APARTMENTS AND TAXES

1) What is necessary in order to buy a property by using an offshore company (documents/ duration of registration)?

a. No special requirements. You can use an off-shore company, which then buys the property through a public notary. Time needed: 30/45 days in order to organize the meeting with the notary and to prepare all the necessary documents

b. Purchase of properties as an individual is allowed. In this case the individual must file the annual return and, in so doing, becomes filed on the fiscal authority’s database

c. The off-shore company can have its seat in a large number of jurisdictions

2) How high is the property tax in Campione?

a. Property tax on real estate “ICI” (Imposta Comunale sugli Immobili) – 0.5% of “property registry value” – Approx. € 9,00/m2 yearly. ICI is basically levied in the same measure regardless of the juridical status of the owner (individual or company)

3) How high are profit taxes by giving the apartment for rent?

a. Off-shore companies pay income taxes on the rental value of the property at a flat tax rate of 33%

b. Anyway, taxation of individual's income is progressive (the higher the income, the higher the tax rate)

4) How high are "property registration" taxes?

a. If the seller is a construction company and the sale occurs within 4 years from completion of construction: flat fee of approx € 500.-. In most of the other cases 10% of the declared value

5) Time frame - How long does it take to prepare all the documents to submit to the authorities?

a. 10 days

6) How long does it take for the authorities to consider the application?

a. Around 60 days.

7) Which is the list of documents the client has to provide?

• passport
• rent contract
• bank affidavit
• Italian fiscal code

8) Does the client have to submit the application for the residence in person or it can be done by a third party on his behalf?

a. In person.

9) Is it necessary to own or rent a property at the moment of the application for the residence permit?

a. Yes.

10) Please confirm that it’s 0% tax if there is no income in Italy.

a. Foreign Individuals resident in Campione become assessable as per the Italian law on a worldwide basis (art. 2 Italian DPR 917/86).

b. Since many decades, despite formal worldwide base taxation, Italian tax authorities tolerate that foreign citizens living in Campione and not earning Italian source income, do not submit the tax return with the consequence that they do not pay taxes at all in Italy.

11) What will be the explanation of the connection – the individual lives in Italy with a registered business in Switzerland?

a. The individual living in Campione can be the shareholder of a Swiss Company or of a foreign company with a Ticino branch without being disclosed.

12) Is it necessary to live always in Campione?

a. No. Theoretical - half a year plus 1 day, i.e. 183 days/year. However, it is impossible for the authorities to control this

13) Which are the possibilities for the registration of a business/company

a. There are no restrictions in order to register a business/company in Campione. Just remember that businesses conducted in Campione are subject to taxation in Italy

14) What is the procedure to obtain a Swiss or Italian nationality? Which Requirements?

a. Italian nationality:

• legal entry in Italy with a passport and an entrance VISA
• within 8 days from the entrance in Italy application for the request of a residency permit “permesso di soggiorno” (it will be a temporary permit with up to 2 years validity)
• renewal of the temporary permit in order to reach a legal period of residence in Italy of 5 years
• after 5 years of legal residence in Italy application for an unlimited permit “carta di soggiorno”
• after 10 years of legal residence in Italy, application for obtaining the Italian citizenship. The main requirement is the absence of penal charges both in Italy and in the country of origin

b. Swiss nationality:

13 years residence in Switzerland, but currently it is quite impossible for Russian citizens to obtain the Swiss residence. The best way is to become first Italian citizen and then move to Switzerland