The economy of Italy has been started to recover after the economic crisis. The year of 2012 has been characterized by a strong recession concerning the economy of Italy: in 2010 the economic growth was 1,7%, in 2011 it was 0,4%, while in 2012 a 2,4 % drop has occurred.

An export import control system exists in Italy as well as in the European Union. Basically, EU member states do not require permission to place the products on the market; the product liability is valid for the distributor of an imported product and the manufacturer for a domestic product. However the distributor of the product may ask the competent institutes to test and to qualify the product.

Forms of business in Italy:

In Italy there are 9 business forms that one may choose, including self-employment and company forms which are reserved for companies, which are the followings:

For entrepreneurs:

  • Individual employment
  • Limited liability Company (Societa a responsabilitalimita – S.r.L.)
  • General partnership (Societainnomecollettivo)
  • Limited partnership (Societainacommanditasemplice)
  • Limited liability partnership (Societainaccomandita per azioni)
  • Joint stock company (Societa per azioni – S.p.A)
  • Unions – can be founded both for entrepreneurs and for businesses

For business:

  • Representative office (Ufficio di Rappresentanza)
  • Branch office (SedeSecondria)

Taxation in Italy

  • Corporate tax is 33%
  • VAT value is 20%
  • Personal income taxes are 23-39%, as well as those enterprises whose income exceeds 100 000 euros annually, have to pay a 4% solidarity tax
  • Dividend tax is 12.5%
  • The local business taxes are determined by the local government
  • Employee contributions are 10%
  • Employer’s contributions are 35%

There are no restrictions on foreigners in the country, but only two types of business can be selected for foreign companies.