International Investment: Why Invest in Italy?

The ‘made in Italy’ brand is one of the most iconic in the world. From pasta to Prada, Ferrari to Fellini, Brunello to Benetton the country is outrageously over-endowed with world class talent in many diverse fields. Little wonder then that an investment in Italy is one made as much with heart as with head.

But investments have one aim. To make the investor a good return. Therefore, however romantic the proposal - and let’s face it, owning a vineyard in Chianti does have a certain cachet about it – the bottom line is that the financial side must make sense.

Let us examine the advantages Italy has for potential investors and the status of the country internationally.

Key Facts

• Italy is well placed geographically. Its strategic position in the Mediterranean gives it easy access to both southern, central and northern Europe. One reason why it was so fought over in the past! Economically speaking that gives you access to about 700 million consumers in Europe, North Africa and the Middle East.
• Italy’s economic strength lies in its wide diversity of small and medium sized family owned firms staffed by top quality, qualified professionals in areas that you may not at first associate with the country. It is among the top three countries in the world for robotic and non-invasive surgery, for example. Precision machinery, chemicals, nanotechnology and electronic goods are among its top exports.
• The country was ranked sixth best country to live in out of forty in the Country Brand Index 2009. It came fourth in Forbes Best Retirement Havens 2009. Italian culture and dining are singled out for particular praise on both indexes.
• Italy is the fifth most visited country in the world according to the World Tourism Rankings with 42.7 million tourist arrivals in 2008. In the Conde Nast Travel Awards 2009, the Italian cities of Florence, Rome and Venice took the top three places in the European category. The hospitality industry is big business.
• Italy reformed its corporate law in 2003 and is keen to make things simpler for international investors. The rate of corporation tax is now 27.5 % (compared with 21% for small businesses in the UK and a main rate of 28%) and with 60 million consumers in the Italian domestic market and the 4th largest GDP in Europe (over € 1.7 trillion in 2008) there are countless opportunities for businesses, particularly in sectors such as solar energy, logistics and ICT.
• Italy’s infrastructure in terms of road, rail and shipping is well established and the country ranks highly in Europe in terms of its communication network. It is the second largest EU country in terms of maritime passenger and freight transport, for example and has the second longest road network, with France taking the number one position.