Reader question: Can I have residency in Italy and another country?
For those who own a home in Italy and also live in another country, the rules on how long you can stay in and away from Italy can be confusing. The Local spoke to an immigration expert to debunk the myths.
Reader question: I have a home in Italy and I also live in the UK. Can I have permanent residency in both countries and do I have to spend a minimum amount of time in Italy to retain my residency there?
Living between two different countries throws up a lot of questions and confusion surrounding residency rights and the amount of time you can spend in Italy legally.
For people who have a home in Italy, the answer to the above question depends on how much of the year you want to spend in the country, and on your nationality.
"If an individual spends time both in Italy and in another country, the periods of presence outside of Italy are calculated and compared with the periods of presence in Italy to see which one is prevalent," stated immigration lawyer Marco Mazzeschi of immigration consultancy firm Mazzeschi.
Essentially, you can spend time in Italy and another country, but the time you can spend out of Italy depends on the type of residence permit you hold. That is if, in fact, you have or need residency in Italy at all.
"If you have a house in Puglia, for instance, and you want to visit it three or four times a year for a week or two at a time, you don't need to register for residency," Mazzeschi clarified.
So, even though people may own a second home in Italy and pay taxes on that property, that doesn't mean they automatically have residency in Italy - nor do they necessarily need it.
READ ALSO: What taxes do you need to pay if you own a second home in Italy?
But if you spend longer in Italy and have family and work here, or "where the person and family live on a day to day basis" according to Italian law, this is when you'll need to register for residency, the legal expert said.
There are tax implications to this, as "you have officially declared Italy as your main centre, your main residence," according to the immigration expert. It means you'll need to pay income tax on all worldwide income, which we'll explain in more detail below.
What may come as a relief to many is that it's rare for people to lose their residency, once they've got it, for being out of Italy for periods of time.
Here's what you need to know about keeping your residency in Italy, depending on your nationality and paperwork.
Do you need residency in Italy at all?
As a starting point, citizens of many non-EU countries, including Americans and now Brits are allowed to spend 90 days out of every 180 in the EU without applying for a visa or residency.
If you want to stay longer in Italy, most people from outside the EU would need to apply for a visa and residency permit (permesso di soggiorno).
Under the EU’s freedom of movement policy, EU nationals on the other hand do not need a visa or permesso di soggiorno. All they need is a valid travel document, such as an identity card or passport. Anyone in this category staying longer than three months in Italy is required to apply for a certificato di residenza (residence certificate) at their local Anagrafe (registry office).
READ ALSO: The five most essential pieces of paperwork you’ll need when moving to Italy
If you’re coming over regularly for a couple of weeks here and there, for example on holiday or business, it’s not necessary to apply for residency.
But if you’re planning to stay for longer than three months a year in total as a non-EU national, you will need to go through the process.
To find out how to apply for residency, you can find the full guide here.
Photo by Miguel MEDINA / AFP
How long you can be away from Italy if you have residency
After you've successfully got your residency - if that's right for your circumstances - what are the rules on how long you're in Italy?
"Once you register for residency, it’s no longer important how much time you spend in Italy," Mazzeschi told The Local.
"It’s very rare for people to get kicked out of Italy for being away too long," he confirmed.
In general, the registry office can remove anyone who is unavailable over a long period of time at the residency address, according to Mazzeschi.
EXPLAINED: Can second-home owners get an Italian residence permit?
"This is a very uncommon procedure, and a result of multiple attempts from authorities to reach out to the individual. When the person is no longer found at the given address, the residency can be cancelled," stated the law firm's senior immigration consultant Costanza Petreni.
So what counts as a long period of time?
The answer depends on the amount spent outside the country for non-EU nationals and also on the type of residence permit.
We'll look at non-EU immigration permits, as the rules are much more straightforward for EU nationals.
Residence Permit - (permesso di soggiorno). Remember that you'll need to get a long-stay visa first, which allows you to enter Italy. After that, you will also have to get an Italian residence permit, the permesso di soggiorno, in order to be allowed to stay for longer than 90 days. These types of permits last one to two years.
In terms of time spent away from Italy, the permit cannot be renewed or extended if the holder has left Italy for more than six consecutive months. In the case of two-year permits, this applies to holders who have left Italy for more than half the validity of the permit consecutively. This would mean being out of Italy for 12 consecutive months.
There are exceptions, such as completing required military service abroad or "other serious grounded motives," the immigration experts said.
EU long term Residence Permit - (permesso di soggiorno per soggiornanti di lungo periodo). After five years of residence in Italy, a non-EU citizen can apply for this 'permission to stay for a long period'. The permit is revoked if the holder leaves the EU for 12 consecutive months or leaves Italy for more than six years. Otherwise, this permit has no expiration.
