Italy: Investing

FDI in Figures

In relation to its European neighbors, Italy does not attract but a small amount of  foreign direct investment (FDI).  After their fall in 2008, under the effect of the global crisis, the FDI flows started to revive in 2009. The privatization program led by the country, the liberalization of the energy and the markets of telecommunications offer interesting opportunities to investors.  However, a strict labor law, high taxes, inefficient public services, corruption and the activities linked to organized crime are some of the hindrances to investment.

Why You Should Choose to Invest in Italy

Strong Points

Thanks to the State withdrawal, the market is opening up to competition in several sectors (energy, telephone, etc.). The SME grouping allows for great capacity for adaptation. Italy also has a qualified work force (technical knowledge and high quality production).
Entrepreneurs are creative and innovative.

Weak Points

The procedural costs, slow administration processes, red tape and financial scandals do not encourage investments. In some regions, infrastructures are poor, especially in the south of the country.

Government Measures to Motivate or Restrict FDI

Thereis hardly any assistance in Italy for promoting foreign investment. This trend is reinforced by the European Union which wants Italy to harmonize its tax incentives with the Community regulations. Italy only promotes the development of its regions which are in difficulty, in order to facilitate SME activity and job creation. The defense sector and other sectors likely to compromise public safety are not open to foreign investors.
The Italian Institute for Foreign Trade lists and makes available a guide to aids for setting up business in Italy.

Bilateral Investment Conventions Signed By Italy

Italy has signed bilateral agreements with fifty or so countries.
To see the list of countries, click here.
To see the conventions, click here.

Procedures Relative to Foreign Investment

Freedom of Establishment

As a member of the European Union, Italy applies the principle of freedom of establishment and non-discrimination. Thus, foreign investors can carry out any type of activity in the same conditions as a local investor. In addition, no specific legal text governs foreign direct investment. The regime is in alignment with that applicable to local investment.

Acquisition of Holdings

Acquiring a majority holding in the capital of a local company is authorized in Italy, except in certain sectors (petroleum exploitation).

Obligation to Declare

The agency for the promotion of foreign investment in the country gives information about the authorizations necessary for setting up business.

Requests For Specific Authorizations

Foreign investors are subject to particular measures (prior authorization issued by the competent ministry and restrictions concerning the permitted amount of equity acquisitions) in certain sectors only:
- telecommunications and the press;
- airline and shipping companies;
- electricity and gas (liberalized in 1999 and in 2000 by respective legal decrees n° 79/99 and n° 167/00);
- petroleum exploitation.
For further information, consult the ICE website.

Investment Opportunities

Investment Aid Agency

Institute for foreign trade (ICE)

Tenders, Projects and Public Procurement

Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide

Other Useful Resources

Confindustria
Invest in Italy

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