What is an Italian agricultural SRL and why do foreigners need one?
The agricultural limited liability company (SRL agricola) is a capital company that acquires agricultural status provided that certain requirements are met. It is governed by Article 2135 of the Italian Civil Code, as amended by Legislative Decree No. 228/2001, and by Legislative Decree No. 99/2004 concerning agricultural companies and professional agricultural entrepreneurs.
In order to incorporate an agricultural limited liability company (SRL agricola), it is necessary that the company’s corporate purpose be exclusively agricultural, that the company name include the word “agricola”, and that at least one director hold the status of Professional Agricultural Entrepreneur (Imprenditore Agricolo Professionale – IAP) or, where provided for under the applicable preferential legislation, the status of direct farmer (coltivatore diretto). In return, the company accesses a tax and social security regime entirely different from that applicable to ordinary commercial companies.
Stamp duty reduction from 15% to 1% on agricultural land purchases
A private foreign buyer purchasing agricultural land pays 15% stamp duty. The same acquisition, if carried out through an agricultural limited liability company (SRL agricola) with a director holding IAP status and the other requirements provided by law, is reduced to 1%. The saving is immediate and precisely quantifiable: on a €300,000 parcel, stamp duty falls from €45,000 to €3,000, a net saving of €42,000 on a single transaction.
For those wishing to explore the full integrated land acquisition operation, we refer to the dedicated page on buying agricultural land in Italy for foreigners.
Access to EU CAP funds and rural development grants
Only qualified agricultural operators can receive EU Common Agricultural Policy direct payments, rural development funds disbursed through the FEASR, and regional grants for innovation and sustainability. For a foreign investor, access to these instruments transforms the property investment into an economically active enterprise capable of generating cash flows that complement the capital appreciation of the land.
With regard to income taxation, where the requirements and tax elections provided for under the applicable tax legislation are met, the agricultural company may benefit from tax regimes based on cadastral agricultural income rather than on ordinary corporate profits. In practice, this results in an effective tax rate significantly lower than that applied to an ordinary commercial company, with savings that increase proportionally with the productivity of the land.
Agricultural SRL or simple agricultural company: which is right for your investment?
For a foreigner choosing between the two main forms, the guiding criterion depends primarily on the value of the investment and the type of activity intended.
An agricultural SRL is almost always the right choice for those purchasing agricultural land of significant value or launching a structured agritourism operation. Limited liability protects the foreign shareholder’s personal assets, the structure is better recognised by Italian banks for financing purposes, and it provides more robust governance for multi-shareholder or cross-border ownership arrangements.
Italian
tax codes
Obtain Italian tax codes (codice fiscale) for all foreign shareholders, by presenting a valid identity document at an Agenzia delle Entrate office or through an Italian consulate abroad.
Reciprocity
principle
Verify the reciprocity principle for non-EU shareholders: participation by third-country nationals in Italian companies is permitted provided that the shareholder’s country of origin extends equivalent rights to Italian citizens.
IAP qualification
process
Identify the director and assess or initiate the IAP qualification process in accordance with Legislative Decree 99/2004.
Execute
the deed
Draft articles of association with exclusive agricultural purpose under art. 2135 of the Italian Civil Code and execute the deed of incorporation before an Italian notary.
Open Italian
VAT number
Open an Italian VAT number (partita IVA) with the correct agricultural ATECO code, to be filed with the Agenzia delle Entrate within 30 days of the deed of incorporation.
Chamber of
Commerce
Register with the Chamber of Commerce (Registro delle Imprese), special agricultural section, at the competent territorial Chamber.
INPS and INAIL
registration
Studio Legale Internazionale Boschetti assists the foreign investor at every stage of the Italian agricultural company formation process, offering an integrated service that covers the entire operation, from the initial assessment to the completion of all corporate formalities.
The scope of service includes:
- Preliminary consultation to assess the optimal structure between an agricultural SRL and a società semplice agricola based on the investor’s profile, the value of the transaction, and medium-term objectives.
- Assistance with the codice fiscale for foreign shareholders and verification of the reciprocity principle for non-EU shareholders.
- Guidance on the IAP qualification process for the director, including assessment of working time and income requirements, or structuring with a qualified third-party director.
- Drafting articles of association with exclusive agricultural purpose compliant with Legislative Decree n. 228/2001.
- Notary coordination for the deed of incorporation, including through notarial power of attorney for shareholders who cannot be physically present in Italy.
- Registration with the Registro delle Imprese, special agricultural section, and INPS completion.
- Integration with the agricultural land purchase service for investors seeking the complete end-to-end acquisition and corporate structuring operation.
