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TOURISM

Why the Italian government might give you up to €500 to go on holiday in Italy

As Italy seeks to stimulate the economy in the wake of the coronavirus crisis, the Italian government is offering to help lower-income residents take a holiday this year. (This article was updated on June 18th)

Why the Italian government might give you up to €500 to go on holiday in Italy
A deserted hotel bar in Jesolo, near Venice. Photo: AFP
Italy on Wednesday June 17th confirmed details of a new “holiday bonus” scheme under which low-income households could receive up to 500 euros ($560) each to help get the country's battered tourism sector back on its feet.
 
Part of the ambitious 'Relaunch Decree' unveiled in mid-May, the 'holiday bonus' could be worth up to €500 to families who choose to travel in Italy.

It aims to boost Italy's tourism sector, which accounts for 15 percent of the country's jobs and has taken a massive hit from travel restrictions imposed by Italy and other countries during the coronavirus pandemic.

READ ALSO:

“All sectors have suffered badly during this crisis, but tourism has paid the heaviest price for the consequences of this epidemic,” said Italy's Tourism Minister Dario Franceschini as he announced a raft of exceptional stimulus measures for the industry, which also include tax breaks for tourist accommodation, bars and restaurants.

The government said it was setting aside 2.4 billion euros for households earning less than 40,000 euros a year to receive a financial incentive to
holiday in Italy rather than go abroad.

Who can claim the 'holiday bonus'?

There are two conditions:

1) It's for residents, not overseas visitors: you must pay taxes in Italy, since part of the bonus takes the form of a tax deduction. (If you live outside Italy and would like to know when you might be allowed to visit, you'll find our latest information here.)

2) It's for lower-income households: your combined income, as calculated on your ISEE or 'Equivalent Economic Situation Indicator', should total no more than €40,000 per year.

Families, couples and individuals can all apply for the bonus. If you're applying as a couple or family it will only be paid per household, not per person.

READ ALSO: 'Without tourists, Venice is a dead city': Not all Venetians are glad the crowds have gone


Photo: Marco Sabadin/AFP

How much is it worth?

The government says it will pay €150 to people travelling on their own, €300 for two people and €500 for families of three or more.

How is it paid?

The bonus will be paid out in two ways: 80 percent of the cost will be shouldered upfront by your hotel, B&B, agriturismo or other accommodation and should be discounted directly from your bill. You should plan to stay in one spot, because you'll only be able to claim the bonus from a single place of accommodation.

Accommodation owners will then claim the money back from the government in the form of a tax credit. They'll need to make a note of your personal codice fiscale (tax code) and issue a complete bill or receipt.

READ ALSO:

The decree states that payment must be made directly by the guest or via a travel agent, but not through any other kind of portal or intermediary – which means that stays in AirBnBs, which are booked on the company's own platform, are not eligible for the bonus.

It's up to guests to claim the remaining 20 percent of the bonus, which can be deducted from your tax bill for the 2020 financial year.

When can you travel?

The bonus can be paid on trips taken between July 1st and December 31st 2020.

Italy started allowing tourism from the EU and from Schengen countries again on June 3rd.
 
No date has been confirmed yet for non-EU travel to restart, but this is not expected to be until after June 30th.
 

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TRAVEL NEWS

Reader question: What will EES mean for foreigners living in Europe?

The EU's new Entry & Exit System (EES) of enhanced passport controls is due to come into force later this year, but among many questions that remain is the situation for non-EU nationals who live in the EU or Schengen zone.

Reader question: What will EES mean for foreigners living in Europe?

Currently scheduled to start in autumn 2024 (unless it’s delayed again, which is not unlikely) the EU’s new Entry & Exit System is basically an enhanced passport check at external EU borders, including a facial scan and fingerprinting.

You can find a full explanation of the new system HERE.

Travellers crossing an external EU or Schengen border for the first time will be required to complete EES ‘pre-registration’ formalities including that facial scan and fingerprinting.

There are, however, several groups exempt from EES and one of them is non-EU nationals who have a residency permit or long-stay visa for an EU country.

So if you’re a foreigner living in the EU or Schengen zone, here’s what you need to know.

Exempt

One of the stated aims of EES is to tighten up enforcement of over-staying – IE, people who stay longer than 90 days in every 180 without a visa, or those who overstay the limits of their visa.

Obviously these limits do not apply to non-EU nationals who are resident in the EU or Schengen zone, which is why this group is exempt from EES checks. They will instead be required to show their passport and residency permit/visa when crossing a border, just as they do now.

In its explanations of how EES will work, the European Commission is clear – exempt groups include non-EU residents of the Bloc.

A Commission spokesman told The Local: “Non-EU citizens residing in the EU are not in the scope of the EES and will not be subject to pre-enrollment of data in the EES via self-service systems. The use of automation remains under the responsibility of the Member States and its availability in border crossing points is not mandatory.

“When crossing the borders, holders of EU residence permits should be able to present to the border authorities their valid travel documents and residence permits.”

How this will work

How this will work on the ground, however, is a lot less clear.

Most ports/airports/terminals have two passport queues – EU and non-EU. It remains unclear whether the non-EU queue will have a separate section for those who are exempt from EES.

It does seem clear that exempt groups will not be able to use the automated passport scanners – since those cannot scan additional documents like residency permits – but should instead use manned passport booths. However it is not clear whether these will be available at all airports/ports/terminals or how non-EU residents of the EU will be directed to those services.

There’s also the issue that individual border guards are not always clear on the processes and rules for non-EU residents of the EU – even under the current system it’s relatively commonly for EU residents to have their passports incorrectly stamped or be given incorrect information about passport stamping by border guards.

Brits in particular will remember the immediate post-Brexit period when the processes as described by the EU and national authorities frequently did not match what was happening on the ground.

The Local will continue to try and get answers on these questions. 

READ ALSO What will EES mean for dual nationals

What if I live in the EU but I don’t have a visa/residency permit?

For most non-EU citizens, having either a visa or a residency permit is obligatory in order to be legally resident.

However, there is one exception: UK citizens who were legally resident in the EU prior to the end of the Brexit transition period and who live in one of the “declaratory” countries where getting a post-Brexit residency card was optional, rather than compulsory. Declaratory countries include Germany and Italy.

Although it is legal for people in this situation to live in those countries without a residency permit, authorities already advise people to get one in order to avoid confusion/hassle/delays at the border. Although EES does not change any rules relating to residency or travel, it seems likely that it will be more hassle to travel without a residency card than it is now.

Our advice? Things are going to be chaotic enough, getting a residency permit seems likely to save you a considerable amount of hassle.

Delays 

Although residents of the EU do not need to complete EES formalities, they will be affected if the new system causes long queues or delays at the border.

Several countries have expressed worries about this, with the UK-France border a particular cause for concern.

READ ALSO Travellers could face ’14 hours queues’ at UK-France border

Where does it apply?

EES is about external EU/Schengen borders, so does not apply if you are travelling within the Schengen zone – eg taking the train from France to Germany or flying from Spain to Sweden.

Ireland and Cyprus, despite being in the EU, are not in the Schengen zone so will not be using EES, they will continue to stamp passports manually.

Norway, Switzerland and Iceland – countries that are in the Schengen zone but not in the EU – will be using EES.

The full list of countries using EES is: Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

Therefore a journey between any of the countries listed above will not be covered by EES.

However a journey in or out of any of those countries from a country not listed above will be covered by EES.

You can find our full Q&A on EES HERE.

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