In today’s dynamic marketplace, every entrepreneur wants to expand and grow the business overseas. Many organizations have already stepped into the Asian markets, but others explore Southern Europe for more lucrative opportunities. Lately, Italy has become one of the most attractive countries for foreign investors. It is the eighth economic power in the world and the second-largest manufacturing region. In addition, Italy has centers of research and development for emerging businesses.
Therefore, if you have been looking for an expansion opportunity, starting a business in Italy could be your best shot. The procedure begins with the registration of the company by the Chamber of Commerce. After that, you have to look for funding or government subsidies to raise capital for the business. Once you have the business model ready, recruit a team of professionals and start selling to the local customers. However, if you are skeptical about this decision, have a look below.
Here we are unfolding six reasons why starting a business in Italy is lucrative.
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Flexible & Diverse Economy
Unlike conventional European countries, Italy has a flexible and diverse economy. In addition to export opportunities from neighboring countries, you can generate heaps of revenue through tourism. Likewise, Italy boasts a high per capita income in the union, demonstrating a high demand with stable inflation rates. Hence, you won’t have to consistently adjust the price levels because of spiking inflation and interest rates.
Moreover, Italy has supportive government initiatives and export regulations. It means if you export in Italy, it won’t be a hassle for thriving entrepreneurs. You can get in touch with export managers and ship your products overseas with minimal paperwork. In addition, you can leverage digital marketing services to spread the word about your exports and attract more buyers. Seamless collaboration with marketing exports and export managers can go a long way for your business.
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High-Tech Performance
One of the primary goals of Italy’s government is to attract foreign direct investment (FDI) focused on innovation and advanced technology. Italy’s biotech industry provides an infrastructure for research and development for new-age businesses. Therefore, if you have a tech-related startup, this place is full of opportunities to make your venture thrive. Besides R&D, entrepreneurs can even look into industrial research infrastructure to better understand Italian markets.
Moreover, Italy is also an entrepreneurial hub for the automobile industry. The high-level design, technology with incredible manufacturing facilities can be a game-changer for automobile specialists. Perhaps, you can plan and design cars in Italy and export them overseas for the development process.
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Proficient Investment Culture
Surprisingly, Italy has an open economy that welcomes investors worldwide. The country has introduced different reforms to gain entrepreneur’s trust and confidence. Firstly, the Ministry of economic development offers ‘one shop stop’ investment information. They also provide business set-up support and various incentives to promote economic activity in the region. Secondly, the government offers a range of tax credits and incentives for businesses.
Business owners can enjoy high tax credits on employment by recruiting women and young adults. Likewise, you would receive a tax reduction on income derived from intangible assets. In short, doing business in Italy is effortless since the government has created a culture of investment. Therefore, your company won’t have to incur any additional transactional costs, boosting profitability. Instead, you can qualify for public support in case they encounter funding issues.
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Competent Manufacturing Base
After Germany, Italy is the largest manufacturing country. It has a reputation for producing high-quality and design products, more like a trademark for many business owners. So, why not take advantage of this competent manufacturing sector? Even if you don’t want to sell in the Italian markets, feel free to set up the production factor in Italy. You can partner with a large pool of experts, buy high-tech machinery, and reap the benefits of skilled laborers.
Furthermore, you can access an extensive network of intermediate suppliers across different industries. They would be willing to provide raw materials at the lowest possible rates, helping you reduce the costs. Also, exporting unfinished products to another country will save you from custom duties and high tax rates. After all, Italy is one of the only five countries with an export trade surplus. Thus, capitalize on such opportunities and make your business thrive.
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Well-Trained Workforce
A few years back, the unemployment rates in Italy were spiking. Almost 50% of youth faced unemployment because of a lack of opportunities. It could mean that you will have super qualified young adults willing to work in your business. They will help you launch the startup, find vendors, and build a network within the industry. In addition, having a local team of employees can bridge the language barrier since not many can speak Italian.
Besides this, Italy has introduced a 35% tax credit for businesses hiring qualified for up to 48 months. It is explicitly for startups to encourage investment activities and foreign direct investment in the region. In turn, you can save up the company’s payroll and attract workers with lucrative salaries. Having a competent business model with tax-saving strategies and a talented team can go a long way, making your company flourish.
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Massive Logistics Hub
Italy has a prime location in Southern Europe. It is at the center of the Mediterranean Sea, offering enterprises a gateway to consumers across Europe, Middle East, and North Africa. After all, the Mediterranean Sea is the primary hub that links Eastern, Northern, and Southern Europe. Hence, Italy has an extensive logistics network that can give emerging businesses a competitive edge. Currently, a total of 432 million products move through 40 ports and 92,295 ships.
Do you know the best part? Businesses in Italy have duty-free access to more than 50 million consumers. In simple words, you don’t have to pay customs duties or federal excise tax on shipments. In addition, to reduce the overall business costs, you can offer competitive pricing and capture a massive audience pool.
Final Thoughts
Italy is one of the fast-growing business hubs today. From incredible tax cuts to export opportunities – the place is attracting entrepreneurs from every region. Therefore, consider running a business in Italy. You can take advantage of capital tax gains, low-cost shipping, and a competitive manufacturing base. Likewise, you can enjoy government incentives and a flexible investment culture to upscale your business operations. Expanding the business won’t be easy, but the company can reach new heights by making the correct decision.
