Visa surety bond with no money locked: how it differs from a security deposit

You are about to invite a foreign relative or friend to Italy and the embassy asks for a financial guarantee. When you turn to a traditional bank, you are required to tie up a sum of money – usually around 3,905 euros – for the whole duration of the application, six months. For that entire period, those funds in your account stay locked: you cannot spend them, you cannot move them.

There is an alternative that fulfils the same obligation without tying up your capital: the surety bond issued by an insurance company. In this article we explain how it works in legal terms, what the rules say about the financial means for a visa, and which types of visa it is useful for.

The practical difference for your wallet

The starting point is the same in both solutions: the Italian State wants to be sure that the invited person has the means to support themselves during the stay and that – should those means run out – there is someone ready to cover the expense. The difference lies in HOW this assurance is provided.

With a bank security deposit, you are the one putting up the capital: the bank requires you to lock the sum in your account (or to open a dedicated one), and that money stays unavailable until the guarantee is released. If you need liquidity for something else during those six months, you cannot use it. It is your capital that acts as the guarantee.

With an insurance surety bond, on the other hand, you only pay the premium – a sum set upfront, independent of the guaranteed amount. You are not the one putting up the guarantee capital: the insurance company does, undertaking towards the beneficiary (the Italian State, through the consulate) up to a maximum ceiling of 3,905.00 euros. Your money stays in your account, available for anything.

How the surety bond works in legal terms

The surety bond is a contract governed by Articles 1936-1957 of the Italian Civil Code (suretyship) and by the Italian Private Insurance Code (Legislative Decree of 7 September 2005, no. 209) for the part concerning issuance by an insurance company supervised by IVASS.

Three parties come into play in the contract:

• The guarantor: the insurance company that issues the policy and undertakes to pay the beneficiary in the event of a call on the guarantee.
• The principal (or policyholder): the Italian citizen – or the lawfully resident foreigner – who invites the person from abroad. This is the party that takes out the policy and pays its premium.
• The beneficiary: the Italian State, through the consulate or embassy that issues the visa.

If the foreign guest, during the stay, were to become a burden on the State (for medical assistance, repatriation, etc.) and the means made available by the principal were to run out, the beneficiary can call on the guarantee. In that case the company pays, up to the maximum limit of the guaranteed amount (3,905.00 euros).

Immediately afterwards – and this is the step that is often overlooked – the company has the right to recover from the principal through the right of recourse provided for in Articles 1949-1950 of the Italian Civil Code. In other words: the policy does not cancel the financial liability of the person who invited the foreigner. It merely shifts the moment and the party the consulate turns to for collection, leaving the principal with the ultimate obligation to reimburse the company. For the full contract text you can consult the text of the surety bond for the tourist visa.

This is the legal substance of the product. Understanding it helps you correctly read the difference with the security deposit: with the deposit, your capital is directly exposed; with the surety bond, the financial exposure remains yours but is deferred and mediated by the company.

What the rules say about the financial means for a visa

For short-stay visas (type C) the main legal reference is the Directive of the Italian Ministry of the Interior of 1 March 2000, published in Official Gazette no. 64 of 17 March 2000. The Directive sets out the minimum financial means a foreigner must be able to demonstrate in order to enter the national territory, distinguishing by length-of-stay band and by number of people.

By way of example, for stays of 1 to 5 days the Directive provides for minimum availability in the region of 269.60 euros for a person travelling alone and 212.81 euros per person for groups of two or more; for longer durations the amounts are calculated by day band, up to the figure of 3,905.00 euros that frequently recurs as the maximum ceiling in policies issued for short-stay visas.

Which types of visa it is useful for

The surety bond is used in many visa scenarios for Italy, but with different legal bases depending on whether it is a short-stay visa (type C) or a long-stay visa (type D).

Short-stay visas (type C) – stays of up to 90 days

This category includes:

• Tourist visa – for relatives, friends, leisure trips. See the surety bond for the tourist visa and the one for tourist invitations from visa-exempt countries.
• Business visa or short-term employed-work visa – meetings, trade fairs, business missions: surety bond for the business or employed-work visa.
• Short study visa – courses and training activities within 90 days: surety bond for the study visa.
• Sports, mission or competition visa – sporting and cultural events of fixed duration.
• Medical treatment visa – access to Italian healthcare facilities: surety bond for the medical treatment visa.

For all these scenarios, the Directive of the Ministry of the Interior of 1/3/2000 is the explicit reference for the financial means. The surety bond, when issued in compliance with the minimum amounts set out in the Directive, is generally suitable; actual acceptance always depends on the practice of the individual consulate.

Long-stay visas (type D) – stays of more than 90 days

This category includes:

• Family reunification visa – to reunite with family members already resident in Italy: surety bond for the family reunification visa.
• Self-employed work visa – freelancers, entrepreneurs: surety bond for the self-employed work visa.
• Employed or seasonal work visa – ongoing or seasonal employment relationships: surety bond for the employed or seasonal work visa.
• Visa for the conversion of a residence permit – change of category of a permit already issued: surety bond for the conversion of a residence permit.
• Long study visa – university courses, master’s degrees, doctorates lasting more than 90 days.

For these scenarios, the Directive of 1/3/2000 is not the reference source. The forms of guarantee accepted vary by type of visa and fall under the Consolidated Immigration Act (Legislative Decree 286/1998) and its implementing regulations. In consular practice the surety bond is also used in these scenarios, always with confirmation from the consulate or the competent office on the specific requirements of the case.

Indicative prices and issue times

The values shown in the opening box correspond to the current price list for the surety bond issued through our intermediary:

• Premium for the surety bond alone: 135 euros for a duration of 180 days (six months).
• Surety bond + health insurance package: 245 euros for the same duration.
• Amount guaranteed by the policy: up to 3,905.00 euros, in line with the guidance of the Directive of 1/3/2000 for short-stay visas.
• Issue: within 24 hours of receiving complete documentation and payment.
• Delivery: the document is sent by email with a digital signature; it has the value of an original and can be presented to the embassy exactly as received.

Prices are published on the website and involve no hidden additional costs. For the full procedure, the documentation required and special cases (family groups, multiple stays within the 180 days, etc.) refer to the article dedicated to the cost of the surety bond for a visa.

Security deposit vs surety bond: a comparison

The table summarises the practical differences between the two solutions in a schematic way. These are factual data, referring to the current practice of our intermediary for short-stay visas.

Aspect	Bank security deposit	Insurance surety bond
Client’s capital	Locked in the account for the duration of the guarantee (usually 180 days)	Stays available in the client’s account
Guarantor	The client, with their own funds as cover	The insurance company, supervised by IVASS
Who pays if the guarantee is called	The bank deducts directly from the locked deposit	The company pays, up to the ceiling of the guaranteed amount
What happens after the guarantee is called	The deposit is reduced or used up	The company exercises its right of recourse against the principal (Arts. 1949-1950 of the Civil Code)
Opening a current account	Often required by the issuing bank	Not required
Cost to the client	Management fees + opportunity cost of the locked capital	Single premium (from 135 € for 180 days)
Issue times	Variable, depending on the bank’s assessment	Within 24 hours of complete documentation
Standard duration	180 days (renewable)	180 days

The central point of the table is the first row: the client’s capital. In everything else the two solutions are comparable in terms of the obligation they fulfil; the difference that weighs in the reader’s experience – and that often tips the choice towards the policy – lies precisely in the availability of one’s own money.

Frequently asked questions

For other questions you can consult other frequently asked questions about the surety bond for a visa.

Cover photo: Jakub Żerdzicki on Unsplash