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There are advantages and also potential challenges for Northern Ireland companies doing business in Italy.

UK businesses are very important to Italy, and investors are committed to their UK projects. There is an appreciation for British professional services, technology and quality consumer goods.

Advantages of exporting to Italy

Italy offers numerous benefits to companies looking to do business in the region including:

• dual market access allows businesses in Northern Ireland to trade goods freely with Italy as it is part of the European Union. Read more about how to take advantage of dual market access.
• similar regulatory framework to UK and modern intellectual property protection practices
• easy access from the UK with low cost flights
• only 1 hour ahead of UK time
• modern infrastructure
• high level of internationalisation and entrepreneurship, with fully integrated supply chains
• strong manufacturing and innovation capability in several areas
• hosts many trade exhibitions with global appeal
• one of the world’s highest rates of household wealth
• one of the world’s top 5 tourist destinations

Challenges of exporting to Italy

Doing business in Italy is very similar to doing business in the UK. Standard European business practices apply. Some challenges include:

• complex bureaucracy and regulations
• slow judicial system
• unfair competition due to cases of bribery, corruption and tax evasion

The European Union (EU) is an economic and political union of 27 countries. 

Dual market access allows businesses in Northern Ireland to trade goods freely with Italy as it is part of the European Union.

What is dual market access?

Dual market access allows businesses in Northern Ireland to trade goods freely with both Great Britain and the European Union.

This means goods can move from Northern Ireland to Great Britain and the EU without customs checks or tariffs, offering businesses a competitive advantage in both markets.

What are the benefits of dual market access when exporting to Italy?

With dual market access, your manufacturing business based in Northern Ireland can: 

• Expand your customer base: Sell goods seamlessly to both GB and EU markets.
• Avoid trade barriers: no customs declarations or tariffs when trading with the EU.
• Enhance your competitiveness: access to two major markets provides a unique edge over businesses operating in only one.
• Reduce compliance costs: Northern Ireland maintains regulatory alignment on goods with EU regulations and there are no additional approvals required to place qualifying goods on the on the market in GB.
• Simplify your supply chains: businesses in Northern Ireland can act as a gateway between the UK and EU, leveraging their unique position to enhance logistics and distribution networks.  

Dual market access presents opportunities for businesses meaning that Northern Ireland-based companies can strengthen relationships with both UK and EU customers while maintaining supply chain efficiency. 

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Italy is one of the UK’s largest export markets. There is high demand for skills in technology and engineering. Some important sectors include defence, aerospace, advanced engineering and life sciences technology.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.

Cyber security

Cyber security is a growing area in Italy.

Demand for specialist skills

Research and innovation are very important in Italian industry. With high levels of research and development spending, there is strong demand for new digital skills and business models.

Cyber security market

Italy’s cyber security market is growing and a high priority for the country. It is a key part of the country's digital transformation strategy.

Health and life sciences

The Italian National Health System (SSN) is going through reform and modernisation to take on the challenges of an ageing population. The focus on prevention and outpatient care creates public and private sector opportunities.

Modernising healthcare

There is a market for medical devices and e-health applications as part of Italy’s drive to create a more modern health service.

Prevention and ageing

Innovative aids for older and disabled people are a growing priority. Prevention is becoming a bigger focus, and products and services in this area are in demand.

Digital health

A national plan to make public services more digital is driving innovation. There is demand for technologies to improve services, limit inefficiency and reduce regional differences.

Aerospace and engineering

The Italian aerospace industry is one of the largest in the world. Aerospace and advanced engineering are priority sectors for imports.

History and innovation

Italy hosts both large, established aerospace companies with strong supply chains, and innovative smaller businesses. The country has played an important part in aircraft development projects, including Airbus and Dreamliner.

Support for exporters

The UK government's aerospace team in Italy has strong relationships with many Italian and British trade associations. They attend major air shows, including Farnborough, to help UK companies source opportunities in research and development and in business.

There are a lot of things to consider before you start exporting to Italy. It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

VAT is known as IVA in Italy. The standard rate is 22%. There are reduced rates for some products, including basic foods, and some services are exempt.

Read more about .

Payment terms

Payment periods are longer than in the UK. Business-to-business payments can take several weeks but in some sectors can take months or longer, especially where creditors are public bodies. A prompt payment code of practice has recently been introduced.

Standards and regulations

Products and packaging should meet , but Italy is more strict in some areas. This includes packaging and labelling.

has responsibility for Italian national standards. is responsible for electrics, electronics and telecommunications regulations

Services regulations

Information on rules for is available on gov.uk

Trade barriers

to trading with Italy.

that are affecting your business so we can help fix them.

Business culture

Reforms in recent years have made it easier for companies to enforce contracts, register properties and resolve insolvency.

Intellectual property

Intellectual property (IP) rights are territorial. Rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office’s provides practical information to help you protect, manage and enforce your IP abroad. Further 91Ï㽶»ÆÉ«ÊÓƵ can be accessed through the service’s network of . Based in key UK export markets, they can provide guidance to businesses in Northern Ireland on local IP matters.

Using agents or distributors

Often the best way to start selling in Italy is to use an agent or distributor.

You should find a tax and legal adviser before entering into any contracts. Contact the for help.

Developing exports to Italy could be a part of growing your business. But breaking into the market can be challenging. The right 91Ï㽶»ÆÉ«ÊÓƵ and advice can significantly improve your prospects.

Invest NI offers a range of advice, plus additional 91Ï㽶»ÆÉ«ÊÓƵ services for businesses trading with Italy.

• – get 91Ï㽶»ÆÉ«ÊÓƵ with market research and market visits.
• - join trade missions and exhibitions to access new opportunities, strengthen relationships, and accelerate your business’s global growth.
• – access export and capability solutions to get the knowledge and skills to structure and build on your export activity.
• - assesses your business's readiness for exporting and get a tailored report sent to you, detailing your journey, next steps, practical tips, templates, and 91Ï㽶»ÆÉ«ÊÓƵ available.
• Invest NI offers advice and 91Ï㽶»ÆÉ«ÊÓƵ to help businesses .
• Invest NI can advise on how to use to 91Ï㽶»ÆÉ«ÊÓƵ your exports
• Invest NI can advise on and may be able to provide financial 91Ï㽶»ÆÉ«ÊÓƵ directly to businesses.

As well as Invest NI, there are other sources of 91Ï㽶»ÆÉ«ÊÓƵ to assist with trading with Italy.

• The Northern Ireland Chamber of Commerce (NICC) provides members with a to learn, up-skill and connect as they grow locally and internationally.
• Department for Business and Trade (DBT) in-market 91Ï㽶»ÆÉ«ÊÓƵ - eligible UK businesses can on exporting to specific countries from the DBT global network of international market hubs.
• A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
• Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.