We face uncertain times in the World. This has been exacerbated by the recent changes and secession of some of the Golden Visa programs that have utilised the purchase of property
as the conduit to obtain residency. This trend not only created local resentment as residents became priced out of the housing market, but many of the properties became empty or only
available to rent on AIR B &B, destroying the chance of locals even entering the rental market and creating Ghettos. This translated to discontent and political pressure from voters, which meant that politicians relied on this for widespread support from their constituents and, in turn, ended the initiative.
Therefore, the way to ensure the sustainability of the initiative is to find a new way to support the desire of an investor to receive a residence permit and the opportunity in time to have the option to live in their Country of choosing and create a new and politically acceptable way to satisfy the requirements of the Investor and the Country that they decide to reside in while creating inwards investment in a regulated environment. Italy has made a rare opportunity to use the Italian residence by investment initiative, or as it has been called, the investor visa, as a program that not only builds on an already established environment, not only enables people to obtain their residence permit but also contributes directly to the economy on a local and national level, protecting the program and creating political support in Italy as a whole.
We have now witnessed the results of the Golden Visa schemes in other European Countries. Entry into a new market started slowly and then enjoyed a rapid rise in popularity, creating pockets of, in some cases, overpriced properties prepared and sold only based on being “Golden Visa” eligible. Little care was taken post-sale or within the built environment, only to see the weight of political support end the scheme.
In this regard, the Italian residence by investment is unique. Purchasing property does not create eligibility, while inward investment and primary or secondary job creation do. Post- investment, a resident, either local or a newcomer, can, if they so choose, buy an Italian property at local prices through this inward investment. Investment through a managed fund or similar eligible vehicle provides security and a return on investment, with a residence permit a welcome by-product of a measured investment in Italy.
With the ability to obtain permission to visit Italy for the biometrics for the residence permit within 40 days from the initiation of the application process and 90 days after the completion of the biometric process to make the investment, which is typically 60 days after receipt of the residence permit, unlike other jurisdictions where one must purchase a property or make an investment before the receipt of the permit those risks are not prevalent.
Economic and market strengths
Italy has introduced numerous policies to attract foreign investment, including tax incentives and streamlined residency processes for HNWIs. These pro-business policies reinforce Italy’s reputation as a favourable investment destination, especially for sectors like hospitality that benefit from stability and government support.
Italy is the fourth most visited country in the World. The tourism industry substantially contributes to the economy, accounting for 10.5% of the total Gross Domestic Product.
• Total tourists: Circa 135 million (13% increase from 2022, 2.3% above pre-covid levels).
• Overnight stays: Circa 450 million (10% up from 2022, 3.3% above pre-covid levels).
• International tourists: Circa 50 million per annum, signalling a strong return of foreign visitors.
The resurgence underscores Italy’s enduring appeal. The country’s rich cultural heritage, stunning landscapes, and world-famous cuisine continue to draw visitors globally. Offering a unique and compelling mix of factors positions it as an advantageous market for hospitality investments. These advantages stem from a combination of its cultural heritage, economic stability, and government-backed initiatives over the past year; Italy’s hospitality sector has maintained its upward trajectory, surpassing EU averages in several key performance indicators:
Estimates indicate that by 2034, the Italian Tourist Industry will contribute some €300 billion to the Italian Economy and employ one in seven workers, promising growth and a transformative period for travel and tourism.
The time for Italy is now.
