Top economy and rich market
Italy is the third-largest economy in the European Union and the eighth-largest in the world with a Gross Domestic Product of about 2.1 trillion dollars. Italy is a member of G7, the group that brings together the 7 most industrialized nations in the world, and member of the most important international organizations.
Italian internal market offers several business opportunities, with a population of more than 60 million and a GDP per capita of more than 34,000 dollars. The net wealth of Italian households is 8 times their disposable income (a higher ratio than the USA, Germany or Canada) and their indebtedness remains relatively low – on average, 82% of disposable income.
Total connection to global markets: a strategic logistic hub
The Italian peninsula is a key gateway to the European market and its over 700 million consumers but is also close to the Middle East and Northern Africa with their further 280 million potential customers; at the same time, it represents an ideal bridge between Southern Europe and Central and Eastern EU countries.
Its transportation network offers more than 6,900 km of motorways, and more than 1,400 km of high-speed railways with top speeds of over 190 mph (300 km/h), as well as ports in strategic locations for maritime freight and transhipment (e.g. Trieste, Genoa, Livorno, Cagliari, Naples) and important airports located in the strategical areas of Italy and well connected to the rest of the transports system.
Thanks to these strategic geographical and infrastructural advantages, Italy has become China's primary partner signing the "silk road" agreement, while maintaining a stable position in the North Atlantic Treaty.
"Made in Italy" a brand known and sought after all over the world
Investing in Italy means having access to its unique export know-how in sectors such as machinery and automation, fashion, design and food. Companies investing in Italy can also rely on extensive networks of SMEs and industrial clusters able to supply intermediate high-quality products along global value chains. Moreover, the evolving needs of the BRICS countries’ booming middle class – which is expected to soon exceed 1 billion people – will result in a strong increase in demand for high-end "Made in Italy" products in the coming years.
Italy not only boasts a solid industrial reality, but also a tradition of craftsmanship of unparalleled ability, recognised the world over.
"Made in Italy" could be a powerful accelerator of your own brand!
Research, development and innovation excellence
Research and innovation are widely integrated into industrial processes, with renowned excellence in different fields of life sciences, physics, pharma and engineering (e.g. robotics), social sciences, and humanities (e.g. hi-tech archaeology). Italian researchers, whose performance in publishing high-quality and widely-quoted papers, is recognized as one of the best in global academia, lead and actively contribute to several European Research & Development networks – such as the CERN physics laboratory – and top-level international research centres.
Business research and development as well as the creation of innovative start-up companies are also promoted through special tax benefits.
A big player of manufacturing and export economy
Since 80's Italy has been the second-largest manufacturing economy in Europe, surpassed only by Germany, and is the sixth-seventh top manufacturer in the world. Italy has a large manufacturing trade surplus, ranking among the global leaders for 935 products out of 5,117 marketed goods: first for 235 products, second for 377 products and third for other 323 products.
Quality and skilled workforce
The quality of Italian higher education is excellent: more than 20 different universities rank in the top 500 academic institutions in the world, and over 300,000 students graduate every year. Nonetheless, Italian hourly labour costs are below the Eurozone average: they are about 18% lower than in France and about 10% than in Germany.
Strong incentives policies to improve competitiveness
Robust tax credit schemes help companies improve their competitiveness: a sturdy system of tax credits for companies investments in R&D (including training of highly qualified personnel), for investment in capital goods, which is strongly raised for investments in digitalization and "Industry 4.0" solutions (high-end digitalized and connected machinery). As a result of 2016’s “Industria 4.0” national plan, Italy has now the second most attractive tax environment among developed countries for digital investments (source: Digital Tax Index, 2017).
Pro-business-growth reformed administration
A comprehensive reform strategy is in place to build a more friendly business climate, simplifying and adapting regulations, improving education and justice. Besides the already mentioned “Industria 4.0” plan, and a comprehensive policy strategy for hi-tech innovative startups, in the last few years, the labour code has been overhauled, more flexibility to conclude tax agreements has been introduced, the exploitation of oil and gas resources has been eased, new financial tools for real estate are being made available, and dedicated business courts for foreign investors have been set up.
A unique cultural offer and an unparalleled country brand
Any Italian city is gifted with traces of a cultural heritage formed over 2,500 years. All of this, combined with its world-famous art, music, and food culture, gives Italy an unparalleled quality of life. Italy is ranked first at a global level for UNESCO World Heritage sites (55 as of 2020), and it is one of the world’s top tourism destinations, with over 50 million visitors each year. Measures on “country branding” rank Italy in the top position when it comes to "experience": accordingly, goods and services with a strong "Made in Italy" character are primarily appreciated for their quality and uniqueness.
Italy is open to foreign investments
Today, multinational companies represent an important part of the Italian economy: industrial foreign affiliates now employ 10% of total workers, produce about 20% of domestic turnover, and export 25% of national exported goods. According to the Foreign Direct Investment Confidence Index, Italy ranks thirteenth overall in 2017, outstripping countries such as Sweden, Ireland and the Netherlands (source: A.T. Kearney, 2017).
We assist international clients to do business in Italy, to establish representative offices, branches or, more often, to set up companies in Italy. We act not only as accountants but as a complete guide in the Italian regulatory system also thanks to the wide network we have built and collaborate with, so we allow foreign clients to focus on the success of their business in Italy. Contact us with confidence to study all the business opportunities You have here in Italy.