{"id":6064,"date":"2026-05-27T07:38:48","date_gmt":"2026-05-27T07:38:48","guid":{"rendered":"https:\/\/www.italyvisainvestments.com\/?page_id=6064"},"modified":"2026-05-27T07:42:41","modified_gmt":"2026-05-27T07:42:41","slug":"setting-up-an-agricultural-srl","status":"publish","type":"page","link":"https:\/\/www.italyvisainvestments.com\/en\/corporate\/setting-up-an-agricultural-srl\/","title":{"rendered":"Setting up an agricultural SRL"},"content":{"rendered":"
Corporate<\/div>\n

Setting up an agricultural SRL in Italy for foreigners<\/h1>\n
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Purchasing agricultural land in Italy as a foreigner<\/strong>, launching an agritourism, or operating steadily in the Italian agricultural sector requires the right corporate structure. Without it, a foreign buyer pays 15% stamp duty<\/strong> on land purchases, cannot access EU Common Agricultural Policy direct payments, and remains excluded from the favourable tax regime reserved for qualified agricultural operators.<\/p>\n

The solution is the incorporation of an agricultural limited liability company<\/strong> (SRL agricola<\/em>) for foreign investors in Italy: a corporate form governed primarily by Legislative Decree No. 228 of 18 May 2001 and Legislative Decree No. 99 of 29 March 2004.<\/p>\n

Studio Legale Internazionale Boschetti assists the foreign investor at every stage: from selecting the optimal structure to completing all corporate formalities, including the director’s IAP qualification process<\/strong>.<\/p>\n<\/div>\n

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What is an Italian agricultural SRL and why do foreigners need one?<\/h2>\n
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The agricultural limited liability company<\/strong> (SRL agricola<\/em>) 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.<\/p>\n

In order to incorporate an agricultural limited liability company (SRL agricola<\/em>), it is necessary that the company\u2019s corporate purpose be exclusively agricultural<\/strong>, that the company name include the word \u201cagricola\u201d<\/strong>, and that at least one director hold the status of Professional Agricultural Entrepreneur<\/strong> (Imprenditore Agricolo Professionale<\/em> \u2013 IAP) or, where provided for under the applicable preferential legislation, the status of direct farmer<\/strong> (coltivatore diretto<\/em>). In return, the company accesses a tax and social security regime entirely different from that applicable to ordinary commercial companies.<\/p>\n<\/div>\n

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For a foreign investor, the agricultural SRL offers structural advantages that make it preferable to a\u00a0<\/span>societ\u00e0 semplice agricola<\/em>. First,\u00a0<\/span>limited liability protection<\/strong>: the foreign shareholder is not personally liable for the company’s obligations. Second, shareholders are not required to hold any agricultural qualification, which, in agricultural capital companies, is generally required to be held by at least one director for the purposes of obtaining recognition of the company\u2019s IAP status. Third, shareholders of any nationality may participate, provided that their country of origin applies the reciprocity principle with Italy. Finally, the structure is suitable for managing high-value real estate operations in combination with agricultural activity, with a solidity recognised by both Italian banks and commercial partners.<\/p>\n

For a detailed analytical comparison between the\u00a0<\/span>agricultural SRL<\/strong>\u00a0<\/span>and the\u00a0<\/span>societ\u00e0 semplice<\/em>\u00a0<\/span>covering taxation, liability, and governance, we refer to the dedicated IVI blog post.<\/p>\n<\/div>\n

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Tax benefits of an Italian agricultural SRL for foreign investors<\/h2>\n
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This is the section that most directly affects the financial attractiveness of the operation. A\u00a0qualified agricultural SRL<\/strong>\u00a0accesses a tax regime entirely different from that applicable to a private foreign buyer. The benefits extend from land acquisition to the entire operational lifecycle, and the gap compared to the ordinary regime is, in many cases, decisive in the investment assessment.<\/p>\n

To make the advantage concrete: on an agricultural parcel valued at \u20ac300,000, the saving on stamp duty alone exceeds\u00a0\u20ac42,000<\/strong>. Add to this the benefits on income taxation and access to EU funds, which transform a property investment into an economically active agricultural enterprise.<\/p>\n<\/div>\n

