Italian Citizenship by Descent – Jus Sanguinis

/in ,

Introduction to Jus Sanguinis and Italian Citizenship

Jus sanguinis is a Latin term that means “right of blood.” In the context of Italian nationality law, jus sanguinis refers to the principle that individuals can acquire Italian citizenship by descent from an Italian ancestor. Italy is one of several countries that follow the principle of jus sanguinis, which means that if you have Italian ancestry, you may be eligible for Italian citizenship.

Requirements for Italian Citizenship by Descent

To be eligible for Italian citizenship by descent, you need to meet certain requirements. First, you need to have an Italian ancestor who was alive and an Italian citizen at the time of your birth. This can be your parent, grandparent, or even a great-grandparent.

Second, you need to be able to prove your Italian ancestry through birth certificates, marriage certificates, and other official documents. This can sometimes be a challenging process, especially if your ancestor was born a long time ago, but there are resources available to help you with this.

Changes in Italian Citizenship by Descent Law

The Italian law on citizenship through jus sanguinis has undergone a few changes over the years, so it is important to determine which law applies to your case. The law that is currently in effect is the one that entered into force on August 15, 1992.

Restrictions and Requirements for Italian Citizenship by Descent

For example, if you are seeking citizenship through a great-grandparent, you must demonstrate that none of the ancestors in the chain of transmission ever renounced their Italian citizenship. Additionally, the transmission of Italian citizenship cannot have been interrupted by the acquisition of foreign citizenship prior to the birth of the person seeking citizenship.

It is important to note that if your ancestor became a citizen of another country before your parent/grandparent’s birth, you may not be eligible for Italian citizenship. This can complicate the process of obtaining Italian citizenship through jus sanguinis, but it is still possible in some cases.

Another important requirement is that the person seeking citizenship through jus sanguinis must not have renounced their right to Italian citizenship. This can happen if an ancestor naturalized in another country and renounced their Italian citizenship, or if a person obtained citizenship in another country and renounced their Italian citizenship in the process.

The Application Process for Italian Citizenship by Descent

If you are eligible for Italian citizenship by descent, you will need to go through a formal application process. This can be done at an Italian embassy or consulate, or through the Italian Ministry of Foreign Affairs if you are living outside of Italy.

Dual Citizenship and Its Advantages

One important thing to note is that Italy recognizes dual citizenship, which means that if you are already a citizen of another country, you can still become an Italian citizen without giving up your existing citizenship. This can be a major advantage for people who want to maintain ties to both countries.

Backlog of Applications

In recent years, there has been an increasing interest among people of Italian descent in obtaining Italian citizenship. This has led to a backlog of applications, and the process can sometimes take several years. However, if you are eligible, it is definitely worth considering, as it can open up many new opportunities for you and your family.

Renouncing Italian citizenship

Renunciation of citizenship is a serious decision that should not be taken lightly, as it can have significant consequences, including the loss of certain rights and privileges. In general, Italian citizens who renounce their citizenship are no longer considered Italian citizens. As such, they lose all the rights and privileges of Italian citizenship.

In order to renounce Italian citizenship, you must be at least 18 years old and have another citizenship or be eligible to obtain one. You must also have resided in another country for at least 12 months, or for a longer period if required by the country in which you reside.

The process for renouncing Italian citizenship varies depending on your situation. If you are living in Italy, you must submit your request to the local civil registry office. If you are living outside of Italy, you can submit your request to the Italian embassy or consulate in your country of residence.

It is important to note that renouncing Italian citizenship can have significant consequences, particularly if you have family ties or property in Italy. For example, if you renounce your Italian citizenship, you may lose the right to own property in Italy or inherit property from Italian relatives. You may also lose access to Italian healthcare and other social services. Additionally, individuals who renounce their Italian citizenship may be subject to certain financial obligations, such as the payment of outstanding taxes to the Italian government.

Finally …

Jus sanguinis offers Italian descendants a relatively simple way to gain Italian citizenship. However, it’s essential to consider the long-term consequences of becoming a citizen.

Partnering with a specialist lawyer can assist individuals in navigating the complicated legal and administrative procedures associated with jus sanguinis. With over 55 years of experience in supporting foreign nationals to obtain Italian citizenship, De Tullio Law Firm is here to help. Please contact us if you require assistance or wish to discuss your situation.

