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Doing Business in Italy
Country Overview
Italy is the 3rd largest economy of the Eurozone and the 8th largest in the world, with a GDP of more than 2.1 trillion dollars (IMF, April 2018). The domestic market offers many opportunities, with a population of more than 60 million and a per capita GDP of 31,984 dollars IMF 2017).
Italy represents a strategic gateway to 500 million consumers across the European Union and to 270 million in Northern Africa and the Middle East, and is the main thoroughfare linking Southern European to Central and Eastern Europe.
The Italian government has recently taken a number of steps to improve the climate for business and investment. New labour legislation, more flexibility to conclude tax agreements with tax authorities, new financial tools for Real Estate, and dedicated business courts to resolve disputes involving foreign investors.
Starting a business in Italy
Several and different options are available in order to conduct business in Italy. A number of reforms have been made to streamline and simplify the procedures required to start and operate a business in Italy, for example by reducing the minimum capital requirements and the paid-in minimum capital requirement as well as by streamlining registration procedures. A business may be operated either as a sole trader or as a company. Both entities are governed by the Italian civil code. A person may conduct a business either as an individual, or through the setting up of a new company or through the purchase of shares/quotes in an existing company. Such opportunities are available both for European and non-European citizens.
• Individuals or legal persons from EU countries and countries included in the European Economic Area (Iceland, Liechtenstein, Norway) are treated as Italian nationals for the purpose of investing in a new/existing company, without limitations on their capacity to conduct a business.
• Individuals from countries outside the EU and the European Economic Area must have a valid residence permit or be citizen in a country where reciprocal treaties are applied.
Tax incentives
Companies and individual enterprises, wishing to invest in Italy, are eligible for several tax allowances, such as the allowance for corporate equity, the tax credit on research & development activities, the patent box regime, the super and hyper amortization and the VAT grouping rules. Furthermore, running from fiscal year 2017, they will benefit of the reduction of Italian corporate tax rate from 27.5% to 24%.
Moreover, businesses can count on a direct dialogue with the Revenue Agency. The Italian Law provides tax incentives to attract human capital, such as the new resident regime for individuals.
Visas for investors
Italian law provides for a special, easier and quicker procedure for foreign individual that intend to invest in Italy. This new visa opens the door to the recognition of a two-year residence permit, renewable for another three years, provided that the foreign investor (nor EU citizen) demonstrates that he intends to:
• buy Italian government bonds for at least 2 million or
• invest in the capital of an Italian company (at least 1 million euro) or in a startup (minimum 500 thousand euros).
The investment must, in any case, be maintained for at least two years. Alternatively this procedure will be applicable in case of relevant philanthropic donations in cultural assets, immigrant management, education and research, for a minimum of one million.
This rule is aimed at facilitating the release of VISAS to potential investors and allows the stay, for periods of more than three months with no application of the quota system. The investor must demonstrate that she/he is the holder or beneficiary of the amounts to be invested and the certification of the legality of the funds, as well as the absence of definitive penal convictions or any other pending charges.
Source:
For more information and details regarding “Doing business in Italy”, please visit the website at: http://www.investinitaly.com/en/why-invest-in-italy
For more tips on investing and trading in the EU, please contact the Business Cooperation Centre of Enterprise Europe Network Central China – Macao Office (EENCC Macao Office) at Tel: 2871 3338, 2872 7882/Fax: 2871 3339/Email: info@ieem.org.mo
![](mailto:?subject=IPIM%20%2D%20EU Trading Information&body=<h3 class="p1">Doing Business in Italy </h3>
<strong>Country Overview</strong>
Italy is the 3rd largest economy of the Eurozone and the 8th largest in the world, with a GDP of more than 2.1 trillion dollars (IMF, April 2018). The domestic market offers many opportunities, with a population of more than 60 million and a per capita GDP of 31,984 dollars IMF 2017).
