Investment in Italy

Investment in Italy2.Incentives for investors2.1OverviewA wide range of opportunities is available for new investments and for expanding andstrengthening existing ones. There are three different sources of incentives: European,national and regional. In some cases, incentives are offered without distinction to bothItalian and foreign entities based in Italy.The incentives provided by the European Union and Italian central and local governmentaim to enhance regional development and competitiveness by supporting local businessactivities, reinforcing existing ones or helping start-up initiatives by promoting and integratingresearch, innovation and training programmes.The European Incentives Plan for 2007-2013 is aimed at increasing growth and employmentwithin the EU Member States and operates with a specific focus on regions. The plan’spriorities include areas such as knowledge and innovation, transport, environmentalprotection, human resources, competitiveness and modernisation of the economy.In order to increase effectiveness, the Italian government has combined its national incentiveplans with the European one. From 2007 to 2013, approximately EUR 125 billion will beavailable to support investments in Italy, with a strong concentration in the southern regions.Implementation is through the National Strategic Reference Framework and the NationalOperational Programmes and Regional Operational Programmes, and the following EUStructural Funds are involved:The European Regional Development Fund (ERDF) - Its aim is to finance infrastructuresand manufacturing plants to create and safeguard sustainable jobs. The ERDF is especiallyaddressed to SMEs and provides various financing facilities, including venture capital, debtand guarantee funds, etc.The areas of investment include development of industrial sites, research and technology,information technology, protection of the environment, energy, education, equal opportunities,and transnational, cross-border and interregional co-operation.The European Social Fund (ESF) - The ESF aims to strengthen economic and social cohesionby improving employment and job opportunities, establishing the following priorities:• increasing flexibility of workers, enterprises and entrepreneurs• enhancing access to the labour market• promoting the social inclusion of disadvantaged people• enhancing networking between higher education, research and business• promoting and mainstreaming innovative social activities at both international andinterregional level• strengthening the effectiveness of the public administration and services (only in thesouth of Italy).18© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.