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Italian Legislation Related to Foreign Investments

Updated on Friday 29th July 2016

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Italian-legislation-related-to-foreign-investmentsDuring the last year, Italy has resumed its positon among the strongest economies in the EU. Behind its economic growth stood the automotive and tourism industries together with other strongly related sectors. This increase was also possible thanks to the rising of foreign investors who have once again started to set up companies in Italy. The Government has also encouraged foreign enterprisers through a pro-business legislation on foreign investments.

Recent laws on foreign investment in Italy

In 2015, the Government has enabled several schemes which are still very attractive to foreign investors. Among these the liberalization of the energy and telecommunications sectors, which allows private players to enter the Italian market, and the privatization of the public transportation system which was also benefic in terms of attracting foreign investments. According to the Italian Company Act, foreign investors have the same rights of establishing companies like local ones, while the foreign investment legislation allows foreign enterprisers in set up businesses in any industry, apart from several sectors, such as oil and gas.

Our company formation agents in Italy can help you open a company in this country.

Assistance for foreign investors in Italy

The Government encourages foreign investments not only through its laws, but also through grants and investment schemes which are renewed or replaced periodically in order to make them more attractive. At the moment, the Government supports foreign investments in the following economic sectors:

  • -          industry, such as manufacturing;
  • -          innovation;
  • -          research and development.

The authorities also support entrepreneurs interested in investing in Southern Italy (Rome, Sicily and Sardinia).

Investment benefits in Italy

The following grants are available for foreign investments made in Italy:

  • -          deductions of up to 50% of the employees’ salaries, purchase of equipment and intellectual property rights for investments in the research and development (R&D) sector;
  • -          tax exemptions for up to 10 years for companies investing in disadvantaged areas (such as Southern Italy);
  • -          grants up to 65% for investing in fixed assets in disadvantaged areas.

The Government also assists companies exporting products through low interest loans for up 85% of the amount of the exported goods. It also useful to know that Italy has two free trade zones: Venice and Trieste which offer additional tax benefits.

For complete information on the laws related to foreign investments in Italy, please contact our local company registration consultants.

 

 

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