Do business
in Italy

Italy offers strategic access to the EU single market with a skilled workforce and robust infrastructure. As Europe’s gateway to Mediterranean markets, it provides excellent connectivity through ports, airports, and railways. The country attracts significant foreign investment (€22+ billion in 2023) with favorable tax incentives including 15% corporate tax for innovative startups, up to 20% tax credits for Industry 4.0 investments, and special economic zones offering simplified procedures. Italy is particularly startup and investor-friendly with programs like the Italia Start-up VISA for non-EU entrepreneurs.

No, Italy enables full remote setup of an S.r.l. through digital signature (CNS) and proxy powers. Italian notaries conduct video conferences with Qualified Electronic Signature, allowing founders to execute documents remotely. You only need apostilled or legalized power of attorney if unable to travel to Italy. However, certain banks may require in-person verification for account opening, though many accept video conferences with qualified signatures.

After incorporation, Italian companies must:

• File annual accounts with the Commercial Court registry
• Submit corporate income tax returns (standard IRES rate: 24%)
• Register and report for VAT if applicable (22% standard rate)
• Process B2B invoices via Sistema di Interscambio (SdI) in XML format since 2024
• Maintain payroll and social security filings for employees
• Report beneficial ownership to the national registry (RBE)

Yes, Italy allows 100% foreign ownership of companies in most sectors. Non-EU founders can establish Italian entities without local partners, though they need to obtain Italian tax identification numbers (codice fiscale). There are no citizenship or residency requirements for incorporating, and the principle of reciprocity applies with foreign home countries. Directors and shareholders of any nationality are permitted for standard commercial activities.

Italy offers substantial incentives including:

• Research Tax Credit (CIR): up to 20% on eligible R&D expenses
• Industry 4.0 tax credits: 5-20% for capital goods investments
• Innovative startup benefits: 15% corporate tax rate for first 5 years
• Patent Box regime: reduced taxation on IP-derived income (up to 110% R&D expense deduction)
• Reshoring regime: 50% tax reduction for activities relocated from non-EU countries
• Employment bonuses: up to 100% reduction in social security contributions for hiring women under 36 and unemployed individuals
• Special Economic Zones: tax credits up to €100 million for initial investments