Italy foreign Investments incentives 2025

Tax Incentives for New Residents:

• Lump-Sum Tax Regime for High-Net-Worth Individuals: Individuals transferring their tax residence to Italy can opt for a substitute tax of €200,000 annually on their foreign-sourced income. This regime is available for a maximum of 15 years, provided the individual was not a resident in Italy for at least nine out of the ten tax years preceding the transfer. This regime also exempts foreign assets from wealth tax and inheritance tax. The fixed tax can be extended to family members by paying an additional €25,000 per family member per year.  
• Inbound Workers Regime: Individuals who become tax residents in Italy and undertake employment income are eligible for a 70% reduction of their taxable income for five years. This reduction increases to 90% if the individual moves their tax residence to specific regions in Southern Italy. The benefit can be extended for an additional five years under certain conditions, such as purchasing a property in Italy. Specific categories of highly qualified workers, managers, and individuals with specific skills are eligible.  

Corporate Tax Incentives:

• Reduced IRES Rate for Reinvested Profits (Mini-IRES): For the 2025 tax year only, a reduced Corporate Income Tax (IRES) rate of 20% (instead of the standard 24%) may apply to companies that retain at least 80% of their 2024 earnings and reinvest at least 30% of those earnings (or 24% of 2023 overall earnings, with a minimum investment of €20,000) in qualifying tangible assets by the end of 2025 (with a potential extension).  
• Tax Credit for Investments in Tangible Assets: For investments in new tangible assets made between January 1, 2025, and December 31, 2025 (extendable to June 30, 2026, under specific conditions), a tax credit is available.
  The rate is 20% for investments up to €2.5 million, 10% for investments between €2.5 million and €10 million, and 5% for investments between €10 million and €20 million.
  A maximum spending cap of €2.2 billion applies to investments made in 2025.  
• Tax Credit for Research and Development (R&D) and Innovation: A tax credit of up to 50% of eligible R&D and innovation expenses is available. Eligible expenses include personnel costs, research contracts, and costs for new patents.  
• Super and Hyper Depreciation: While the main periods for Super and Hyper Depreciation have largely passed, investments in Industry 4.0 technologies made by December 31, 2024, with order acceptance and a 20% down payment by that date, may still benefit from the higher rates if the investment is completed by June 30, 2025.
  For 2025, the focus shifts to the Industry 5.0 tax credit.
• Industry 5.0 Tax Credit: This credit supports investments in digital and green transitions. For investments between €2.5 million and €10 million made from January 1, 2025, the credit rate increases to 35%.  
• Tax Credit for Investments in Southern Italy: Companies of all sizes investing in infrastructure, machinery, and real estate in specific Southern Italian regions (Campania, Puglia, Basilicata, Calabria, Sicily, and Sardinia) can benefit from a tax credit of up to 45%.  
• Tax Credit for SME Listing: Small and medium-sized enterprises (SMEs) that list on regulated markets or multilateral trading facilities in Europe can benefit from a 50% tax credit on consultancy costs related to the listing process until 2028.

Other Encouragement Measures::

• Investor Visa (Golden Visa): Non-EU citizens making a significant investment in Italy can obtain a special investor visa, granting them and their family members the right to reside in Italy. Eligible investments include:  
  • €2,000,000 in Italian government bonds.
  • €500,000 in Italian joint-stock companies (reduced to €250,000 for innovative startups).
  • €1,000,000 in philanthropic donations to public interest projects.
• "Nuova Sabatini" Programme: This initiative aims to reduce the financing costs for SMEs investing in new machinery, plants, equipment, and digital technologies.  
• Special Economic Zones (ZES): These designated areas offer simplified administrative procedures and tax benefits to companies investing and operating within them, primarily located in Southern Italy.