Starting A Business in Italy as a Foreigner
A business may be operated either as a sole trader or as a company. Both entities are governed by the Italian civil code. A person may conduct a business either as an individual or by setting up a new company or by purchasing shares/quotes in an existing company. These opportunities are available both for European and non-European citizens.
We help to assess a feasibility analysis and a business plan before setting up the business.
As the authorized intermediate we:
- we open a VAT Italian number,
- assist in the notary act and draft the Articles of Association,
- help in opening an Italian bank account,
- register in the Chamber of Commerce,
- and, whether it is the case, register with the social security authorities.
After the business is fully settled and operating, we take care of monthly accountancy, tax planning, tax declaration, financial consultancy, and in general, of all the tax and financial commitments that are required in Italy. We also offer payroll service and labor consultancy, such as planning labor company costs.
Tax Residency and Tax Consultancy in Italy
E.U. citizens or non-E.U. citizens living in Italy may need to file tax declarations in Italy. Whether it is employment income, other compensation, business activity, capital gains, or real estate rentals, the complexities of the tax and compliance regulations require a serious understanding of Italian tax law.
Cross-border advice can avoid double taxation of income. We help our clients prepare their Italian Tax declaration, reducing tax burden thanks to practical tax strategies and realistic solutions that address clients’ particular needs. The right advice of cross-border taxation experts helps to avoid filing error penalties and ensures the inclusion of every available deduction opportunity.
Cross-Border Operations
We are cross-border tax experts, we help our clients prepare tax solutions in matters regarding transactions between Italy and EU countries, or transactions between Italy and Extra-EU countries, with particular expertise in Switzerland.
We specialize in:
- VAT agreements,
- the treaty for the avoidance of double taxation between countries and in tax declaration for non-resident citizen or resident citizen who has financial or real estate investment abroad.
We perform tax analysis, tax planning, and, if necessary, we take care of tax litigation with the Italian tax authority.
Mergers and Acquisitions Experts
Intense competition, ever-increasing shareholder expectations, and digital innovations are driving leaders to rethink strategy. The result is an urgent need to adapt, fueling the increased inorganic transformation through deals.
We operate in business evaluation and we perform feasibility analysis, with particular expertise in corporate finance, tax, and labor optimization.
Large numbers of acquisitions fail due to workforce issues. Organizations need to address this risk at the initiation of any acquisition process. Therefore, it is critical to maximize value, mitigate risks, and moderate costs to create sustainable value across all human capital levers.
We have the matter expertise to advise our clients and partner to implement the right M&A strategies.
Expat Tax Benefit
The art. 5 of DLgs. 209/2023 recognizes a tax benefit for UE citizens or Non-UE citizens (with a signed treaty to avoid double taxation between countries) who transfer their tax residence to Italy.
To be eligible for the tax benefit, the worker needs to meet the following requirements:
- the worker must not have been resident in Italy in the 3 tax periods prior to the
aforementioned transfer (up to 7 years for workers who keep the job in the same company
group); - the worker undertakes to reside in Italy for at least 4 years;
- the work activity must be carried out mainly in the Italian territory;
- the worker needs to have elevation qualification and specialization;
In the presence of the required conditions, the income from employment and the income
from self-employment produced in Italy contribute to the formation of the total tax income
limited to 50% of their amount (40% in case the worker has dependent children).
The preferential regime also applies to workers who set up a business activity in Italy only
as individual entrepreneurs. The regime lasts 5 years.
