Italy has a history of businesses being tied up by bureaucracy and with high cost of employment, these issues are still prevalent, but times are changing….
The government realises that it needs to create the right type of environment to stimulate both business and the employment of skilled people. Italy has always been a country with an exceptionally high entrepreneurial spirit. Add to this its inherent “creative flair” and the opportunity exists for business to develop and enhance the current offerings they have.
Now, new incentives are being made readily available to attract both business and people alike.
The Italian tax system provides for numerous tax regimes dedicated to people who decide to move to Italy to work or live.
Companies and individual enterprises, wishing to invest in Italy, are eligible for several tax allowances, such as the allowance for corporate equity, the tax credit on research & development activities, the patent box regime, the super and hyper amortization and the VAT grouping rules. Furthermore, running from fiscal year 2017, they will benefit from the reduction of the Italian corporate tax rate from 27.5% to 24%.
Moreover, businesses can count on a direct dialogue with the Revenue Agency thanks to the advance tax ruling on new investments, the general taxpayer’s advance ruling, the advance tax agreements for enterprises and to the cooperative compliance program.
The Italian Law also provides tax incentives to attract human capital, such as the new resident’s regime for individuals. For example, if professors and researchers currently residing abroad decide to move to Italy, they can benefit from fiscal incentives for the income generated in Italy.
A tax incentive is also in place for so-called “inpatriates” workers. They are:
- graduates who have worked abroad
- students who have obtained an academic qualification abroad
- managers and workers with high qualifications and specialisations
A tax regime for new residents is dedicated to those who move to Italy regardless of a specific work activity. High-net-worth individuals moving their tax residence to Italy are enabled to apply a substitute tax to their foreign income (up to €100,000 for each fiscal year), in lieu of the normal Italian Income Tax.
But not just tax!
Of course, there are other elements that stimulate an employee’s well-being, help them to perform better and drive them to build awesome companies. What does Italy offer in this regard? The weather, food and drink, hospitality and the quality of life is exceptional! This is presumably responsible for the longevity of Italian life (the second oldest population in the world).
The narrow-minded might think that this creates a situation where people remain in their jobs for ever. However, what it means for new businesses is that there is a large pool of talented students, extremely well educated, able to think and ready to be employed!
Let’s not forget that other crucial element – communication. Italians are naturally expressive. The freedom to express themselves is essential and, from a company perspective, it gives you the necessary platform to develop open and honest communication.
So why bring your business to Italy? It’s a Country that realises it needs to change. It has easy access to the rest of Europe and is introducing new business incentives. The incentives can make a difference but “people” make the difference and the quality of life can stimulate creativity and innovation. For true leaders ready to inspire their team to get the results that are readily accessible, Italy offers opportunities – do not let them slip between your fingers.
Over the last 28 years, Briars has worked with their teams on the ground in over 50 countries, of which Italy is one. Briars can help your business take full advantage of the incentives and lifestyle that Italy offers. If you would like to find out more about our comprehensive range of international expansion services, including tax, accounting, payroll and human resources, feel free to reach out to us at firstname.lastname@example.org.