There are a variety of benefits for doing business in Italy. Below are some of the key ones.
Large single market access
As part of the European Union (EU), Italy provides access to one of the world’s largest and most integrated single markets. This effectively removes common trade barriers and allows you to do business freely across 27 member states like the Netherlands, Germany, Ireland, and France.
With access to over 450 million consumers, this also means more opportunities for your business, making Italy an attractive location for company formation. In this case, Italy’s use of the euro can further streamline your business operations within the Eurozone.
Alignment with other major economies
Italy is also a member of the Group of 7 (G7), an intergovernmental political forum formed in 1975 for discussion and cooperation across key global issues. The country remains aligned with other G7 nations, including the United States (US), Japan, Canada, and the United Kingdom (UK). Actions taken to improve the economy may contribute to a more supportive environment for Italian companies to operate in.
When growing your business here, Italy’s strategic position in both Europe and the Mediterranean can support your entry into neighbouring countries. Whether you aim to access Southern Europe or further, this geographical benefit makes Italy a great starting point for regional growth and cross-border trade.
Italy’s integration in the Trans-European Transport Network (TEN-T) also strengthens its connectivity to other markets. Part of Europe’s key transport infrastructure, four of the nine corridors run through Italy. This provides your business with a reliable infrastructure to efficiently move goods and services throughout Europe whenever the need arises.
Italy continues to be the second-largest manufacturing country in Europe, with strength across various industries such as automotive, fashion, and machinery. This means potential access to infrastructure, skilled labour, and specialised suppliers, which can support your operational efficiency and product quality when you’re doing business here.
Ongoing government efforts are also focused on supporting the growth of advanced manufacturing technologies and their adoption. Besides manufacturing, Italy is strong and competitive in other areas like tourism and agriculture.
Supportive tax regime for expatriates
From 1 January 2024, top talent who become residents of Italy can benefit from 50 percent tax relief on their income, with the relief applying to earning up to EUR 600,000. While this was reduced from the initial 70 percent, it remains an enticing feature to highly qualified or specialised individuals who may be considering relocation to Italy.
To be eligible for this tax regime, incoming employees must have been non-residents of Italy for at least three years prior to their relocation and must commit to staying in Italy for a minimum of four years. This ensures a long-term commitment from professionals, providing stability and continuity for your business.
Additionally, the regime also applies to non-residents who move to Italy for the same employer, whether it's the same company or a group of companies. In such cases, the individual must have been non-resident in Italy for at least 6 or 7 years, depending on whether they have worked in Italy previously.
