How Sardinia Became A Prime Destination For Expats
Michele Collu
Founder @Sardiamo: real estate and relocation advisory for internationals in Sardinia, Italy | Helped 100+ people plan investments or move from overseas | Ex SaaS Biz Dev | Ex Big Law
Sardinia is the second largest island in the Mediterranean after Sicily and, like the latter, it is also part of Italy.
It is further away from the mainland, as it stands right in the middle between Italy and Spain, just south of Corsica and north of Tunisia. Its geography is responsible for a history made of mystery, resilience, natural conservation and cultural contamination.
On top of world-famous pristine beaches, colorful traditions, unparalleled quality of life and widespread connectivity, relocating to Sardinia today also offers exceptional tax incentives.
In fact, Expats who move to the island pay less than 10% tax on their personal income for at least 5 years.
I grew up there and watched it morph from an all-time favorite touristic destination, into one of the most desirable places for Expat relocation in Europe.
Below, is the story of how this all happened.
PART I: Where Is All This Coming From?
My childhood in Sardinia was a golden one, made of year-round sunshine, endless Summers on the coast and blissful Winters in the countryside.
At 13 years of age, I ventured out to live overseas then, again, at 17 for good.
My sister Claudia and I have been blessed with very forward-thinking parents. In the early days of Ryanair and Schengen, we lived in Cambridge, UK. Here we attended an international school and started our path to become real citizens of the world.
After Cambridge we’ve lived for study and work in Berlin, Miami, Milan, Paris, Santiago de Chile and the San Francisco Bay Area.
Anywhere opportunity and life circumstances would take us, we would go. And it always seemed to be away from home.
A Longtime Longing
Despite living elsewhere most of my life, I never lost the sense of belonging to this incredible island. Regardless, life always seemed to be pulling me away.
Back in the Summer of 2013, I spent a few months living in Cagliari, my hometown, for the first time after many years.
I was taking a break from almost half a decade of law practice at top tier law firms in Milan, to prepare my bar exam in Italy, then move to California and join the LL.M. program at UC Berkeley.
To cope with the incredibly stressful study routine of those months, I made an effort to spend a couple of hours a day engaged in outdoor activities such as swimming, jogging and biking-- all rigorously within a mile radius from the house, to minimize downtime.
On a particular evening, walking back from a swim in the sea, as a warm evening sun and a gentle breeze caressed my face, a realization hit me:
"Wow, this paradise right here is Home! Why am I spending my whole life away? Will I ever be back?"
At the time, however, Italy was dealing with the worst recession since the Second World War and Sardinia wasn’t doing any better. The prospect of actually moving back to live and work seemed unrealistic, at best.
What Changed?
I spent the following 5 years living and working on the West Coast of the United States, in and around the San Francisco Bay Area.
Focused as I was on this transcontinental endeavor, I returned home to Sardinia only 2-3 times over the whole period. The distance allowed me to develop a wider perspective and notice the changes that were taking place locally.
In fact, after decades of relative inertia, the island really started to bloom, bustling with new restaurants, bars, bodegas, music festivals and cultural venues.
Simultaneously, a start-up ecosystem had begun to develop, with my hometown of Cagliari at its center.
In 2020 this upward trend earned the city a whopping 9th place in the annual “Best Places To Live in Italy” list compiled by the country’s main financial newspaper: il Sole24Ore (as reported for example here). And the process that put the city so decisively on the map is ongoing.
PART II: The Turning Point-- a.k.a. Why I Am Telling You This
While all this internal growth was exciting, did it create the conditions to attract foreign talent and resources to relocate here? Yes, but not quite enough.
The real breakthrough came with a piece of legislation - D.L. 34/2019 (Decreto Legge Crescita) - which set forth significant incentives for foreigners to relocate to Italy.
Under these provisions foreign workers who: 1) move their residence and 2) bring their work to Sardinia are taxed on only 10% of their annual personal income for the following to 5 years, extendable in certain cases.
That applies to anyone who worked outside of Italy for the prior 2 years, irrespective of nationality.
Today: significant tax incentives + Sardinia’s unparalleled beauty + stellar quality of life + strategic position in the EU = a new Eldorado for expats.
This new reality, coupled with the recent pandemic-driven remote working trend, is attracting more people than ever before.
To those who require only a laptop and an internet connection to earn their livelihood, relocating to this paradise-like destination is a no-brainer.
What exactly does it offer? (...)
Sardinia’s geography and history, make it an attractive place to relocate for (at least) the following reasons:
- Location within both the EU common market and the Eurozone;
- A blooming start-up and Expat community;
- Extensive coverage of Ultra Broadband Internet;
- 3 international airports;
- Sunshine and warm weather throughout the year;
- Home to the Nuragic civilization, one of the oldest in the world;
- Stunning beaches, remote mountain ranges, award-winning vineyards and ancient villages.
(...) and what it does not offer?
It's safe to say that it does not offer immediate employment opportunities for Expats. Although not impossible, these are highly unlikely.
If the opposite were true, the government here wouldn’t be offering such handsome tax discounts to encourage people to relocate.
Those considering to make the move should plan to bring their work over with them, either as a salaried employee for an Italian entity (e.g. the Italian HQ of an international company) or as independent contractor/freelancer.
PART III: How Do I Move There?
Of course, knowing about the opportunity is only a mere start. There are many considerations and arrangements that need to be in place for relocation to be a reality.
As a family that relocated abroad multiple times, we have a firm understanding of all the work and evaluation that such a life choice entails.
With that in mind, I partnered with my sister Claudia Collu, a tenured Tech executive with 10+ years experience in Digital Marketing, and my mother Maria Bonaria Cella, a well established realtor with 30+ years experience to create Sardiamo.
We recently launched and are helping individuals and companies:
- Plan and execute their relocation to Sardinia
- Enroll for tax benefits (via a trusted local CPA)
- Find the perfect area and home on the island
Email us at [email protected] and we'll send over our free Tax Guide to help you assess if you're eligible for the fiscal incentives.
We hope to welcome you to Sardinia soon!
Chief Digital Officer at DESTINATION ITALIA
4 年Bravi!
CEO - Super Poteri by Brave Potions
4 年Chiara Saba
Enterprise Account Executive @ Interfolio | 1 Startup Founded | GTM Leader | $100m Outbound Pipe Generated
4 年When can I move here?
Nice article. All the best to Sardiamo!
Co-Founder & CEO at Co-Tasker
4 年Great article