Italy – Elective Residence Permit

Italy - Elective Residence

Italy Elective Residence Permit is a type of Italian long-stay visa. It is the type of Italian visa you must apply for if you want to permanently relocate to Italy and have sufficient funds to provide for yourself.

Program Overview:

The Italian Elective Residence Visa is for foreigners – retired persons, persons with high self-sustaining incomes and financial assets like HNWIs – who have chosen Italy as the Country of permanent residence [or long-term relocation] and who can support themselves autonomously, without having to rely on employment while in Italy, whether as dependent employees, as self-employed employees or employees working remotely online. You cannot finance your residence in Italy through any work.

Program Benefits:

Long-Term Stay: The Italy Elective Residence Permit allows non-EU citizens to reside in Italy for an extended period, typically one year initially, with the possibility of renewal, providing a more extended stay beyond typical tourist visas.

No Work Obligations: Holders of the Italy Elective Residence Permit are not permitted to engage in any employment or work activities in Italy, providing a relaxed lifestyle without the necessity of professional commitments.

Cultural Immersion: It offers a chance to immerse oneself in Italy’s rich cultural heritage, arts, history, and lifestyle, experiencing the country’s traditions, language, and local customs.

Access to Services: ERV holders may access certain essential services in Italy, such as opening a bank account, enrolling in Italian language courses, and utilizing healthcare facilities.

Renewable Permit: The ERV is typically renewable, allowing visa holders to extend their stay in Italy beyond the initial duration, subject to meeting the renewal requirements.

Travel within Schengen Area: Visa holders can enjoy visa-free travel within the Schengen Area, comprising multiple European countries, making it convenient for leisure or business travel.

Family Reunification: Under specific conditions, ERV holders may apply for family reunification, enabling eligible family members to join them in Italy.

Real Estate Investment: For some, the ERV may serve as an entry point for exploring potential real estate investment opportunities in Italy, albeit without the intention of working.

Healthcare Access: While the ERV may not offer comprehensive access to Italy’s healthcare system, in emergencies or certain circumstances, holders may receive medical care.

Quality of Life: The ERV offers a chance to enjoy Italy’s high quality of life, beautiful landscapes, diverse cuisine, and vibrant social and cultural scenes.

Required Documents:

Valid Passport: A valid passport with at least two blank pages and a validity extending beyond the duration of your intended stay in Italy.
Proof of Financial Means: Evidence of sufficient financial resources to support yourself during your stay in Italy. This can include bank statements, pension statements, proof of investments, or any other reliable financial documentation.
Health Insurance: Proof of health insurance coverage for the entire duration of your stay in Italy, including emergency medical expenses and repatriation.
Proof of Accommodation: Documentation demonstrating your accommodation arrangements in Italy, such as a rental agreement, property deed, or hotel reservation.
Criminal Record Check: A criminal record check or certificate of good conduct issued by the relevant authorities in your home country.
Medical Certificate: A medical certificate attesting to your good health and confirming that you do not pose a threat to public health or safety.
Proof of Purpose: A detailed explanation of your reasons for applying for the Elective Residence Permit, outlining your plans while residing in Italy.
Passport Photos: Recent passport-sized photos meeting the specific requirements of the Italian authorities.

Requirements & Eligibility:

When you submit an application for an Italy’s Elective Residency Visa, you must have a set of documents proving you are eligible to receive it.

The requirements for an Italy Elective Residence Visa are:

Be at least 18 years old
Proof of sufficient financial resources to support yourself without working. You need to bring documented evidence of sufficient financial resources.
For a single person the minimum financial requirement is EUR 32.000 (or equivalent home currency amount). For a married couple it is EUR 38.000. The amount is increased by 20% for every dependant child that comes with you.

Commons examples of accepted income are dividends, pensions, royalties, rents, stable incomes from a long-term investment, etc.

Residence Permit Validity:

The initial Elective Residence Permit is typically valid for one year, with the option to renew for additional periods of 2 years.

The renewal must be requested before the expiration date.

After residing in Italy for a period of five years with a valid Elective Residence Permit, you will then be eligible to apply for permanent residence status.

This milestone grants you greater stability and rights within the Italian community.

