Overview: 

Italy is a state with an incredibly beneficial geographical position. It is located in southern Europe, bordering France, Austria, Switzerland, and Slovenia, and washed by the Mediterranean Sea. The leading area of the Italian economy is mechanical engineering, metallurgy, light industry, and food industry. Italy is renowned as one of the major producers and suppliers in the world market.  

If you are choosing an EU-member country in which you would like to create your own business, it is worth noting that Italy is one of the best fits for this purpose. It stands out from the rest due to its high standard of living, stable economy, and well-thought-out legislation. 

Clevver specialists will provide organizational support for SRL/SRLs company registration in Italy. This is the most popular legal form of doing business in this state. Visit our incorporation in Italy page to find out more. 

Taxation in Italy

Italian companies are subject to the following taxes: 

1. Corporate tax 

Italian businesses are liable to Corporate Income Tax (IRES) and Regional Production Tax (IRAP). The standard corporate tax rates are 24% for IRES and 3.9% for IRAP. 

2. VAT 

VAT (standard rate is 22%) is applied to supplies of goods and services realized in Italy. Only specific types of goods and services are exempt from VAT in Italy. 

3. Tax on incoming dividends 

Dividends received by Italian resident companies from other Italian companies or companies resident in countries other than tax havens (i.e., not blacklisted) are excluded from the IRES tax base at 95% of their amount. 

4. Capital Gains Tax 

The tax rate is 27.9%. However, if certain requirements are met, entrepreneurs have the opportunity to exempt 95% of profits from this type of taxation.

Why Open up a Business in Italy?  

The advantages of Italy for starting a business are obvious:  

• Clear and stable economic and political systems;  
• The large solvent market for goods and services;  
• Membership in the European Union; 
• Developed infrastructure; 
• Open economy, no restrictions on trade; 
• Low inflation; 
• Reliable legal and judicial system; 
• Favorable climate for small and medium-sized businesses; 
• A large number of double tax agreements in force. 

Register Your Italian Business with Clevver's Support

Incorporating a company in Italy with Clevver — it is always close attention to the aspects of the matter, a highly qualified team of professionals, and the digital process of Clevver assistance in company formation.  

Contact us to receive:  

• Support of well-versed experts; 
• The entirely digital process of cooperation with us;   
• Establishment of all the essential documents for company formation remotely;   
• Numerous add-ons to choose from (a registered address, mail and parcel handling service, and a local phone number);   
• Individual and highly professional approach to each customer. 

Conclusion 

The Italian government's far-reaching policy of encouraging foreign business and creating favorable conditions for the development of companies has worked. Every year the number of foreign enterprises registered in Italy is growing. The positive dynamics are also explained by the desire of businessmen to register their activities in a developed country, which is a member of the European Union.

With Clevver's help, your Italian business will be formed simply, completely digitally, and in a concise time span. 

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.