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Stamp duty reduction from 15% to 1% on agricultural land purchases<\/h3>\n
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A private foreign buyer purchasing agricultural land pays\u00a015% stamp duty<\/strong>. The same acquisition, if carried out through an agricultural limited liability company (SRL agricola<\/em>) with a director holding IAP status and the other requirements provided by law, is reduced to\u00a01%<\/strong>. The saving is immediate and precisely quantifiable: on a \u20ac300,000 parcel, stamp duty falls from\u00a0\u20ac45,000<\/strong>\u00a0to\u00a0\u20ac3,000<\/strong>, a net saving of\u00a0\u20ac42,000<\/strong>\u00a0on a single transaction.<\/p>\n

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.<\/p>\n<\/div>\n

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Access to EU CAP funds and rural development grants<\/h3>\n
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Only qualified agricultural operators can receive\u00a0EU Common Agricultural Policy direct payments<\/strong>, rural development funds disbursed through the\u00a0FEASR<\/strong>, 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.<\/p>\n

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\u00a0cadastral agricultural income<\/strong>\u00a0rather 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.<\/p>\n<\/div>\n

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Requirements to set up an agricultural SRL as a foreigner<\/h2>\n
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The question most frequently preventing foreign investors from proceeding is: \u201cCan I do this as well?\u201d The answer is yes, provided that the structure is properly set up. The regulations governing agricultural companies, set out in Legislative Decree No. 99\/2004 and coordinated with Article 2135 of the Italian Civil Code, establish specific requirements for the recognition of the company\u2019s agricultural status, which do not include either Italian citizenship or residence in Italy. Shareholders may be foreign nationals of any country: the agricultural qualification requirement applies exclusively to the director, not to shareholders.<\/p>\n<\/div>\n

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  • \n

    Exclusive agricultural corporate purpose<\/h3>\n
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    The articles of association must state that the company’s\u00a0exclusive purpose is agricultural activity<\/strong>\u00a0under art. 2135 of the Italian Civil Code (Codice Civile<\/em>): land cultivation, forestry, animal husbandry, and connected activities. Connected activities include the processing, preservation, transformation, marketing, and promotion of agricultural products obtained primarily from the cultivation of the land. Agritourism qualifies as a connected activity when carried out in conjunction with the primary agricultural activity and within the prevalence thresholds set by sector regulations.<\/p>\n

    A practical implication: the company cannot engage in non-agricultural commercial activities without losing its qualified status and the related tax benefits. Drafting the articles of association therefore requires specific legal attention, and is one of the stages where specialist legal assistance makes the most material difference.<\/p>\n<\/div>\n<\/li>\n

  • \n

    Company name including the term \u201cagricola\u201d<\/h3>\n
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    The company name must include the word \u201cagricola\u201d<\/strong>. This is a formal but mandatory requirement: without such indication in its name, the company cannot qualify as an agricultural company under Legislative Decree No. 99\/2004 and cannot benefit from the related preferential regime. It is advisable to verify the availability of the chosen name before drafting the deed of incorporation, since the choice of the company name is one of the first operational decisions in the entire process of incorporating an agricultural limited liability company (SRL agricola<\/em>).<\/p>\n<\/div>\n<\/li>\n

  • \n

    IAP director qualification: how foreigners satisfy this requirement<\/h3>\n
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    This is the most sensitive requirement for a foreigner seeking to open an agricultural business in Italy. The IAP qualification<\/strong>, governed by Legislative Decree 99\/2004, can be obtained by a foreign national who meets the required criteria: to devote at least 50%<\/strong> of their overall working time to agricultural activities and to derive at least 50%<\/strong> of their total employment income therefrom; such thresholds are reduced to 25%<\/strong> for entrepreneurs operating in disadvantaged areas as defined under European legislation. The qualification also requires demonstration of adequate professional capacity, established through relevant education or experience.<\/p>\n

    For foreign investors who do not wish to assume direct operational management of the land, the Studio can structure the company with a qualified third-party director<\/strong> holding the IAP qualification, while the investor retains full share ownership. Both approaches are valid and the Studio advises on the optimal route based on the investor’s profile and objectives.<\/p>\n<\/div>\n<\/li>\n<\/ul>\n

