Can Bitcoin Buy You Residency in Italy? 🟠

The Spaces explores whether Bitcoin can buy you residency in Italy, featuring Alessandro “Ali” Palombo, CEO and co‑founder of Bitizenship, in conversation with Mark Mason of Bitcoin Magazine. Ali shares his legal and startup background, his governance‑focused motivation for building Bitcoin‑aligned mobility products, and why the company operates out of Singapore. He details two offerings: the original Portugal Bitcoin Golden Visa fund and the newly launched Bitcoin Dolce Visa for Italy. The Italian Investor Visa can be obtained via a €250k investment into shares of an Italian “innovative startup” that holds Bitcoin exposure, has no minimum stay requirement, and is renewable indefinitely; citizenship requires relocation. Italy’s process is fast (~12 weeks) and grants the visa before funds are invested, reducing risk. The corporate treasury remains Bitcoin‑aligned with non‑custodial staking on Bitcoin L2s (e.g., Core), distributing 90% of profits to preferential shareholders. Ali contrasts Portugal’s pathway to citizenship with minimal physical presence at a higher investment level. He outlines Italy’s improving macro, tax arbitrage, and lifestyle as a strong Plan B, and notes traction: >€25m facilitated, with Balaji Srinivasan as a shareholder. Listeners are directed to the website, Ali’s X account, and his Substack for deeper engagement.

Can Bitcoin Buy You Residency in Italy? A Deep-Dive with Alessandro “Ali” Palombo and Bitersanship

Speakers and Roles

• Mark Mason — Head of Media at Bitcoin Magazine; host and moderator.
• Alessandro “Ali” Palombo — CEO & Co‑founder of Bitersanship; legal-background founder focused on global mobility, digital sovereignty, and Bitcoin‑aligned residency products.

Session Objective and Framing

Mark’s aim was to take listeners from zero to full understanding of Bitersanship: who Ali is, why the company exists, what their products do, and how they differ from traditional residency-by-investment offerings, with special focus on the newly launched Italian program (“Bitcoin Dolce Visa”).

Founder Background and Motivation (Condensed)

• Ali comes from a legal and public law background (qualified as a lawyer in Italy; PhD trajectory), later pivoting into startups and public-sector tech advisory (e.g., San Marino’s ICO legislation work; UK/Oxford prototype for tech-enabled small-claims justice improvements).
• His philosophy: current state systems and citizenship frameworks are antiquated (analogue governance models, broken visa systems), while Bitcoin and adjacent technologies enable direct ownership and freedom.
• He aims to reimagine citizenship and borders using simpler, more transparent instruments.
• Community traction: ~250M organic impressions on X in ~12 months; newsletter and ongoing public writing on global living, tax, and governance.

Company, Base, and Strategy

• Headquarters: Singapore — chosen for business efficiency, common‑law system, global capital friendliness (e.g., SAFE templates), and regulatory clarity.
• Operating footprint: Portugal (first product), Italy (second product, just launched), and a third product planned in coming months.
• Capital and growth: Profitable, growing; not pursuing traditional VC at this stage. Balaji Srinivasan is a shareholder.

Traction and Market Fit

• Launch of the Portugal “Bitcoin Golden Visa Fund” generated ~€250M of interest in 48 hours, with ~10% conversion; more than €25M facilitated in Bitcoin‑aligned residency investments to date.
• The Italian program garnered ~€2M in simple commitments pre‑launch and a strong inbound pipeline.
• Ali attributes traction to:
  1. Product simplicity and transparency in an inherently complex environment.
  2. Building the products themselves (not just advising on third party offerings), enabling deeper, in‑the‑weeds knowledge and accountability.
  3. Founder‑mode iteration and Bitcoin‑native culture, coupled with continuous customer dialogue.

Who Uses These Services?

• Three main customer profiles:
  • Hyper‑famous tech/web2/web3 founders (small in count, high profile and quality).
  • Bitcoin and crypto/web3 builders/operators.
  • Successful non‑tech professionals (e.g., surgeons, entrepreneurs) often in their early 40s, context‑aware, with meaningful interest in Bitcoin and secondary residencies.

Product Overview: Italy — “Bitcoin Dolce Visa”

• Core instrument: Italy’s Investor Visa program. Key attributes:
  • Visa grants right to live in Italy, travel across Schengen, and access local services (education, healthcare), without minimum stay requirements.
  • Validity and renewal: First issuance for 3 years; renewable for another 3 years; can be renewed indefinitely as long as the eligible investment is maintained.
• Bitersanship’s structure:
  • Investors purchase shares in an Italian “innovative startup” that is Bitcoin‑aligned (BDC Italia srl), meeting the visa’s eligible investment criterion at €250,000.
  • Preferential Class B shares: Shareholders receive 90% of Bitcoin‑linked profits; the company retains 10%.
  • Withdrawal right: Clear, pre‑defined windows every 24 months to exit when the visa is no longer needed (Ali noted potential future improvements).
• Payment and custody:
  • Fees can be paid in Bitcoin or USDC.
  • Direct investment in Bitcoin into the corporate entity is technically possible but costly and procedurally complex under Italian civil and corporate law (notary deeds, audits). The recommended route for most is converting BTC to fiat before subscribing to shares.
• Operating model and profit generation:
  • Corporate treasury maintains continuous exposure to Bitcoin.
  • To satisfy the “innovative startup” requirement, the company deposits software (initial two weeks) to support reporting on non‑custodial staking activities.
  • Non‑custodial staking on Bitcoin-adjacent layers (example mentioned: Core Network). Bitcoin remains in the company’s control; rewards are earned in the layer’s native token, then periodically liquidated to create revenue.
  • Conservative dividend policy: Dividends may be distributed from profits generated, with focus on long‑term safety and exposure to Bitcoin; no custodial operations.
• Application flow and timeline:
  • Efficiency: The Italian program is relatively fast. With prompt applicant responsiveness, end‑to‑end completion can be ~12 weeks.
  • Critical sequence: In Italy, you obtain the investor visa first, then finalize the investment. This structure reduces capital‑at‑risk during the application phase.
  • Logistics: One in‑person visit to Italy; typical total timeline 3–6 months depending on pace. If something fails, partial fee refunds may apply (as per Bitersanship’s policies).
• Legal note: This is a private placement in a startup, not a public offering.

