Investments and Real Estate

Opening a representative office in Italy

By opening representative offices in Italy, foreign entrepreneurs have the opportunity to promote their products, services, and business activities—carried out by their foreign company—directly within the Italian territory, without incurring the significant costs associated with company formation or branch establishment.

Unlike the incorporation of a company or the opening of a secondary office, a representative office is simply a local presence of a foreign company in Italy, intended for non-commercial functions. This structure does not require a permanent representative presence.

Thus, setting up a representative office in Italy is the ideal solution when a foreign company wants to establish an initial presence in Italy for activities such as:

Market research
Marketing operations
Other non-commercial activities that do not involve production or sales in Italy.

Requirements for opening a representative office in Italy

To establish a representative office in Italy, the foreign company must issue a resolution by its administrative body, followed by a series of legal and procedural steps:

Appointment of a Representative

- The company must appoint a representative for the representative office.
- This individual will be registered in the Italian Business Register (Registro delle Imprese).
- The same administrator of the foreign company can be appointed as the representative.
- The representative does not need to be a fiscal resident in Italy.

Registered Address in Italy

- The company must have a registered address in Italy.
- If the company does not have a physical office in Italy, it can use a domiciliation service provided by specialized firms.

Tax Identification Code (Codice Fiscale)

- Both the foreign company and the representative of the representative office must obtain an Italian tax code (codice fiscale) issued by the Italian Revenue Agency (Agenzia delle Entrate).

Required documents for opening a representative office in Italy

To establish a representative office in Italy, the foreign company must provide several official documents, including:

Detailed Description of the Company’s Activity

- A comprehensive description of the business activities carried out by the foreign company, written on the company’s official letterhead.

Company Extract (Business Registration Certificate)

- A business registration extract (visura) of the foreign company opening the representative office in Italy.
- This document must include:
- The company’s name and legal form.
- The names of the shareholders and administrators of the company.

Board Resolution from the Foreign Company’s Administrative Body

- A formal resolution from the company’s Board of Directors or administrative body, authorizing:
- The establishment of the representative office in Italy.
- The official registered address of the representative office.
- The appointment of a legal representative for the office in Italy.

Copy of the Passport of the Italian Representative

- A valid passport copy of the individual designated as the representative of the Italian representative office.

Administrative obligations of a representative office in Italy

A representative office is considered a fixed establishment that is exclusively engaged in:

Promotional and advertising activities
Information gathering
Scientific or market research

The representative office of a foreign company in Italy must operate solely as an auxiliary entity of the parent company and cannot engage in:

Production activities
Sales or commercial transactions

This means that the representative office does not generate income, and its costs are fully deductible by the parent company.

Additionally, the representative office manager has no managerial authority and cannot legally bind the company in transactions with third parties.

Accounting and Compliance Requirements

Although a representative office is not required to:

Maintain corporate books
File financial statements
Submit income tax returns

It must maintain ordinary bookkeeping for the documentation of costs and expenses, such as:

Employee salaries
Fixed assets
Operating expenses

These expenses are fully funded by the parent company.

Organizational structure of a representative office in Italy

The establishment of a representative office allows foreign companies to operate in Italy without the need to comply with Italian corporate regulations for company formation.

This setup enables companies to maintain their legal identity as a foreign entity without acquiring a tax residence status in Italy.

Typical scenarios / Case studies

The typical scenarios have been developed by drawing on the most significant corporate immigration cases that the firm regularly handles, with the aim of creating structured, complex examples that help the reader navigate their own situation. The case studies, by contrast, illustrate individual real-life matters, anonymised to protect client confidentiality, presented with full factual and contextual detail.

Relocation

US professional chooses Italy: elective residence obtained and future planned

American professional obtains an elective residence visa while maintaining ties with the USA. Integrated assistance from legal strategy to property search..

Application completed in approximately 3 months without additional requests

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Business

US opera singer obtains work authorization in 7 days

American opera singer with contracts already signed with an Italian theatre. Self employment work authorization obtained on an urgent basis to meet professional commitments.

Work authorization issued within 7 days from submission of the application

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Real Estate

US client purchases property in Rome: secure transaction

American client assisted in the purchase of a property in Rome. Urban planning issues and contractual risks identified and resolved before signing, transaction completed through notarial power of attorney.

Purchase completed within one month, entirely managed remotely

Read the full case

Business

American investor: from New York to a villa in Tuscany

Cross-border property transaction with full relocation service. Purchase of a high-end property, with tax status, residency and NHS registration handled remotely.

Complete relocation service, from property due diligence to handing over the keys

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Retirement

Canadian couple, retirement property in Puglia

From Toronto to the Itria Valley. Purchase of a farmhouse with cadastral issues, 7% flat tax on foreign pensions, elective residence visa and healthcare transition.

7% flat tax activated, cadastral issues resolved before the deed of sale

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Business

British entrepreneur, opening a business in Milan

Post-Brexit, a London-based tech entrepreneur establishes an operational headquarters in Milan. Immigration pathway as a non-EU national, company incorporation, and tax planning.

European operational hub established with self-employment visa successfully obtained

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Tax Planning

Swiss retiree: 7% flat tax regime in Southern Italy

A banking executive relocates from Zurich to Calabria. Management of the Swiss occupational pension pillar, Italy-Switzerland Tax Convention, and deregistration from the cantonal tax register.

