Where Europe is unable to help, there are domestic laws

Among the many domestic and local laws to promote economic activity, there are two groups of regulations which have for many years been a point of reference for Italian firms: the Sabatini Law and Law n. 488.

The Sabatini Law for the purchase of equipment

Born many years ago to favour with incentives on interests account for the purchase of equipment and machinery, the so-called "Sabatini Law "(1329/62) has been modified at the request of the European Union and today allows firms operating throughout Italy to acquire technology and allows producers of machinery throughout the EU to sell directly in Italy with the benefits envisaged. All the small and medium enterprises of the European Union with registered office in Italy can obtain these concessions. The concessions are granted by individual Italian regions, which operate according to their own regulations and can introduce additional contributions in the capital account without security. Therefore, to access the advantages offered by this law, it is necessary to contact the Office (Assessorato) for Productive Activity of the Region where is located the firm which wishes to acquire the assets that are the object of the concessions. Updated information regarding the amount of available resources as well as the method of presenting the request can be obtained by consulting the websites of the various Italian regions.

Law n. 488 to encourage investment in depressed areas

Law n. 488/92 makes available grants on capital account for programmes designed to realise new productive units in depressed areas, or to increase production capacity and employment, increase productivity or improve ecological conditions associated with productive processes, technological updates, renewal, re-organisation, diversification, etc. These concessions can be used by firms with registered office in some areas of Italy and those which operate in the manufacturing and extractive industries, firms which produce and distribute electrical energy, steam and hot water and construction firms, some service firms, tourist firms which conduct management of hospitality structures and travel and tourism agencies. The concessions are equivalent to 80% of the maximums allowed by the EU provisions in relation to the size of the firms and the areas of operation, expressed as Net Subvention Equivalent (NSE) or Gross Subvention Equivalent (GSE). The measure increases to 90% or 100% for investment programmes which seek, respectively, to expand existing productive units or to provide a new plant.