Italy
AI Agent Legal Status: partial · Autonomy: low
Legal Framework
Italy is subject to the EU AI Act and has additionally enacted its own AI decree law (2024), establishing national-level AI governance provisions. The Garante per la protezione dei dati personali (data protection authority) has been notably active on AI issues, including a temporary ban on ChatGPT in 2023. Italy's approach combines EU compliance with additional national-level scrutiny. AgID (Agency for Digital Italy) oversees public sector digitalization and AI adoption guidelines.
Key Laws & Regulations
- ◆EU AI Act
- ◆AI Decree Law 2024
- ◆GDPR (Privacy Code)
- ◆Civil Code
Business Formation
SRL (Società a Responsabilità Limitata) is the standard entity with EUR 10,000 minimum capital. SRL Semplificata allows formation with as little as EUR 1 capital for entrepreneurs under 35. Bureaucratic formation process.
Tax Implications
Corporate taxation includes IRES at 24% plus IRAP (regional business tax) at approximately 3.9%, resulting in an effective rate around 27.9%. Patent Box regime provides a 50% deduction on income from qualifying IP.
Opportunities
Large domestic market for AI solutions in manufacturing, fashion, and automotive sectors. Patent Box IP deduction benefits AI companies. Growing Milan tech scene.
Highlights
National AI decree law shows proactive engagement with AI governance. Large domestic market in the EU. Patent Box provides IP tax benefits.
Risks & Challenges
Dual regulatory layer (EU AI Act + national AI decree) increases compliance burden. Garante's aggressive stance on AI data protection creates enforcement risk. High combined tax rate approaching 28%. Bureaucratic business environment.