You may also like to read about applying for an elective residence visa. We also have a series of info videos that you may like to watch.

 

Hague Convention: China signs Apostille Convention

/in ,

China’s decision to join the Hague Convention is a major step towards facilitating international economic and trade activities.

On March 8, 2022, China signed the Hague Convention of October 5, 1961, commonly known as the “Apostille Convention,” which eliminates the need for the legalization of foreign public documents. The Convention will officially take effect in China on November 7th, 2023.

Benefits of Joining the Apostille Convention

This move simplifies the process of authenticating public documents, saving time and costs for businesses and individuals doing business in the region, and promoting transnational work. In presenting the “Instrument of Accession” to the Ministry of Foreign Affairs of the Netherlands, Chinese Ambassador Tan Jian confirmed China’s accession to the Convention. According to Chinese Foreign Ministry spokesman Mao Ning, the Convention will facilitate the international economy, trade, and transnational work.

Legalization of Documents

Sometimes, documents need legalizing when using them in a country other than the one in which they originated. The authentication process checks the authenticity of the document’s origin from the party or parties who appear to be its authors.

Legalization involves officially attesting to the legal quality of the person who affixed their signature on deeds, certificates, copies, and extracts, as well as the authenticity of the signature itself.

The Process of Legalization

The competent organs, central or peripheral, of the competent Ministry, or other organs and authorities delegated by the same, are responsible for legalizing signatures on deeds and documents formed in the State and to be valid abroad before foreign authorities.

For acts and documents formed abroad by foreign authorities and to be valid in the State, diplomatic or consular missions abroad legalize signatures. Legalization is carried out by comparison with a sample signature deposited by the public official with the competent body.

After this “internal” phase, most foreign legal systems, including China’s current system, require the document to undergo further control by the authority of the country itself. This “external” legalization is usually performed by the foreign consular representation in the country where the document originates.

Simplification of Document Authentication Process

Currently, a notary public must notarize foreign documents such as power of attorney or administrative resolutions, and the relevant Public Prosecutor’s Office must verify them. After that, the Chinese embassy or consulate in the issuing country will authenticate them.

However, the Apostille Convention, an international treaty, simplifies the process of authenticating public documents for use in foreign countries by abolishing the need for legalization.

What is the Apostille Convention?

The Hague Conference on Private International Law adopted the Apostille Convention in 1961, and it has been ratified by more than 120 countries and regions, including the USA, the UK, Hong Kong and Macau.

With the Apostille Convention, a public document issued in one contracting country can be certified for legal use in any other contracting country by obtaining an apostille from a competent authority designated by the issuing country.

An apostille is a simplified process of certifying the signature of the notarizing or authenticating public official. It eliminates the need for further certification or legalization by consular officials or embassies, saving time and costs for those who must use foreign public documents for legal purposes.

The simplified procedure applies to all public acts and notarized private writings originating in a contracting state and intended for use on the territory of another contracting state. The Apostille consists of a standardized stamp or sticker affixed at the bottom of the document, certifying the veracity of the signature of the public official (notary public).

Impact on Cross-border Document Circulation

China’s accession to the Apostille Convention is expected to have a significant impact on cross-border document circulation.

Chinese Foreign Ministry spokesman Mao Ning has announced that they will reduce the time needed to complete document authentication for use abroad from about 20 working days to only a few days.

This represents a significant improvement in the speed and efficiency of the process, which will benefit companies operating internationally, whether SMEs or multinational corporations.

Limitations of the Hague Convention

It is important to note that the Apostille Convention does not cover all types of documents. It applies to administrative documents such as birth, marriage, and death certificates; documents from an authority or official attached to a court, tribunal, or commission; extracts from trade and other records; patents; notarial deeds; and school, university, and other academic degrees issued by public agencies.

The Apostille Convention generally does not apply to diplomatic or consular documents, as well as certain administrative documents relating to commercial or customs transactions. This means that some customs documents for China will still require the legalization procedure.

