Why do Russian investors choose real estate in Italy and Sicily?

Despite this, the real estate market in Italy has never been overwhelmed by mass purchases. It was only two years ago that the legislation in this country allowed non-residents to acquire residential properties.

The Italian government under the leadership of Silvio Berlusconi is actively working to improve the economy of the southern regions, including Sicily. Investments are coming both from the Italian regions themselves and from European Union member states. Various initiatives have been launched to support investors in both new construction projects and the restoration of sites of historical value. These programs offer the opportunity to return to investors up to70%invested funds.

Construction of a bridge over the Messina Strait

One of the most significant projects that has received the support of the Italian government is the construction of a bridge across the Strait of Messina, which will connect Sicily with the Italian mainland. The planned length of this bridge will be3300 meters, width -60 metersIt will include six lanes for cars and four for trains. This project will make the bridge the longest suspension bridge in the world, and its implementation will require an investment of about3 billion euros.

Growing interest in real estate among Russians

The increase in the number of Russians interested in property in Italy has directly influenced the growth of tourist flow from Russia.in 2008the number of Russian tourists visiting Italy exceeded half a million, which amounted to33%growth compared to the previous year. Equally important is the development of transportation infrastructure: the budget airline "Wind Jet" offers year-round services to Sicily from Moscow and St. Petersburg, including cities such as Palermo and Catania.

The appeal of Sicily for real estate buyers

Sicily, where Prime Minister Silvio Berlusconi's villa is located, is becoming increasingly attractive to Russians looking for real estate. Potential buyers are drawn not only by the pleasant climate and diverse natural landscapes but also by the warm welcome from the locals, as well as the magnificent beaches washed by three seas. Property prices in this region are also encouraging. Although the cost of secondary housing continues to rise, it remains affordable and significantly differs in price from similar properties in other European Union countries.

Approximate prices for real estate in Sicily

• A two-story house in the central part of Sicily: from30 to 40 thousand euros
• Operating hotel:220000 euros
• Ready villa with finishing by the sea: from180 to 250 thousand euros

There is also the opportunity to purchase affordable apartments in modern residential complexes located in picturesque areas near famous architectural landmarks and beautiful beaches.

Exclusive real estate properties

Of particular interest in the real estate market are exclusive properties located in famous places, as well as villas of celebrities located near historic monasteries, remains of Greek temples and Norman castles. It should be noted that buyers looking for luxury estates will always find offers that will interest them.

Investing in real estate in southern Italy

When choosing real estate in southern Italy, one of the main aspects is proximity to water – whether it's the sea or a lake. Experts and developers in the region claim that investments in these areas have a good chance of success. "Right now, Sicily resembles Spain as it was fifteen years ago, and we can soon expect a significant increase in prices," notes Irina Grigorieva, a representative of the investment company "Grand" in Sicily.

On the island, the implementation of interesting projects is taking place on already owned plots, and there are also offers on nearby islands. One cannot rule out unfinished developments that sometimes appear on the market due to a lack of funds from Italian developers. According to Irina, this situation presents a favorable opportunity for investors who have their own funds or have access to credit financing.

Tax policy of Italy

In addition to the attractiveness of offers, property owners are also happy about the conditions of tax policy in Italy. In May this year it was announced that a number of real estate taxes were reduced, which primarily concerns those who are buying their homes for the first time.

• For foreign investors looking to obtain residency in Italy, the property acquisition tax has been reduced to4-5%.
• Inheritance tax only applies to high quality real estate and in this respect it is significantly lower than in most other European countries.

The absence of a global wealth tax

It's interesting that Italy does not have a tax on global wealth, known as“wealth tax”This makes the country particularly attractive for those who are actively engaged in international investing. This opinion is shared by both citizens and government structures; they oppose the introduction of such a tax.

After the abolition of gift and inheritance taxes, which previously could reach a27-60%The conditions for choosing Italy as your tax residence have become even more attractive.

Attractive living conditions in Sicily

The climate of Sicily, clean beaches, developed infrastructure, tax advantages, and reasonable residency programs contribute to the increasing number of business immigrants to this region.

