Portugal and Italy are two of Southern Europe’s most desirable destinations, both offering residency opportunities to non-EU investors. While Portugal’s Golden Visa remains one of the most recognized residency-by-investment programs in Europe, Italy operates a slightly different scheme known as the Italian Investor Visa (or Residency by Investment program).
Both programs provide residency, Schengen travel, and long-term pathways to citizenship, but they differ in investment thresholds, residency requirements, taxation rules, and citizenship eligibility. This article compares the two so investors can make an informed decision in 2025.
Portugal’s Golden Visa (2025)
- Investment Options:
- €500,000 in qualifying regulated funds.
- €250,000 cultural donation (€200,000 in low-density municipalities).
- €500,000 research contribution.
- Creation of 10 jobs (or 8 in low-density areas).
- Residency Requirement: Minimum 7 days per year (14 days every 2 years).
- Path to Citizenship: Eligible after 5 years of legal residency.
- Tax Benefits: Option to apply for Non-Habitual Residency (NHR), with reduced tax rates or exemptions for 10 years.
- Family Inclusion: Spouse, children, and dependent parents included in one application.
Italy’s Residency by Investment Program (Investor Visa for Italy)
- Investment Options:
- €250,000 in innovative start-ups.
- €500,000 in an Italian company.
- €1 million donation to a philanthropic project (culture, education, immigration management, or scientific research).
- €2 million Italian government bonds.
- Residency Requirement: Must show effective residence in Italy — applicants need to spend significant time in the country to retain residency.
- Path to Citizenship: 10 years of continuous residence to apply for naturalization (aligned with broader Italian naturalization rules).
- Tax Benefits: Italy offers a Non-Dom flat tax regime of €100,000/year, allowing wealthy individuals to cap their global tax liability regardless of income level. This is attractive for ultra-high-net-worth individuals but less beneficial for average applicants.
- Family Inclusion: Spouse and children can be included.
Head-to-Head Comparison: Portugal vs Italy
| Feature | Portugal Golden Visa | Italy Residency by Investment |
| Minimum Investment | €250,000 (donation) / €500,000 (funds) | €250,000 (start-up) / €500,000 (company) |
| Investment Diversity | Funds, donations, job creation | Start-ups, companies, donations, gov bonds |
| Residency Obligation | 7 days/year | Must reside substantially in Italy |
| Path to Citizenship | 5 years | 10 years |
| Tax Benefits | NHR regime (10 years) | Non-Dom flat €100k/year |
| Family Inclusion | Spouse, children, dependent parents | Spouse, children |
| Mobility | Full Schengen access | Full Schengen access |
Pros of Portugal’s Golden Visa
- Shortest path to citizenship in the EU (just 5 years).
- Minimal physical presence requirement (7 days/year).
- Lower overall investment options (from €250,000).
- Highly flexible with multiple routes beyond direct business investment.
- Strong tax optimization through NHR program.
Cons of Portugal’s Golden Visa
- Real estate no longer qualifies.
- Growing demand can cause application processing delays through AIMA.
- Cultural/research donations have no ROI.
Pros of Italy’s Residency by Investment
- Attractive low entry point (€250,000 start-up investment).
- Large and diverse Italian economy with strong business opportunities.
- Non-Dom tax regime is highly favorable for ultra-wealthy investors with global income.
- Italy offers cultural prestige and high lifestyle appeal.
Cons of Italy’s Residency by Investment
- Long 10-year citizenship timeline, double that of Portugal.
- Must spend substantial time in Italy to qualify for renewals and citizenship — no minimal “7 days/year” flexibility.
- Investments tend to be higher-risk (start-ups) or non-returnable (donations), with fewer safe passive routes.
- Flat tax regime only valuable for those with very large global incomes.
Which Program Is Better?
Choose Portugal if you want:
- A fast track to EU citizenship (5 years).
- Minimal physical presence requirements.
- Flexible investments, especially regulated funds with ROI potential.
- A robust tax advantage under the NHR regime.
Choose Italy if you want:
- To actively relocate and live in Italy long-term.
- To leverage the Non-Dom tax regime (€100,000/year) for significant global wealth.
- To participate in start-ups or contribute philanthropically at a relatively low entry point (€250,000).
Conclusion
Both Portugal and Italy offer compelling residency-by-investment programs, but they target different investor profiles. Portugal’s Golden Visa is best for investors prioritizing flexibility, a faster citizenship timeline, and tax optimization. Italy’s Investor Visa appeals more to those willing to relocate fully and who benefit from the Non-Dom tax system due to very high global income.
For most internationally mobile families seeking EU citizenship quickly with minimal disruption, Portugal remains the superior choice in 2025.
Next Step
Not sure whether Portugal or Italy aligns better with your goals? Our seasoned advisors compare both programs to create a tailored residency and tax strategy for you. Contact us today to secure your pathway to European residency and citizenship.