Italy's reshoring tax incentive encourages economic activity return

MGI Studio Pragma, based in Fano, Italy, updates MGI Worldwide members on the Reshoring Tax Incentive, a new regulation that offers benefits for businesses relocating economic activities back to Italy from non-EU countries.

Italy recently introduced a new incentive programme through Article 6 of Legislative Decree No. 209 of December 27, 2023, aiming to encourage businesses to relocate their economic activities back to Italy from non-EU and non-EEA countries.

However, this regulation is not yet effective pending the authorization process outlined in Article 108(3) of the Treaty on the Functioning of the European Union (TFUE) for State aid purposes.

Reshoring Incentives for Key Industries

The regime is designed to encourage the relocation of certain economic activities to Italy, but it does not specify or enumerate the transactions that would qualify for such relocation, and emphasises establishing a real economic activity in Italy, regardless of the legal structure or specific transaction used for the transfer. This means companies won't be eligible for the program if the relocation doesn't result in a real economic presence within Italy.

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For any questions, please contact Francesco Bartolucci at [email protected]. Alternatively visit the firm's profile page or website.

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