Objections from Contracting States

Other contracting states to the Apostille Convention will have a six-month period to object to China’s accession. However, if a contracting state opposes China’s accession, the convention will not apply between China and that particular state, but China can still accede to the treaty. Therefore, it may not be possible to use the procedure for obtaining an apostille in China for documents from certain countries, although they are contracting parties to the Apostille Convention, and vice versa.

Finally …

If you need support with an apostille for Italy, please get in touch with us. While you are waiting for formalisation of an apostille, we are able to check the validity of signatures. We can provide a provisional confirmation that these appear genuine.

For over 55 years, De Tullio Law Firm has been providing international clients with independent legal advice throughout Italy. We are specialists in cross border property, inheritance and family law.

 

You may also be interested in Power of Attorney

Italian fiscal code for foreigners (Codice Fiscale) – A Short Guide

/in ,

What is an Italian tax code (codice fiscale)?

For foreigners who want to buy property in Italy, it is important to know what the fiscal code is.

The Italian fiscal code or codice fiscale is an alphanumeric 16 character code generated on the basis of your personal information. 

An Italian tax code is similar to a National Insurance number in the UK or Social Security number in the USA. It uniquely identifies individuals for Italian tax and administrative purposes.

Having a codice fiscale is a mandatory requirement for a wide range of activities in Italy. These include signing a property purchase, tenancy contract or inheriting Italian assets.

In addition, you will need a codice fiscale in order to open a bank account or apply for a mortgage. Obtaining utilities, insurance policies and of course, filing tax returns and payment also require your codice fiscale.

If you need help concerning an Italian tax code you can book a Free Call with one of our Lawyers.

How do I get an Italian tax code?

From abroad

If you live abroad, you can apply for an Italian tax code at the relevant Italian consular office in your country of residence.

Need Your Codice Fiscale Because You're Buying an Italian Property?

Don't miss out on your FREE copy of our full guide on Buying a Property in Italy

Download now

In Italy

If you are an EU citizen living in Italy, you can apply for an Italian tax code at any office of the Agenzia delle Entrate (Italian Revenue Agency). You will need to fill in an application form and provide an identification document (identity card or passport).

If you are a non-EU citizen applying for entry into the Country either for employment purposes or to live with family, you can obtain your Italian Tax code at your local “Sportello Unico per l’immigrazione” (Immigration office). Or, you can apply at a “Questura” (Police headquarters) if you need the issuance or the renewal of a residence permit.

Non-EU citizens must also prove that they have the right to stay, even temporarily, in Italy.

For more information regarding Italian tax codes, you can visit the Official Italian Ministry of Economy and Finance website

What do the codice fiscale characters mean?

Here is an example of a codice fiscale for Mary-Ann Duggan, born 10th February, 1975 in Melbourne, Australia.

Name

Where the letters in your surname and given name(s) permit, the consonants form the first six characters of the tax code. When you apply for a codice fiscale make sure your given name(s) and surname match your passport. For example, if your name is Mary-Ann Duggan but, your passport shows your name as Mary A Duggan, your application for your Italian tax code should match the information in your passport.

Date of birth

In a codice fiscale, birth information starts with the year. 75 indicates 1975 in our example for Mary-Ann Duggan. B indicates February. This is Mary-Ann’s birth month. Each month has an assigned letter:

Mary-Ann Duggan was born on the 10th. The code that appears is 50. This is because for males, dates run from 01 through 31 to indicate birth day. Whereas for females, 40 is added to calendar days. This therefore becomes 50 in Mary-Ann’s codice fiscale.

The sequence regarding the place of birth indicates where an individual was born. For Italian nationals, each Italian municipality / comune has its own code. For foreign nationals, this will be their country code.

Generally, a foreign country is identified by a sequence starting with “Z”. In Mary-Ann Duggan’s case, Z700 indicates Australia. There is only one code per country. In other words, if you are from Australia, whether you were born in Cairns or Perth, there is only one single identity code for Australia.

The last letter in the codice fiscale is a control value. The Italian tax system generates this value based on a calculation of all the characters contained in a codice fiscale.

When you apply for your tax code, avoid common mistakes

Birth date format

Whereas in Italy for date of birth, we use day/month/year, in some countries, such as the USA, this information is usually month/day/year. Using the wrong format generates an incorrect tax code. This is an issue, since Italian databases will reject the registration of information requiring tax code and identification of date of birth. Often, this issue only becomes apparent at completion or closing of a property purchase. This can delay closing while you apply for a corrected tax code.

