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Discussion Starter #1
How is it possible to start a new venture here (Italy) without INPS dipping straight into your pocket?

I have lived here for quite a few years and have fallen foul of their money grabbing ways on two occasions...

If you wake up one day with an idea for a business that you want to try out and stay within the tax and business laws here it seem to be virtually impossible.

Just starting any new business venture carries understandable risk which many of us are prepared to take... We are prepared to make the sacrifices needed, not just financially, but often with long hours for little or no reward in the initial start-up period and all this can entail to both us personally and to our families and supporters...

In most countries the "Get-up and go" attitude receives the backing of the tax gathering authorities...they rightly take the view that it is better to help a new business get on its feet and in the long term that enterprise will pay tax dividends to the country..and hopefully create future jobs...etc..

The flipside being if the business isn't a success, as most aren’t, then although the owner may face losses personally...the taxman is no worse off than before...but it has played an important role in giving the business a chance...

Then you come to business start-ups the Italian way...My story is no different to the majority of would be entrapanuers be they Italians or expat...We all have to decide before we put our idea to the test are we going to be honest and register ourselves as a start-up or join the darkside of the Italian economy....

In many cases this decision is taken out of our hands by the totally inept, unfair system for encouraging start-ups here....

First you register yourself in one of the available business formats, in 90% of cases it will be as a soul trader with small turnover under €30k (forget limited company unless you already have a stack of money or wealthy family) we all have to start somewhere and if reclaiming iva is not so important it’s the easiest option on the surface....

But as soon as you make your registration the INPS claws are heading your way...Before you sit at your desk on your first day, turn on your computer or open your shop door to start covering your expected trading overheads or even get your first fattura issued....INPS has you to the tune of €350+ per month!!! plus your inevitable monthly bill to your commercialista...Immediately one of your biggest headaches is one of the allies of new business in any other country, the government and his agent, the tax man....

To illustrate how destructive he can be I compare to my past, pre expat, experience in the UK for the ways in which a government can help; VAT in the UK… you have the choice!! of registering or not, if your turnover is under the equivalent of €100,000… compared to here!! No choice, no Parte d’iva number, no business, you are immediately on the darkside!!!

Second, National Insurance payments as a self-employed person in the UK you pay the minimum payment of €30 per month....

Then you concentrate on making your business a success!!!! The whole reason you started this venture...18 months down the line...if your venture is a success you file a tax return and pay your taxes and supplementary N.I payments based on your PROFIT!!!!

Contrast this with the most basic position here...Day one, you are registered for IVA and you are liable for “The fixed minimum contribution I.V.S” !!! based on minimum €15,000 turnover....which will cost you €3500 per year...if you make15k or big fat €0 or a loss...you pay...no exceptions!!! No reclaim, you pay!!!

We have a new young prime minister keen to help the unemployed youngsters and those with jobs on pitifully low wages...Surely if you need evidence of how backward Italy is on job creation and why it constantly languishes next to or below third world countries on every calculation of business competitiveness or job creation ...He could start with tackling these unfair practices...People will pay taxes if they are first given the chance to use their initiative and allowed to make money…Get INPS and the state off our backs…

Discuss...responses!!:rant:
 

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Italy is as it is and is unlikely to change in any meaningful way in your lifetime.

If starting a business is your goal, perhaps you should return to the UK. :(
 

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Discussion Starter #3
True, but sad you sound like many Italians accepting of their lot in life...Is starting a business a goal in life to be sought outside of Italy...Problem is many Italians take your advice and leave their own country...
 

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I think you can summarize your complaints by saying that one must have adequate startup capital to start a business in Italy. The cost of capital is currently inexpensive as it happens. Capital requirements always vary across countries, and I haven't seen much evidence that higher capital requirements are correlated with higher rates of unemployment. Starting a business in Switzerland, for example, demands significant startup capital, but Switzerland has the lowest rate of unemployment in Europe last I checked.
 
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