Photo: Alberto PIZZOLI / AFP
Permit for family member of an EU citizen (Carta di soggiorno). This is not to be confused with the post-Brexit electronic ID card with avery similar name, which proves the rights of British citizens who were in Italy before Britain left the EU.
Instead, this permit is valid for family members of an EU citizen and remains valid as long as the holder doesn't leave Italy for periods of no longer than six months in a year. This can be for longer in case of military service.
In some cases, it is still valid even if the holder leaves Italy for up to 12 months. Pregnancy, maternity, illness, study and professional reasons or work assignments are all acceptable causes for leaving Italy longer than a year, where this permit is concerned.
It's worth noting that it's the holder’s responsibility to provide relevant supporting documentation to keep the carta active.
READ ALSO:
- Can Brits stay more than 90 days in the EU if they have a European spouse?
- Brexit: How Brits can properly plan their 90 out of 180 days in Italy and the Schengen zone
How this affects your tax payments
Residency is of course more than just officially declaring that you live in Italy. It has tax consequences too.
Mazzeschi noted that some may want to opt for maintaining residence in the UK, for example, in order to avoid paying higher Italian income tax (Irpef).
However, this is not advised as the authorities may learn that something is amiss "if your partner is here, your business is here, but you just about spend enough time outside Italy to avoid paying income tax".
He cited high-profile tax evasion cases such as that of former MotoGP champion Valentino Rossi, who was forced to pay €35 million in fines to Italy's revenue agency. This came after he moved his residence to London and didn't declare his earnings of €60 million across four years, from 2000 to 2004.
The penalties were based on the second, more subjective, component of residency - not just physical presence, but other factors that show an intention to live in Italy.
"Reference is made to a number of things, including but not limited to an individual’s conduct, social and personal habits, working relationships, family relationships, business and personal activities," the immigration expert told us.
Taking up permanent residency has an impact on access to national health services too (depending on the system in your home country).
Second home owners may already be paying some Italian tax, but this in itself does not mean they have residency rights.
Becoming a permanent resident in Italy means filing annual tax returns with Italian authorities, even if all your income comes from your home country or elsewhere, and registering with the Italian healthcare system (which may not be free).
For these reasons, many non-EU citizens with a second home in Italy may decide sticking to the 90-day rule is their best option.
Marco Mazzeschi is the founder of Mazzeschi, an immigration and citizenship consultancy firm based in Italy. You can contact him further here.
Please note The Local cannot advise on specific cases. For more details about the process of applying for an Italian visa and residency permit, see the Italian Interior Ministry’s website or the EU immigration portal.
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Reader question: I have a home in Italy and I also live in the UK. Can I have permanent residency in both countries and do I have to spend a minimum amount of time in Italy to retain my residency there?
Living between two different countries throws up a lot of questions and confusion surrounding residency rights and the amount of time you can spend in Italy legally.
For people who have a home in Italy, the answer to the above question depends on how much of the year you want to spend in the country, and on your nationality.
"If an individual spends time both in Italy and in another country, the periods of presence outside of Italy are calculated and compared with the periods of presence in Italy to see which one is prevalent," stated immigration lawyer Marco Mazzeschi of immigration consultancy firm Mazzeschi.
Essentially, you can spend time in Italy and another country, but the time you can spend out of Italy depends on the type of residence permit you hold. That is if, in fact, you have or need residency in Italy at all.
"If you have a house in Puglia, for instance, and you want to visit it three or four times a year for a week or two at a time, you don't need to register for residency," Mazzeschi clarified.
So, even though people may own a second home in Italy and pay taxes on that property, that doesn't mean they automatically have residency in Italy - nor do they necessarily need it.
READ ALSO: What taxes do you need to pay if you own a second home in Italy?
But if you spend longer in Italy and have family and work here, or "where the person and family live on a day to day basis" according to Italian law, this is when you'll need to register for residency, the legal expert said.
There are tax implications to this, as "you have officially declared Italy as your main centre, your main residence," according to the immigration expert. It means you'll need to pay income tax on all worldwide income, which we'll explain in more detail below.
What may come as a relief to many is that it's rare for people to lose their residency, once they've got it, for being out of Italy for periods of time.
Here's what you need to know about keeping your residency in Italy, depending on your nationality and paperwork.
Do you need residency in Italy at all?
As a starting point, citizens of many non-EU countries, including Americans and now Brits are allowed to spend 90 days out of every 180 in the EU without applying for a visa or residency.
If you want to stay longer in Italy, most people from outside the EU would need to apply for a visa and residency permit (permesso di soggiorno).
Under the EU’s freedom of movement policy, EU nationals on the other hand do not need a visa or permesso di soggiorno. All they need is a valid travel document, such as an identity card or passport. Anyone in this category staying longer than three months in Italy is required to apply for a certificato di residenza (residence certificate) at their local Anagrafe (registry office).