Wrong name

As previously mentioned, the name in the tax code must match your ID – passport for example.

Maiden names

Maiden names are the most common error we see when it comes to females applying for an Italian tax code. This mistake can have consequences if you need to use notarial services, for example, when purchasing an Italian property. The notary may not be able to complete the purchase if your name does not match your ID.

Another common error can occur with maiden names. Italian females may use their spouse’s family name, however for legal purposes, they retain their maiden name after entering into marriage or a civil partnership.

Non-Italian females generally change their name when they marry and update their passports and other ID to reflect their married name. Again, the tax code must match the information in your passport.

Finally

We understand that Italian tax code matters can be confusing and difficult to navigate. If you have any questions about what action you should take or if you need help concerning an Italian tax code, please get in touch with us.

 

You may also be interested in another one of our articles:  How Do UK Nationals Obtain Permanent Italian Residency?

You may also like to watch our info videos.

Moving to Italy from the UK: Obtaining Permanent Italian Residency

/in ,

Visa requirements for moving to Italy from the UK post-Brexit

UK nationals are now subject to immigration requirements in Italy.

If you stay in Italy for more than 90 days within any 180 day period, you will need a visa.

Get Your FREE Guide to Buying Property in Italy

Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

Download now

Becoming a permanent Italian resident post Brexit

Since January 1st, 2021, if you wish to become resident in Italy, you need to follow the same rules as non-EU nationals. You will therefore need an Elective Residence Visa (ERV).

This is a long-term visa for non-EU citizens who intend to live in Italy. Firstly, you must be able to prove that you own or rent a property in Italy. In addition, you must be able to evidence that you can support yourself autonomously. Your income must be from a source other than employment.

You should apply for an ERV through the Italian Consulate in London.

An ERV is valid for 1 year after which, it may be renewed at your Provincial police headquarters (questura). You will need to demonstrate that you still meet the original requirements for an ERV.

If you are experiencing difficulties obtaining an ERV or if your application has been rejected, you may be interested in reading this article: ERV case study.

UK nationals living in Italy prior to January 1st 2021

If you were resident in Italy before January 1st 2021, the UK’s Withdrawal Agreement from The EU protects your residency and citizens’ rights.

You can now apply for a Biometric Residency Card (Carta di Soggiorno Elettronica). The Biometric Residency Card is an electronic residence document for UK nationals and their families. It provides further evidence of your right to reside in Italy. Furthermore, Biometric Residency Card can replace other residency paperwork when you are travelling in Italy or other countries in the Schengen Zone.

Finally …

We understand that Italian residency matters can be confusing and difficult to navigate. If you have any questions about what action you should take or if you need help concerning an Elective Residence Visa or a Biometric Residency Card, please get in touch with us at: info@detulliolawfirm.com

 

Biometric Residency Card for UK Nationals Living in Italy

/in ,

What is the biometric residency card?

The Italian government has introduced a biometric residency card for UK nationals and their family members resident in Italy.

If you are a UK national and were living in Italy before 1st January 2021, you have the right to obtain an electronic residency card.

Family members of UK nationals who were resident in Italy by 31st December 2020 can also get an electronic residency card and, any family members joining UK nationals resident in Italy, even after the aforementioned date, are also entitled.

Why do I need a biometric residency card?

Get All Our FREE Guides for Foreigners Planning to Buy, Sell or Live in Italy

Our PDF guides give you all the knowledge you need to move your Italian dream forward with confidence

Download now

The electronic residency card will provide further evidence of your rights under the Withdrawal Agreement and it will save you having to carry other papers such as your Attestazione di iscrizione anagrafica and/or your Permesso di soggiorno when you exit and enter Italy.

In addition, the card can be useful for administration purposes. For example if you need to renew your Italian ID card and need to show proof that you are resident in Italy.

How do I obtain the residency card for UK nationals?

You will need to apply for a biometric residency card. First, you need to book an appointment by sending a PEC email to your Immigration Office of the Police Headquarters (Questura) in the province of your residence.

