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Major EU economy with flat tax regime for new residents
Region
WESTERN EUROPE
Corporate Tax
24%
Setup Time
3 weeks
Currency
EUR
Italy, a founding EU member, offers access to a major European market with unmatched cultural heritage. Company registration involves navigating bureaucracy, but the market scale and strategic position support business setup for committed entrants.
With a population of 59 million, Italy offers diverse living from fashion capital Milan to historic Rome to coastal regions. Italian is the official language, with limited English outside business and tourism. The climate varies from Alpine to Mediterranean.
Healthcare is good through the national health service. Safety is generally acceptable, with regional variation. The cost of living varies significantly, with Milan expensive and southern regions more affordable.
The lifestyle, cuisine, art, and cultural richness define Italian appeal beyond commercial considerations.
Corporate tax (IRES) stands at 24% plus regional IRAP of approximately 3.9%. Personal income tax reaches 43% on higher incomes. VAT applies at 22% standard rate. The tax burden is substantial.
Italy uses the Euro. The economy features strong manufacturing, particularly in fashion, automotive, and machinery. The "Made in Italy" brand commands premium positioning. Northern Italy is economically more developed than the south.
Company registration requires notarial involvement. The S.r.l. (società a responsabilità limitata) is the standard vehicle for smaller companies. Foreign ownership faces no EU restrictions.
Company formation takes approximately 2-4 weeks. Minimum capital for S.r.l. is EUR 1. At least one director is required. Annual compliance includes substantial tax and corporate filings.
Italy's OAM (Organismo Agenti e Mediatori) registers virtual asset service providers. The regulatory framework implements EU AML requirements. Italy has been relatively welcoming to crypto businesses within compliance frameworks.
The Agenzia delle Dogane e dei Monopoli (ADM) regulates gambling. The gambling license framework covers online operations with established compliance requirements. Italy has a significant regulated online gambling market.
Licensed operators access a substantial consumer base within clear regulatory parameters.
Bureaucracy is extensive and can slow operations. The judicial system is notably slow for commercial disputes. Regional differences are substantial.
Banking access is available through Italian and international banks. Professional services are extensive. Italy's position and brand equity offset operational complexity.
Italy suits fashion, design, manufacturing, and businesses targeting Italian consumers for their business setup.
Local: SRL
Local: SpA
Local: Sede Secondaria
| Corporate Tax Rate | 24% |
| Personal Income Tax Rate | 43% |
| VAT / Sales Tax | 22% |
| Capital Gains Tax | 26% |
| Withholding Tax | 26% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | Yes |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | EU Travel Rule / FATF |
| Business Plan Required | Comprehensive business plan with financial projections, operational model, and risk assessment required |
| Personnel Required | CEO/Managing Director, Compliance Officer, AML Officer with relevant experience |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required under MiCA |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | ESMA CASP register and Consob public registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Consob (CASP authorization), Bank of Italy (prudential/AML supervision) |
| Licensing Fee | $20,000 |
| Licensing Fee Details | €20,000 supervisory fee payable upon application submission to Consob |
| Permitted Business Models | Exchange, Custody, Trading Platform, Broker, Wallet Provider, Transfer Services |
| Permitted Activities | Crypto-to-crypto exchange, crypto-to-fiat exchange, custody and administration, execution of orders, placement, advice, portfolio management |
| Restricted Activities | Certain stablecoins (non-MiCA compliant), privacy coins may face restrictions |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $1,500,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Comprehensive business plan with technical specifications, financial projections, and responsible gambling measures |
| Personnel Required | Managing Director, Compliance Officer, Technical Director, Responsible Gambling Officer |
| Insurance Required | Yes |
| Insurance Details | Player fund protection and operational liability insurance required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | ADM public register of licensed operators |
| Renewal Period | 9 years (new concession model) |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Agenzia delle Dogane e dei Monopoli (ADM) |
| Licensing Fee | $7,000,000 |
| Licensing Fee Details | €7 million per concession (€4 million upon award, €3 million upon go-live), plus 3% annual GGR fee |
| Permitted Business Models | B2C online gambling only (52 licenses available) |
| Permitted Activities | Online sports betting, casino games, poker, virtual events |
| Restricted Activities | Crypto gambling prohibited, gambling advertising banned under Dignity Decree |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $350,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | 3-year business plan with financial projections, risk assessment, governance structure, and operational procedures |
| Personnel Required | CEO, CFO, Compliance Officer, AML Officer, IT Security Officer - majority of directors must be EU residents |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required, minimum coverage depends on services |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Bank of Italy public register of authorized intermediaries |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Bank of Italy (Banca d'Italia) |
| Licensing Fee | $5,000 |
| Licensing Fee Details | Application fees vary; €20,000 for PI, €50,000 for PI with PIS only, €125,000 for full PI services; €350,000 for EMI |
| Permitted Business Models | Payment Institution (PI), Electronic Money Institution (EMI), Account Information Service Provider (AISP) |
| Permitted Activities | Payment services, e-money issuance, money remittance, payment initiation, account information services |
| Restricted Activities | Banking (deposit-taking and lending) requires full banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |