Italy

GDP (US$ Billion)

1,937.89 (2017)

World Ranking 9/192

GDP Per Capita (US$)

31,984 (2017)

World Ranking 27/192

Economic Structure

(in terms of GDP composition, 2017)

Services
(66.30%)
Industry
(21.00%)
Agriculture
(2.00%)

External Trade (% of GDP)

56.4 (2016)

Currency (Period Average)

Euro

0.89 per US$ (2017)

Political System

Republic

Overview

Italy’s economy, the eighth largest in the world, is largely diversified, and distinctively dominated by small and medium-sized firms (SMEs), which comprise 99% of Italian businesses. Tourism is an important source of external revenue, as are exports of pharmaceutical products, furniture, industrial machinery and machine tools, electrical appliances, automobiles and auto parts, food and wine, and textiles/fashion. Italy is an original member of the 19-nation Eurozone. Germany, France, the United States, Spain, Switzerland, and the United Kingdom are Italy's most important investment partners, with China gaining ground. Italy’s relatively affluent domestic market, access to the European Common Market, proximity to emerging economies in North Africa and the Middle East, and assorted centres of excellence in scientific and information technology research remain attractive to many investors.

Source: Fitch Solutions

Major Economic/Political Events and Upcoming Elections

March 2018

The Five Star Movement led by Luigi Di Maio won the most votes in the general election, with the centre-left coalition, led by former Prime Minister Matteo Renzi, placed third.

June 2018

A coalition government led by the Five Star Movement and the League agreed. Giuseppe Conte was appointed Prime Minister.

June 2018

The government took office with an agenda to cut taxes, boost welfare spending, and overhauled European Union (EU) budgets and immigration rules.

December 2018

Government forced to scale back budget spending plans after EU objections.

January 2019

The Italian economy slipped into recession in the last quarter of 2018.

Sources: BBC country profile – Timeline, Fitch Solutions

Major Economic Indicators
Graph: Italy real GDP and inflation
 
Graph: Italy real GDP and inflation
 
Graph: Italy GDP by sector (2017)
Graph: Italy GDP by sector (2017)
Date last reviewed: November 19, 2018
Graph: Italy unemployment rate
 
Graph: Italy unemployment rate
 
Graph: Italy current account balance
 
Graph: Italy current account balance
 

e = estimate, f = forecast

Sources: IMF, World Bank, Fitch Solutions

Date last reviewed: February 28, 2019

External Trade

Merchandise Trade

Graph: Italy merchandise trade
 
Graph: Italy merchandise trade
 
 

Source: WTO

Date last reviewed: February 28, 2019

Graph: Italy major export commodities (2017)
 
Graph: Italy major export commodities (2017)
 
Graph: Italy major export markets (2017)
 
Graph: Italy major export markets (2017)
 
Graph: Italy major import commodities (2017)
 
Graph: Italy major import commodities (2017)
 
Graph: Italy major import markets (2017)
 
Graph: Italy major import markets (2017)
 

Sources: Trade Map, Fitch Solutions

Date last reviewed: February 28, 2019

Trade in Services

 

Graph: Italy trade in services
 
Graph: Italy trade in services
 
 

e = estimate

Source: WTO

Date last reviewed: February 28, 2019

Trade Policies
  • Italy is a member of the EU which has a common set of tariffs and customs levied on various imports and exports. As such, the trade policy is largely identical to that of the wider regional bloc. The EU updated its trade policy (and, by extension, its import tariffs, customs, duties, and procedures) in 2017.



  •  
  • The EU is party to some 50 free trade agreements (FTAs) and, consequently, access to other markets of the countries concerned is currently mediated through those agreements. The EU’s new scheme on generalised system of preferences (GSP) entered into effect on January 1, 2014. Under the scheme, tariff preferences have been removed for imports into the EU from countries where per-capita income has exceeded USD4,000 for four years in a row. Regarding Hong Kong, the territory has been fully excluded from the EU’s GSP scheme since May 1, 1998.



  •  
  • A number of products from mainland China are subject to EU's anti-dumping duties, including bicycles, bicycle parts, ceramic tiles, ceramic tableware and kitchenware, fasteners, ironing boards and solar glass, which are of interest to Hong Kong exporters. As February 2019, the EU did not apply any anti-dumping measures on imports originated from Hong Kong.