After a period of ten years of legal residence in Italy, you will qualify to apply for naturalisation, more commonly known as Citizenship.

Res-Non Dom Tax Regime:

One of the most advantageous aspects of the regime is that Italy now offers a flat tax rate for high-net-worth individuals. As a high-net-worth individual, you have the option to pay €100,000 per annum on any foreign income you generate as an Italian tax resident. The rate is fixed regardless of how much foreign income you produce over the course of any fiscal year, meaning that even if your income would be significant enough to trigger a very significant income tax liability, you will only ever be required to pay €100,000. Included in the Non-Dom regime’s flat tax rate is:

Exemption from paying wealth tax in Italy on your foreign investments, including paying tax on the value of foreign real estate investments (usually calculated on the value of the property at the time you bought it)
Exemption from inheritance and gift tax payable in Italy
No need to file declarations relating to investments held abroad that fall under of the scope of the flat tax

Any income you generate in Italy will not be eligible to be considered under the flat tax and will be taxed at standard Italian rates. The scheme is likely to be most beneficial if most of your income is – and will continue to be – generated outside Italy. The flat tax rate of €100,000 is applicable for a period of fifteen years, which is counted from the first year that you benefit from Italian tax residency.

Close family members (spouses and children, and in some cases, parents and siblings) of individuals benefiting from the flat tax regime can also request that the scheme is applied to family members. To be eligible, these family members must also make Italy their main tax residence under the Non-Dom regime.

The benefits of Italy's Elective Residence.

The Italy Elective Residence Permit (Residenza elettiva) is a 1-year Italian Visa that allows you to enter Italy for a long-term visit.

It can be renewed for 2 years – then, renewable each year which will be supported and facilitated by our Italian Lawyers.

This will be a 5 year temporary residency which then turns into Permanent Residency after the 5 year period.

With the Elective Residence Visa Italy, you enjoy everything about Italy with your family, with full coverage of social services offered, without working.

Residency visa can be also issued to dependent spouse and minor children and dependent children over 18 living with their parents, assuming that the applicant can demonstrate adequate financial assets to support them.

Access to
Services

ERV holders may access certain essential services in Italy, such as opening a bank account, enrolling in Italian language courses, and utilizing healthcare facilities.

Visa free travel in Schengen Zone

Visa holders can enjoy visa-free travel within the Schengen Area, comprising multiple European countries, making it convenient for leisure or business travel.

Long Term
Stay

The ERV allows non-EU citizens to reside in Italy for an extended period, typically one year initially, with the possibility of renewal, providing a more extended stay beyond typical tourist visas.

No Work Requirements

Holders of the ERV are not permitted to engage in any employment or work activities in Italy, providing a relaxed lifestyle without the necessity of professional commitments.

FAQ's

How long does the process take?

It’s very difficult to provide exact timelines, and we will be clear, open and honest with you from day 1, but typically look to expect to start and finish, with you having your Italian Residency Cards, within 6 – 12 months.

Can I get Citizenship?

Italian Citizenship can be secured, which will obviously give you and your family, Italian Passports. This can only be secured by being a Resident in Italy for 5 years (EU Citizens), or 10 years (Non EU Citizens).

Do I need to buy a property?

No, there is no need to purchase a property for your Italian Residency. We have an in-house property team, who help you secure your rental apartment/house, important for your completion of Residency, and checks of a rental agreement. However, if you wanted to purchase a property, we can also assist you with this.

Can I work in Italy?

The Elective Italian EU Residency does not permit you to work in Italy as an employee. You are free to carry out business, open a business/and or an office, as you will also be provided with your ‘Codice Fiscale’, more commonly known as your Italian TAX Code.

What about other investment opportunties?

We can also assist you with this – whether that be looking to invest in Hotels, Start-up businesses, Property Development Projects, Forex Trading Management teams – we have everything covered.

How long do I have to stay in Italy?

Ultimately, the Italian Government wants you to reside in Italy, but the most important thing when applying for the Elective Italian EU Residency, is that you should make sure, that if you decide to leave Italy, it cannot be longer than a continuous period of more than 3-6 months. This is important for the renewable stages.