Italy Capital Rome Currency Euro (EUR) Language Italian Population 58.13 million EU status member GDP 2006 $1.78 trillion Employment 93% Exports $450.1 billion f.o.b. (2006 est.) Imports $445.6 billion f.o.b. (2006 est.)

setting up business Number of days to start business 13 Cost (% of income per capita) 15.2% Nonwage labor cost (% of salary) 41.6% Total tax rate (% profits) 76%

Italy

Contemporary design in Milan

With a market of almost 60 million people, and the fourth-largest GDP in Europe, Italy has plenty to recommend it. It is a country with a reputation for sophisticated, high-spending consumers who appreciate quality and are open to new ideas – as proven by the high market penetration of wireless technology and mobile phones in recent years. Following business reforms in 2003, it has an open and business-friendly legal environment that welcomes foreign investors. A well-educated and highly skilled workforce and a good university infrastructure are further attractions for the international investor. And Italy is internationally known for the high quality of life that it offers: an important factor in international recruitment.

FDI Overview

Last year, total foreign investment in Italy was some $4.37 billion, slightly below the $4.65 billion invested in 2005, indicating that investment is levelling off, rather than falling, after the large increases seen in 2003 and 2004. Although the number of FDI projects per year also increased over this period, they did so only slightly – from 113 in 2003 to 240 in 2005 – indicating that the amount of funding per project has increased significantly. The US was the largest investor over this period, responsible for 27% of FDI projects, followed by the UK, responsible for 12%.

Investment is divided fairly equally amongst the major business sectors, but on the business process side, it is weighted towards the retail, sales and marketing, manufacturing and business services sectors. Major investors in recent years have included Ryanair, Prologis, Solvay, and the Kaerntner Sparkasse.

Key sectors

Fast-growing sectors of the economy include:

• Aerospace
• Auto manufacturing
• Chemicals
• ICT
• Machinery
• Nanotech and life sciences
• Logistics
• Tourism

Catch the ICT market

One of Italy’s biggest success stories at the moment is its role as a location for foreign investment in ICT. The market is currently the fourth largest in Europe, with a rapid take-up rate for new technologies, and one of the highest wireless penetration rates in the world. In addition to the booming consumer market, technical expertise in the research and development field have attracted many firms to locate research centers in Italy. The list of investors in this area is extensive, including major companies such as Microsoft, IBM, EDS, Siemens Business Services, Accenture and Cisco Systems. On the telecommunications side, Ericsson, Marconi and Siemens Mobile see Italy as a key market.

Looking south

Most industrial production is in the wealthier northern and central part of Italy. The south suffers from much higher rates of unemployment, and in parts from a less developed infrastructure. Accordingly, additional investment incentives and assistance with set-up costs are available to companies locating in the south or in lesspopular areas of central and northern Italy.

Amcham Italy

AmCham’s mission is to develop and promote economic relations between the United States of America and Italy, to promote and protect the interests of its members within the framework of their business operations between the two countries, and to inform the Chamber’s members of its activities. AmCham provides services aimed at supporting the business operations of its associates. AmCham’s services are useful in many respects to economic operators in the two countries:

Information

Economic, trade, financial and tax information; announcements of business opportunities; shows and fairs; government incentives for trade; online data banks; job announcements.

Consulting

Setting up new businesses; trade, tax, financial and environmental consulting; real-time consulting.

Assistance

Partner search in both countries; company formation; certification assistance.

 

Contact Information

American Chamber of Commerce in Italy
Via Cantu 1
20123 Milan
Italy
Tel: + 39 28 69 0661
E-mail: amcham@amcham.it
Website: www.amcham.it

 

Useful websites

www.usembassy.it	US Embassy in Italy
www.investinitaly.com	Government investment support website
www.istat.it	Institute of Statistics
www.italiantourism.com	Tourist information

 

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