Incentives and Economic benefits for innovating businesses

A lightweight tax regime, incentives and economic advantages specifically designed for businesses wanting to move to South Tyrol and dedicated to innovation and growth. A winning combination. During the economic crisis years alone ( 2007 to 2014) the regional GDP saw a 0.7% growth - almost as much as Germany itself (0.8%), more than Austria (0.6%) and much more than Italy (-1.3%). All of this has been made possible by an excellent system of incentives which have been put in place to increase business development in South Tyrol.

They are available both through competition notices that are published at dedicated offices - all the business incentives in South Tyrol find their common ground in two main laws. The first one, the State Law no.4/1997 gives incentives to those businesses wanting to invest locally, also focusing on know-how practices such as guidance and training, and general internationalisation processes.
The other law is no. 14/2006, which again refers to specific incentives for innovation, research and development, guidance on technical feasibility studies, employment of qualified staff and more. This is how Bozen-Bolzano is constantly supporting the business world, in an easy, user-friendly way, where rules are simple and answers come quickly: bureaucracy is never seen as a burden for business here. A special focus on those investing in innovation is at the core of the incentives system: South Tyrol rewards all forward-looking ideas. Ideas that are born today but that will answer tomorrow’s questions.

In addition to a rich incentive system, South Tyrol has a unique lightweight tax regime: in Bozen-Bolzano the IRA tax (a regional tax for all business activities) has for years been one of the lowest in Italy (2.68%). The additional IRPEF is almost unknown in South Tyrol, with only 8 in 100 municipalities having a really low rate of this tax in place. Bozen-Bolzano is in fact one of the first Italian municipality which proudly declared zero IRPEF tax.