    Agricultural SRL or simple agricultural company: which is right for your investment?<\/h2>\n
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    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.<\/p>\n

    An agricultural SRL<\/strong> 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.<\/p>\n<\/div>\n

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    A societ\u00e0 semplice agricola<\/em> may be appropriate for small-scale operations or for those managing an existing family farm with an established agricultural activity. It is a simpler structure, but offers no liability limitation and, in some circumstances, is less bankable.<\/p>\n

    For a full comparative analysis of the agricultural company formation options in Italy, covering tax treatment, liability, and governance in detail, we refer to the dedicated IVI blog post.<\/p>\n<\/div>\n

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    Step-by-step formation process for foreign investors<\/h2>\n
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    The process for setting up an\u00a0<\/span>agricultural company in Italy as a foreigner<\/strong>\u00a0<\/span>involves specific steps compared to a standard Italian SRL formation. One important aspect is that physical presence in Italy is not required for every stage: it is possible to act through a\u00a0<\/span>notarial power of attorney<\/strong>\u00a0<\/span>(procura notarile<\/em>) for the deed of incorporation and various subsequent formalities, making the operation accessible to investors managing it from abroad.<\/p>\n

    The average timeline for completing the entire process, from initiation to registration, is between\u00a0<\/span>4 and 8 weeks<\/strong>, depending on the complexity of the corporate structure and the time required for the IAP qualification.<\/p>\n

    The main steps, in chronological order, are as follows:<\/p>\n

      <\/ul>\n<\/div>\n
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      • \n

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        Italian
        tax codes<\/h3>\n
        \n

        Obtain\u00a0<\/span>Italian tax codes<\/strong>\u00a0<\/span>(codice fiscale<\/em>) for all foreign shareholders, by presenting a valid identity document at an Agenzia delle Entrate office or through an Italian consulate abroad.<\/p>\n<\/div>\n<\/li>\n

      • \n

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        Reciprocity
        principle<\/h3>\n
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        Verify the\u00a0<\/span>reciprocity principle<\/strong>\u00a0<\/span>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.<\/p>\n<\/div>\n<\/li>\n

      • \n

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        IAP qualification
        process<\/h3>\n
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        Identify the director and assess or initiate the\u00a0<\/span>IAP qualification process<\/strong>\u00a0<\/span>in accordance with Legislative Decree 99\/2004.<\/p>\n<\/div>\n<\/li>\n

      • \n

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        Execute
        the deed<\/h3>\n
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        Draft articles of association with exclusive agricultural purpose under art. 2135 of the Italian Civil Code and execute the deed<\/strong> of incorporation before an Italian notary.<\/p>\n<\/div>\n<\/li>\n

      • \n

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        Open Italian
        VAT number<\/h3>\n
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        Open an\u00a0<\/span>Italian VAT number<\/strong>\u00a0<\/span>(partita IVA<\/em>) with the correct agricultural ATECO code, to be filed with the Agenzia delle Entrate within\u00a0<\/span>30 days<\/strong>\u00a0<\/span>of the deed of incorporation.<\/p>\n<\/div>\n<\/li>\n

      • \n

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        Chamber of
        Commerce<\/h3>\n
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        Register with the Chamber of Commerce<\/strong> (Registro delle Imprese<\/em>), special agricultural section, at the competent territorial Chamber.<\/p>\n<\/div>\n<\/li>\n

      • \n

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        INPS and INAIL
        registration<\/h3>\n
        Complete\u00a0<\/span>INPS<\/strong>\u00a0<\/span>and\u00a0<\/span>INAIL<\/strong>\u00a0<\/span>registration for the director’s social security and insurance position.<\/div>\n<\/li>\n<\/ul>\n

        How Studio Legale Internazionale Boschetti can help you set up an agricultural SRL in Italy<\/h2>\n

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        Studio Legale Internazionale Boschetti assists the foreign investor at every stage of the\u00a0Italian agricultural company formation process<\/strong>, offering an integrated service that covers the entire operation, from the initial assessment to the completion of all corporate formalities.<\/p>\n

