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. Yes, You Can Legally Start a Business
Foreigners—both EU and non-EU nationals—can legally open and run a business in Italy. The process differs slightly depending on your nationality:
- EU Citizens can work and start businesses freely in Italy.
- Non-EU Citizens need a valid visa or residence permit that allows self-employment or entrepreneurial activity.
2. Visa Options for Entrepreneurs
If you're not an EU citizen, you’ll need the right visa to launch a business. Common options include:
- Italian Startup Visa:
For innovative businesses. Requires approval from a special committee and proof of at least €50,000 in funding. - Self-Employment Visa:
For freelancers or small business owners. Requires demonstrating financial resources and a viable business plan. - Investor Visa (Bonus):
Not just for passive investors—this visa allows significant investors (starting from €250,000 in innovative startups) to reside in Italy and operate their business.
3. Business Structures You Can Choose
Foreign entrepreneurs in Italy typically choose one of these legal forms:
- Sole Proprietorship (Partita IVA) – great for freelancers or small-scale work
- SRL (Limited Liability Company) – most popular form for startups and scalable businesses
- SRLS (Simplified SRL) – like SRL, but faster and cheaper to set up
- Branch Office/Subsidiary – for foreign companies expanding into Italy
4. Costs, Taxes & Incentives
- Setup Costs: Starting an SRL usually requires at least €10,000 in share capital (though not all has to be paid upfront).
- Taxes: Corporate tax (IRES) is 24%, plus regional taxes (IRAP).
- Incentives: Italy offers various startup incentives—including tax credits, innovation grants, and reduced taxes for new businesses in some regions.
Don’t forget: Italy’s €200,000 flat tax regime can also apply if you qualify as a new resident.
5. Challenges to Be Aware Of
Let’s be honest—Italy has red tape. Some common hurdles:
- Bureaucracy (you’ll want legal/accounting help)
- Language barrier (documents often in Italian)
- Bank account setup may take time
But with the right partners, the process is very doable—and increasingly digital.
✨ Why Italy?
Beyond the logistics, why do entrepreneurs move here?
- Quality of life
- Access to the EU market
- Strong local consumer base
- Booming tourism and lifestyle sectors
- Culture, creativity, and connection
Italy may not be the “fastest” business environment—but it’s one of the most rewarding.
📌 Final Tip
If you’re considering launching your business in Italy, talk to a team that understands both the legal framework and the lifestyle. At Move To Dolce Vita, we help expats, entrepreneurs, and investors navigate every step—from visas and company setup to tax planning.
🟢 Ready to make your move?
Contact us for a consultation and see what’s possible.
