Interested in knowing more about investing safely in Italy? MGI Worldwide with CPAAI member firm, MGI Vannucci & Associati explains how in Italy’s The Florentine Magazine

22nd September 2020

MGI World Tuscany's landscape with MGI Vannucci & Associati logo overlaid

Italy's online newspaper for internationals, The Florentine, has published an article by global accountancy network member, Pierpaolo Vannucci, from Lucca-based MGI Vannucci e Associati, on why using a limited partnership limited by shares (S.A.P.A.) is one of the safest ways to invest in Italy.

In the article, Pierpaolo discusses the appeal of Italy to investors, but also recognises that there are risks involved. One of the ways to help mitigate these risks however, is through a corporate instrument called a S.A.P.A.

What is a S.A.P.A?

A S.A.P.A. is a type of company represented as a partnership limited by shares. In this formation, there are two groups of coexisting shareholders:

  • limited partners, who are excluded from the administration and are liable only for their contributions;
  • general partners, who are administrators by law, are personally and without limitation liable (within the limits of their assets)

How does a S.A.P.A work?

The article goes on to explain how the specific rules of a S.A.P.A. help to limit the risk of investment to a certain and determined amount and is significantly lower to attain than the cost that would have been incurred for a simple due diligence.

How does a S.A.P.A. allow for a safe investment?

The key features of a S.A.P.A. can be summarised into the following points, which demonstrate how it can help protect the finances of those considering investing in Italy:

  • Translates the shareholdings of limited liability companies into shares, facilitating their circulation
  • Can be an easy crowdfunding vehicle
  • Offers limited partners the limitation of liability with respect to the social obligations typical of joint-stock companies
  • If the partnership is adequately entrusted to a joint stock company, it also reduces the risk implicit in the assumption of unlimited liability by the partner
  • The shareholder can subject the retracted profits to the "PEX" tax regime, which considers taxable for IRES purposes only 5% of the profits actually collected from the investment, with a taxation therefore equal to 1.2%
  • Guarantees stability and agility of governance, even in situations where the shareholder structure is fragmented and not very cohesive
  • Easy to set up, with the minimum start-up share capital being equal to 50,000 euros
  • Low management costs and uncomplicated structure

Read the full article here.

MGI Vannucci e Associati boasts many years of recognised experience in the field of national and international tax planning in Italy. Please contact Pierpaolo at for more information about any details concerning the article, or if you have any questions about investing in Italy.

MGI Europe is part of MGI Worldwide with CPAAI, a top 20 ranked global accounting network and association with 10,000 independent auditors, accountants and tax experts in some 460 locations in almost 100 countries around the world.

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