  •  
  • To combat the spread of the Asian longhorn beetle, the EU introduced in July 1999 emergency controls on wooden packaging material originating from mainland China. Wood covered by the measures must be stripped of its bark and free of insect bore holes greater than 3mm across, or have been kiln-dried to below 20% moisture content.



  •  
  • For health reasons, the EU has adopted a directive on the control of the use of nickel in objects intended to be in contact with the skin, such as watches and jewellery. The EU also adopted a directive to ban the use of some phthalates in certain PVC toys and childcare articles, on a permanent basis, which came into effect from January 16, 2007. In addition, the EU has adopted a directive to prohibit the trading of clothing, footwear and other textile and leather articles which contain azo-dyes, from which aromatic amines may be derived.



  •  
  • The EU has adopted a number of directives for environmental protection, which may have an impact on the sales of a wide range of consumer goods and consumer electronics.



  •  
  • Another important law for foreign companies to grapple with, concerns The Waste Electrical and Electronic Equipment Directive (WEEE). In brief, the recast WEEE directive subjects member states to higher collection/recycling targets (a 45% collection rate as of 2016 and 65% from 2019) and a wider scope of measure covering, essentially, all electric and electronic equipment, while establishing producer responsibility as a means of encouraging greener product designs.



  •  
  • REACH, an EU Regulation which stands for Registration, Evaluation, Authorisation and Restriction of Chemicals, entered into force in June 2007. It requires EU manufacturers and importers of chemical substances (whether on their own, in preparation or in certain articles) to gather comprehensive information on the properties of their substances produced or imported in volumes of 1 tonne or more per year, and to register such substances prior to manufacturing in or import into the EU.



  •  
  • Nine types of goods imported into the EU are subject to licensing. These goods are (broadly): textiles; various agricultural products; iron and steel products; ozone-depleting substances; rough diamonds; waste shipment; harvested timber; endangered species; and drug precursors. No quotas are imposed on textiles and clothing exports, as well as non-textile products exports from Hong Kong and the mainland China at present.

Sources: WTO - Trade Policy Review, Fitch Solutions

Trade Agreement

Multinational Trade Agreements

Active

  1. The EU Common Market: The transfer of capital, goods, services and labour between member nations enjoy free movement. The common market extends to the 28 member nations of the EU, namely: Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.



  2.  
  3. European Economic Area-European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland): While it enhances trade flows between these countries and the EU, only Switzerland is a fairly major trading partner.



  4.  
  5. EU-Turkey: The customs union with the EU provides tariff-free access to the European market for Turkey, benefitting both exporters and importers.



  6.  
  7. EU-Canada Comprehensive Economic and Trade Agreement (CETA): CETA is expected to strengthen trade ties between the two regions, having come into effect in October 2016. Some 98% of trade between Canada and the EU is duty-free under CETA. The agreement is expected to boost trade between partners by more than 20%. CETA also opens up government procurement. Canadian companies will be able to bid on opportunities at all levels of the EU government procurement market and vice versa. CETA means that Canadian provinces, territories and municipalities are opening their procurement to foreign entities for the first time, albeit with some limitations regarding energy utilities and public transport.



  8.  
  9. EU-Japan Economic Partnership Agreement (EPA): In July 2018, the EU and Japan signed a trade deal that promises to eliminate 99% of tariffs that cost businesses in the EU and Japan nearly EUR1 billion annually. According to the EC, the EU-Japan EPA will create a trade zone covering 600 million people and nearly a third of global GDP. The result of four years of negotiation, the EPA was finalised in late 2017 and came into force on February 1, 2019 after the EU Parliament ratified the agreement in December 2018. The total trade volume of goods and services between the EU and Japan is an estimated EUR86 billion. The key parts of the agreement will cut duties on a wide range of agricultural products and it seeks to open up services markets, particularly financial services, e-commerce, telecommunications and transport. Japan is the EU's second biggest trading partner in Asia after China. EU exports to Japan are dominated by motor vehicles, machinery, pharmaceuticals, optical and medical instruments, and electrical machinery.



