How Much Does It Cost to Open a Branch in Italy?
A transparent breakdown of all costs involved in opening and maintaining an Italian branch — from initial setup fees to ongoing annual expenses.
One-Time Setup Costs
The initial costs of opening a branch in Italy include several mandatory expenses:
- Notarial fees: €2,000–€4,000 for the notarial deed of branch establishment
- Companies Register filing: €200–€400 in government fees and stamp duty
- Certified translation: €500–€2,000 depending on document volume and language
- Apostille/legalisation: €100–€500 depending on the country of origin
- Professional fees (accountant): €2,000–€5,000 for complete setup assistance
- Legal fees (if needed): €1,000–€3,000 for legal review or special requirements
For the full list of required paperwork, see our documents required to open a branch guide.
Government Fees and Taxes
Government fees include the Companies Register registration tax (€200), annual Chamber of Commerce fee (€120–€200), and stamp duties on filed documents. These are fixed costs set by Italian law and apply uniformly regardless of company size.
Professional Fees (Accountant, Lawyer)
Professional fees cover the preparation and filing of registration documents, liaison with the notary and Companies Register, tax registration (codice fiscale and VAT number) and initial compliance setup. An experienced Italian chartered accountant will typically charge between €2,000 and €5,000 for the complete setup process.
Ongoing Annual Costs
Once the branch is established, recurring annual costs include:
- Accounting and bookkeeping: €4,000–€12,000/year depending on transaction volume and complexity
- Annual tax returns: €1,500–€3,000 for IRES, IRAP and VAT declarations
- Annual filing fees: €200–€500 for Companies Register and Chamber of Commerce
- Registered office: €1,000–€5,000/year for a virtual or physical address (varies by city — higher in Milan, Rome or other major centres)
- Payroll (if applicable): variable, depending on number of employees
Hidden Costs to Consider
Companies often underestimate costs related to: delays in document legalisation (which may extend the timeline and incur additional professional fees), electronic invoicing system setup, transfer pricing documentation requirements, and the ongoing cost of maintaining compliance with Italian regulatory changes.
Cost Comparison: Branch vs SRL
| Cost Item | Branch | SRL (Subsidiary) |
|---|---|---|
| Share capital | Not required | €10,000 minimum (SRLS not available to foreign corporate shareholders) |
| Notary fees | €2,000–€4,000 | €2,000–€4,500 |
| Setup professional fees | €2,000–€5,000 | €2,500–€6,000 |
| Annual accounting | €4,000–€12,000 | €4,000–€15,000 |
| Annual filing | €200–€500 | €300–€600 |
Need help with branch opening costs in Italy?
Our team of Italian chartered accountants assists foreign companies with tax registration, accounting and compliance in Italy.
Frequently Asked Questions
How much does it cost to open a branch in Italy?
Total one-time setup costs typically range from €5,000 to €15,000, depending on the complexity of the case, the country of origin and whether additional legalisation or translation is required.
What are the ongoing annual costs of an Italian branch?
Ongoing costs include accounting and bookkeeping (€4,000–€12,000/year depending on transaction volume and complexity), annual filing fees (€200–€500), registered office rent, and professional fees for tax compliance.
Is opening a branch cheaper than setting up a subsidiary?
Initial setup costs are comparable. However, a branch does not require share capital, which can make it less capital-intensive at the start. Ongoing costs depend on the scale and complexity of operations.