Investor visas are commonly associated with countries such as Australia, the United States and the United Kingdom. Less well known is that Italy also offers a dedicated residence pathway for non-EU nationals intending to make a qualifying investment in the country.
The Investor Visa for Italy provides access to an initial two-year residence permit, renewable for further three-year periods where the approved investment is maintained. It operates outside Italy’s annual immigration quotas and does not require sponsorship by an Italian employer.
Although the programme offers a flexible pathway to Italian residence, it is not simply a visa obtained by transferring a prescribed amount of capital. It involves a formal legal assessment of the proposed investment, the applicant and the ownership and lawful origin of the funds.
Legal framework
The Investor Visa is governed principally by Article 26-bis of Legislative Decree No. 286 of 25 July 1998, the Italian Consolidated Immigration Act, together with the Interministerial Decree of 21 July 2017 and the applicable Operational Manual.
The process comprises two distinct stages:
- an application for the Investor Visa Nulla Osta, assessed by the inter-institutional Investor Visa for Italy Committee; and
- a national visa application submitted to the Italian diplomatic or consular authority having jurisdiction over the applicant’s place of residence.
The Nulla Osta confirms that the proposed investment satisfies the requirements of the programme. It does not automatically guarantee the grant of the visa, as the competent Consulate retains responsibility for assessing the applicant’s general immigration and entry requirements.
Qualifying investments
An applicant must select one of four investment categories:
- EUR 2 million in eligible Italian Government bonds;
- EUR 500,000 in the share capital of an Italian limited company;
- EUR 250,000 in the share capital of an Italian innovative start-up; or
- EUR 1 million as a philanthropic donation supporting an eligible public-interest project.
The applicant cannot generally combine separate investments or categories to reach the required threshold. A corporate investment must ordinarily be directed to a single company identified in the Nulla Osta application.
The timing of the transaction is legally significant. The qualifying investment must not be completed, wholly or partially, before the Nulla Osta application is submitted. The applicant must first demonstrate the availability of the funds and undertake to complete the proposed investment after entering Italy.
Investment in an Italian company
For the EUR 500,000 option, the investment must concern the capital of a company incorporated, operating and tax resident in Italy.
The investment may generally be structured either as a subscription for newly issued shares or quotas through a capital increase, or as an acquisition of existing shares or quotas.
Under the Operational Manual, an ordinary company is considered to be operating where it is active and has filed at least one annual financial statement. A newly incorporated company may therefore be unsuitable unless it qualifies as an innovative start-up.
Before an application is submitted, the target company and the proposed transaction should be reviewed to confirm:
- the company’s legal status and Italian tax residence;
- its registration and active status;
- the filing of the required financial statements;
- its ownership and governance structure;
- its authority to receive the investment; and
- the legal and corporate structure of the transaction.
Approval under the Investor Visa programme confirms eligibility for immigration purposes. It does not constitute an endorsement of the company or a guarantee of the investment’s commercial viability. Independent corporate, financial and tax due diligence remains essential.
Ownership and lawful origin of funds
Satisfying the applicable financial threshold is only one part of the eligibility assessment.
The applicant must establish that the funds:
- are legally owned or controlled by the applicant;
- are immediately available;
- may lawfully be transferred to Italy;
- derive from identifiable and legitimate sources; and
- are free from incompatible security interests or third-party rights.
A current bank statement alone may not be sufficient. The evidence should demonstrate a clear and traceable connection between the original source of wealth, the accumulation or realisation of the funds and the account from which the investment will be made.
Relevant documents may include tax returns, employment records, company accounts, dividend distributions, property or business sale agreements, inheritance documents and professional confirmations.
The Investor Visa Committee includes representatives of Italian authorities with financial, taxation and law-enforcement responsibilities. Source-of-funds evidence should therefore be prepared to an appropriate anti-money-laundering standard.
Additional corporate and financial evidence will be required where the investment is funded through a foreign legal entity.
Completion and maintenance of the investment
After the visa is granted, the applicant must enter Italy, apply for the investor residence permit within eight working days and complete the approved investment within three months of entry.
The investment must be completed in full. Signing a preliminary agreement, transferring only part of the funds or issuing payment instructions will not necessarily satisfy the statutory requirement.
The investment must then be maintained throughout the validity of the residence permit. It cannot ordinarily be withdrawn, reduced below the applicable threshold, replaced with another investment, transferred to a different recipient, pledged as security or subjected to incompatible third-party rights.
Failure to complete or maintain the approved investment may result in revocation or non-renewal of the residence permit.
Residence rights and family members
The initial investor residence permit is valid for two years and may be renewed for further three-year periods if the qualifying investment is maintained. The permit also allows the holder to undertake employment or self-employment in Italy.
A spouse and other eligible family members are not automatically included in the Investor Visa. They may nevertheless be able to relocate under Italy’s separate family migration provisions.
The family application must be coordinated with the principal Investor Visa process and may require a separate family Nulla Osta, evidence of suitable accommodation and Apostilled and translated civil-status documents.
A residence permit issued for family reasons generally allows the family member to work in Italy.
Tax and cross-border planning
Immigration residence and tax residence are legally distinct. However, an effective relocation to Italy may result in Italian taxation of worldwide income and assets.
For investors relocating from Australia, relevant considerations may include:
- Australian and Italian tax residence;
- the Australia–Italy Double Taxation Agreement;
- foreign income and capital gains;
- interests in Australian companies or trusts;
- superannuation and pension arrangements;
- foreign asset-reporting obligations; and
- succession and estate planning.
The immigration strategy should therefore be coordinated with appropriate Italian and Australian tax advice before the investment and relocation are implemented.
Conclusion
The Investor Visa can provide a valuable route to Italian and European residence for non-EU investors. Its main advantages include exemption from annual immigration quotas, the absence of employer sponsorship, renewable residence rights and the possibility of relocating with eligible family members.
However, eligibility depends on more than the availability of the required capital. The legal structure of the investment, the eligibility of the target entity, the provenance of the funds and compliance with the post-entry obligations must all be carefully addressed.
The proposed investment should not ordinarily be completed, or made subject to binding commitments, until its compliance with the Investor Visa requirements has been assessed.
Fiorino & Associates advises Australian and international clients on Italian Investor Visa applications and related cross-border matters, including investment eligibility, corporate structuring, source-of-funds evidence, consular applications and family relocation planning.
This article provides general information only and does not constitute legal, financial, investment or taxation advice. Eligibility must be assessed by reference to the applicant’s individual circumstances and the requirements in force at the time of application.