  10.  
  11. EU-SADC EPA (Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland): An agreement between EU and SADC delegations was reached in 2016 and is fully operational for SADC members following the ratification of the agreement by Mozambique. The remaining six member of SADC no included in the deal (the Democratic Republic of the Congo, Madagascar, Malawi, Mauritius, Zambia and Zimbabwe) are seeking economic partnership agreements with the EU as part of other trading blocs – such as with East or Central African communities.

Provisionally Active

The CETA between the EU and Canada: CETA has been ratified by Canada and the European Parliament, but not by all the EU states (Italy has not ratified it). This means that it is only provisionally in force. Once fully in force, CETA is expected to strengthen trade ties between the two regions, having come into effect in 2016. Some 98% of trade between Canada and the EU will be duty-free under CETA. The agreement is expected to boost trade between partners by more than 20%. CETA will improve trade in goods and services between the two countries, while, at the same time, boosting foreign direct investment (FDI). CETA also opens up government procurement. Canadian companies will be able to bid on opportunities at all levels of the EU government procurement market and vice-versa. CETA means that Canadian provinces, territories and municipalities are opening their procurement to foreign entities for the first time, albeit with some limitations regarding energy utilities and public transport.

Ratification Pending

EU-Central America Association Agreement (Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Belize and the Dominican Republic): An agreement between the parties was reached in 2012 and is awaiting ratification (29 of the 34 parties have ratified the agreement as of October 2018). The agreement has been provisionally applied since 2013.

Under Negotiation

  1. EU-Australia: The EU, Australia's second largest trade partner, has launched negotiations for a comprehensive trade agreement with Australia. Bilateral trade in goods between the two partners has risen steadily in recent years, reaching almost EUR48 billion in 2017, and bilateral trade in services added an additional EUR27 billion. The negotiations aim to remove trade barriers, streamline standards and put European companies exporting to or doing business in Australia on equal footing with those from countries that have signed up to the Trans-Pacific Partnership or other trade agreements with Australia. The Council of the EU authorised opening negotiations for a trade agreement between the EU and Australia on May 22, 2018.



  2.  
  3. EU-United States (Trans-Atlantic Trade and Investment Partnership): This agreement was expected to increase trade and services, but it is unlikely to pass under the Trump administration in the United States against the backdrop of rising global trade tensions.



  4.  
  5. EU-Vietnam FTA: In July 2018, the EU and Vietnam agreed on final texts for the EU-Vietnam FTA and the EU-Vietnam Investment Protection Agreement (IPA). As of January 2019, the final text of the agreement has been finalised and is awaiting signature and conclusion.

Sources: WTO Regional Trade Agreements database, Fitch Solutions

Investment Policy

Foreign Direct Investment

Graph: Italy FDI stock
 
Graph: Italy FDI stock
 
Graph: Italy FDI flow
 
Graph: Italy FDI flow
 

Source: UNCTAD

Date last reviewed: November 19, 2018

Foreign Direct Investment Policy

  1. Italy is bound by EU laws on FDI. Italy has an investment promotion agency to facilitate foreign investment. The Italian Trade Agency (ITA) is administered by the Ministry of Economic Development.



  2.  
  3. Invitalia, a company wholly owned by the Ministry of Economy and Finance, was created as the central point of reference for businesses wishing to establish themselves in Italy.



  4.  
  5. Italy’s main business association (Confindustria) aims to retain existing companies in Italy.



  6.  
  7. Exceptions to foreign participation include access to government subsidies for the film industry (limited to EU member states); capital requirements for banks domiciled in non-EU member countries; and restrictions on non-EU-based airlines operating domestic routes. Italy also has investment restrictions in the shipping sector.



  8.  
  9. To drive economic growth, the Italian government has put in place comprehensive reforms, such as new labour legislation, new financial tools for real estate and dedicated business courts to resolve disputes involving foreign investors. Meanwhile, fiscal incentives, including a 25% tax credit for private investments in R&D (50% for projects with universities or research centres) and a 15% tax credit for investment in machinery and capital goods are made widely available to promote investment into industries, such as electro-mechanical, tourism, agri-food processing, fashion, life sciences and chemicals.



  10.  
  11. The Italian constitution permits expropriation of private property for public purposes, defined as essential services or measures indispensable for the national economy. In such instances, prompt, adequate, and effective compensation must be paid to the property holders.



  12.  
  13. EU and Italian antitrust laws provide Italian authorities with the right to review mergers and acquisitions on grounds of market dominance. In addition, the Italian government may block mergers and acquisitions involving foreign firms under the ‘Golden Power’ law if the domestic firm involved is determined to be essential to the national economy. The Golden Power law allows the Government of Italy to block foreign acquisition of companies operating in strategic sectors (identified as defence/national security, energy, transportation, and telecommunications). The Golden Power authority always applies in cases in which the potential purchaser is a non-company and is extended to EU companies if the target of the acquisition is involved in defence/national security activities.



  14.  
  15. Although many former monopoly operators have been partially or fully privatised, the state retains a controlling interest, either directly or through the state-controlled sovereign wealth fund Cassa Depositi e Prestiti (CDP).



  16.  
  17. Italy has a business registration website, available in Italian and English, administered through the Union of Italian Chambers of Commerce. The online business registration process is clear and complete. Foreign companies may use the online process. Before registering a company online, applicants must obtain a certified e-mail address and digital signature, a process that may take up to five days. A notary is required to certify the documentation. The precise steps required for the registration process depend on the type of business being registered.



  18.  
  19. The minimum capital requirement also varies by type of business. Generally, companies must obtain a value-added tax (VAT) account number (partita IVA) from the Italian Revenue Agency, register with the social security agency Istituto Nazionale della Previdenza Sociale (INPS), verify adequate capital and insurance coverage with the Italian workers’ compensation agency Istituto Nazionale per L’Assicurazione contro gli Infortuni sul Lavoro (INAIL), and notify the regional office of the Ministry of Labour.

Sources: WTO - Trade Policy Review, ITA, U.S. Department of Commerce

Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available
The Italian government operates two free trade zones: the Free Port of Trieste (northeast of Italy) and the Free Port of Venice.



Both these free zones are Control Type I, which means goods placed within the perimeter fence are automatically under the free zone regime.
- These zones offer exemptions from VAT for non-EU goods in transit, deferred VAT payment on merchandise imported into the EU, non-discriminatory right of entry for ships and cargos and no customs intervention.



- In free trade zones, exporters are able to defer duties and taxes for 180 days from the time that the goods leave the free-trade zone to enter another EU country, transform goods free of any customs restraints, and obtain exemption from any duties on products coming from a third country.



- The free-trade zone law also allows a company, of any nationality, to employ workers of the same nationality under that country's labour laws and social security.
Other areas - Italy also has numerous general warehouses that are located throughout port areas and cities.



- There are no limitations as to the type or origin of merchandise that can be stored in free trade zones, bonded or customs warehouses.



- The time limit for such storage is five years.



- Merchandise that deteriorates while in storage can be destroyed without the payment of a duty.
Other investment incentives - Incentives include grants, low-interest loans, deductions and tax credits.



- Some incentive programs have a cost cap, which may prevent otherwise eligible companies from receiving the incentive benefits once the cap is reached.



- The government applies cost caps on a non-discriminatory basis, typically based on the order in which applications were filed.



- Italy provides an incentive for investments by SMEs in new machinery and capital equipment (‘New Sabatini Law’), available to eligible companies regardless of nationality.



- Sector-specific investment incentives are also available in targeted sectors.

Source: Fitch Solutions

Taxation – 2019
  • Value Added Tax: Up to 22%
  • Corporate Income Tax: 15%

Source: Italian Agency of Revenue - Agenzia delle Entrate

Important Updates to Taxation Information

  • The 2019 finance bill reintroduced an updated and tightened version of the ‘web tax’, which was previously introduced in 2018. The tax will be applicable to digital services applicable as of January 1, 2019 and will see corporations obliged to pay a 3% tax on the value of digital services, net of VAT.



  •  
  • From January 1, 2019, CIT will be reduced from 24% to 15% on profits which have been reinvested in certain/select activities.

