• obtaining an investor visa as a result of investing in bonds of the Italian government, the assets of a company registered and operating in Italy, donations to funds supporting projects in the field of culture, education, science ...

The features of obtaining a student visa and family reunion are topics of a separate discussion.

So, what should be preferred - business immigration or Residenza Elettiva? Is there an economic feasibility of obtaining an investor visa?

Without going into details, I want to introduce the arguments for and against.

I want to make a reservation right away that I have not tried and are not trying to find a definite answer and recommend a concrete approach. My goal is to share my experience and clients' experience. So do not take this material as a guide to action. Advice and only advice, nothing more.

Most customers, when choosing a program at the initial stage, are guided by the following criteria:

• the possibility of subsequent employment of the owner (s) of the residence permit,
• program design deadlines
• initial costs for its implementation.

Obviously, with this approach, business immigration is the only one available.

If subsequent employment is not a fundamental requirement, then Residenza Elettiva “comes first”. However, if the applicant does not have documented passive income outside of Italy, then talking about the Residenza Elettiva hardly makes sense. In our practice, there have been cases where it was possible to prove the “solvency of the client” (in the eyes of the immigration authorities) who did not have passive income, but for this it was necessary to accumulate very significant financial resources in Italian banks and “reveal” the applicant’s numerous assets outside Italy.

The law stipulates that the minimum passive income for Residenza Elettiva should be more than 30 thousand euros per annum for the main applicant, plus 20% for the spouse and 5% for each child. However, when considering specific cases, much more impressive figures of passive income may be required to obtain a positive decision. The immigration authorities want to be sure that the passive income of the main applicant significantly exceeds the expected expenses for his family in Italy, and therefore depends on the availability of housing in the property, region of residence, etc.

If the issue with passive income is “resolved positively” and there is no need for employment of any of the future owners of a residence permit, then Residenza Elettiva is a very attractive motive. Due to the absence of the need to obtain a work permit, the terms for obtaining a visa D are significantly lower than in the case of business immigration. As for the costs of implementing the procedure, as a rule, from the point of view of initial investments, Residenza Elettiva also has certain advantages.

What to keep in mind. It is mistakenly believed that after obtaining a residence permit for this reason, the owner does not have tax liabilities in Italy. Alas, the motive underlying the immigration program has nothing to do with the tax obligations of a resident of Italy.

A residence permit based on Residenza Elettiva does not limit the investment activity of the owner of a residence permit in Italy.

The disadvantage of residence permit - it's not a convertible option. Therefore, becoming the owner of Residenza Elettiva will have to either continue to use this “privilege” or refuse it, starting the process of obtaining a residence permit for a different reason from the very beginning. The exception applies only to student residency permits.

The owner of a residence permit for this motive is not able to appeal to the social security authorities of Italy, cannot apply for a pension in Italy, etc.

When applying for Residenza Elettiva, the decision to issue a D visa is made at the consulate level of the applicant's country of permanent residence. In this regard, it is erroneously formed the mind that obtaining a residence permit without going through a business and involving structures located in Italy is much easier. This is far from the case. The subjective approach that underlies Residenca Elettiva (when the decision is made by the consul) is far from always transparent and predictable.

Residenza Elettiva, as a rule, is interesting to residence permit applicants who are categorically not inclined to do business, but have sufficient resources, whose sources are located outside of Italy.

Well, if not Residenza Elettiva? Then you have to choose the option of business immigration. Which way to go as part of the business immigration procedure is certainly a topic of special discussion. What I would like to note in this material. A common variant of business immigration - the organization of a representative office of a foreign company in Italy - is a very profitable program for obtaining a residence permit for people who have a stable business outside the Italian state (and in terms of the initial costs and expenses of maintaining a residence permit). But in this case, obtaining permanent residence is not possible, since permanent residence is possible only on condition that you are employed in an Italian company.

“Faultlessly” runs a program for obtaining a residence permit for highly qualified specialists through the Blue Card. An important advantage is obtaining a residence permit for two years, with dependent family members becoming owners of a residence permit at the same time as the main applicant. But this will require the creation of an Italian company and maintain it in an active state throughout the duration of the residence permit.

The terms of the programs within the framework of investment start-up projects remain very attractive. But! Recently, the Italian authorities raised the financial threshold of investments from 50 to 100 thousand euros, and arguments are regularly discussed that serve as an excuse for its further increase.

In 2017, an investor visa was introduced, which still has not received proper distribution.

What to keep in mind. Investments in bonds of the Italian government do not currently generate income, so the chance that a serious investor decides to acquire them is very illusory.

The investment threshold for participation in the program through an Italian company in the amount of 1 million euros is equivalent in value to the acquisition of a small commercial facility, bringing about 50 - 70 thousand annual income. The prospect of an appropriate investment obviously loses in the economics of Residenza Elettiva, for example.

Finally, only one remark.

The timing of paperwork, and often the requirements for their paperwork, significantly depend on the Italian region. This circumstance also has to be taken into account when choosing a residence permit program. In terms of the timing and awareness of the authorities about changes in legislation compared with the South and the center, the North wins significantly, especially the regions of Lombardy, Piedmont, Trentino ...

But in general, under what program you get a residence permit is not important. It is important that you have the opportunity to organise a new life in one of the most charming places on the globe, called Italy.