Attracting foreign investments is among the strategic priorities of the Italian Government, which is strongly committed to creating an investor-friendly environment for foreign investors.
Italy is the third largest economy in the Eurozone and the eighth in the world, with a domestic market of 60 million people and a GDP based on current prices of 2.11 billion USD (IMF, April 2021). Italy is one of main gateways to a market of 500 million consumers in the European Union and 270 in North Africa and the Middle East.
In terms of economic growth, in the four-year period 2020-2023, Italy recorded an excellent performance with an increase in GDP per capita of 4.9% compared to 2019. Among the G7 countries, only the United States achieved better results (5.5%). Italian exports are the most competitive in the G7. According to the first WTO estimates, in 2023, Italian exports reached a new historic high of 677 billion dollars. In the period 2015-2023, Italian exports in dollars grew by 48%, almost a two-fold increase compared to French (28%) and German (27%) growth and the triple of that of Japan (15%). In terms of manufacturing trade balance, Italy ranks fifth in the world and second in Europe. Italian exports are characterized by being very present in production segments with a high knowledge content, such as the pharmaceutical and aerospace sectors, accompanied as well by an excellent research system: Italy is the third country in Europe for scientific publications. Finally, Italian small and medium-sized enterprises (SMEs) are among the most innovative in Europe: the percentage of SMEs that have introduced strategic and organizational innovations as to the product and process is above the European Union average. Furthermore, Italy is the country with the highest acceleration rate in Europe (85% have accelerated on digital transformation, compared to 75.3% as to European average).
In this context, to increase the flow of investments and new capital from abroad, various measures have been adopted in recent years aimed at improving the environment for foreign businesses and investors. On a fiscal level, the following has been introduced: the Patent box regime (tax incentives linked to intellectual works and industrial patents), the super and hyper-depreciation envisaged by the “National Industry 4.0 Plan”, all measures aimed at attracting human capital, with tax relief rates of 50% for five years for managers and freelancers and 90% for 4 years for professors and researchers and benefits for “high-net worth individuals” who transfer their residence to Italy.
We also highlight the “Investor Visa for Italy” program, which allows non-EU citizens to enter and stay in Italy for a long time in exchange for an investment in our country. The program is characterized by reduced investment thresholds and the absence of minimum residency requirements, the indication of a simple PEC address being sufficient. For further information and to submit the application, candidates can access the dedicated platform.
On the industrial level, within the framework of the ”Enterprise Plan 4.0”, it noteworthy to mention the public guarantee fund for access to credit intended for SMEs and professionals for any financial operation in the context of entrepreneurial activity, the credit tax on research and development, the Nuova Sabatini on tax credit (a measure that supports investments in machinery, equipment, capital goods, hardware, software and digital technologies) and support for innovative Italian start-ups (Smart & Start).
Finally, the new National Transition Plan 4.0 provides for greater attention to innovation, green investments and design and aesthetic ideation activities.
The main actions:
To support and incentivize companies that invest in new capital goods, both tangible and intangible, functional to the technological and digital transformation of production processes intended for production structures located in the Country.
To stimulate private spending in Research, Development and technological innovation to support the competitiveness of businesses and encourage digital transition processes in the context of the circular economy and environmental sustainability.
To stimulate companies’ investments in staff training on topics relating to technologies relevant for the technological and digital transformation of companies.