Set up a company in Italy.
The EU's third-largest economy. The Patent Box super-deduction at 110% on R&D for IP. One of the widest tax-treaty networks in Europe. The right base for manufacturing, design, luxury goods, food & wine, and Mediterranean market access.
Italy — the essentials.
Six reasons clients choose Italy.
The EU's third-largest economy and a G7 industrial base. The Patent Box super-deduction, the Impatriati relocation regime, and one of the widest tax-treaty networks in Europe make Italy genuinely competitive for the right business.
EU's third-largest economy
Italy is the EU's third-largest economy and a G7 industrial base. ~58.9 million population, deep manufacturing capability, world-leading luxury, design, food & wine, and pharma sectors. A genuinely large addressable home market.
Patent Box: 110% R&D super-deduction
The cost-based Patent Box regime grants a 110% super-deduction on R&D costs for qualifying IP — patents, copyrighted software, designs, and models — in both IRES and IRAP. Net tax benefit ~31% of qualifying R&D costs. Five-year irrevocable election, renewable.
Impatriati & HNWI flat-tax regimes
The Impatriati regime grants a 50% income exemption for up to 5 years (extendable to 10) for foreign relocators. The HNWI flat-tax regime caps tax on global non-Italian income at €100,000 per year for up to 15 years. Two of the most generous lifestyle relocation regimes in the EU.
103+ double tax treaties
One of the widest tax-treaty networks in Europe — covering practically every major economy and most emerging markets. Combined with the EU passport and full Parent-Subsidiary Directive access, makes Italy a credible holding location for cross-border groups.
Manufacturing & engineering depth
Italy is the EU's second-largest manufacturer after Germany. World-class machinery, automotive, fashion, design, food & wine, leather, and pharma clusters. Exceptional skilled engineering workforce and a deep tier-2/tier-3 supplier ecosystem.
Hyper-depreciation incentive (NEW 2026)
The 2026 Budget Law introduced a hyper-depreciation incentive replacing Transition 4.0 / 5.0 tax credits. Enhanced depreciation on qualifying capital goods and self-consumption renewable energy assets, for investments from January 2026 to September 2028. Material capex tax shield.
Choose the right vehicle — six options.
Most international clients use the SRL for SMEs and foreign-owned subsidiaries, the SRLS for ultra-light setups, or the SPA for larger / IPO-track businesses. We will tell you straight which one fits your situation, and why.
| Structure | Min. Capital | Liability | Best for | Formation |
|---|---|---|---|---|
SRLSocietà a Responsabilità Limitata · Limited Liability Company Most Used |
€10,000 25% paid up at incorporation |
Limited to share capital | The default choice for SMEs, foreign-owned subsidiaries, holdings, and operating businesses. Flexible governance, full liability protection. | 3–5 weeks |
SRLSSocietà a Responsabilità Limitata Semplificata · Simplified LLC |
€1 – €9,999 Simplified setup, lower notary fees |
Limited to share capital | Ultra-light SRL for sole founders or small partnerships. Founders must be individuals (no corporate shareholders). Standard articles, no customisation. | 2–3 weeks |
SPASocietà per Azioni · Joint-Stock Company |
€50,000 25% paid up at incorporation |
Limited to share capital | Larger businesses, IPO-track companies, regulated industries, banks/insurance subsidiaries needing freely transferable shares and formal governance. | 5–8 weeks |
SASSocietà in Accomandita Semplice · Limited Partnership |
None | Mixed (general / limited) | Investor / operator structures where general partners manage and limited partners provide capital with capped liability. | 2–4 weeks |
SNCSocietà in Nome Collettivo · General Partnership |
None | Unlimited, joint & several | Two or more partners running an active business together; tax-transparent for IRES purposes (income flows to partners), still subject to IRAP. | 2–3 weeks |
BranchFiliale · Branch of foreign company |
None | Parent company liable | Foreign-headquartered groups establishing local presence without separate legal entity. Faster to set up; parent carries direct liability. | 3–5 weeks |
The numbers that matter.
Headline figures every founder, finance director or international operator should know before they incorporate.
From decision to trading entity.
A realistic seven-step path. Most international clients with an SRL are operational within 3–5 weeks; an SPA typically runs to 5–8 weeks given the heavier capital and governance requirements.
