Can You Start a Business in Italy as a Foreigner?
Italy may be famous for slow lunches and beautiful views, but don’t be fooled—its startup ecosystem is growing, and more foreigners are starting businesses here than ever before. From fashion brands and boutique hotels to tech startups and vineyards, international entrepreneurs are discovering that Italy isn’t just a place to live well—it’s a place to build something meaningful. So, can you legally start a business in Italy as a foreigner? Let’s break it down.
1. Can foreigners (EU and non-EU nationals) open and run a business in Italy?
Yes, foreigners (EU and non-EU nationals) can legally open and run a business in Italy. EU citizens can work and start businesses in Italy freely. Non-EU citizens can work and start businesses in Italy with a valid visa or residence permit for self-employment or entrepreneurial activity.
2. What are the different types of visas that a non-EU entrepreneur can apply for in Italy?
If you're not an EU citizen, you'll need a specific type of visa to launch your business in Italy. Here are some of the most common: the Italian Startup Visa, the Self-Employment Visa, and - as a bonus option - the Investor Visa.
3. What are the most common business structures used by foreign entrepreneurs in Italy?
Foreign entrepreneurs in Italy set up their businesses using the following types of legal forms: the Sole Proprietorship (with a Partita IVA), the SRL (Limited Liability Company), the SRLS (Simplified SRL), and the Branch Office or Subsidiary of a foreign company.
4. What are the typical setup costs of an SRL in Italy and what are the main taxes that a company in Italy has to pay?
An SRL can be incorporated with a share capital starting from as little as €1, although a share capital of €10,000 remains the classic benchmark; the actual setup costs (notary fees, registration taxes and duties) typically amount to a few thousand euros. The corporate tax (IRES) rate is 24%, plus the regional tax on productive activities (IRAP). There are also startup incentives, such as tax credits, innovation grants, and reduced taxes for new businesses in some regions.
Separately from company taxation, entrepreneurs relocating to Italy may also benefit from personal tax regimes for new residents - such as the flat tax on foreign income for high-net-worth individuals - which can make the overall move considerably more attractive.
5. What are the challenges that starting a business in Italy can pose?
Starting a business in Italy can be complex due to bureaucracy, the language barrier and difficulties in opening a bank account. However, with the right partners the process can be streamlined and is becoming increasingly digital.
✨ Why Choose Italy for Your Business?
Italy is a fantastic location for businesses and startups due to its: quality of life; access to the EU market; strong local consumer base; booming tourism and lifestyle sectors; rich culture and creativity; business connections. Italy may not be the fastest business environment, but it's definitely one of the most rewarding.
📌 Final Tip for Starting a Business in Italy
If you're considering starting a business in Italy, make sure to get in touch with a team that knows both the legal framework and the local lifestyle. Move To Dolce Vita supports expats, entrepreneurs and investors every step of the way - from applying for the right visas to setting up the company and planning your taxes.
🟢 Ready to Make Your Move?
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