Italian 2026 Finance Bill – Key Tax Measures: Support for Middle and Low Incomes | Revision of IRPEF tax brackets | Baby bonus | Enhanced parental leave and nursery bonus | Social security exemption for working mothers | Increased deductions for private school expenses | Family endowment fund | First home mortgage guarantee fund | Support for food purchases | Energy-efficient appliance bonus | Cap on deductions for incomes over €75,000 | Exceptions for healthcare, mortgages, and startup investments | End of deductions for children over 30 (except disabled children) | “Hire more, pay less” tax deduction for new permanent hires | Reduced tax on productivity bonuses | Fringe benefit exemptions | Relocation support for new hires | Raised flat tax threshold for employees and pensioners | Reduced corporate tax (IRES) for reinvested profits | Tax credits for southern Italy investments | Enhanced “Nuova Sabatini” machinery financing | Support for SME stock market listings | Increased public investment in defense, infrastructure, and healthcare | Banking and Insurance | Deferred deductions for financial sector losses | Annual stamp duty on life insurance contracts

Doing Business in Italy Guide

Conducting Business

5.1 Registered Office and Local Presence

All Italian companies must maintain a registered office (sede legale), which is listed in the Companies Register. This address is used for legal notices and tax correspondence. While virtual offices are permitted, physical presence may be required for certain licenses or inspections.

5.2 Business Licenses and Sectoral Approvals

Italy does not require a general business license, but sector-specific authorizations may apply. Examples include:

  • Food and beverage: HACCP certification and municipal health permits
  • Construction: SOA certification and safety compliance
  • Financial services: CONSOB, Bank of Italy, ISVAPP authorization
  • Real Estate Agency/Intermediation Services
  • Services of Staff Agencies – supply of personnel
  • Rental of Real Estate – Regional Licence and Regional and National lettings code numbers
  • Tourism: Regional registration and insurance coverage

Licensing is often handled at the municipal or regional level. Timing and complexity vary widely.

5.3 Local Employment and Payroll Setup

Hiring employees in Italy requires registration with:

  • INPS (social security)
  • INAIL (workplace injury insurance)
  • Labor Inspectorate (for compliance)

Employers must issue compliant contracts, enroll workers in pension schemes, and file monthly payroll reports. Outsourcing to a local payroll provider is common and recommended.

5.4 Banking and Payments

Opening a corporate bank account requires company registration, tax codes, and proof of directors’ identity. Italy has strict AML rules, so banks may request detailed documentation. SEPA transfers are standard, and online banking is widely available. Some banks offer English-language support, but local assistance is often needed.

If you have any questions , feel free to contact us.

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