You will need to attend your appointment in person. In order to issue a biometric residency card, you will have to supply biometric data in the form of fingerprinting.

The biometric residency takes some time to prepare. You will need to return to the questura to collect it when it is ready. Collection requires another check of your fingerprints so you will have to go in person to pick up your biometric card.

How do I apply for a card?

You will need to take the following to your appointment:

A valid identity document. If this is your UK passport, you will need to ensure that it has at least 6 months validity. If not, you will need to renew your UK passport;

Attestazione di iscrizione anagrafica, issued by your Municipality of residence, which proves registration by 31st December 2020; or, alternatively, self-certification of being registered with the anagrafe by 31st December 2020 and that registration has not been subsequently cancelled, pursuant to art. 46-47 D.p.r. 445/2000;

Permesso di soggiorno permanente if you have one or, alternatively, self-certification of being registered with the anagrafe by 31st December 2020 and that registration has not been subsequently cancelled, pursuant to art. 46-47 D.p.r. 445/2000;

Receipt of payment of € 30,46 for the cost of producing the document. Payable by postal order on CC no. 67422402 (account holder “MEF DIP.TO DEL TESORO VERS: DOVUTO RILASCIO CARTA DI SOGGIORNO” – reason for payment: “Importo per il rilascio della carta di soggiorno – Accordo di recesso UE/ UK”);

4 passport-sized photographs.

Validity of residency cards

For UK nationals resident in Italy less than 5 years, the electronic residency card is valid for 5 years. The card you receive will show the title, “residence card”.

If you are a UK national who has acquired legal and uninterrupted residence in Italy over a period of 5 years or more, including periods of stay before or after 31st December, 2020, the electronic residency card will be valid for 10 years. The card you receive will show the title, “permanent residence card”.

Finally …

We can help you with enquiries and support you through the process to obtain an Italian electronic residency card. Please get in touch with us.

 

You may also be interested in How do UK nationals obtain permanent Italian residency?

Resident in Italy for tax purposes?

/in ,

One or more of the following conditions makes you resident in Italy for tax purposes

According to the provisions of Article 2 (2) of the Italian tax code, Testo Unico delle Imposte sui Redditi (TUIR), if you spend more than 183 days per fiscal year in Italy, the Italian tax authorities will consider you resident in Italy for tax purposes.

If you meet one of the following conditions, you qualify as a resident for Italian tax purposes:

– you have registered at your local town hall’s (comune) registry office;

– you have your domicile in Italy, i.e. your principal centre of business, economic and social interests, e.g. your family, as defined by paragraph 1 of Art. 43 of the Civil Code;

– you have your residence in Italy, i.e. your habitual abode, as defined by the paragraph 2 of Art. 43 of the Civil Code.

The requirements indicated by TUIR are stand-alone: the occurrence of one of the above conditions is sufficient for the Italian tax authorities to consider you resident in Italy for tax purposes.

Get All Our FREE Guides for Foreigners Planning to Buy, Sell or Live in Italy

Our PDF guides give you all the knowledge you need to move your Italian dream forward with confidence

Download now

Registration at your local comune confirms your residence for tax purposes in Italy

If you spend more than 3 months in Italy you must register at your local comune.

Your registration with a comune presumes your residence in Italy for tax purposes.

At the end of your stay in Italy, you should de-register from your comune.

Double Taxation Agreements for residents of two countries

Double taxation agreements (DTA) protect a government’s rights to collect tax and protect against attempts to avoid or evade tax. DTA contain provisions for the exchange of information between national taxation authorities. There are more than 3,000 DTA world-wide.

If you can prove you are resident in two countries, you may have recourse to the application of Article 4 of the relevant DTA in order to resolve any conflict of dual residence for tax purposes. You can find more information about DTA here.

The onus is on the taxpayer to provide documented evidence of tax residence outside Italy

You will need to request a certificate of tax residence under the relevant DTA. It is also important to keep records such as travel documents and receipts. These help evidence how long you were physically present in Italy in any given fiscal year.

Finally …

For over 55 years, De Tullio Law Firm has been providing international clients with independent legal advice. If you need support with your Italian and cross border tax matters, we are here to help.