Why Italy, Why Now? Macro and Policy Context

• Ali’s thesis: “Italy is back.” While acknowledging long‑standing structural issues, he cites recent data and reforms indicating a rebound:
  • Public debt stabilizing (~127–130% of GDP); Italian markets since 2020 reportedly outperformed European averages by ~2x; exports ~€600B with a ~€46B surplus.
  • Tax regimes fueling inbound talent and capital:
    • Impatriate regime: ~50–60% income tax exemption for five years to attract returnees and new talent.
    • Retirees: 7% tax on foreign income for up to ten years (location‑specific).
    • Flat tax for HNWIs: Annual flat tax reportedly increased from €100k to €200k; strong uptake (~4,000 UHNW attracted in H1 2024).
    • R&D/Researcher incentives: Up to ~90% tax exemption on earned compensation for extended periods (up to ~13 years), depending on eligibility.
  • Milan evolving into an international hub; anecdotal flows from London to Milan.
  • Real estate: Underappreciated in Italy vs. recent surges in Portugal; potential geo‑arbitrage: earn USD, spend EUR, stack Bitcoin.
• Caveat: Italy is not (yet) the optimal place to launch a tech startup (outside some exceptions), but it’s compelling for lifestyle, stability, and plan‑B residency.

Portugal vs. Italy — Key Differences and Use Cases

• Portugal (Bitersanship’s first product — “Bitcoin Golden Visa Fund” ecosystem):
  • Path to citizenship without relocation: Invest in an eligible route (or donate) and meet minimal stay requirements (often ~7 days/year). After several years, you can qualify for PR and/or citizenship.
  • Strategic value: Access to 27 EU countries; long‑term family stability; minimal disruption to primary residence/tax residence.
  • Policy flux: Constitutional Court involvement and reforms underway, but Ali expects Portugal to remain the “king” program for pathway‑to‑citizenship‑without‑relocation use cases.
• Italy (“Bitcoin Dolce Visa” — innovative startup route):
  • Lower capital outlay: €250k (vs. typical €500k+ in Portugal structures).
  • Flexibility: No minimum stay requirement; renewable indefinitely while holding the investment; clear exit windows.
  • Schengen access and lifestyle benefits.
  • Constraint: No automatic path to citizenship unless you relocate to Italy.

Differentiators vs. Traditional Golden Visa Providers

• Radical simplicity and transparency: Clear, minimalistic product design in a domain that tends to over‑complicate.
• Builder‑operator model: They create the products and run the entities (funds/startups), enabling detailed answers and accountability beyond typical advisory firms.
• Bitcoin‑native culture and founder‑mode iteration: Continuous customer engagement and iteration, while remaining compliant and conservative on legal/custody.

Practical Notes on Payment and Legalities

• Fees: Payable in BTC or USDC.
• Investment subscription: BTC‑denominated share subscription is possible but involves added notarial and audit costs and minor procedural risk. Conversion to fiat is advised for most.
• Compliance posture: All structures are built conservatively to align with Italian startup law and innovation criteria; no public securities offering.

What’s Next

• A third destination/product is planned for the coming months (details not yet announced).
• Over time, Bitersanship may evolve into more tech‑heavy solutions (e.g., zero‑knowledge applications for citizenship), while maintaining its residency product line.

How to Learn More

• Website: Ali described it as “like citizenship but with a B” (visit the company site he shares via his X profile to ensure the correct spelling).
• Company newsletter: Subscribe via the website for product updates and program changes.
• Ali’s X (Twitter): Daily insights on global living, product, tax strategies, and Bitcoin‑aligned residency.
• Personal Substack: palombo.substack.com — weekly essays on global living, tax optimization, product, and governance.

Highlights and Takeaways

• Italy’s investor visa via a Bitcoin “innovative startup” offers: minimal bureaucracy relative to peers, no minimum stay, renewable 3+3 years indefinitely, Schengen access, and the ability to exit on predictable timelines.
• Portugal remains the premier path for citizenship without relocation (low annual presence), making it attractive for those wanting EU citizenship optionality while retaining primary residence elsewhere.
• Bitersanship’s success appears driven by simplicity, in‑house product building, and native alignment with Bitcoiners’ transparency and custody values.
• Payments in BTC/USDC are welcomed for fees; share subscriptions in BTC are technically feasible but generally better executed in fiat for cost and procedural reasons.
• Corporate treasury is Bitcoin‑exposed; non‑custodial staking on Bitcoin‑adjacent layers (e.g., Core) provides yield; conservative dividend distribution is possible from realized profits.
• Macro tailwinds in Italy (tax regimes, Milan’s rise, export strength, undervalued real estate) make timing favorable for a flexible residency plan, even if it’s not (yet) the best place to found a tech startup.