The investor visa is the most flexible and fastest type of visa to obtain. Unlike most other visa categories, it is not subject to the annual quota limit set by the flow decree, and the process for issuing the nulla osta (the document stating that applicant meets the requirements for the visa) is fully centralized. A single administration manages all communications with the other involved, significantly reducing the time needed for the entire process. Additionally, the documentation can be submitted in English eliminating, in some cases, the need for sworn translations.
Investor Visa for Italy and investing in innovative startups
The prerequisite for obtaining an investor visa is the intention to invest in one of the following categories:
- Italian government bonds: at least €2,000,000
- Shares or stakes in an existing Italian company: at least €500,000
- Shares or stakes in an existing Italian innovative startup: €250,000
- Philanthropic donation to an Italian non-profit organization supporting a public-interest project
The investor visa is renewable for 3-year periods, provided the original investment is maintained. After 5 years of continuous residence in Italy, the applicant can apply for a permanent residence permit.
While we have already analyzed some details of the investor visa issuance process in a previous article, today we want to focus on the opportunity to invest in innovative startups.
According to Italian law, an innovative startup is a company aimed at developing, producing, and marketing innovative products or services with high technological value, meeting the following requirements:
- It is a new business or established no more than 5 years ago
- It has headquarters in Italy, or in another European Economic Area country with a production site or branch in Italy
- It has an annual turnover below €5 million
- It is not listed on a regulated market or a multilateral trading platform
- It does not distribute and has never distributed profits
- It is not the result of a merger, demerger, or sale of a business branch
Finally, a startup is considered innovative if it meets at least one of the following three specific requirements:
- It incurs R&D expenses equal to at least 15% of the greater value between costs and total production value
- It employs highly qualified personnel (at least one-third PhDs, doctoral candidates, or researchers, or at least two-thirds with a master’s degree)
- It holds, deposits, or licenses at least one patent or owns a registered software
Innovative startups are enrolled in a dedicated register at the Chamber of Commerce. You can verify whether an existing company qualifies as an innovative startup by searching in this registry.
Advantages and disadvantages of investing in an innovative startup
The most evident advantage of investing in an innovative startup within the investor visa framework is the significantly lower investment amount – 50% of that required for other regular companies. Another advantage is the potential for high returns in case of an “exit”: investing in a company during its development stage can lead to substantial gains if the overall value of the startup increases over time. However, the potential for higher profitability is linked to greater risk: while the myth that “9 out of 10 startups fail within 5 years” has been debunked, it remains true that many businesses struggle to meet initial growth expectations. For this reason, investing in innovative startups is not for everyone; it requires thorough evaluation skills and, ideally, direct knowledge of the relevant sector.
An alternative: Invest in your innovative startup
The Italian government, alongside the investor visa, has created a specific visa type for those wishing to establish an innovative startup in Italy. The startup visa, however, is a particular type of self-employment visa and, as such, is subject to annual numerical limits, making it uncertain even when all requirements are met.
For those with an innovative project, and the time to plan their move to Italy, creating his own innovative startup to invest in for visa purposes can be a viable option.
Current regulations consent investing in a company in which one is a full or partial owner. The main limitation for this type of operation is timing: the company in which you invest must be operational and, to prove this, must have filed at least one financial statement (which can cover a reference period of less than a year).
Practically, one can establish an innovative startup within a year, make it operational and file its financial statement in the early months of the following calendar year, and begin the investor visa process by making the required investment in his startup.
Investor Visa: What we can do for you
Our firm, Pierpaolo Vannucci Advisors, leveraging its experience in this field and partnerships with specialized legal firms, is ready to support you in the investor visa application process:
- Assistance throughout the application process, including filling out the form on the dedicated Ministry of Economic Development (MISE) platform on your behalf to obtain the clearance certificate for the visa.
- Consultancy in connection with the . Among other areas, we specialize in innovative startups and SMEs and have a partnership with a Certified Incubator.
- Assistance with all procedures following the clearance certificate issuance.
- Assistance and advice for establishing your innovative startup.
- Offering tax consultancy in case of relocating your residence to Italy.