You may also be interested in Elective residence Visa Italy: general information

Force majeure clause in Italian contracts. COVID-19

/in ,

Force Majeure: “Act of God”

Does the  COVID-19 pandemic trigger a Force Majeure Clause in Italian Property Sales and Purchasing Contracts?

Also known as an “Act of God”, a Force Majeure clause in contracts is widely known, yet narrowly understood.

In general, a Force Majeure is an event that is beyond the control of either party to a contract. It prevents or hinder the performance of the contract.

Illness is a very unusual reason for causing a Force Majeure in contracts. However, the Coronavirus pandemic is not a common ailment. It has confined entire countries and restricted peoples’ movement and travel.

Get Your FREE Guide to Buying Property in Italy

Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

Download now

Recent disruptions have seen an increased number of calls from clients concerned about their responsibilities and rights regarding Italian property contracts.

A particularly frequent question is whether a Force Majeure clause exonerates vendors and buyers from performing contractual obligations?

What happens to Italian property contracts during Coronavirus restrictions?

Art. 91, 17 March 2020 n. 18 (“Decreto Cura Italia”) legislation deals with the liabilities for non-performance of a contract.

A party to a contract, who fails to perform contractual obligations shall be liable to pay damages unless it can be proved that the non-performance was caused by circumstances resulting from a cause beyond control (i.e. a Force Majeure).

The same law includes containment measures that limit movement, designed to prevent the spread of the Coronavirus disease. Failure to comply with these measures is a criminal offence under Article 650 of the Penal Code.

The issue of containment measures, and the restriction of movement, represent an obstacle in terms of completion of a Deed of Sale. Not only for those who may need to move from one Italian Municipality to another, but above all for people involved in cross-border real estate transactions.

Such containment measures may make it difficult and/or impossible to complete a Deed of Sale with a notary public.

Remedies

Extensions

Parties may be able to negotiate an extension to the contractual time limit for completion of a Deed of Sale.

Non-authenticated private deed

In order to avoid missing a contractual deadline, parties can also complete the Deed of Sale by means of a non-authenticated private deed.

In line with art. 1350 of the Italian Civil Code, parties will need to repeat the transcription and authentication process at an ulterior date. This will be possible once restrictions ease. Failure to have a Deed of Sale authenticated and transcribed later could render the Deed of Sale null and void.

Power of Attorney

By conferring a Limited Power of Attorney,  you can have someone act on your behalf in Italy. If you opt for a Power of Attorney, it is important that you entrust your affairs to a reliable and competent person such as a lawyer. Appointing someone who does not have enough experience or with whom there may be a conflict of interests, is highly inadvisable.

Use a holding account to protect your property payment

Our advice would be that you only use a bonded holding account to protect the balance of your payment for a property sale in Italy. Not just during the pandemic but always.  Known as a, “Deposito Prezzo” in Italian. You can arrange this with a notary public, who will act as guarantor for your transaction.

I am negotiating a Preliminary Contract for a property. Can I get a force majeure clause?

If you are in the process of negotiating the sale or purchase of a property in Italy, you should make sure that you include a “Force Majeure” clause in the Preliminary Contract. The clause should take into account a wide range of events. Not only natural disasters and catastrophic events but also disease epidemics and pandemics.

Finally …

If you are buying a property and need legal advice because of the pandemic, our legal professionals are here to provide help and guidance.

Please contact De Tullio Law Firm at the following email address info@detulliolawfirm.com

You may also be interested in our article about conferring a Power of Attorney. You may also like our info videos.

Elective Residence Visa for Italy

/in ,

An Elective Residence Visa allows non-EU citizens to reside in Italy

You should submit your application for an Elective Residence Visa (ERV) to the Italian embassy or consulate in your home country. For example, U.S. citizens can apply to the Italian consulates in New York, Miami, San Francisco. Canadians should apply to the Italian consulates in Toronto or Montreal.

The main requirement for obtaining an ERV is that the applicants must be able to support themselves autonomously in Italy. This must through an income unrelated to employment. Your income must be sufficient to exclude recourse to the Italian welfare system.

