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Company taxes in Italy

How to start an Italian limited company. Incorporation or formation of a company in Italy.



Companies and taxation in Italy

There are tax advantages for groups or individual companies, which may wish to establish in Italy.

The country is not a tax haven, but there is a network of double tax agreements that offer some big advantages.

Requirements and steps for the registration of a company in Italy

Once it is incorporated, the company must register with the Tax Services.

Corporate tax in Italy

In 2012, based on the taxable profits:

  • Corporate tax is 27.5% corporation tax plus a 3.9% regional%
  • More local tax, which varies by location of company

Withholding taxes on Dividends

Normally this is 27%, but it can be reduced to zero when:

  • It is another company of the European Union
  • In case of many double taxation agreements
  • A major shareholder is subject to a special exemption