What are the benefits of foreign investment in Italy?
Foreign investors investing in areas of southern Italy that have a high rate of unemployment can be granted considerable tax exemptions by the Italian government (corporation tax and local tax) for a period of 10 years.
Over the past decade or so Italy has implemented a lot of reforms in the labor market and banking sector which are now starting to bear fruit. The current government is continuing this trend while keeping an eye to innovation with respect to strengthening its export market.
Are there negatives to foreign investment?
Which are the key sectors for investment?
Real Estate: Italy is one of the few countries in the world where the majority of the population own their own homes. Property values throughout Italy are increasing steadily which means foreign investors can enjoy valuable returns on their investment. Demand for real estate properties, especially in major cities, will continue to rise due to the underlying demand from both local and foreign investors.
Tourism: There is huge potential for foreign investment in tourism. Italy is one of the best tourist destinations in the world and has more UNESCO sites than any other country. Important cities like Rome, Venice and Florence continue to attract tourists from all around the world. This increase in tourism opened up several new paths for foreign investment, namely agritourism and ecotourism which means investing in acquiring property and constructing accommodation for tourists.
Check out our page about airbnb in Italy, or managing your short term rental in Italy for more informations.
Food: Italy’s culinary traditions are greatly appreciated by both locals and the foreign visitors. Food is one of the prime considerations for the tourists visiting the country. This means that the restaurant business provides a good investment opportunity for foreign investors. The best approach here is to buy a restaurant with a good reputation so there is a better chance of earning good returns.
FDI from the United States
A much more detailed description of the foreign investment market is provided yearly by the U.S. Department of State and can be found here.