Here is what the single SEZ is and how tax credits work

By Special Economic Zone (SEZ) we mean a geographically limited and clearly identified zone, in which already operating companies - and those that will set up - can benefit from special conditions for investment and development. There are four types of special economic zones: free trade zones, export processing zones, special industrial zones and special economic zones proper. In the latter case, a package of incentives, concessions and administrative simplifications is made available to companies that establish their headquarters in a certain geographical area.

The government has extended to Umbria and Marche the Single Special Economic Zone for the Mezzogiorno created as of 2024 that already involves Calabria, Abruzzo, Campania, Apulia, Basilicata, Molise, Sicily and Sardinia. A solution that had replaced the eight special economic zones established in 2017 in the same regions under the Cohesion Policies. These were all so-called retroport areas, often distributed in a patchwork fashion in each of the Regions concerned. The primary objective was to increase their attractiveness. The initiative, however, had not produced the desired results. The eight SEZs had turned out to be unattractive and, at the same time, a kind of competition had been created between various southern municipalities to enter the special regime on their face.

The decree provided for the introduction of a new governance system. In particular, a Mission Structure for the Single SEZ was established at the Presidency of the Council of Ministers to support the new organisational model, with the function, among other things, of issuing the single authorisation necessary for the implementation of projects in the Single SEZ, previously the responsibility of the Extraordinary Commissioners for the SEZs.

In terms of tax benefits for businesses, a contribution in the form of a tax credit has been introduced for companies that purchase capital goods for already existing production facilities or which are set up in the Special Economic Zone for the South of Italy. Last year, 6,885 entities applied for the tax credit for investments in the Single Economic Zone, worth a total of EUR 2.551 billion, which will be fully recognised. The credit is commensurate with the amount of investments made from 1 January 2024 to 15 November 2024 up to a maximum limit of EUR 100 million for each investment project. Investment projects whose total cost is less than EUR 200,000 are not eligible. The Budget Law 2025 extended the relief to investments made from 1 January to 15 November 2025.