Business Taxes

Type of Tax Tax Rate and Base
Corporate Income Tax - 24% for IRES (corporate income tax) and

- 3.9% for IRAP (regional production tax)

- 15% (given reinvestment conditions are met)
Capital Gains Tax Rate 24%
Branch Tax Rate 24% (IRES) and 3.9% (IRAP)
Withholding Tax - Dividends: 0/1.2/26%

- Interest: 0/12.5/26 %

- Royalties from Patents, Know-how, etc.: 0/22.5/30%

- Technical Service Fees: 30%
VAT Rates on goods, services and imports:



Standard rate: 22%

Reduced rates: 4/5/10%

Source: Italian Agency of Revenue - Agenzia delle Entrate

Date last reviewed: February 28, 2019

Foreign Worker Requirements

Working Permit
 

Non-EU member citizens require a work permit in order to work within the country; EU member citizens do not require a work permit, but their employer must inform the job office about their being hired. Citizens of the EEA (with EU member states, Iceland, Norway and Lichtenstein) and Switzerland do not require a visa to enter, reside and work in the country. No work permit is needed by foreigners from outside the EU if they have a permanent residence or family reunion permit, have been granted asylum, study in Italy or have blue or green cards.

Obtaining Foreign Worker Permits

Employers must first apply for a permit to hire foreign workers. A permit is granted once no suitable candidate can be found in Italy or in other EU member states. The vacant position must be reported to the local district Labour Office and cannot be changed at a later stage to fit the profile of a potential employee. The candidate must then apply for a work permit. The government issues the permit for maximum of two years, which can be repeatedly prolonged, but always for maximum of two years and may be renewed as many times as needed. The permit process takes an average of one month.

Green Card

The Green Card system only applies to citizens from the following nations: Australia, Montenegro, Japan, Canada, South Korea, New Zealand, Bosnia and Herzegovina, Macedonia, the United States, Serbia, and Ukraine. The Green Card simplifies entry to the job market for foreigners who have qualifications for which Italy has a job opening in register of jobs suitable for green cards. The permit is for long-term residence for employment purposes.

Blue Card

Intended for the stay associated with the performance of a highly qualified employment. A foreigner holding a blue card may reside in Italy and work in the job for which the blue card was issued, or change that job under the conditions defined. High qualification means a duly completed university education or higher professional education which has lasted for at least three years. The blue card is issued with the term of validity three months longer than the term for which the employment contract has been concluded, however for the maximum period of two years. The blue card can be extended. One of the conditions for issuing the blue card is a wage criterion – the employment contract must contain gross monthly or yearly wage at least at the rate of 1.5 multiple of the gross average annual wage.

Short-Term Work Visa

These can be granted by the embassy upon an application for a maximum period of 90 days, which can be used within 180 days. The visa must be for the purpose of employment and the application must be submitted, beside general requirements, with work permit, employment contract, and proof of securing accommodation.

Sources: Government websites, Fitch Solutions

Obtaining Foreign Worker Permits

Employers must first apply for a permit to hire foreign workers. A permit is granted once no suitable candidate can be found in Italy or in other EU member states. The vacant position must be reported to the local district Labour Office and cannot be changed at a later stage to fit the profile of a potential employee. The candidate must then apply for a work permit. The government issues the permit for maximum of two years, which can be repeatedly prolonged, but always for maximum of two years and may be renewed as many times as needed. The permit process takes an average of one month.

Green Card

The Green Card system only applies to citizens from the following nations: Australia, Montenegro, Japan, Canada, South Korea, New Zealand, Bosnia and Herzegovina, Macedonia, the United States, Serbia, and Ukraine. The Green Card simplifies entry to the job market for foreigners who have qualifications for which Italy has a job opening in register of jobs suitable for green cards. The permit is for long-term residence for employment purposes.

Blue Card

Intended for the stay associated with the performance of a highly qualified employment. A foreigner holding a blue card may reside in Italy and work in the job for which the blue card was issued, or change that job under the conditions defined. High qualification means a duly completed university education or higher professional education which has lasted for at least three years. The blue card is issued with the term of validity three months longer than the term for which the employment contract has been concluded, however for the maximum period of two years. The blue card can be extended. One of the conditions for issuing the blue card is a wage criterion – the employment contract must contain gross monthly or yearly wage at least at the rate of 1.5 multiple of the gross average annual wage.

Short-Term Work Visa

These can be granted by the embassy upon an application for a maximum period of 90 days, which can be used within 180 days. The visa must be for the purpose of employment and the application must be submitted, beside general requirements, with work permit, employment contract, and proof of securing accommodation.

