Foreign Entrepreneurs

Our vast experience in solving tax, financial, accouting and legal business problems allows us to give our prospective clients some answers about the complex Italian system. We can give you detailed answers about any enquiry. Our solid knowledge of the Italian system allows us to present practical solutions. Our team of experts can help you with any question.  Read our Frequently Asked Questions and published articles on the topic.

Frequently Asked Questions

People who want to live in Italy now have a way to save on taxes.

In recent years, Italy introduced a special tax regime to encourage working people that reside abroad transfer their fiscal residency into Italy. The aim is to attract human capital into the country.

The beneficiaries are people from other countries (inside and outside of the UE) and Italians residing abroad that decide to enter into dependent employment (work), or start an autonomous activity or business in Italy. There are some requirements that you need to fulfill, but if you do so, you can benefit from a reduced tax rate on earnings of dependent or autonomous workers (known as IRPEF in Italy). This benefit can be a:

 

  • Tax reduction of 90% for those who transfer their residence to southern Italy (Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia and Sicily). Thus, the beneficiary pays only 10% of the IRPEF.

  • Tax reduction of 70% for those who transfer their residence to other parts of Italy. Thus, the beneficiary pays 30% of the IRPEF.

  • Tax reduction of 50% for professional athletes. Thus, the beneficiary pays 50% of the IRPEF (the 90% reduction does not apply in the case of transfer to the southern regions). 

 

If you want to know more about other tax reductions that you may be eligible for, do not hesitate to contact us. We will provide you with all the information you need and that suits your particular situation.

Setting up a company does not provide sufficient grounds for living in Italy longer than 90 consecutive days, so in order to remain in Italy and manage a company, the investor must have a permit to stay.  This is why obtaining a residence permit is one of the most important aspects that a prospective foreign investor should consider.

In Europe, there is a “Permesso unico di lavoro” (in accordance with Leg. Decree 40/2014), which allows you to work in Europe in the country that issues it. This residence permit lasts one or two years and allows a person to work (as in the case of a residence permit for family reasons), but it is not valid for working in other EU countries because it is not an EC long-term residence permit. Non-EU citizens that have a long-term residence permit can carry out any economic activity in Italy (Leg. Decree 3/2007). 

Before starting an agricultural business, you should decide what type of agricultural entrepeneur you want to be. The Italian legal system recognizes two types of agricultural entrepreneurs: 

  • Direct cultivator: small business person who direcly and habitually dedicates himself or herself to the manual cultivation of the land

  • Professional agricultural business person (IAP) who, possessing the professional skills and competencies, directly or as parner in an agricultural business: 

    • dedicates at least 50% of his or her time to the work of the agricultural business

    • earns at least 50% of their overall employment earnings from this same activity. 

Our Articles about the Benefits for Foreign Entrepreneurs in Italy

doing business in Italy

Opening a Business in Italy: The Basics

Understanding how business works in Italy may appear daunting to foreigners. Therefore, we provide some indications about the modalities for opening a business and the various fiscal, accounting and tax procedures involved within.

case 2

Setting Up an Agricultural Business

Foreigners are purchasing more and more properties to be used as agriculture businesses. Given the great extent of the market, we consider it necessary to clarify the different types of agricultural entrepreneurs recognized by the Italian legal system and the fiscal, administrative, and tax benefits available for setting up an agricultural activity.

sfa12

Flat Tax: Professionals and Small Businesses

Taxpayers with a VAT position in the flat rate scheme (regime fofettario) can benefit from a 15% tax rate on last year's compensation or income (up to 65,000 euro) and a 5% startup rate for a new VAT, applicable over the next 5 years. We analyze the additional benefits, requirements and conditions of this scheme for foreigners.

3 reasons for choosing us

  • V&A

    100 countries

    Your ambitions have more global potential: our firm is part of MGI International and CPAAI, a worldwide network that shares projects and business solutions on a broad scale. You have 645 firms, like ours, at your disposal.
  • 18 professionals

    You are accompanied by a team of professionals, each one specialized in different aspects of finance and accounting consultancy: it is a cohesive team, with which you can always confront yourself to reach your goals.
  • Team Vannucci

    35 years

    Experience matters. It allows us to give precise and efficient solutions, accompanied by our extensive knowledge of the Italian system. We share these goals with joy: we help foreigners do business in Italy and simplify bureaucratic processes.
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