Despite the high profitability of the Russian real estate market, the Italian market with its transparency and stability continues to arouse interest among investors.

Principles of doing business abroad

The principles of doing business in foreign countries are somewhat similar to those adopted in Russia, as they are based on universal norms of business ethics, responsibility, and strategic planning and consistency of action. However, entering the Sicilian market can be quite difficult. Knowledge of the local legal order and competitive environment is not always sufficient to successfully overcome the barriers that arise.

Searching for a local partner

The key point issearch for a local partneror a compatriot who has been living in Italy for a long time and is able to unravel many complexities. This person should understand the mentality of the Russian investor and also introduce the nuances of working with local authorities, lawyers, and entrepreneurs.

The role of tradition in business

Culture and traditions play an important role not only in the daily lives of local residents but also in the realm of business interactions. Once initial distrust is overcome, there arises an opportunity not only to establish strong partnerships but also to gain a loyal friend who can assist in the implementation of your projects and serve as a protector of your interests before the local administration.

Visa process

If you have chosen Italy for permanent residence, after purchasing property you can apply for a "chosen residence" visa. This will give you the opportunityto live legally in Italywithout being in the labor force.

• To apply for this visa, you need to gather the standard set of consular documents.
• It will be necessary to confirm the presence of real estate in Italy.
• You need to provide a statement of your income in a free format.

It is important to remember that your annual income should not be less than double the amount of social assistance, which is 8500 euros. This means that your income should beat least 17,000 euros a yearAdditional income can come from rental income, pension payments, earnings from various commercial activities, and other stable financial sources.

Multivisa and residence permit

A multi-visa of the "chosen place of residence" category can be issued for a period ranging from 180 to 360 days a year, depending on the consulate's decision. After that, you need to contact the local police department (questura) to obtain a temporary residence permit based on your visa.

• A temporary residence permit is issued for two years with the possibility of extension at the end of this period.
• After five years, you can apply for a permanent residence permit, which will be valid indefinitely.
• You also have the option to apply for a residence permit for your spouse, adult and minor children, as well as parents, if they are under your care.

In that case, a residence permit will be granted for family reasons.

Conclusion

In conclusion, I would like to note that the Italian real estate market, despite its specific characteristics and changing conditions, continues to be attractive to investors, especially for Russians. The introduction of new legislative initiatives and government support programs aimed at developing the southern regions, particularly Sicily, creates unique opportunities for acquiring real estate. The investment return program up to...70%of invested funds, as well as lower purchase taxes, make this market particularly interesting for those looking for profitable investments.

According to observations, interest in real estate in Sicily is growing, as evidenced by the increasing number of tourists and investors. The wonderful climate, picturesque landscapes, and rich cultural heritage of the region create ideal conditions for both living and doing business. Infrastructure projects, such as the construction of a bridge over the Strait of Messina, further strengthen the island's connections to the mainland and open new horizons for development.

Unique features of the market

• Not a mass marketwith unique offers.
• Affordable priceson real estate in picturesque locations.
• Environmental restrictionsThey make Sicily attractive for investments.

Undoubtedly, the real estate market here is not a mass market, but that is where its uniqueness lies. Affordable prices for objects, even in picturesque places, dispose to investments, especially given the growing interest in exclusive options. The environmental aspect remains important, as restrictions on coastal construction make Sicily attractive to those who appreciate cleanliness and order.

Tax climate

It is important to note the country's improving tax climate. The reduction of the tax burden for buyers, especially first-time buyers, attracts new clients and fosters growth in investment activity. The absence of a global property tax, along with improved conditions for tax residents, creates...additional incentivesto choose Italy as a country for business and investments.

Of course, the impact of the economic situation on the real estate market in the country will continue to be an important factor, but with all of the above aspects in mind, I believe in thebright prospectsthe Italian market. This market, although elevated to a new level, remains quite predictable, allowing investors to confidently calculate their profits for the coming years. Therefore, if you want to make the right choice, Sicily and Italy, in general, can be a real discovery and a profitable investment for each of you.