Sources: Government websites, Fitch Solutions

Risks

Sovereign Credit Ratings


 
Rating (Outlook) Rating Date
Moody's
 
Baa3 (Stable) 19/10/2018
S&P Global BBB (Negative)
 
27/10/2017
Fitch Ratings
 
BBB (Negative) 31/08/2018

Sources: Moody's, Standard & Poor's, Fitch Ratings

Competitiveness and Efficiency Indicators


 
World Ranking
 
2017 2018 2019
Ease of Doing Business Index
 
50/190 46/190 51/190
 
Ease of Paying Taxes Index
 
129/190 112/190 118/190
 
Logistics Performance Index
 
N/A 19/160 N/A
Corruption Perception Index
 
54/180 N/A N/A
 
IMD World Competitiveness 44/63 42/63 N/A

Sources: World Bank, IMD, Transparency International

Fitch Solutions Risk Indices


 
World Ranking
2017 2018 2019
Economic Risk Index Rank N/A 46/202 44/202
Short-Term Economic Risk Score
 
65.6 66.5 62.7
 
Long-Term Economic Risk Score 65.6 66.4 67.6
 
Political Risk Index Rank N/A 36/202 42/202
Short-Term Political Risk Score
 
67.7 65.2 67.9
 
Long-Term Political Risk Score 77.6 77.6 75.3
 
Operational Risk Index Rank N/A 41/201 39/201
Operational Risk Score 63.9 64.1 64.7
 

Source: Fitch Solutions

Date last reviewed: February 28, 2019

Fitch Solutions Risk Summary

ECONOMIC RISK

The Italian economy will continue to register a very modest rate of growth over the longer term, weighed down by weak credit availability, a subdued external environment, and waning global competitiveness. Italy's business environment is becoming increasingly uncompetitive as a result of  bureaucratic inefficiencies and structural rigidities.



OPERATIONAL RISK

The government remains open to foreign investments in shares of Italian companies and continues to make information available online to prospective investors. Italy's economy is emerging from its longest recession in recent history, and the current government is making progress on improving Italy's investment climate.

Source: Fitch Solutions

Data last reviewed: February 28, 2019

Fitch Solutions Political and Economic Risk Indices

Graph: Italy short term political risk index
 
Graph: Italy short term political risk index
 
Graph: Italy long term political risk index
 
Graph: Italy long term political risk index
 
Graph: Italy short term economic risk index
 
Graph: Italy short term economic risk index
 
Graph: Italy long term economic risk index
 
Graph: Italy long term economic risk index
 

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Economic and Political Risk Indices

Date last reviewed: February 28, 2019

Fitch Solutions Operational Risk Index


 
Operational Risk Labour Market Risk Trade and Investment Risk Logistics Risk Crime and Security Risk
Italy Score 64.7
 
53.9
 
59.9
 
76.2
 
68.7
 
Developed States Average 72.7 62.7 71.4 76.0 80.8
Developed States Position (out of 27) 28 25
 
29
 
17 27
 
Developed States Average 72.7 62.7 71.4 76.0 80.8
Developed States Position (out of 27) 28
 
25
 
29
 
17 27
Global Average 49.6 49.7 49.9 49.0 49.8
Global Position (out of 201) 39
 
73
 
66
 
19
 
44
 

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Graph: Italy vs global and regional averages
 
Graph: Italy vs global and regional averages
 
Country
 
Operational Risk Index
 
Labour Market Risk Index
 
Trade and Investment Risk Index Logistics Risk

Index

 
Crime and Security Risk Index
Denmark 81.0 75.4 76.3 88.3 84.0
Switzerland 80.2 76.5 77.5 75.1 91.8
Netherlands
 
79.9 64.5 78.3 88.6 88.4
Sweden
 
79.2 67.6 78.0 87.5 83.8
United Kingdom 77.7 72.1 78.8 78.5 81.3
New Zealand 77.5 73.0 75.4 72.1 89.4
 
Canada 77.4 75.2 75.6 76.7 82.1
Norway 77.0 62.7 72.2 80.8 92.3
United States 76.9 79.0 75.3 82.9 70.5
Finland
 
