Obtaining a residence permit in Italy: how to start a business and avoid getting trapped?

Yulia Kozyreva answers the questions.

Yulia Kozyreva is the head of SFR Realty and has successfully completed all the stages of obtaining a residence permit in Italy.

What are the options for obtaining a residence permit in Italy?

- Julia, what options are available for obtaining a residence permit in Italy? Which one did you choose?

— Foreigners usually rely on two main options. The first is a residence permit through the "chosen residence" system (residenza elettiva). The second option is registering as a self-employed individual (lavoro autonomo). Additionally, there is the possibility of obtaining a residence permit through family reunification or studying at higher education institutions, but these options are not suitable for everyone.

Residence permit typeelective residenceIt is issued to financially secure foreigners who intend to stay in Italy longer than allowed by a tourist visa and have sufficient means for their own living. However, it is important to note that this visa does not grant the right to work in the country. For my needs, the best option turned out to be the second one — starting a business to obtain the visa.

What type of business can I open to obtain a visa?

- What type of business can I open to get a visa?

— There are certain restrictions regarding the types of activities allowed for foreigners. In most sectors in Italy, a license is required to conduct business. The process of obtaining a license is quite straightforward: you need to undergo training, pass exams, and start operating. This only applies to those who already have a residence permit. Foreigners without such status cannot undergo training to obtain a license.

• Foreigners without a residence permit are allowed to engage in only two types of permitted activities.
• The first is non-patented intermediary activity (procacciatore d'affari). This means that you can register a company that engages in mediation and earn commissions for connections between clients.
• The second path is creative activity (libero professionista). This category includes freelance professions such as artists, writers, as well as foreign language teachers, lawyers, accountants, and other specialists. In this case, in addition to the main requirements, you will need to confirm your qualifications.

Prospects and challenges

The options provided don't seem very appealing. It turns out that opening a hotel or restaurant is impossible, which creates certain difficulties— to obtain a residence permit, you need a company, but you can't open one without a license, and you can't get a license without a residence permit.

At first glance, it may seem that this is indeed the case, but there is a solution. Many foreigners start by registering a brokerage company. After obtaining a residence permit, they complete all the necessary courses and obtain a license for the activities they plan to undertake, or they hire specialists who already have the required licenses.

The process of obtaining a residence permit through starting a business

— Could you please tell me more about the process of obtaining a residence permit through starting a business? How is it organized?

— The main requirement is that you must have a permanent residence in Italy. Therefore, the first step is to purchase or long-term rent a property. This creates a foundation for the subsequent steps in obtaining a visa and registering a business in the country.

Awareness of all the nuances of this procedure will help to avoid mistakes and significantly simplify the process. Understanding all the steps and the correct preparation of documents will allow you to confidently move towards the desired result and a stable life in Italy.

Real estate rental in Italy

If you are planning to rent property, keep in mind that it is important to officially register your rental agreement. You should also carefully study the article dedicated to calculating the costs associated with purchasing real estate in Italy, especially if it concerns the Abruzzo region. Additionally, you will need consultation from a qualified tax expert who can help you choose the most suitable business registration model based on your personal needs and requirements.

Obtaining the necessary documents

Next, you will need to obtain two important documents from the Italian government authorities. The first one is a certificate of no impediments to starting a business.no objection), and the second one is a certificate that defines the economic parameters necessary for conducting your business, issued by the Chamber of Commerce of Italy.economic parameters attestationIt is interesting to note that this document is not a full-fledged business plan, but merely contains a calculation of the minimum funds required for the business.

After receiving these certificates, you can return to your homeland and apply for a work visa of the category at the Italian consulate.D.

The process of obtaining a visa and residence permit

After you receive the category visaDYou will have the opportunity to return to Italy to obtain a document that allows you to live there permanently.residence permit), which replaces the visa. Once you have obtained a residence permit, you can finally start your business activities.

Difficulties in obtaining documents

Many people are interested in how difficult it is to obtain these documents from Italian government services and what the timelines for this process are. If all the documents are properly prepared, obtaining the certificates usually does not pose any problems. Bureaucracy in Italy is certainly not as efficient as, for example, in Germany, so it is difficult to determine exact timelines. In my case:

• The preparation of the economic parameters took about two weeks.
• Obtaining a certificateno objection- for another two or three weeks.
• The process of obtaining a visa typeDIt takes an average of about two months.
• In the end, all the stages of obtaining a residence permit took about six months.

Availability of housing and its importance

You also touched upon the issue of housing in the context of obtaining a residence permit. Is property ownership a significant advantage for the Italian authorities? Certainly, having housing is a plus. The main task for a person wishing to obtain a residence permit is to convince the Italian authorities of their intention not to rely on social assistance. It is not necessary to be wealthy, but it is important for the applicant to have sufficient means for self-sufficiency. The authorities need to understand that the person plans to run a business and pay taxes, rather than depend on social benefits.