7% flat tax activated on all foreign-sourced income

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Retirement

American couple: retirement project in Abruzzo with visa and flat tax

From Connecticut to Abruzzo. Elective residency visa, 7% flat tax coordinated with IRS and FATCA obligations, and transition from Medicare to the Italian NHS (SSN).

7% flat tax activated on Social Security and 401(k) pension income

Read the full case

Relocation

German couple, from Munich to Tropea

Retired engineers from the Bavarian automotive sector. Multi-tier pension management, Italy-Germany Tax Convention, and the 7% preferential tax regime.

Three German pension pillars optimised with Italian flat tax

Read the full case

Business

Startup tech: apertura filiale italiana per il mercato EU

A Bay Area SaaS company establishes a Milan headquarters. Innovative startup SRL, EU Blue Card for the team, transfer pricing, impatriates tax regime, and GDPR compliance.

Operational within 5 months, payroll cost −35% with impatriates tax regime

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Business

Fashion brand, representative office in Milan

Brand premium newyorkese apre presidio a Milano. Strutturazione per evitare stabile organizzazione, trasferimento direttrice creativa e gestione showroom.

Rischio stabile organizzazione prevenuto, presidio EU operativo

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Corporate

Manufacturing company, ICT transfers to Italy

Multinazionale giapponese trasferisce 3 figure chiave in Piemonte. Permessi ICT per manager e specialista, coordinamento consolare e regime impatriati per tutti i dipendenti.

3 trasferimenti completati in 4 mesi e mezzo, linea produttiva avviata nei tempi previsti

Read the full case

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Via dei Gracchi, 151
00192 Roma – Italy

info@italyvisainvestments.com
Tel: + 39 – 06 889 21971

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Investor visa: how to prove the source of funds?

The source of funds must be demonstrated through banking and financial documentation proving ownership, availability, transferability, and lawful origin of the capital: recent bank statements (typically covering the last 3 months), certifications from the financial institution, and documents evidencing the source of funds (income, sale of assets, donations, or other traceable transactions).

For the Italian investor visa (minimum €500,000 in a company or €250,000 in an innovative startup), documentation must be in Italian or English (or officially translated) and verifiable. Authorities carry out anti-money laundering checks and also require proof of no criminal convictions and of the lawful origin of the funds.

Real estate purchase as a foreigner: does buying a property grant a residence permit?

No, purchasing a property in Italy does not automatically grant a residence permit. A non-EU national may freely buy property, subject to the condition of reciprocity, but residing in Italy requires an independent residence title: elective residence, investor visa, work, or another legal ground предусмотрed by law.

However, owning property can be a useful requirement for several types of residence permits, particularly elective residence. It demonstrates a connection to the territory and satisfies the accommodation requirement, as well as indicating the availability of sufficient financial resources. Therefore, the purchase should be part of an overall immigration strategy.

Foreigner buying property in Italy: what taxes apply and what incentives are available?

A foreign buyer pays the same taxes as an Italian citizen: a registration tax of 9%, or reduced to 2% if the “first home” benefit applies; VAT at 4% or 10% if purchasing from a developer. In addition, there are mortgage and cadastral taxes (€200 each for a first home).

The “first home” benefit is also available to foreigners, provided they establish residence in the municipality where the property is located within 18 months of purchase. Special tax regimes for new residents or inbound workers may offer further advantages on the taxation of foreign

Elective residence based on property purchase: what is the minimum income required?

There is no minimum amount set by law. The consulate assesses on a case-by-case basis whether the applicant has sufficient means to support themselves without working in Italy. In practice, an annual income from passive sources (pension, annuities, dividends) of at least €31,000 for a single applicant is generally considered sufficient, with higher thresholds for dependent family members.

Elective residence is intended for individuals who wish to relocate to Italy without carrying out any work activity. Owning a property or having a long-term rental agreement strengthens the application. Proof of passive income sources is the key requirement.

Opening a representative office in Italy: what are the tax obligations and advantages?

A representative office does not carry out commercial activities in Italy: it promotes the business, gathers information, and manages relationships with clients and suppliers without entering into contracts. As it does not constitute a permanent establishment, it does not generate taxable income in Italy and is not subject to corporate income tax (IRES) or VAT on its activities.

The advantages: a physical presence in the Italian market without direct taxation, low start-up costs, and no obligation to prepare separate financial statements. The obligations: registration with the REA (Economic and Administrative Index) at the Chamber of Commerce, keeping accounting records for expenses incurred, and filing withholding tax returns if employees are hired.

Innovative startup in Italy: what tax incentives are available for foreign founders?

Foreign founders of innovative startups may benefit from a 30% personal income tax (IRPEF) deduction (up to 50% in certain cases) on investments in the company’s capital, the favorable tax regime for new residents, and exemption from Chamber of Commerce fees and stamp duties for the first five years.

The startup must be registered in the special section of the Companies Register and meet the requirements set out in Law Decree 179/2012, which are also verified by the Investor Visa for Italy Committee. As for immigration pathways, the investor visa requires a minimum investment of €250,000 in an innovative startup.