๐ท๐บ Starting a Business in Italy as an Expat (2026): Structures, Steps & Costs
Italy combines a large market, world-famous “Made in Italy” credibility and a growing startup scene โ but it’s also known for bureaucracy, so setting up a business rewards careful planning and good advisers. This 2026 guide explains your structure options, the registration steps and the tax and social-security costs. A commercialista (accountant) is essential to navigate the specifics of your situation.
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In this guide
Sole Trader or a Company?
Your first choice is structure. Opening a partita IVA as a sole trader (ditta individuale) is the fastest, cheapest route and can use the very favourable flat-tax regime for smaller incomes. Forming a company โ typically an SRL (Societร a Responsabilitร Limitata) โ gives limited liability and a stronger base for growth, hiring and investment, with more paperwork and cost.
๐ More expat guides for Italy
Living in Italy · Taxes in Italy · Self-Employed (Partita IVA) in Italy · Driving Licence in Italy · Finding a Job in Italy
The SRL (Limited Company)
The SRL is Italy’s limited company. It’s created by a deed before a notary, registered with the Business Register (Registro delle Imprese) at the Chamber of Commerce, and there’s a simplified low-capital variant (SRL semplificata) that reduced the old capital barrier significantly. You’ll need a commercialista for incorporation and ongoing accounts.
The Steps to Register
Broadly: get your codice fiscale, choose your structure, open the partita IVA and/or sign the company deed at a notary, register with the Chamber of Commerce Business Register, enrol for VAT and social security (INPS), and set up electronic invoicing. Your commercialista coordinates the sequence.
The Investor and Startup Visa
Non-EU founders can consider the self-employment visa, the Investor Visa (for significant investment into Italian companies or startups), or the Italia Startup Visa programme for innovative startups, which offers a streamlined route. EU citizens can set up freely. Verify current thresholds and criteria before committing.
Taxes for Businesses
Companies pay corporate income tax (IRES) plus the regional IRAP, and charge and remit VAT (IVA). Sole traders under the flat-tax regime forfettario can pay as little as 5% initially. Whichever you choose, Italy’s electronic-invoicing and reporting obligations make a commercialista indispensable โ see our Italy tax guide for the wider context.
Business Banking and Getting Paid
Keep a dedicated business account to simplify accounting and compliance. If you trade internationally, a multi-currency account lets you hold and receive euros, pounds and dollars at the real mid-market rate, avoiding the poor exchange rates and fees that erode cross-border margins.
Hiring Employees
Employing staff in Italy means registering with INPS and INAIL, applying the relevant national collective contract (CCNL) for your sector, and paying substantial employer contributions on top of gross salaries. Italian labour law is detailed and protective, so set up payroll and contracts with a consulente del lavoro (labour consultant).
Frequently Asked Questions
Should I open a partita IVA or form an SRL in Italy?
A partita IVA sole trader is fastest and cheapest and can use the flat tax. An SRL company gives limited liability and suits growth, hiring and investment, with more admin.
How much capital do I need for an SRL?
The simplified SRL (SRL semplificata) sharply reduced the old minimum-capital barrier, making company formation far more accessible. Notary and registration fees still apply.
Can a non-EU citizen start a business in Italy?
Yes โ through the self-employment visa, the Investor Visa or the Italia Startup Visa for innovative startups. EU citizens can set up freely.
What taxes does an Italian company pay?
Corporate tax (IRES) plus regional IRAP and VAT (IVA). Sole traders on the regime forfettario can pay as little as 5% initially instead.
Your Business Setup Action Plan
Get a good commercialista and the bureaucracy is manageable. The quick version:
| Step | What to do |
|---|---|
| Choose a structure | Partita IVA for small/solo; an SRL for liability protection and scale. |
| Sort your visa | Non-EU: explore the self-employment, Investor or Startup visa. |
| Register properly | Codice fiscale, notary deed, Business Register, VAT, INPS and e-invoicing. |
| Set up finances | Open business banking and engage a commercialista for tax and payroll. |
Expat Essentials for Italy
A few quick wins make settling into Italy easier while you work through this guide. An Airalo eSIM keeps you online from the moment you land, EKTA bridges your health cover until residency, and NordVPN protects your logins on public wifi. See our full list of trusted services below.
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