With a view to attract foreign investment in the country, the Federal Government of Italy has laid down a mandatory rule that it would discriminate between the benefits and incentives granted to the foreign investors and the local investors. This is a huge initiative taken by the Italian government to attract foreign investment in the country.
• The Italian Federal Government provides various benefits to the foreign investors in terms of tax benefits, investment loans at discounted rate of interest, state guarantee for exporters and other financial aid. The Italian government grants financial assistance to the foreign investors depending on the geographical location of the investment, the size of the investing company and the sector in which the company is investing.
• A foreign investor investing in certain areas in southern Italy, where rate of unemployment is high, the government of Italy grants tax exemptions (corporation tax and local tax) for a period of 10 years.
Owing to such favorable FDI policy of Italy, it is one of the most preferred destinations in EU amongst big conglomerates for Investment.