Investments and Real Estate

Setting up a company in Italy as a foreigner

Opening a company in Italy as a foreigner is an ambitious project as it allows you to start a business in a country with a dynamic market, a strategic geographical position and a valuable economic tradition. Although Italian bureaucracy is complex and sometimes a source of stress, with the right information and adequate support, company incorporation can become a clear and achievable process. Italy offers various legal forms designed to meet the needs of both small investors and those aiming for more structured entrepreneurial setups. Understanding the differences between these options and knowing the documentary requirements is essential to avoid mistakes that could slow down the start of the business.

Another element to consider concerns the initial costs, which vary depending on the chosen corporate form, as well as the tax opportunities that the Italian system offers to foreign investors. There are indeed favorable measures, tax credits and special regimes that can significantly reduce the tax burden, making the investment even more advantageous.

We rely on a team of experts in corporate law who can assist any foreigner wishing to establish a company in Italy. We provide complete legal assistance, from the initial business planning and choice of corporate form to the drafting of the articles of association, from handling bureaucratic procedures to tax compliance, all coordinated by a single professional entity: Boschetti International Law Firm.

Choosing the legal form: what types of companies are available for foreigners in Italy

The first step to open a company in Italy as a foreigner is to carefully evaluate the most suitable legal form for your needs. Among the main options is the limited liability company (Srl), known for its flexibility and the possibility of being incorporated even with a minimum share capital of just 1 euro in the case of a simplified Srl. The standard Srl, on the other hand, requires a minimum capital of 10,000 euros and is recommended for medium-sized investments. This structure limits the liability of the shareholders to the contributed capital, protecting their personal assets.

Those who plan larger projects may opt for a joint-stock company (S.p.A.), which requires a minimum share capital of 50,000 euros. This model is ideal for attracting external investors and potentially being listed on the stock market, offering broader growth prospects.

Alongside these forms, there are also partnerships such as Snc or Sas, which are generally not preferred by foreign investors because they involve greater personal liability for the partners. The choice of legal form should not be random but based on business objectives, the level of risk you are willing to take, and your planned growth strategy.

Required documentation to open a company

Once the most suitable legal form has been identified, it is essential to prepare the documentation required for the incorporation of the company. Each shareholder must have a valid identity document and an Italian tax code, which can be obtained at the Italian Revenue Agency or through Italian consulates abroad. For non-EU citizens, in many cases, a residence permit allowing the performance of economic activities in Italy is also required.

The company must have articles of association and bylaws, drafted and registered with the assistance of an Italian notary. These documents set out the rules for the functioning of the company, the relationships between shareholders, and the allocation of shares. An essential step is opening a bank account in Italy to deposit the required share capital.

It is important to underline that every formal detail must comply with Italian regulations, otherwise the incorporation act may be invalid. Relying on experienced professionals is therefore essential to avoid errors or omissions. Boschetti Law Firm provides support in gathering documents, sworn translations and legalization, steps that are often necessary for documents issued abroad. In this way, the procedure becomes smoother and safer, minimizing bureaucratic delays.

Costs of opening a company in Italy

The costs of opening a company in Italy depend mainly on the chosen corporate form and the professional services required. A simplified Srl involves low initial costs, with reduced notarial fees and a symbolic minimum share capital. A standard Srl, on the other hand, requires a minimum capital of 10,000 euros and has notarial costs usually between 2,000 and 2,500 euros.

For a S.p.A., costs are higher, as the minimum share capital required is 50,000 euros, to which incorporation fees, registration fees with the Chamber of Commerce and annual maintenance taxes are added. One must also consider expenses related to chamber duties and tax compliance, which represent a recurring cost for all Italian companies.

In addition, there are legal, tax and accounting consultancy costs, which are essential to correctly manage the company from the start. Carefully planning these expenses is crucial for building a realistic business plan. Investing in qualified consultancy often means reducing future risks and optimizing management. Boschetti Law Firm supports foreign entrepreneurs in this phase, ensuring transparency on costs and providing solutions suited to the available budget.

