Italy Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in italy, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

•    Openness to, and Restrictions upon, Foreign Investment, 
•    Investment and Taxation Treaties,
•    Legal Regime,
•    Industrial Policies,
•    Protection of Property Rights,
•    Financial Sector,
•    State-owned Enterprises,
•    Corruption,
•    Labor Policies and Practices,
•    Political and Security Environment, and
•    U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.

Executive Summary

(Note: some economic conditions may have changed since publication in July 2023 and differ from those described in this Country Commercial Guide)

Italy’s economy, the eighth largest in the world and the third largest in the EU, is globally competitive in business and financial services, agricultural and food production, fashion, design, tourism, and industrial production, including vehicles and ships.

Italy’s economy grew by 0.7 percent in 2023 and in 2024, following a COVID-related slowdown and rebound from 2020-2022. As of 2024, Italy’s public debt to GDP ratio was 135.3 percent, a decrease from a peak of 154 percent in 2020. Italy’s National Recovery and Resilience Plan (NRRP), which runs from 2021-2026, is funded by over €200 billion from EU funds to accelerate digital and green transitions and wide-ranging reforms addressing the Italian economy’s longstanding growth constraints – including a slow legal system, inefficient bureaucracy, and barriers to market competition – while promoting policies to address gender, youth, and regional disparities.

To date, Italy has received €132 billion in NRRP grants and loans, by far the most among EU countries. Further disbursements are dependent on Italy’s achievement of EU-agreed milestones and targets. The government has had difficulty, however, in spending the funds as quickly as planned due to a lack of administrative capacity, which is a systemic weakness the NRRP seeks to address through reforms of public administration. For U.S. investors, judicial reform and bureaucratic streamlining would reduce investment uncertainty and create a more favorable investment climate.

Italy is and will remain an attractive destination for foreign investment, with one of the largest markets in the EU, a diversified economy, and a skilled workforce. Italy’s economy is dominated by small and medium-sized enterprises (SMEs), defined as firms with less than 250 employees. SMEs comprise 99.9 percent of Italian businesses. Italy’s relatively affluent domestic market, access to the European Common Market, proximity to emerging economies in North Africa and the Middle East, and centers of excellence in scientific and information technology research, remain attractive to investors.

The clustering of industry, infrastructure, and quality of life are also among the top reasons international businesses choose Italy for new investments or expansion in the EU. According to Italy’s Institute of Statistics, in 2022, more than 18,400 foreign multinationals employed over 1.7 million individuals. While representing only 0.4 percent of all Italian companies, foreign-owned companies employ 9.7 percent of employees, produce 21 percent of total sales, provide 17.4 percent of added value, and spend 37.6 percent of research-and development expenditures. U.S. companies are the largest foreign investors, employing about 351,000 individuals and accounting for 17.9 percent of sales, 20.1 percent of added value, and 22.1 percent of research and development expenditures.

View the 2025 Investment Climate Statement Italy (full report).

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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