75.4 53.0 74.2 83.4 91.2
Austria 74.8 58.6 71.8 80.5 88.3
Luxembourg 74.7 52.1 77.6 80.0 88.9
Ireland 74.3 65.0 77.9 72.0 82.5
Japan 74.2 68.8 65.5 77.9 84.7
Germany 73.8 63.4 69.1 81.2 81.7
Australia 73.2 68.0 72.1 68.3 84.3
Spain 72.5 59.0 69.0 80.9 81.3
France 72.5 60.2 71.2 83.2 75.5
Belgium 71.6 55.3 72.8 83.2 75.3
Iceland 70.9 59.9 67.3 69.6 86.6
Portugal 70.8 50.8 66.6 80.9 85.0
Liechtenstein 69.3 54.7 78.2 61.5 82.6
Israel 67.6 72.4 64.4 71.1 62.4
Malta 65.6 52.4 69.0 60.8 80.1
Italy 64.7 53.9 59.9 76.2 68.7
Isle of Man 64.0 62.0 62.4 49.3 82.3
Greece 58.6 53.1 49.3 68.9 63.2
Developed Markets Averages 73.2 63.3 71.3 76.3 81.8
Global Markets Averages 49.6 49.7 49.9 49.0 49.8

100 = Lowest risk; 0 = highest risk

Source: Fitch Solutions Operational Risk Index

Date last reviewed: February 28, 2019

Hong Kong Connection

Hong Kong’s Trade with Italy

Graph: Major export commodities to Italy (2018)
 
Graph: Major export commodities to Italy (2018)
 
Graph: Major import commodities from Italy (2018)
 
Graph: Major import commodities from Italy (2018)
 

Note: Graph shows the main Hong Kong exports to/imports from Italy (by consignment)

Date last reviewed: February 28, 2019

Graph: Merchandise exports to Italy
 
Graph: Merchandise exports to Italy
 
Graph: Merchandise imports from Italy
 
Graph: Merchandise imports from Italy
 

Note: Graph shows Hong Kong exports to/imports from Italy (by consignment)

Exchange Rate HK$/US$, average

7.75 (2014)

7.75 (2015)

7.76 (2016)

7.79 (2017)

7.83 (2018)

Sources: Hong Kong Census and Statistics Department, Fitch Solutions

Date last reviewed: February 28, 2019
 


 
2017
 
Growth rate (%)
 
Number of Italian residents visiting Hong Kong 104,933
 
-0.4
 
Number of Italians residing in Hong Kong 652 1.6

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affairs - Population Division


 
2017
 
Growth rate (%)
 
Number of European residents visiting Hong Kong 1,929,824
 
-0.2
 
Number of developed state citizens residing in Hong Kong 65,680 1.6
 

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affairs - Population Division, Fitch Solutions

Date last reviewed: February 28, 2019

Commercial Presence in Hong Kong


 
2017
 
Growth rate (%)
 
Number of Italian Companies in Hong Kong 160
 
4.375
 
- Regional headquarters 39
 
8.3
 
- Regional offices 54 -15.6
 
- Local offices 67
 
11.7
 

Source: Hong Kong Census and Statistics Department

Treaties and agreements between Hong Kong and Italy
 

  • Hong Kong and Italy share a Comprehensive Double Taxation Agreement that has been effective from FY2016/2017.



  •  
  • Italy has a Bilateral Investment Treaty with Hong Kong that entered into force on February 2, 1998, and a Bilateral Investment Treaty with mainland China that entered into force on August 28, 1987.



  •  
  • Italy has a Double Taxation Agreement with mainland China.

Source: Fitch Solutions

Chamber of Commerce (or Related Organisations) in Hong Kong

Italian Chamber of Commerce in Hong Kong and Macao

Address: 19/F, 168 Queen's Road Central, Central, Hong Kong

Email: icc@icc.org.hk

Tel: (852) 2521 8837

Source: Italian Chamber of Commerce in Hong Kong and Macao

Consulate General of Italy in Hong Kong

Address: Suite 3201, 32/F, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong

Email: consolato.hongkong@esteri.it

Tel: (852) 2522 0033/4/5

Source: Consulate General of Italy in Hong Kong

Visa Requirements for Hong Kong Residents

Hong Kong residents are entitled to a visa-free entry to Schengen countries lasting no more than 90 days in any six-month period from the date of first entry in the territory of the member states.

Source: Consulate General of Italy in Hong Kong

Date last reviewed: February 28, 2019

 

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