Italy is an attractive market for foreign companies. Nevertheless, opening a business in our country requires a careful assessment which takes into account the complexity of the Italian legislation.
The questions to be answered are many, among which:
- What legal form to adopt? Would a branch, a partnership or a corporation be more appropriate?
- Which taxes would the Italian Newco be subject to?
- What would be the corporate rules applicable to it?
- What would be the best way to finance the investment in Italy: capital injection, loan, or a combination of the two?
- If setting up a company is decided, must the appointed administrators be Italian?
- If one accepts to be appointed as director of an Italian entity, to which legal, tax and asset-related risks is one exposed?
- Would the transactions between the Italian Newco and the other group companies be subject to Transfer Pricing rules? Are there any special requirements in Italy in this respect?
- What would be the tax treatment of dividends, interests or royalties paid by the new Italian entity?
- In the event of a future sale of the Italian business, which tax treatments will potential capital gains be applied?
The professionals of RSM Studio Tributario e Societario have developed specific experience in assisting foreign entities wishing to invest in Italy and are willing to guide and advise you on how to set up solid businesses in our country, identifying on your behalf the best solutions (tax solutions included), with due consideration for the conditions of your country of origin.