If you are not going to use your own funds to invest or set up in an Italian business then there are several options open to you. The first and most obvious routes are through your accountant (commercialista) and your Italian bank. You will need to make sure you have a detailed business plan and that it has been translated into Italian and is set out in an acceptable format. Italians can be very rigid in the way they expect things to be done, so it is as well to conform to that and present something in a format they recognise.

The perfect scenario is to have an Italian partner who knows the ropes and the people concerned, as Italy is still a country where the personal touch is invaluable when doing business.

Main Lending Types: 
The following list shows some of the main lending tools available for business in Italy:

Mortgage 
Lease 
Secured loan 
Short-term credit 
Medium and long-term credit 
Evergreen credit 
Factoring

Grants and Incentives

Funds and incentives for businesses are available from the EU, the state, the region and the provinces. Research is key and it may take some time to discover what is available.

As well as any geographic considerations, the finance and incentives available can depend upon the type of business. The main incentives cover R&D, training, SMEs, new investment, export and international business and investment in manufacturing, training and research.

For women in business, as we have seen in the case study for Caserma Carina, there are special funds and incentives available (agevolazioni per l’imprenditoria femminile).

EU:

There are over 450 different types of grants available from the EU available from various EU bodies including the European Investment Bank, the Council of Europe and the European Commission. These are awarded according to location and business sector and a useful link is here.

ZFU:

Based on the French scheme, the Zone Franche Urbane (Urban Tax-Free Zones) is a new incentive launched in June 2009. It is targeted at new small or ‘micro’ businesses and focuses on the urban regeneration of very small areas in 22 central and southern Italian towns (see below). Setting up a business is tax-free, with no payments for ICI, income tax or IRAP for 5 years. In a press release, EU Competition Commissioner Neelie Kroes said: “The Italian measure will foster new business activity in deprived areas and thus boost local employment. In the longer term, the promotion of business activities will help engender positive development in vulnerable areas at both a social and economic level, without disproportionately affecting competition.”

The 22 Towns

Sicily: Catania, Gela, Erice

Calabria: Crotone Rossano and Lamezia Terme

Basilicata: Matera

Puglia: Taranto, Lecce and Andria

Campania: Naples, Torre Annunziata and Mondragone

Molise: Campobasso

Sardinia: Cagliari, Quartu Sant’Elena, Iglesias

Lazio: Velletri and Sora

Abruzzo: Pescara

Tuscany: Massa Carrara

Liguria: Ventimiglia

State:

Invitalia is the government agency for inward investment promotion and enterprise development dedicated to assist companies in all stages of the investment process, to support new business ventures and to enhance local development.

Invitalia’s Inward Investment arm promotes inviting business opportunities and strives for the success of each investment project. It is the single national reference point for advising companies eager to expand or to set up a new business in Italy by providing a full spectrum of services in all stages of the investment process.

The service kit spans from updated information on the business environment, to investment opportunities in specific sectors and business advisory services throughout the implementation process. Invitalia’s services are tailor-made, free of charge and confidential.

Region:

The different regions of Italy have their own economic policies. Some benefit from a wide range of EU structural funds while others offer their own incentives for SMEs. Globus is a platform for all the Italian Chambers of Commerce to aid Italian companies in ‘internationalizing’ their companies and has details of a range of regional grants which are updated regularly.

Some regions are more proactive than others. It is a good idea to do a web search see if the region you are going to invest in has any kind of grants or incentives available. One example of the kind of site you might find is from the region of Piemonte. The Piemonte Agency offers free advice to companies wishing to invest in the region and who manage the regional investment contract for Piemonte.

Province:

The regions are divided into provinces and these too can be sources of finance. Contact your local Chamber of Commerce to find out the latest details of any provincial funds available.