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The current British Government’s budget that was recently announced and appears to have led to a higher cost of living and a drop in business confidence. This has led to many British citizens considering relocation to Europe. Spain is a popular destination but the proposed changes to property purchase by non-EU citizens makes Spain a less attractive proposition. Italy is also a much favoured destination with over 65,000 British citizens already in residence in Italy enjoying the well-liked cuisine, the friendly culture as well as the spectacular environment encompassing wonderful beaches and spectacular mountain regions.
There are several financial advantages to relocating to Italy depending on your situation.
Elze Obrikyte, a senior associate, commented “there are a number of visa options related to whether an individual is retiring or working, your reasons for the move will determine the visa you will require.” Elze further commented “if your requirements change, you may change the type of visa you hold, providing you can fulfil all the required criteria. UK citizens as non-EU nationals must obtain a visa during any visits to Italy that exceed 90 days”
On arrival in Italy you must apply for a residence permit within eight days. Applications can be made at the local post office or through Sportello Unico per l'Immigrazione, the Italian immigration office in the area where you will be living. After which you can register your address at the Anagrafe office which is the Italian registry office for residents and also manages the Registry of Italian Citizens Residing Abroad (AIRE).
The next steps are to open a bank account and apply for a Codice Fiscale, which is a tax code which can be obtained from Agenzia delle Entrate the Italian Revenue Agency. In order to open a bank account, you will require evidence of your identity and proof of residence.
In most cases you will need to purchase a private health insurance policy which covers Italy and eventually you could register at the Servizio Sanitario Nazionale (SSN) which is your local health authority, for a fee (based on your income). In some cases, such as work visa, family joining, you will be entitled to register with the SSN.
Italy offers a flat tax regime that is attractive to high-net-worth individuals who are aiming to relocate to Italy. Italy has a flat tax regime for foreign nationals which applies to their worldwide income generated in countries other than Italy. The annual flat tax on worldwide income for new applicants has been increased to €200,000. Existing participants continue to pay the previous rate of €100,000 per year.
This regime is available to individuals who have not been Italian tax residents for at least nine out of the previous ten years. It allows them to pay a fixed annual tax on their foreign income, regardless of the actual amount earned. Additionally, family members can benefit from the scheme by paying an extra €25,000 per person annually. The flat tax regime can be applied for up to 15 years. Income generated within Italy is taxed at the standard rate in Italy. Southern Italy also offers a reduced 7% tax rate on foreign income for up to ten years, appealing to retirees and passive earners. Italy has agreements to avoid double taxation.
Giambrone and Partners’ immigration lawyers will guide and assist you through the application process and ensure that your application has no avoidable omissions or errors. Should, against the odds, your application is refused due to irregularities within your documentation there is an appeal process which enables applicants to remedy any issues.
Elze works within the Immigration Department and has expertise in Italian immigration matters and extensive knowledge of European and International Law.
More specifically, she assists clients in reference to Italian citizenship (Italian citizenship by descent, by marriage or by residency) and immigration matters (such as family joining, residency card for EEA family member, work visa, student visa, Eu Blue Card, etc.).
Prior to joining Giambrone and Partners Elze worked in the 'United Nations High Commissioner For Refugees' office in Lithuania as a legal consultant.
If you would like to know more about relocating to Italy please contact Elze's clerk Joseph Crick on JC@giambronelaw.com or please click here