READ ALSO: The five most essential pieces of paperwork you’ll need when moving to Italy
If you’re coming over regularly for a couple of weeks here and there, for example on holiday or business, it’s not necessary to apply for residency.
But if you’re planning to stay for longer than three months a year in total as a non-EU national, you will need to go through the process.
To find out how to apply for residency, you can find the full guide here.
How long you can be away from Italy if you have residency
After you've successfully got your residency - if that's right for your circumstances - what are the rules on how long you're in Italy?
"Once you register for residency, it’s no longer important how much time you spend in Italy," Mazzeschi told The Local.
"It’s very rare for people to get kicked out of Italy for being away too long," he confirmed.
In general, the registry office can remove anyone who is unavailable over a long period of time at the residency address, according to Mazzeschi.
EXPLAINED: Can second-home owners get an Italian residence permit?
"This is a very uncommon procedure, and a result of multiple attempts from authorities to reach out to the individual. When the person is no longer found at the given address, the residency can be cancelled," stated the law firm's senior immigration consultant Costanza Petreni.
So what counts as a long period of time?
The answer depends on the amount spent outside the country for non-EU nationals and also on the type of residence permit.
We'll look at non-EU immigration permits, as the rules are much more straightforward for EU nationals.
Residence Permit - (permesso di soggiorno). Remember that you'll need to get a long-stay visa first, which allows you to enter Italy. After that, you will also have to get an Italian residence permit, the permesso di soggiorno, in order to be allowed to stay for longer than 90 days. These types of permits last one to two years.
In terms of time spent away from Italy, the permit cannot be renewed or extended if the holder has left Italy for more than six consecutive months. In the case of two-year permits, this applies to holders who have left Italy for more than half the validity of the permit consecutively. This would mean being out of Italy for 12 consecutive months.
There are exceptions, such as completing required military service abroad or "other serious grounded motives," the immigration experts said.
EU long term Residence Permit - (permesso di soggiorno per soggiornanti di lungo periodo). After five years of residence in Italy, a non-EU citizen can apply for this 'permission to stay for a long period'. The permit is revoked if the holder leaves the EU for 12 consecutive months or leaves Italy for more than six years. Otherwise, this permit has no expiration.
Permit for family member of an EU citizen (Carta di soggiorno). This is not to be confused with the post-Brexit electronic ID card with avery similar name, which proves the rights of British citizens who were in Italy before Britain left the EU.
Instead, this permit is valid for family members of an EU citizen and remains valid as long as the holder doesn't leave Italy for periods of no longer than six months in a year. This can be for longer in case of military service.
In some cases, it is still valid even if the holder leaves Italy for up to 12 months. Pregnancy, maternity, illness, study and professional reasons or work assignments are all acceptable causes for leaving Italy longer than a year, where this permit is concerned.
It's worth noting that it's the holder’s responsibility to provide relevant supporting documentation to keep the carta active.
READ ALSO:
- Can Brits stay more than 90 days in the EU if they have a European spouse?
- Brexit: How Brits can properly plan their 90 out of 180 days in Italy and the Schengen zone
How this affects your tax payments
Residency is of course more than just officially declaring that you live in Italy. It has tax consequences too.
Mazzeschi noted that some may want to opt for maintaining residence in the UK, for example, in order to avoid paying higher Italian income tax (Irpef).
However, this is not advised as the authorities may learn that something is amiss "if your partner is here, your business is here, but you just about spend enough time outside Italy to avoid paying income tax".
He cited high-profile tax evasion cases such as that of former MotoGP champion Valentino Rossi, who was forced to pay €35 million in fines to Italy's revenue agency. This came after he moved his residence to London and didn't declare his earnings of €60 million across four years, from 2000 to 2004.
The penalties were based on the second, more subjective, component of residency - not just physical presence, but other factors that show an intention to live in Italy.
"Reference is made to a number of things, including but not limited to an individual’s conduct, social and personal habits, working relationships, family relationships, business and personal activities," the immigration expert told us.
Taking up permanent residency has an impact on access to national health services too (depending on the system in your home country).
Second home owners may already be paying some Italian tax, but this in itself does not mean they have residency rights.
Becoming a permanent resident in Italy means filing annual tax returns with Italian authorities, even if all your income comes from your home country or elsewhere, and registering with the Italian healthcare system (which may not be free).
For these reasons, many non-EU citizens with a second home in Italy may decide sticking to the 90-day rule is their best option.
Marco Mazzeschi is the founder of Mazzeschi, an immigration and citizenship consultancy firm based in Italy. You can contact him further here.
Please note The Local cannot advise on specific cases. For more details about the process of applying for an Italian visa and residency permit, see the Italian Interior Ministry’s website or the EU immigration portal.
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