How The Italian Patent Box Regime Works

Italy has enhanced in 2015 its first Patent Box regime, a special tax benefit allowing reduced taxation for income derived from the direct use or licence of intellectual property ('IP') assets by companies and commercial entities which perform research and development ('R&D') activities. The programme is new to Italy but follows the recent European trend to assess appealing tax measures in order to attract foreign investments and relocate IP assets. Some European countries - France, Spain, United Kingdom, Luxembourg, the Netherlands, Belgium and Ireland - have already developed a Patent Box system. Differing from most of them, the Italian Patent Box has wider and peculiar advantages targeted specifically to the Italian market.