Get Your FREE Guide to Buying Property in Italy

Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

Download now

Applicants for an Italian ERV must be able to provide documented guarantees

According to Italian law, ERV applicants should meet two essential elements. Firstly, they must have somewhere to live in Italy. This can either be a property they own, or a secured tenancy with a contract.

Secondly, applicants must have an income stream. This should be approximately Euro 31,000 per annum. This income must continue in to the future – for the period of stay in Italy.

Verifying that an ERV applicant has somewhere to live is fairly straightforward. However, the assessment regarding adequate finances implies a so-called discretionary evaluation by the consulate.

By law, this assessment cannot be  arbitrary. In other words, the applicant must be able to see a logical explanation behind the decision-making process.

The law sets out various principles which the consulate should take into consideration when deciding whether or not to grant an ERV.

In particular, the available financial resources should be “ample”, “autonomous” and “stable”, thus the applicant should be able to sustain himself/herself without working in Italy.

The above means that financial resources should be fully accessible to the applicant. And, that funds should not be subject to unexpected, sudden fluctuations. The consulate must be able to make a reasonable assumption that an applicant’s financial resources will also exist into the future.

The applicant’s financial resources should originate from pensions, life annuities, ownership of real estate, ownership of stable economic-commercial activities or other sources of income. Income cannot however be from employment.

In the absence of any logical, valid and concrete reasons, so long as an applicant for an ERV meets the above requirements, the consulate cannot refuse to grant an ERV.

Finally …

Do you think your ERV application was wrongly rejected or do you need help with an ERV application?

The evaluation of the elements for an ERV application by the consulate is discretionary. However, as previously mentioned, it cannot be arbitrary.

Should you need further information concerning an elective residence visa or preparing your application or, if you wish to appeal the denial of an ERV, please contact us.

 

You may also like to read about what to do if your elective residence visa application is refused. We also have a series of info videos that you may like to watch.

Flat Tax Scheme in Italy

/in ,

The Italian Budget Law for 2019 introduced a flat tax regime

Set at 7%, the flat tax scheme in Italy aims to attract foreign and Italian nationals living abroad.

Individuals with an income from a foreign pension, or other source from abroad, can benefit from the scheme. In order to take advantage of the flat tax rate, individuals must transfer their tax residence to certain  municipalities. The municipalities have fewer than 20, 000 inhabitants. They are located in the Italian regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily.

In addition, certain municipalities with fewer than 3,000 inhabitants are part of the scheme. These municipalities are in Italian regions impacted by the earthquakes in 2016.

Individuals who opt for the flat tax regime will be exempt from tax on the value of both financial assets (Imposta sul valore delle attività finanziarie detenute all’estero (Ivafe)) and real estate property (Imposta sul valore degli immobili situati all’estero (Ivie)) which they own abroad.

They will also be exempt from completing annual, “Quadro RW” filings. The Italian tax authority uses Quadro RW filings to monitor individuals resident in Italy with foreign investments and financial assets abroad.

Who can benefit from flat tax rate scheme?

Individuals from countries that have tax cooperation arrangements with Italy. Namely, Tax Information Exchange Agreements (TIES), Double Taxation Agreements (DTA) and Foreign Account Tax Compliance Agreements (FATCA).

Individuals who have not been an Italian tax resident for 5 years prior to the period for which their option is valid.

Do you have to apply to be part of the flat tax regime?

If you meet the criteria outlined above, you can adopt the new flat tax regime when you file your tax return related to the fiscal period in which you moved your tax residency to Italy.

You will need to indicate the jurisdiction/s in which you had your previous tax residence. The Italian tax authority will then forward this information, through the appropriate administrative cooperation instruments, to the tax authorities of the indicated jurisdiction/s.

It is possible to carve out income produced in one or more foreign countries or territories. You may, for example, decide that for income in a certain country or territory, the ordinary Italian tax rules should be applied. In principle, this allows you to benefit from foreign tax credits based on applicable tax treaty protections and relief on taxes you have paid abroad. You must specifically indicate this intention when you exercise your option to take up the flat tax regime.

How long is the option valid?

The flat tax regime is effective for nine years from exercising your option to adopt it. You may withdraw from the regime at any time. This will not prejudice the effect of previous fiscal years. However, withdrawal from the regime precludes you from exercising a new option to join the flat-rate tax regime.

