Foreign investments in Italy

Foreign investments in Italy

Italian economy

The foreign investments in Italy have an important role in the country’s economy which attracts over one million employees and a turnover of about 450 billion euros. The Italian economy is one of the largest in the world by size, being ranked as the ninth in terms of gross domestic product. Italy is heavily oriented to foreign trade being the ninth in the world by value of exports and the twelfth by the value of imports.

Industrial dualism

The Italian industry is dominated by small and medium-sized enterprises. Large enterprises are few, which is called industrial dualism. Italian companies are focusing on quality production. From the late 90s Italy has begun to introduce legislation provisions in order to regulate the labor market, making it more flexible.

The country’s attractiveness

The attractiveness of the economy for foreign investments in Italy was limited despite the country’s advantages like large domestic market and a skilled workforce. The attractiveness of the economy for foreign investment in Italy has been limited compared to other European countries. However in 2000, the stock of foreign investments in Italy has recorded substantial growth as this country has become more interesting for investors willing to develop a business from abroad.

Measures to encourage foreign investments

Italian government encourages foreign investments in Italy by several measures taken in order to support entrepreneurs from abroad. The measures include tax benefits, investment loans with a smaller rate of interest, state guarantee for exports, as well as other financial facilities. There are few criteria for obtaining financial aid for foreign investments in Italy such as the location in which you are willing to develop a new business, the size of the investment, the economic sector in which the business will be established. Also the state grants certain tax exemptions for a period of ten years for entrepreneurs developing a company, no matter of company type chosen, in an area affected by unemployment.

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