Setting up a business

Starting a Business in Piedmont

The Italian tax system and you

The Italian tax system is a bit of a maze. For most mortals a good accountant is the only essential thing they'll need.

To start a business you need to carefully choose your work category. Once you've done that you can add other categories.

You then have your Partitia IVA - your tax code, or VAT number. You need to display this number on your business cards, website, headed paper, forehead, etc. You then have the privilege of paying tax! An accountant will set this up for you and it will cost around €800. It's been made a little easier now.

(There are good benefits for agricultural businesses, such as wine and hazelnut production).

The Tax year ends in April and you must have your accountant do your tax returns. Don't even think about doing it yourself. You also need to pay INPS (national insurance/social security). If you are an 'individuale' (sole trader) you pay around €220 per month. You accountant will arrange all this.

You must keep good accounts records. You can be inspected at any time. Keep your records balanced and declare everything you earn.

Tax is 20% - 50% depending on earnings. Husband and wife teams can earn more before paying tax but you will pay double the INPS (National Insurance).

Laws are changing constantly so I'll write nothing here about how much you are likely to pay. It's best to get a good accountant and get them to explain everything.


So should you start a business in Italy?

If you have a good idea then, yes! Go for it. There are still good opportunities here for hardworking people with good ideas!

Piedmont Guide Book