How to Start a Business in Italy as an Expat

If you're dreaming of moving to Italy...but also considering starting a business...the convergence of these two life-changing events might feel overwhelming.

You absolutely can start a business in Italy...but you'll need patience, a bit of grit, and a strong understanding of how the Italian system works. Here’s what to know if you're ready to turn your idea into a functioning business in Italy.

Step 1: Check Your Legal Status

Before registering anything, make sure your visa or permesso di soggiorno allows for self-employment or business activity.

• EU/EEA citizens: You're free to live and work in Italy, including starting a business, without any special permit.

• Non-EU citizens: You’ll need a permesso di soggiorno that allows for lavoro autonomo (self-employment). This may require converting your current permit or applying through the nulla osta process.

Tip: Always check with a qualified immigration expert or commercialista (accountant) before moving forward. I'm happy to refer one if you need it! Send me an email.

Step 2: Choose the Right Business Structure

Italy offers several types of business entities. Choosing the right one depends on your income, liability risk, whether you have partners or employees, and your long-term goals.

Common options include:

• Libero Professionista (Freelancer / Sole Trader) Ideal for consultants, coaches, creatives, and professionals. It’s simple and affordable to set up.

• Ditta Individuale (Sole Proprietorship) Suitable for product or service-based businesses. You’ll need to register with the Chamber of Commerce and obtain a VAT number.

• Società a Responsabilità Limitata – SRL (Limited Liability Company) Best for higher-risk ventures, businesses with employees, or multiple founders. More bureaucracy and cost, but offers limited liability.

Step 3: Get a Partita IVA (VAT Number)

Any self-employed person or business in Italy must register for a partita IVA — your tax ID for issuing invoices and paying taxes. I recommend finding a good commercialista to help you file for one.

A commercialista can:

• Register your partita IVA

• Help you choose a tax regime (many expats qualify for the simplified regime forfettario, with lower taxes and flat-rate deductions)

• Handle quarterly VAT reports and annual filings

Expect to pay €300–€800 per year for basic accounting services.

Step 4: Handle Bureaucratic Requirements

Depending on your business type, you may need to:

• Register with INPS (Italy’s social security agency)

• Notify your local Comune if you're opening a physical space

• Obtain licenses or permits (especially for food, retail, wellness, or tourism services)

• Register with the Chamber of Commerce

Navigating Italian bureaucracy can be...an adventure, to say the least. Don’t go it alone: a commercialista, business consultant, or bilingual legal advisor can save you time and stress.

Step 5: Build Your Presence (Locally and Globally)

You don’t have to limit your business to just Italy; many expats successfully run location-independent businesses or serve both international and local clients. For me, all my clients are currently in the U.S. Here are some ideas to help you expand your business:

• Offer services in English and Italian (if possible)

• Join local entrepreneur networks, expat forums, or industry events

• Promote your business through social media, Google My Business, or local publications

  
  

Step 6: Know Where to Get Support

Italy may have a reputation for red tape, but there are also excellent resources for entrepreneurs:

• Local camere di commercio (Chambers of Commerce)

• Startup incubators and small business associations

• Online groups such as Expats in Italy, Digital Nomads Italy, and industry-specific forums

Don’t underestimate the power of community, especially when navigating a foreign system.

Starting a business in Italy isn’t always straightforward, but it’s far from impossible. Thousands of expats--from freelancers to café owners to startup founders--have done it, often with great success.

Whether you’re opening a physical shop, freelancing remotely, or building something innovative from the ground up, the Italian lifestyle can be a surprisingly good match for entrepreneurial life...once you’ve cleared the paperwork hurdle.

So, if you’re serious about making your dream work in bella Italia, take the first step. You might just find that your business thrives in the land of espresso, creativity, and good conversation.