        The scope of service includes:<\/p>\n<\/p>\n

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        • Preliminary consultation<\/strong>\u00a0to assess the optimal structure between an agricultural SRL and a\u00a0societ\u00e0 semplice agricola<\/em>\u00a0based on the investor’s profile, the value of the transaction, and medium-term objectives.<\/li>\n
        • Assistance with the\u00a0codice fiscale<\/strong>\u00a0for foreign shareholders and verification of the reciprocity principle for non-EU shareholders.<\/li>\n
        • Guidance on the\u00a0IAP qualification process<\/strong>\u00a0for the director, including assessment of working time and income requirements, or structuring with a qualified third-party director.<\/li>\n
        • Drafting articles of association with exclusive agricultural purpose compliant with Legislative Decree n. 228\/2001.<\/li>\n
        • Notary coordination for the deed of incorporation, including through\u00a0notarial power of attorney<\/strong>\u00a0for shareholders who cannot be physically present in Italy.<\/li>\n
        • Registration with the\u00a0Registro delle Imprese<\/em>, special agricultural section, and INPS completion.<\/li>\n
        • Integration with the agricultural land purchase service for investors seeking the complete end-to-end acquisition and corporate structuring operation.<\/li>\n<\/ul>\n<\/div>\n

          FAQ<\/h3>\n
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          • \n

            Can a foreigner start a company in Italy?<\/h3>\n
            \n

            Yes. Foreigners can incorporate and participate in Italian companies of any form, including agricultural SRLs. EU citizens face no restrictions. For non-EU nationals, the legal framework applies the reciprocity principle: participation in Italian companies is permitted provided that the shareholder’s country of origin extends equivalent rights to Italian citizens. In practice, this condition is met for the vast majority of countries with which Italy maintains economic relations. A foreign national can therefore set up an agricultural company in Italy without holding Italian citizenship or Italian residency, as long as the director’s IAP qualification requirement is satisfied.<\/p>\n<\/div>\n<\/li>\n

          • \n

            How to start an agriculture business in Italy?<\/h3>\n
            \n

            To start an agricultural business in Italy as a foreign investor, the recommended route is the formation of an agricultural SRL under Legislative Decree n. 228\/2001, Legislative Decree n 99\/2004 and article n. 2135 of the Italian Civil Code. The process involves obtaining a codice fiscale for all foreign shareholders, verifying the reciprocity principle for non-EU nationals, appointing a director with IAP qualification, drafting articles of association with exclusive agricultural purpose, incorporating before a notary, and registering with the Chamber of Commerce and INPS. The typical timeline is 4 to 8 weeks. A notarial power of attorney removes the need for the investor to be physically present in Italy for the main corporate acts.<\/p>\n<\/div>\n<\/li>\n

          • \n

            Can a foreigner buy a farm in Italy?<\/h3>\n
            \n

            Yes. A foreigner can buy a farm or agricultural land in Italy either directly as a private individual or through an Italian agricultural company. The direct purchase route is available to EU and non-EU nationals alike, subject to the reciprocity principle for non-EU buyers, but carries a 15% stamp duty on the purchase price. Purchasing through an agricultural SRL Italy foreign investor structure, with a qualified IAP director, reduces stamp duty to 1% and provides access to the full range of EU agricultural support funds and Italian tax incentives. For most foreign investors acquiring land of significant value, the structured route through an agricultural SRL is the materially more advantageous option.<\/p>\n<\/div>\n<\/li>\n<\/ul>\n


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            Corporate Setting up an agricultural SRL in Italy for foreigners Purchasing agricultural land in Italy as a foreigner, launching an agritourism, or operating steadily in the Italian agricultural sector requires the right corporate structure. Without it, a foreign buyer pays 15% stamp duty on land purchases, cannot access EU Common Agricultural Policy direct payments, and […]<\/p>\n","protected":false},"author":13,"featured_media":0,"parent":3430,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-6064","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/6064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/comments?post=6064"}],"version-history":[{"count":13,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/6064\/revisions"}],"predecessor-version":[{"id":6117,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/6064\/revisions\/6117"}],"up":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/3430"}],"wp:attachment":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/media?parent=6064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}