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Strategic Logistics Hub
Italy is located in the heart of the Mediterranean, serving as a crucial strategic gateway for businesses to access the European Union, North Africa, and the Middle East. It is also a vital transportation hub connecting Southern Europe, Central Europe, and Eastern Europe. Being situated in the central Mediterranean, 20% of global maritime transport, 30% of fuel transport, and 25% of container transport are conducted through Italian ports.
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Robust Manufacturing Base
Italy is one of the leading manufacturing nations in Europe, second only to Germany. Italian products continue to enjoy a strong reputation for quality and design. Investors can seek collaborations in various fields such as machine tools, fashion products, food, automobiles, pharmaceuticals, industrial machinery, metals, chemicals, plastics, paper, ceramics, textiles, and marine industries. Italy is also one of the top five countries with a trade surplus.
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Pro-Investment Culture
Italy offers numerous tax benefits to attract foreign investment, including employment tax exemptions for hiring women and young workers, tax breaks for energy efficiency, and reductions for intangible assets. The government provides R&D tax credits of 25% for private investment, rising to 50% for projects with universities or research institutes. Enterprises in southern Italy can access additional public support for manufacturing and R&D.
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High-Tech Capabilities
Italy is a hub for innovation and high technology. The government offers incentives for biotechnology, chemicals, aerospace, and automotive industries. Italy’s biotech sector benefits from well-established academic and industrial research infrastructure. As Europe’s third-largest chemical producer, its market focuses on agriculture, food, and beverages. The automotive industry is globally renowned for design excellence and advanced manufacturing.
Tax Info
Enter Dynamic Page- General CIT Rate
- 24
- CIT Return Due Date
- By the end of the 10th month after the end of the tax year.
- CIT Payment Due Date
- The last day of the sixth month after the end of the tax year.
- CIT Estimated Payment Due Date
- Advance payment: 1) Pay 40% on the last day of the sixth month after the end of the tax year, 2) Pay 60% at the end of the eleventh month after the end of the tax year. Taxpayers subject to the ISA reliability indices pay 50% in each instalment.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 0-26/0-26/0-20
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 26/26/30
- General VAT Rate
- 22
- General Capital Gain Tax Rate
- Capital gains are subject to the normal corporate income tax rate. A gain on a shareholding realised by a company is exempt as to 95% of its amount where four cumulative conditions are met: uninterrupted possession from the first day of the twelfth month before the disposal; classification among financial fixed assets in the first balance sheet closed during the holding period; the participated company not being resident or located in a preferential tax regime, that condition holding uninterruptedly for the period the statute requires; and the participated company carrying on a commercial enterprise, which is conclusively presumed absent where its assets consist mainly of property not used in its own business, and which must have been satisfied from the beginning of the third tax period before the disposal. The remaining 5% of the gain is taxed as business income.
- Composite Effective Average Tax Rate
- 21.18%
- Composite Effective Marginal Tax Rate
- -22.74%
Administrative Regions
- 21 - Piedmont
- 23 - Aosta Valley
- 25 - Lombardy
- 32 - Trentino-South Tyrol
- 34 - Veneto
- 36 - Friuli–Venezia Giulia
- 42 - Liguria
- 45 - Emilia-Romagna
- 52 - Tuscany
- 55 - Umbria
- 57 - Marche
- 62 - Lazio
- 65 - Abruzzo
- 67 - Molise
- 72 - Campania
- 75 - Apulia
- 77 - Basilicata
- 78 - Calabria
- 82 - Sicily
- 88 - Sardinia
- AG - Libero consorzio comunale di Agrigento
- AL - Province of Alessandria
- AN - Province of Ancona
- AP - Province of Ascoli Piceno
- AQ - Province of L'Aquila
- AT - Province of Asti
- AV - Province of Avellino
- BA - Metropolitan City of Bari
- BG - Province of Bergamo
- BI - Province of Biella
- BL - Province of Belluno
- BN - Benevento Province
- BO - Metropolitan City of Bologna
- BR - Province of Brindisi
- BS - Province of Brescia
- BT - Province of Barletta-Andria-Trani
- BZ - South Tyrol
- CA - Metropolitan City of Cagliari
- CB - Province of Campobasso
- CE - Province of Caserta
- CH - Province of Chieti
- CI - Province of Carbonia-Iglesias
- CL - Libero consorzio comunale di Caltanissetta
- CN - Province of Cuneo
- CO - Province of Como
- CR - Province of Cremona
- CS - Province of Cosenza
- CT - Metropolitan City of Catania
- CZ - Province of Catanzaro
- EN - Libero consorzio comunale di Enna
- FC - Province of Forlì-Cesena
- FE - Province of Ferrara
- FG - Province of Foggia
- FI - Metropolitan City of Florence
- FM - Province of Fermo
- FR - Province of Frosinone
- GE - Metropolitan City of Genoa
- GO - Province of Gorizia
- GR - Province of Grosseto
- IM - Province of Imperia
- IS - Province of Isernia
- KR - Province of Crotone
- LC - Province of Lecco
- LE - Province of Lecce
- LI - Province of Livorno
- LO - Province of Lodi
- LT - Province of Latina
- LU - Province of Lucca
- MB - Province of Monza and Brianza
- MC - Province of Macerata
- ME - Metropolitan City of Messina
- MI - Metropolitan City of Milan
- MN - Province of Mantua
- MO - Province of Modena
- MS - Province of Massa and Carrara
- MT - Province of Matera
- NA - Metropolitan City of Naples
- NO - Province of Novara
- NU - Province of Nuoro
- OG - Province of Ogliastra
- OR - Province of Oristano
- OT - Province of Olbia-Tempio
- PA - Metropolitan City of Palermo
- PC - Province of Piacenza
- PD - Province of Padua
- PE - Province of Pescara
- PG - Province of Perugia
- PI - Province of Pisa
- PN - Province of Pordenone
- PO - Province of Prato
- PR - Province of Parma
- PT - Province of Pistoia
- PU - Pesaro and Urbino Province
- PV - Province of Pavia
- PZ - Province of Potenza
- RA - Province of Ravenna
- RC - Metropolitan City of Reggio Calabria
- RE - Province of Reggio Emilia
- RG - Libero consorzio comunale di Ragusa
- RI - Province of Rieti
- RM - Metropolitan City of Rome
- RN - Province of Rimini
- RO - Province of Rovigo
- SA - Province of Salerno
- SI - Province of Siena
- SO - Province of Sondrio
- SP - Province of La Spezia
- SR - Libero consorzio comunale di Siracusa
- SS - Province of Sassari
- SV - Province of Savona
- TA - Province of Taranto
- TE - Province of Teramo
- TN - Trentino
- TO - Metropolitan City of Turin
- TP - Libero consorzio comunale di Trapani
- TR - Province of Terni
- TS - Province of Trieste
- TV - Province of Treviso
- UD - Province of Udine
- VA - Province of Varese
- VB - Province of Verbano-Cusio-Ossola
- VC - Province of Vercelli
- VE - Metropolitan City of Venice
- VI - Province of Vicenza
- VR - Province of Verona
- VS - Province of Medio Campidano
- VT - Province of Viterbo
- VV - Province of Vibo Valentia
Belonging Jurisdiction
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IT - Italy
Italian RepublicLearn MoreItalian Republic -
EEA - European Economic Area
European Economic AreaLearn MoreEuropean Economic Area -
EU - European Union
European UnionLearn MoreEuropean Union -
WORLD - Global
EarthLearn MoreEarth
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