Investing in Italy
January 11, 2024
To better understand the current state of investing in Italy and what the future may hold, we consulted our market experts to discover what the next 12 months has in store..
Regulatory predictability amidst routine legislation
Understanding the regulatory climate is crucial for potential investors eyeing Italy. Traditionally, two key financial laws are issued each year, and recent updates have introduced no major shifts affecting foreign companies or individuals seeking to operate in the country.
While the absence of significant legislative change may appear uneventful, this stability offers a degree of predictability—an attribute highly valued by investors seeking reassurance in their long-term planning. Italy’s consistent legal framework provides a stable environment that supports confidence in foreign investment.
A focus on food and tourism
The service sector—central to Italy’s economic structure—has seen notable developments over the past year. The strongest growth in 2023 emerged in the food sector and tourism. In food and hospitality, a rise in both small and large establishments reflects the continued global enthusiasm for Italian cuisine, with many well-known restaurateurs expanding their presence internationally.
Tourism demand has also shifted, with increased interest in certain regions. While the islands remain perennial favourites, destinations such as Puglia continue to gain momentum. This evolving regional appeal presents new avenues for investors considering opportunities across Italy’s diverse service economy.
Outlook for the next 12 months
Looking ahead, expectations for substantial market expansion remain cautious. Ongoing geopolitical tensions and global instability contribute to a climate of uncertainty, which may keep investment activity relatively subdued in the near term. Many investors are adopting a measured, wait-and-see approach as broader economic conditions continue to evolve.
ESG policies: a growing conversation
Environmental, Social, and Governance (ESG) considerations are increasingly shaping global business practices, though the integration of ESG policies in Italy is still progressing. Discussion around ESG initiatives is widespread, but full readiness varies, with only some larger organisations beginning to publish their initial sustainability reports.
Regulatory momentum is building. For example, financial regulators have begun prompting companies in banking and insurance to outline their planned steps for ESG implementation over the 2023–2025 period. This signals a shift toward greater accountability and encourages companies to prepare for more comprehensive sustainability requirements.
While challenges persist, Italy’s cultural and economic strengths continue to attract interest from investors. With ESG regulation gaining traction and supportive funding initiatives emerging, businesses may increasingly consider restructuring to align with new standards. Even amid uncertainty, Italy remains a compelling environment for strategic, long-term investment planning.
If you are interested in doing business in Italy, please get in touch.
