Citizenship with a European Union member nation is highly sought-after, often making the application processes quite competitive. Due to a high number of applicants, EU countries often limit who can qualify for citizenship. This limitation makes EU passports challenging for citizens of countries such as the United States to obtain.
There are alternative paths to citizenship, such as residency by investment programs. Known as Golden Visas, these initiatives offer residency to wealthy individuals in exchange for sizable investment in their country. This then allows investors to establish residency and eventually apply for citizenship.
One of the most attractive Golden Visas is offered by Italy.
Benefits of an Italy Golden Visa
Some of the benefits that make the Italy Golden Visa program a popular option include:
- Eligibility for Italian citizenship after ten years
- Special tax benefits
- Ability to travel visa-free within the Schengen Area
- Residency extension to applicant’s family.
- Authorization to work in Italy
- Protection under the Italian National public healthcare
- Ability to retain dual citizenship
Citizenship Eligibility
Resident investors can qualify to apply for Italian citizenship after ten consecutive years of residency. This is a long time relative to other Golden Visa and residency by investment programs.
Similar programs in Portugal, Ireland, and Cyprus require only five years of residency. Nonetheless, this program's fantastic tax, travel, and medical benefits can outweigh the residency requirement.
Tax Benefits
Unlike countries like Portugal and Cyprus that do not tax international earnings, Italy does implement a 0.2% tax on foreign financial assets. However, resident investors will enjoy an alternative tax structure.
Under Italy’s Golden Visa, resident investors, for 15 years, will have the option to pay an annual lump sum of €100,000 in place of regular taxation on income earned outside Italy. This can be a desirable option for high-net-worth individuals.
Travel Within the Schengen Area
One of the most significant benefits of EU citizenship is the ability to travel visa-free throughout Europe. Residents of Italy do not need citizenship to enjoy this benefit, however.
Because Italy is a member of the Schengen Area, resident investors will have the ability to travel throughout the Schengen Area regardless of citizenship status.
This feature is not included in similar programs offered by Ireland and Cyprus.
Healthcare
Under Italy’s national health service, Servizio Sanitario Nazionale (SSN), resident investors will receive free or low-cost healthcare. This includes access to generational practitioners, treatment at public hospitals, subsidized medicine, lab services, ambulance services, and specific specialist care. Italy also offers some of the finest private healthcare in the world.
The Italy Golden Visa can be extended to the applicant’s spouse and dependent children, making it an attractive option for those who want low-cost healthcare for their families.
However, other countries such as Portugal and Cyprus allow resident investors to extend residency as far as their parents and parents-in-law.
Investment Requirements for an Italy Golden Visa
There are four types of investment options available to Italy Golden Visa applicants:
- €2 million investment in Italian government bonds
- €500,000 investment in a limited Italian company
- €250,000 investment in an innovative Italian startup
- €1 million donations to a philanthropic initiative in Italy
Comparisons to other Golden Visas
Among European Golden Visas, Italy’s investment options range from some of the most expensive to some of the least costly. A €2 million investment in Italian government bonds is one of the most expensive options a European Golden Visa offers. For a similar price, an investor can obtain immediate Cypriot citizenship,
On the other hand, a €250,000 investment in an innovative Italian startup is one of the cheapest options a Golden Visa offers. This makes it an excellent option for those who want to invest in emerging markets. Comparatively, Portugal’s most affordable investment option is a €350,000 real estate acquisition in an urban rehabilitation area.
One of the most significant limits among these options is that real estate acquisitions, whether commercial or residential, do not qualify. Both Portugal and Cyprus allow for residential real estate purchases, an advantageous option for those who wish to live in either country.
Path to Citizenship
Upon being approved for an Italy Golden Visa, resident investors must establish ten years of residency before being eligible for Italian citizenship. Then, they can apply for citizenship by way of naturalization.
This remains one of the most prolonged periods of residency required for citizenship under a Golden Visa program. However, residents will instead enjoy Italy’s socialized healthcare, tax benefits, and free reign to travel throughout the Schengen Area.
Additionally, Italy is widely regarded as offering its residents an excellent quality of life.
Quality of Life
Italy routinely ranks as one of the best health and work-life balance countries. Italy has one of the highest life expectancies of any nation. This can be attributed to a low poverty rate, excellent healthcare, and healthy work culture. In Italy, full-time workers devote 69% of their day, or 16.5 hours, to personal care and leisure.
On top of a healthy way of life, Italians enjoy excellent food, beautiful surroundings, and a wealth of historical sites. There are endless ways to embrace Italy under the warm Mediterranean sun between dramatic coastlines, sprawling hills, and vibrant culture.
The Difference Between Residency and Citizenship
Because Italy requires ten years of residency to become eligible for citizenship, the difference between residency and citizenship may be wondered. What restrictions are residents under that citizens are not?
The main difference between a resident and a citizen within an EU country is that only citizens are allowed to obtain an EU passport. Italian residents can travel freely throughout the Schengen area because Italy is a member. However, they cannot live or work in other EU countries, while citizens can.
Benefits of Italian Citizenship
Once resident investors establish ten years of residency and become eligible for Italian citizenship, several excellent benefits come along.
- The ability to travel, live and work in any EU country
- Universal healthcare benefits across the entirety of the EU
- Affordable higher education at EU universities
- No double taxation
Do Italy Golden Visa Holders Need ETIAS?
Starting in 2025, non-EU citizens will need to register for ETIAS. This electronic visa-waiver program requires pre-registration for travel throughout Europe. This will revolutionize the current system, allowing non-EU citizens to travel visa-free throughout the EU.
Because Italy is a part of the Schengen Area, resident investors of Italy will not need to register for ETIAS. Italy’s Golden Visa allows resident investors to travel freely throughout the EU. However, they can only live and work in Italy. Resident investors may still need a Schengen Visa for specific instances of travel. Travelers can find out what their requirements are using the ETIAS assessment.
Is Italy’s Golden Visa Program Right For You?
The Italy Golden Visa program aims to bring international capital to Italy in exchange for residency. Investors who value global markets and the range of benefits offered to Italian residents can find great value in this program.
A Golden Visa can also be an excellent choice for high-net-worth individuals seeking an alternative path to EU citizenship.
Sources
Guide to European Golden Visas | ETIAS
Italy Golden Visa: The Ultimate Guide | Get Golden Visa
Italy | OECD Better Life Index
Permanent residency vs citizenship: What’s the difference? | Digital Emigre