Tax advantages for foreign investors

One of the reasons why many entrepreneurs choose to establish a company in Italy is the tax advantages that our legal system grants to foreign investors. First of all, there are benefits for those who transfer their tax residence to Italy, with special regimes allowing favorable substitute taxation on income generated abroad.

There are also tax credits and incentives for those who invest in strategic sectors such as research and development, technological innovation, digitalization and ecological transition. Some regions, particularly those in Southern Italy, offer grants and tax breaks to attract investments, with the aim of supporting employment and local development.

Another key element is represented by the bilateral conventions against double taxation signed by Italy with numerous countries, which prevent taxpayers from paying tax twice on the same income. These measures make Italy an attractive destination despite its complex tax system. With careful planning, it is possible to build an efficient and legally compliant tax structure.

Registration and start of operations

After signing the articles of association before a notary and registering with the Chamber of Commerce, the company obtains a VAT number which allows it to start operating. This step marks the official start of business activity.

The company must then fulfill various administrative obligations: registration with social security institutions such as INPS and INAIL, opening tax positions, registering employment contracts and preparing the accounting system. Boschetti International Law Firm STA (law firm company) handles these tasks through partner accountants, guaranteeing the highest professionalism and competence.

The start of operations is a delicate phase in which it is essential to comply with all Italian regulations to avoid sanctions or blocks. With the support of legal and tax consultants, it is possible to focus on the commercial aspect and the development of the business, delegating bureaucratic tasks to experienced professionals. We assist clients in this phase as well, ensuring a smooth and secure start so that the entrepreneur can fully focus on growing their project.

Why it is worth doing business in Italy as a foreigner

Doing business in Italy as a foreigner may seem challenging, but it represents a major strategic opportunity. Italy is the third largest economy in the European Union and serves as a natural bridge to European, Mediterranean and Middle Eastern markets. The quality of “Made in Italy,” the strength of the manufacturing sector and the value of human capital are factors that make the Italian entrepreneurial system competitive.

The country’s logistics infrastructure and geographical location allow for quick connections with major markets, while investment attraction policies aim to encourage innovative and high-growth sectors. Despite the perception of complex bureaucracy, with proper planning and targeted legal support, opening a company in Italy is a feasible project for many investors.

Choosing Italy also means entering a rich cultural context that supports tourism, agri-food and new technologies. For a foreigner, starting a business in Italy can mean not only investing but also creating lasting connections with a country that values international expertise.

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

Read the full case

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

Read the full case

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

Read the full case

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

Read the full case

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

Read the full case

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

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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

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How Boschetti International Law Firm can help you open a company in Italy

Boschetti International Law Firm is a reference point for foreign entrepreneurs who wish to establish a company in Italy. Thanks to its specific experience in immigration law and commercial law, the Firm offers complete assistance that supports the client in every phase of the process.

Support begins with a preliminary consultation to identify the business path and the most suitable corporate form to ensure the feasibility of the project, taking into account Italian and European regulations, bilateral treaties and the position of shareholders regarding residence in Italy.

Our strength lies in combining knowledge of commercial and business law with solid expertise in immigration law, which translates into a significant advantage in situations where the person creating a company in Italy is a foreigner, especially a non-EU citizen. In fact, alongside the corporate and business process, it is essential to plan the client’s migration status, i.e. to identify the ideal type of visa and residence permit, and above all to determine the timing of the operation, creating a precise schedule that integrates the corporate steps with those relating to obtaining the visa and residence permit for foreign entrepreneurs.

Our consultancy is personalized and also aims to ensure tax advantages for our clients: the goal is to allow the entrepreneur to focus on the development of their business, entrusting qualified professionals with the management of bureaucratic and legal aspects. With the support of Boschetti International Law Firm and its partner tax consultants, opening a company in Italy becomes a smooth and secure process.

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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.