Since 2016, the Italian Government has been introducing a bundle of reforms aimed at making the country more competitive and attractive in terms of investment. As a result, Italy now has very competitive depreciation rules, R&D tax credits, patents box and among the most generous flat-tax rates in the EU for citizens who transfer their residence to Italy. Corporate Income Tax has been reduced to 22.5%, while further reductions are expected in 2022 (20.5%).
Thanks to these reforms and to the strength of its industry, Italy ranks 9th in the Global FDI Confidence Index 2020, before Switzerland and Spain.
Many are also the Personal Fiscal Incentives introduced by the Italian Government. Among those, a 70% income tax exemption for new residents in the Country and a 90% tax exemption for Teachers and Researchers.