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

Mergers & Acquisitions

10.1 Legal Framework

M&A transactions in Italy are governed by the Civil Code, the Consolidated Financial Act (TUF), and EU regulations. Key authorities include:

  • AGCM – Competition and antitrust review
  • CONSOB – Oversight of listed company transactions
  • Chamber of Commerce – Registration of corporate changes

Cross-border deals may also trigger foreign investment screening under the Golden Power regime.

10.2 Deal Structures

Common M&A structures include:

  • Share purchase – Acquisition of equity interests
  • Asset purchase – Transfer of selected assets and liabilities
  • Merger (fusione) – Legal consolidation of entities
  • Spin-off (scissione) – Separation of business units into new entities

Each structure has different tax, legal, and operational implications. Due diligence is essential to assess risks and liabilities.

10.3 Regulatory Approvals

Depending on the deal size and sector, approvals may be required from:

  • Antitrust authorities (AGCM)
  • Sector regulators (e.g., Bank of Italy, ARERA)
  • Foreign investment screening (Golden Power)

Notification thresholds and timelines vary. Early engagement with regulators is recommended for complex deals.

10.4 Post-Transaction Integration

After closing, companies must update the Companies Register, notify tax authorities, and harmonize operations. Integration planning should address:

  • Governance and management alignment
  • Employee contracts and labor law compliance
  • IT systems and data migration
  • Branding and customer communication

Failure to integrate effectively can undermine deal value and trigger legal or reputational risks.

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

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