The Italian tax authority may revoke your rights to the flat-rate regime by challenging your legal entitlement to it.

You must pay your 7% tax as a lump sum each year. The Italian tax authority sets the payment deadline for payments. Failure to pay in full ends your right to the flat tax regime.

Finally …

For more information, or to discuss what would best suit your personal situation, feel free to contact us.

Alternatively, seek advice from a qualified accountant registered with the ODCEC, the Italian professional accounting association of certified public accountants, auditors and advisors.

 

You may also be interested in The Principle of Tax Residence under Italian Law.

You may also like to watch our info videos.

EU Property Regime Rules. Marriages & Partnerships

/in ,

EU property regime rules for cross border marriages and registered partnerships

According to the European Commission, there are about 16 million couples in the EU living in a “cross border situation”. These international couples are citizens and/or, own properties in different EU Member States. Until 2019, no EU property regime rules existed for cross border marriages and registered partnerships.

On 23rd June 2016, Members of the European Parliament approved two regulations. These regulations determine homogeneous rules applicable to property regimes in cross border situations. Council Regulation (EU 2016/1103) determines rules for married couples. Council Regulation (EU 2016/1104) determines rules for civil partnerships. These two regulations entered into force on January 29th, 2019.

The rules determine jurisdiction and applicable law for matrimonial and registered partnership property regimes in case of divorce, separation or the death of one of the spouses or partners.

The objective of the regulations is to increase foreseeability and legal certainty regarding jurisdiction and applicable law in the matter of property regimes of international couples. In addition, the regulations harmonise international private law rules between EU countries.

EU property regime rules determine the applicable law in the event of divorce or death

EU Regulations bring broader legal certainty and end parallel and/or conflicting proceedings in the various EU Member States.

The regulations do not affect the underlying institutions of marriage and civil partnerships. These remain matters defined by the national laws of the EU Member States.

Regulations explicitly regulate two cases of jurisdictional governance. These are the death of one of the spouses or registered partners, and divorce.

In the case of death, the court in a competent Member State, pursuant to EU Succession Regulations, will have jurisdiction in matters arising from the couple’s property.

In the case of divorce, the court called upon to rule on an application of divorce will have jurisdiction, provided the couple agrees. Couples may also reach an agreement regarding jurisdiction during court proceedings.

In cases other than the above mentioned, and in cases where spouses fail to reach agreement, jurisdiction lies with the courts of the Member State where couples are habitually resident. Failing that, jurisdiction lies with Member State where couples were last habitually resident, insofar as one of the spouses or partners is still considered resident there. Otherwise, jurisdiction lies with the courts of the Member State of the respondent’s habitual residence and failing that, the state of the couple’s common nationality at the time of court proceedings. The parties may also agree to give jurisdiction to a Member State whose law is applicable to the matter. Should the respondent take the matter to court, that court will have jurisdiction. This would be irrespective of which court has jurisdiction according to the aforementioned rules.

Choice of law rules is applicable to marriages and registered civil partnerships

The regulations allow spouses and registered partners to choose which country law shall apply in the event of divorce or death. Marriages and partnerships registered prior to 29th January 2019 are subject to national choice of law regulations.

The regulations are applicable in 18 EU Member States that joined the enhanced cooperation initiative on this matter, namely: Belgium, Cyprus, Greece, Croatia, Slovenia, Spain, France, Portugal, Italy, Malta, Luxembourg, Germany, Czech Republic, the Netherlands, Austria, Bulgaria, Sweden and Finland.

The EU members that did not adopt the Regulation are The Republic of Ireland and Denmark. These countries continue to use the choice of law rules of their national laws.

Regulations pertaining to applicable law are universal in scope. Thus, the law of any state, including states that are not members of the EU, may be found to be applicable. The law provided by the regulations is applicable to all assets, irrespective of  location.

Finally …

Divorce or death of a spouse or registered partner is hugely emotional wherever you live. Having to work through matters related to inheritance and asset separation can add to the pain. The complications multiply when couples live or own properties in different countries. We understand the legal complexities that international couples can face in Italy. If you need advice, we are here to help.

 

You may also be interested in Review of EU and Italian Divorce Law. You may also find our info videos useful.