Discovery & structure design
Confirm the right vehicle (SRL, SRLS, SPA, SAS, branch), shareholding, directorships, registered seat (regional IRAP analysis), and tax position. Patent Box and Impatriati eligibility assessed where relevant.
Statuto & atto costitutivo drafting
Articles of Association (statuto) and deed of incorporation (atto costitutivo) drafted — in Italian for filing, with English translation for foreign shareholders. Specifies share structure, governance, directorship, and registered seat.
Notarisation (mandatory for SRL/SPA)
Articles executed before an Italian notary (notaio). The notaio handles publication and electronic filing with the Registro Imprese. Notary fees are a meaningful cost line in Italian incorporation — we shop them.
Registro Imprese filing
Registration with the Italian Business Register (Registro Imprese) via the local Camera di Commercio and registroimprese.it. Company receives its corporate registration number and Codice Fiscale (corporate tax code).
Agenzia delle Entrate registration
Registration with Agenzia delle Entrate for Codice Fiscale and Partita IVA (VAT number), including EU VAT-ID for cross-border trade. SDI e-invoicing platform setup is mandatory from day one.
Bank account & capital deposit
Italian bank account opened. For SRL, 25% of capital paid in. For SPA, 25% paid in. UBO declaration filed via the Italian Central UBO Register. The longest single step for international clients with non-EU shareholders.
INPS, INAIL & sectoral licences
Registration with INPS (social security) and INAIL (workplace insurance) if hiring. Sector-specific licences via Camera di Commercio or relevant authority. Patent Box election filed within first tax period if applicable.
A single partner. End to end.
You get one senior point of contact at Grant & Graham. Behind that, a vetted local network of notaries, banks, accountants, and lawyers we have worked with for years.
Structure & tax design
Choosing the right vehicle (SRL, SRLS, SPA, SAS, branch), shareholding, registered seat (regional IRAP analysis), and tax position. Patent Box and Impatriati relocation modelling at the structure design stage where relevant.
Statuto & notaio
Drafting Articles of Association (statuto) and deed of incorporation (atto costitutivo) in Italian and English, coordinating Italian notaio execution, and shopping notary fees across our partner network.
Registro Imprese & Agenzia delle Entrate
Camera di Commercio / Registro Imprese filing, Agenzia delle Entrate registration for Codice Fiscale and Partita IVA, EU VAT-ID, SDI e-invoicing setup, UBO Register, and ongoing compliance filings.
Bank account introduction
Direct introductions to leading Italian and international banks operating in Italy. We compress account-opening timelines for foreign clients and coordinate KYC documentation upfront, including FATCA / CRS reporting.
Commercialista network
Bookkeeping, payroll, monthly/quarterly VAT, annual financial statements, IRES/IRAP returns, F24 payment scheduling, and quarterly advance payments through our partner commercialisti in Milan, Rome, and Turin.
HR, employment & relocation
Employment contracts under the Statuto dei Lavoratori, INPS social security and INAIL workplace insurance registration, work permit and Single Permit support for non-EU hires, and Impatriati relocation packages.
Italy is the right answer for specific situations.
Not the lowest-tax jurisdiction in the EU, and not the lightest-touch on labour cost. The right call when the business model genuinely benefits from being in Italy — one of these scenarios.
You operate or invest in EU manufacturing
Italy is the EU's second-largest manufacturer after Germany. Deep machinery, automotive, electronics, and pharma clusters with mature tier-2/tier-3 supplier networks. Northern Italian industrial corridor (Milan–Turin–Bologna) is among the best in Europe.
You are luxury, design, fashion, or food & wine
Italy's "Made in Italy" brand is genuinely globally premium across luxury goods, design, fashion, leather, and food & wine. The depth of artisan supply chain, design talent, and DOP/DOC certification framework is irreplaceable for these sectors.
You want a Mediterranean / Southern European base
Italy sits at the heart of the Mediterranean, with strong shipping, port, and air connectivity. Genuine commercial bridge between Northern Europe, the Balkans, North Africa, and the Middle East. ~58.9 million domestic consumer market, plus EU passport.