Italy represents a strategic gateway to 500 million consumers across the European Union and to 270 million in Northern Africa and the Middle East, and is the main thoroughfare linking Southern European to Central and Eastern Europe.
The Italian government has recently taken a number of steps to improve the climate for business and investment. New labour legislation, more flexibility to conclude tax agreements with tax authorities, new financial tools for Real Estate, and dedicated business courts to resolve disputes involving foreign investors.
<strong>Starting a business in Italy</strong>
Several and different options are available in order to conduct business in Italy. A number of reforms have been made to streamline and simplify the procedures required to start and operate a business in Italy, for example by reducing the minimum capital requirements and the paid-in minimum capital requirement as well as by streamlining registration procedures. A business may be operated either as a sole trader or as a company. Both entities are governed by the Italian civil code. A person may conduct a business either as an individual, or through the setting up of a new company or through the purchase of shares/quotes in an existing company. Such opportunities are available both for European and non-European citizens.
• Individuals or legal persons from EU countries and countries included in the European Economic Area (Iceland, Liechtenstein, Norway) are treated as Italian nationals for the purpose of investing in a new/existing company, without limitations on their capacity to conduct a business.
• Individuals from countries outside the EU and the European Economic Area must have a valid residence permit or be citizen in a country where reciprocal treaties are applied.
<strong>Tax incentives</strong>
Companies and individual enterprises, wishing to invest in Italy, are eligible for several tax allowances, such as the allowance for corporate equity, the tax credit on research & development activities, the patent box regime, the super and hyper amortization and the VAT grouping rules. Furthermore, running from fiscal year 2017, they will benefit of the reduction of Italian corporate tax rate from 27.5% to 24%.
Moreover, businesses can count on a direct dialogue with the Revenue Agency. The Italian Law provides tax incentives to attract human capital, such as the new resident regime for individuals.
<strong>Visas for investors</strong>
Italian law provides for a special, easier and quicker procedure for foreign individual that intend to invest in Italy. This new visa opens the door to the recognition of a two-year residence permit, renewable for another three years, provided that the foreign investor (nor EU citizen) demonstrates that he intends to:
• buy Italian government bonds for at least 2 million or
• invest in the capital of an Italian company (at least 1 million euro) or in a startup (minimum 500 thousand euros).
The investment must, in any case, be maintained for at least two years. Alternatively this procedure will be applicable in case of relevant philanthropic donations in cultural assets, immigrant management, education and research, for a minimum of one million.
This rule is aimed at facilitating the release of VISAS to potential investors and allows the stay, for periods of more than three months with no application of the quota system. The investor must demonstrate that she/he is the holder or beneficiary of the amounts to be invested and the certification of the legality of the funds, as well as the absence of definitive penal convictions or any other pending charges.
<img class="aligncenter wp-image-239893 size-medium" src="https://www.ipim.gov.mo/wp-content/uploads/2018/12/Tin299_p13a-292x300.jpg" alt="Tin299_p13a" width="292" height="300" /> <img class="aligncenter wp-image-239894 size-full" src="https://www.ipim.gov.mo/wp-content/uploads/2018/12/Tin299_p13b.jpg" alt="Tin299_p13b" width="160" height="140" />
<p class="p1"><span class="s1">Source:</span></p>
<p class="p2">For more information and details regarding “Doing business in Italy”, please visit the website at: <span class="s2"><b><a href="http://www.investinitaly.com/en/why-invest-in-italy">http://www.investinitaly.com/en/why-invest-in-italy</a></b></span></p>
<p class="p1"><span class="s1">For more tips on investing and trading in the EU, please contact the Business Cooperation Centre of Enterprise Europe Network Central China - Macao Office (EENCC Macao Office) at Tel: 2871 3338, 2872 7882/Fax: 2871 3339/Email: <a href="mailto:info@ieem.org.mo">info@ieem.org.mo</a></span></p>%0D%0DReference Link : %0Dhttps://www.ipim.gov.mo/en/publication/issue-299-oct-2018/eu-trading-information/){kind=link}