Expenses related to obtaining a residence permit

It is also worth discussing the expenses related to obtaining a residence permit.

• Company registration.
• Payment of various fees.
• Counseling Services.

These expenses can vary significantly depending on the region of Italy. I will share my personal experience that I gained in Abruzzo when I was applying for my residence permit, which may be helpful for those going through a similar process.

The cost of hiring an accountant to start my own business was 200 euros, and I needed stamp duty worth about 100 euros for the paperwork. The fee for processing the necessary documents was 109 euros, while obtaining a type D visa added another 116 euros to the total expenses. As a result, I spent approximately 600 euros to achieve this goal.

Financial requirements for business registration

It is also important to mention that the Italian authorities have established certain financial requirements as part of the business economic justification. As a result, I needed to demonstrate the availability of 17,500 euros as minimum economic indicators, as well as 8,500 euros for health insurance. A smaller amount will likely be insufficient. These funds must be kept in a bank account in Italy, and to apply for a residence permit, it is necessary to provide a statement from this bank account.

Conditions for obtaining a residence permit

Additionally, I am interested in the existing conditions for individuals wishing to obtain a residence permit through starting a business in Italy.

In the first year of your business, it is possible to find yourself in a situation where there are no financial inflows at all. This is quite a normal occurrence for newcomers in entrepreneurship. However, even in such a situation, you should not neglect your business and refrain from taking active steps. It is important to remember that tax obligations remain regardless of the success of the business. In Italy, the expenses for a sole proprietor under a simplified tax system amount to about 2000 euros annually for taxes. Additionally, you need to consider the costs for accounting services to prepare financial reports — these services can cost around 50 euros per month.

Advantages of obtaining a residence permit through business

One of the significant advantages of obtaining an Italian residence permit through business is the lack of necessity to hire employees. You can work as the sole employee of your company.

Rights and obligations of foreigners with a residence permit

Let's take a detailed look at the rights and obligations of foreigners who obtain residency in Italy. First and foremost, it grants the right to reside permanently in the country throughout the year. Although it is necessary to stay in Italy for a minimum of 180 days, in practice, the enforcement of this requirement is rarely carried out. While checks may occur, they are not systematic. For example, I have already had instances where inspectors asked my neighbors about my place of residence.

Medical care and education

In addition, foreigners with a residence permit can expect access to free medical care. I have the option to choose a doctor and consult them at any time. It is important to note that all foreign children are required to attend school, thereby ensuring access to free education in Italy. Admission to universities is also possible, although studying may require financial investments.

Acquisition of a car and tax obligations

Foreigners with a residence permit can purchase cars in Italy, but it's important to remember about taxes. Once you become a tax resident, you will have to pay taxes in that country.

Language requirements

As for language requirements, foreigners applying for residency are not required to prove their knowledge of the Italian language. However, those who intend to extend their residency for up to five years and then apply for citizenship must have knowledge of the language, as they will need to pass the relevant exam.

Interest in real estate in Italy

Lastly, I want to discuss how your company is connected to real estate sales in Italy. Based on your experience, have you noticed an increase in interest from potential buyers in obtaining residency permits?

Yes, in recent years we have seen a significant increase in the number of people wanting to move to Italy. This trend is an important factor contributing to real estate purchases. After I obtained my residence permit, I started actively helping my clients with issues related to this process. Although we cannot guarantee a result, as the final decision rests with the Italian authorities, we have the experience and knowledge to properly prepare the documents, thereby minimizing the risks of rejection.

Conclusion

In conclusion to this article, I want to emphasize that the process of obtaining a residence permit in Italy can seem confusing and difficult, especially for those who are just starting their journey into the nuances of Italian bureaucracy. However, as my experience shows, with a careful plan and an understanding of the necessary steps, this process becomes quite manageable.

Options for obtaining a residence permit

Italy offers numerous opportunities for obtaining a residence permit, and each person can choose their own path depending on individual needs and goals. The approach related to starting a business can open doors not only to legal residency but also to focusing on developing sectors of the economy, making this path appealing. However, it is important to consider all the conditions and requirements set by the legislation.

Key factors for successfully obtaining a residence permit

It's important to remember thatfinancial stabilityandthe absence of intention to become a burden to the stateKey factors that concern the Italian authorities. Owning property can significantly strengthen your position, but even without it, if you can demonstrate financial independence and clarity in your business plans, your chances of success increase.

Useful tips

I hope that the information presented in this article will be useful for everyone considering obtaining a residence permit in Italy. Remember that the Italian reality offers many opportunities, and your desire for this country can be a great starting point for a new life and the realization of professional ambitions.

Good luck with your endeavors!

May your dreams come true!