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Global Expansion Handbook

Italy

A country in Europe. Foreign investors commonly use a limited liability company (S.r.l.), registered with Companies Register at the Chamber of Commerce; headline corporate tax is 24% (IRES), VAT standard rate 22%.

BrandsMachinery Tier 4 · Mature high-value markets
Basic profile
Updated 2026-11-13
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This country currently has a directory entry or basic profile only; a full handbook is planned.

01Overview

Region
Europe
Capital
Rome
Currency
EUR
Languages
Italian
ISO code
IT / ITA

Jurisdictions

  • Italy — National level; special zones and regulated sectors have separate rules

Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).

02Market Entry

Foreign ownership

Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.

Most sectors are open

Applies to
Aviation, energy, banking and others are restricted; strategic assets are subject to Golden Power review
Jurisdiction
Italy
Source
MOFCOM
Local SubsidiaryIncorporate a separate legal entity in the target country

03Business Formation

Common legal entity

The company form most commonly used by foreign investors for a local operating entity.

Limited liability company (S.r.l.)

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

Registration authority

Primary authority for company or commercial registration.

Companies Register at the Chamber of Commerce

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

Foreign ownership

Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.

Most sectors are open

Applies to
Aviation, energy, banking and others are restricted; strategic assets are subject to Golden Power review
Jurisdiction
Italy
Source
MOFCOM

Local director / representative

Whether a locally resident director, manager or representative is required.

No residence or nationality requirement for directors

Applies to
Non-resident directors need an Italian tax code
Jurisdiction
Italy
Source
Registro delle imprese

Local registered address

Whether a local registered address or premises is required at incorporation.

A registered address in Italy is required

Applies to
A corporate service address may be used if it can receive statutory documents
Jurisdiction
Italy
Source
Registro delle imprese

Foreign-entity setup flow

Main approval stages for a foreign investor setting up an entity (no time estimates).

Notarial deed → register with the business register via ComUnica (VAT number, INPS and INAIL registration together)

Applies to
Excludes processing time estimates
Jurisdiction
Italy
Source
Registro delle imprese

04Taxation

Headline corporate income tax

Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.

24% (IRES)

Applies to
Regional production tax (IRAP, generally 3.9%) also applies; financial intermediaries pay an extra 3.5%
Jurisdiction
Italy
Source
State Taxation Administration

Indirect tax (VAT / GST / SST)

Standard rate and type of VAT, GST or sales & service tax.

VAT standard rate 22%

Applies to
Reduced rates of 10%, 5% and 4% also apply
Jurisdiction
Italy
Source
Agenzia delle Entrate

Dividend withholding tax (non-residents)

General withholding on dividends paid to foreign shareholders, before treaty relief.

26%

Applies to
Reduced or exempt under the EU directive or treaties
Jurisdiction
Italy
Source
State Taxation Administration

Tax authority

Authority responsible for corporate tax registration and filing.

Agenzia delle Entrate

Applies to
Ordinary companies
Jurisdiction
Italy
Source
State Taxation Administration Agenzia delle Entrate

Tax treaty with China

Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.

In force

Applies to
Rates and conditions per the treaty text and STA publications
Jurisdiction
Italy
Source
State Taxation Administration (China) State Taxation Administration

05Banking & Payments

Exchange controls

Whether general exchange controls or cross-border fund rules apply.

No exchange controls

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

Banking & financial regulator

Primary regulator for banking and foreign exchange.

Banca d'Italia

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

06Employment

Foreign employee work permit

Main permit types needed for foreign employees to work legally.

Work clearance (nulla osta) plus work visa, subject to annual quotas

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

Labour & work permit authority

Authority for labour rules and foreign employee work permits.

Provincial labour offices

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

Social security contributions

Main employer social security schemes for local and foreign employees.

INPS pension and social insurance contributions

Applies to
Employer share is high
Jurisdiction
Italy
Source
INPS

07Trade & Customs

Customs authority

Authority for import/export clearance and tariffs.

Customs and Monopolies Agency

Applies to
EU common tariff and Union Customs Code apply
Jurisdiction
Italy
Source
MOFCOM

Main free trade agreements

Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).

EU common trade policy and EU trade agreements

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

08Investment & Manufacturing

Investment authority / agency

Body responsible for approving, registering or promoting foreign investment.

Italian Trade Agency (ICE); Invitalia

Applies to
Ordinary companies
Jurisdiction
Italy
Source
MOFCOM

Free zone / SEZ regime

Whether free zones or special economic zones operate under rules different from the mainland.

Free trade zones, industrial parks and special economic zones (ZES)

Applies to
e.g. the Free Port of Trieste
Jurisdiction
Italy
Source
MOFCOM

09Digital & IP

IP office

Authority for trademark and patent filing and registration.

Italian Patent and Trademark Office (UIBM)

Applies to
Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
Jurisdiction
Italy
Source
WIPO

Personal data protection law

Main law and regulator governing collection, use and cross-border transfer of personal data.

EU GDPR plus the Italian Privacy Code

Applies to
Supervised by the Garante
Jurisdiction
Italy
Source
Garante per la protezione dei dati personali

10Compliance & Risk

New York Convention party

Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.

Yes

Applies to
Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
Jurisdiction
Italy
Source
UNCITRAL

Live risk monitoring

Geopolitical, conflict and trade-route risk events for Europe, monitored by our sister site Global Risk Monitor.

View Europe risk monitor

Global Risk Monitor · Geopolitical and trade-route risk monitoring

11Step-by-Step

Main setup steps in Italy

  1. 1Notarial deed
  2. 2register with the business register via ComUnica (VAT number, INPS and INAIL registration together)
General checklist (setting up a subsidiary)
  1. Decide model and jurisdiction
  2. Confirm licences
  3. Prepare documents
  4. Incorporate
  5. Register for tax
  6. Open bank account
  7. Obtain operating licences
  8. Start operations

Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.

12Official Resources

Chinese official resources

Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices

Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.

Local authorities