You are Patent Box / IP-led / R&D-heavy
The 110% Patent Box super-deduction on R&D for IP delivers a net tax benefit of ~31% of qualifying costs. Combined with the indefinite loss carry-forward and the new 2026 hyper-depreciation, exceptionally favourable for innovation-led businesses.
You are a HNW relocator (Impatriati or HNWI flat tax)
The Impatriati regime grants 50% income exemption for 5 years (extendable to 10) for foreign professionals relocating to Italy. The HNWI flat-tax regime caps tax on global non-Italian income at €100,000 per year for up to 15 years. Two of the most generous lifestyle relocation regimes in the EU.
You need a wide treaty network
Italy's 103+ double tax treaties cover practically every major economy and most emerging markets. Combined with full Parent-Subsidiary Directive access and the 95% dividend exemption, makes Italy a credible holding location for cross-border groups with global subsidiary footprints.
Get an estimate in 30 seconds.
Three quick questions. We will give you a realistic cost range and timeline for your situation, and route the answers straight into a fixed-price quote request.
The questions we get asked most.
How long does it take to set up an SRL in Italy?
What's the difference between an SRL, an SRLS, and an SPA?
Do shareholders or directors need to be Italian or EU residents?
How does the Patent Box actually work in 2026?
What's IRAP and how is it different from IRES?
What ongoing compliance does an Italian company face?
Italy vs France vs Germany.
The three biggest EU economies. A side-by-side comparison on the numbers international corporates actually weigh.
| Italy | France | Germany | |
|---|---|---|---|
| Primary Vehicle | SRLSRLS / SPA for smaller / larger | SARLSAS / SA for larger setups | GmbHUG / AG for smaller / larger |
| Min. Share Capital | €10,000€1 for SRLS variant | €1No meaningful minimum on SARL | €25,000€1 for UG variant |
| Corporate Tax | 24% + 3.9%IRES 24% + IRAP regional ~3.9% (~28% combined) | 25%Standard CIT, no regional addition | ~30%~15.8% CIT + ~14.0% trade tax (Gewerbesteuer) |
| Formation Time | 3–5 weeksNotary required; SDI digital invoicing setup | 2–4 weeksNotary not required for SARL | 4–6 weeksNotary mandatory; bank account often the bottleneck |
| Standout Feature | Patent Box 110% R&DPlus Impatriati & HNWI flat tax for relocators; 103+ DTTs | Inventeur regime & CIR30% R&D tax credit; strong startup ecosystem | EU's largest marketIndustrial powerhouse; Mittelstand depth |
| Best Fit | Manufacturing, design, luxury, food/wine, R&D-led, lifestyle relocation | Consumer brands, luxury, R&D, French market access | Industrial, automotive, B2B, DACH market access |
| Watch Out For | IRAP regional surtaxPlus complex commercialista compliance & SDI | Higher labour costsPlus complex collective-bargaining environment | Trade tax variabilityGewerbesteuer rate set by municipality |
Italy is one of 100+ markets we cover.
If Italy is not the right answer for your situation, here are the markets clients most often consider alongside it.
France
Europe's second-largest economy. Strong for consumer brands, luxury, and businesses serving the French market. CIR R&D credit, dynamic startup ecosystem.
Set up in FR →Germany
Europe's largest economy. The right base for industrial, automotive, and B2B businesses targeting the DACH market. Mittelstand depth, technical workforce.
Set up in DE →Spain
EU's fourth-largest economy. Iberian peninsula gateway plus access to Latin America. Beckham Law for relocators, growing tech and renewables sectors.
Set up in ES →Switzerland
Outside the EU but at the heart of Europe. ~12–21% effective combined federal/cantonal CIT depending on canton. Strong for finance, life sciences, and HQ structures.
Set up in CH →Greece
22% flat CIT, IKE with no minimum capital. Mediterranean gateway, world's largest merchant fleet, generous Non-Dom and lifestyle relocation regimes.
Set up in GR →Malta
EU's smallest member, English-language jurisdiction. Effective tax as low as 5% via refund system. Strong for funds, gaming, aviation, and IP holding.
Set up in MT →Ready to set up in Italy?
Tell us what you are trying to do and we will come back inside 48 hours with a fixed-price quote and timeline. No pressure to commit — just a clear answer from a senior adviser.