Investor Visa Italy Investor Visa Italy / 3 | Page 15

POINTS OF VIEW
world’s freest economy in its 2019 Index of Economy Freedom, while Macau
is in 34th place and China in 100th place, confirming what the representatives
of the local government declare in every meeting: “Hong Kong is open for
business”. This is evidenced by its many current laws (tax relief for small
businesses/start-ups, support for investment in R&D, fast track initiatives such
as visas for foreign talents).
Hong Kong is one of the cities with the highest per capita income in the
world, thanks to its strong vocation for finance and an increasingly
dynamic service sector. The huge profits made by its inhabitants in which
sectors are usually reinvested?
In terms of GDP per capita this statement is true (61,500 USD, a very high
figure but also far behind Macau’s 110,000 USD). In terms of monthly income
per capita, reality is a bit different: government statistics indicate a median
income of 18,000 HKD (equal to about 2,000 Euros), with more than 12% of
the active population earning less than 5,000 HKD (600 euros) but with 10%
over 50,000 HKD (6000 euros). If we consider that Hong Kong always appears
in the top spots of any research on the cost of living (housing, specifically), the
majority of the population spends a large portion of their disposable income in
housing expenses (rent or mortgage), and then in their children’s education.
This is obviously different for the top earners: family offices, which manage the
assets, evaluate any type of investment: good business is always good business.
The two cities are often referred to as tax havens in government
blacklists, even though they committed to complying with international
standards on bank transparency in 2009. What can you tell us about the
Chamber’s activity in relation to these facts?
We need to be clear about this: Hong Kong, following the signing and
ratification of the Conviction against double taxation, is no longer on the
blacklist. As a Chamber, we have been very active and “vocal” in the dialogue
with the government when, following the implementation of the required rules,
many companies and their staff have encountered great difficulties in opening
bank accounts, which were resolved thanks to the active collaboration of the
government and of local banking institutions.
Italy is one of the major centres of attraction for Chinese foreign
investments. Which role do the two cities play in this flow of capital to the
West? Are there companies or individual investors who particularly
favour Italy and the opportunities offered by its economy?
Hong Kong is one of the leading global financial centres, home to many Chinese
financial companies and local investment funds that, in addition to the already
mentioned family offices, are always looking for good opportunities. Certainly,
many Italian companies excelling in several industrial sectors are suffering –
if I can say so – of “financial dwarfism” and cannot find the necessary sources
of funding to expand: they can be of great interest.
What, in your opinion, could the Belt and Road Initiative represent for the
exchange of goods and capital between China, and in particular Hong
Kong and Macau, and Italy?
I think that the Belt and Road Initiative, and its potential impact that goes
beyond what the financial and goods flows will be, is something that still needs
to be well understood not only by the economic and business world but also
by the political one, both Italian and European, to then work reasonably with
the Chinese government. Something much more relevant is the Greater Bay
Area. This initiative aims at the creation of a bay area in competition with those
of San Francisco, Tokyo and New York through the union of the forces of a
world class high tech innovation centre (Shenzen), a top financial and
professional services hub (Hong Kong), and a mature and innovative
manufacturing centre (based in Guangzhou and seven other cities in
Guangdong) with tourist destination like Macau. None of the other current bay
areas has all these characteristics.
Hong Kong and Macau represent the vanguard of the Chinese economy
and finance. Can this perennial interest towards the future result in
greater attention from local investors for the flourishing reality of
innovative Italian start-ups, surpassing those that are the classic sectors
of Made in Italy that are appealing to foreign investors?
Of course, even more so as the Hong Kong government intends to make an
innovation hub out the city. This is also supported by huge investments backing
innovative companies (tax deductions, financial support, infrastructure, and so
on). I would mention two initiatives in particular that were born thanks to the
great commitment of Italian entrepreneurs, companies and professionals and
strong support from the Italian Consulates in Hong Kong & Macau and
Guangzhou, and our Chamber: Startit.Asia and GBA Innovation Road Initiative,
both in their second year. Startit.Asia focuses on promising Italian start-ups:
five of them are selected and taken to Hong Kong and Shenzen for a week of
meetings with innovation centres, universities, and potential investors. On the
other hand, the GBA Innovation Road Initiative is aimed at Italian SMEs that may
be interested or interesting for the local market and investors.
Looking at sectors in which Italy is a leading country in the world like
tourism, you think that Honk Kong and Macau entrepreneurs may be
willing to invest into large hospitality structures or real estate properties,
also when we take into account the fact that both cities are famous for
their urban overcrowding?
Looking at the number of tourists over surface ratio, Italy (the fifth most visited
nation in the world with 58 million tourists) pales in comparison with Hong
Kong (the most visited city in the world with 28 million visitors) and Macau
(fifth with 18 million): to make a fair comparison, Rome with its 9.7 million is
in 15th place. What allows cities as densely populated as Hong Kong to attract
and sustain such an influx of tourists without undermining, too much at least,
the residents’ quality of life are mainly the ease of movement thanks to efficient
public transport at low cost, and to an affordable dining offering. Certainly the
interests of tourists who visit Hong Kong (shopping and leisure in amusement
parks like Disneyland and Ocean Park) and Macau (gambling and, more
recently, also short family vacations) are very different from those of tourism
in Italy (cultural tourism and food and wine ), as well as the countries of origin
(for Hong Kong and Macau mainly Mainland Chinese). As for investments in
Italy by local investors, we have to repeat what we said before: Italy is
unfortunately perceived as too complicated and difficult “to navigate”.
The new visa for Italian investors is designed specifically for non-EU
entrepreneurs who want to invest at least half a million (in start-ups) or
one million (in other companies) euros in Italy. The visa is also available
for the philanthropists whom I intend to donate for the preservation of
Italian cultural heritage. Can the visa encourage these two categories to
invest or donate in Italy?
I think that there is greater interest by Hong Kong entrepreneurs in potential
investments to acquire some of our noteworthy technological know-how. I
think that the visa may attract foreign investors, however, the real problems
start appearing once the businessman settles his activity in Italy: as a country,
there is still much work to do here. As far as cultural heritage is concerned,
there is a huge interest from the Hong Kong government in having displays
and exhibitions of our “treasures”, something to which our Consul General is
actively working and to which we as a Chamber are giving all the necessary
support. For eventual donations by philanthropists they are, discouraged by
the fact that Italy is still perceived as a “country no easy to do business within”
The subsidized tax regime designed by Italy for those who transfer their
tax residence, with a flat tax of 100,000 euros a year on income earned
abroad, is another measure designed to enter into synergy with the visa
for investors. Do you think that it could represent an additional incentive
for those wishing to move to Italy?
It depends on where they are transferring: in Hong Kong, personal income tax
and business taxes are between 15 and 17%.
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