The below comments are made by Tommaso Fonti, Partner of Bacciardi and Partners for the IR Global Virtual Series publication “The FDI Age – Leveraging international investment opportunities in a global economy”
Foreign investors can carry out any type of activity under the same conditions as a local investor.
There are no restrictions on foreign direct investments, foreign ownership of real estate or foreign guarantees or security for ownership, except in certain industries which include defence and national security, telecommunications and press, airline and shipping companies, electricity and gas and petroleum exploitation.
The Italian rules on foreign investments in the above-mentioned sectors apply to both share and asset deals.
Furthermore, any acquisition of a considerable shareholding in banks and insurance companies must also be approved by the Bank of Italy (Banca d’Italia) and the Institute for the Regulation of Private Insurance and Reinsurance Undertakings (Istituto per la vigilanza sulle assicurazioni private e di interesse collettivo) (ISVAP).
There are also no exchange controls in Italy. Residents and non-residents of Italy can hold foreign currency and securities of any kind within and outside Italy. However, transfers of cash and securities in euros or a foreign currency in excess of (the equivalent of) EUR10,000, to and from foreign countries, by residents and non-residents, must be reported to the Customs Agency (Agenzia delle Dogane). Sanctions are applied in the case of breach.
As for labor restrictions, non-EU nationals must fall within the yearly quota of foreign employees set by the Italian government and must obtain a work authorisation, work visa and residency permit before coming to Italy for working purposes. Certain limited categories of non-EU employees are eligible to be granted a special work visa which is not restricted to any quota limitation.
EU nationals do not, instead, require any work visa or residency permit before coming to Italy. However, EU nationals who are staying in Italy for more than three months must be enrolled in the register of the population residing in Italy (the required documentation for this enrolment may vary depending on the reason for the stay).
