Investor Visa Italy Investor Visa Italy / 3 | Page 13

POINTS OF VIEW
establishing a base for collaboration between Israel and Apulia in hi-tech
sectors; Leonardo has recently delivered a contract for eight helicopters. Other
classic sectors related to Made in Italy, such as furniture and footwear, are
highly appreciated, and we consider the companies operating in them as
avant-garde, both in their technology and in design.
The Italian manufacturers are an ideal partner for Israeli companies,
which are usually more committed to research and development, and
represent a privileged option to establish new productive synergies. Do
you think that in the future Israeli companies may commit themselves
further to the Italian market through direct investments or acquisitions
of their Italian counterparts?
There is a very advanced technology exchange. Many Italians come to Israel
to learn new techniques and import new technologies into Italy, especially in
the medical field and in the military one. A less well-known fact, mainly for
diplomatic reasons, is the equally strong interest of Israelis citizens towards
Italy and its expertise for essentially identical reasons. Given the very strong
ties between the high technology industries of the two countries, it could be
said that there we are going through a real honeymoon phase between the
two industrial systems. Even the joint infrastructure projects are going through
a positive moment: just think that Italy will import gas from Israel, which has
identified a considerable deposit off its coasts, with a gas pipeline that will
arrive in Italy via Greece and Cyprus. Bilateral investments can already boast
a solid foundation and are experiencing a phase of further development, but
much will depend on the Italian government stability and on the political
relations between the two countries: an Italian government hostile to Israel,
considering, for example, the latter as a non-democratic country, could very
well reverse this positive trend.
Israel has the second-largest number of start-up companies in the world
after the United States, and its Silicon Wadi is the reason Israel earned
the Start-Up Nation nickname. Even in Italy, innovative start-ups are
starting to represent an important engine of the national economic
development: do you think that we can establish profitable synergies
between the two production systems?
Among the start-ups of the two countries, there is very strong cooperation, I
know personally that one learns from each other, there is no cutthroat
competition as there could be in other cases. For example, the after-mentioned
agreement between the Polytechnic of Bari and the Technion of Haifa will help
Italian and Israeli startuppers to work together. Italy is a friendly country, a very
open port for Israel and, through the sharing of knowledge and the cooperation
of start-ups, it will be possible to realize the great potential still present for the
development of industrial and economic synergies between the two countries.
Israel can also boast a very high number of venture capital companies
very committed to supporting innovative national companies.
Considering how the return on Israeli investment abroad is higher on
average do you think that it is possible to see these companies venturing
outside Israeli national borders, for example in Italy?
Israel and its companies are always looking for new market outlets abroad
and Italy is a key partner, both as a destination for domestic companies wishing
to absorb Italian know-how and as a bridge to other states that do not have
diplomatic relations with Israel. Even among the member states of the
European Union, Italy is deemed, together with Germany, among those closer
to Israel. Given this, I believe there is plenty of room for Israeli investments in
Italy.
Italy and Israel are also united by a fruitful cultural partnership and
exhibitions dedicated to great Italian artists will be hosted in Israel for the
seventieth anniversary of the establishment of diplomatic relations. How
is Italian culture seen in Israel, and which are its aspects deemed as the
more fascinating ones?
Italy is seen as a creative, high-class country with which Israel is happy to
entertain cultural relations through the organization of art exhibitions or the
participation of Italian films, or joint Italy-Israel productions, in local film
festivals. Italian television series and music are also very popular: the former
are often translated into Hebrew and broadcast on national television while
the latter can boast a deeply rooted tradition. This year Israel will host the
Eurovision Song Contest, and it is thought that the Italian winner of Sanremo,
Mahmood, who is very appreciated for its sounds very unlike the classical
Italian melodies, can be successful. When we look at food and wines, Italy is
one of the most loved countries in Israel, as evidenced by the number of Italian
restaurants, with wines that, despite the competition of local labels are very
popular. Architecture, design and, in a more broad sense, Italian inventiveness
conquered a long time ago the market and the population of Israel which, also
thanks to the current good economic condition, sees in the Made in Italy a
symbol of classy products and beauty.
Italy has adopted a visa regulation for non-European entrepreneurs that
allows those who invest in Italy at least half a million (in a start-up) or
one million (in a company) euros to obtain a special visa for investors.
Patrons who donate at least one million to the preservation of Italian
cultural heritage can also request this visa. Do you think that a similar
initiative could be appealing to the Israeli public?
I believe it can help. It would be a great start to then think of adopting more
incentives and simplifications necessary to stimulate mutual investment. I hope
that we can continue on this path and that the Italian political situation does
not lead the government to abandon these investment attraction policies. I also
hope that the Italian banking sector will remain stable as possible problems
could represent a source of systemic instability that may harm the investment
climate.
The visa is intended for natural persons and therefore cannot be
requested following investments made by a private equity company. Do
you think it would be desirable to revise the law to widen the
beneficiaries’ audience and thus stimulate large companies to invest in
Italy to enjoy the benefits of the visa?
I think it would give a boost to companies too. I think that, with greater
incentives and bureaucratic reductions, not only directed to individual
entrepreneurs but also to companies, Israeli investors will look with greater
interest to Italy as a country in which to invest.
The cultural proximity between the two countries is also aided by the
strong presence of an Italian Jewish community. Do you think this could
be a factor for Israeli entrepreneurs or patrons, the latter perhaps
interested in preserving the noteworthy Jewish cultural heritage in the
country, to look at Italy with greater favour?
I am sure there is an interest, but I believe that cultural donations for the
preservation of Jewish cultural heritage come mainly from members of the
Jewish diaspora rather than from Israeli citizens. Of course, even the latter
part in a small part could contribute, but American Jews, also through their
contacts and ties with Israeli citizens who can act as a link, are the ones
interested the most in similar operations of patronage for the conservation of
the cultural heritage of diasporas in Europe.
Complementary to the visa for investors is the norm that offers a
subsidized tax regime for those who transfer their tax residence in Italy,
with a flat tax of 100,000 euros a year on income earned abroad that can
also be extended to family members for an additional 25,000 euros a year.
Given the Israeli tax regime, do you think that entrepreneurs can benefit
from such a provision?
I do not know how much it can affect Israelis’ investment choices, also when
we consider that this measure came into force a short while ago, because the
taxation in Israel is high, but it is not very far from the Italian one. Obviously,
tax breaks of any kind would help bilateral trade and investments.
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