Italy registered a record 13.5 million employed workers in 2025, yet manufacturing companies across the north cannot find enough engineers. At the same time, Turkish industrial companies are establishing subsidiaries in Italy at a pace not seen in recent decades. Baykar's acquisition of Piaggio Aerospace was the headline, but it represents a broader pattern: Turkish manufacturers are moving west, and Italy is their most important destination.
The challenge is that most guides about setting up company in Italy are written for EU-based companies. Turkish companies face a different set of challenges: non-EU documentation requirements, a compliance framework unlike anything in Turkish HR experience, employment costs that often surprise even seasoned CFOs, and a talent market that responds poorly to hiring tactics borrowed from Istanbul.
At Wide and Wise, we support Turkish companies hiring across the Italy corridor from our offices in both Istanbul and Milan. This guide covers everything you need to know: legal structure, registration steps, Italian labor law, the real cost of hiring, and how to find talent in northern Italy's manufacturing heartland.
Note: This content is for informational purposes only and does not constitute legal advice. Consult a qualified Italian employment attorney and commercialista for your specific situation.
Table of Contents
Why Turkish Companies Are Looking to Italy
Choosing the Right Legal Structure for Your Italian Subsidiary
How Long and How Much: The Italy Company Registration Process
Italian Labor Law: What Turkish HR Teams Need to Know
The Real Cost of Hiring in Italy: A Breakdown for Turkish CFOs
Finding and Hiring Talent in Northern Italy's Manufacturing Belt
Frequently Asked Questions
Key Takeaways
Why Turkish Companies Are Looking to Italy
Turkey and Italy have built one of the Mediterranean's strongest bilateral trade relationships. Machinery, automotive components, textiles, chemicals, and FMCG products flow steadily in both directions, with total trade exceeding €20 billion annually. For Turkish manufacturers already exporting to Italian buyers, the next logical step is establishing a local presence: a sales office, a distribution hub, or a production subsidiary.
The motivation goes beyond logistics. An Italian-registered company gives Turkish manufacturers direct access to the EU single market without the customs friction and tariff uncertainty that comes with exporting from Turkey. It also signals commitment to European clients at a time when supply chain localization is a procurement priority.
The Turkey-Italy corridor is built on industrial DNA that both countries share. Lombardy's precision machinery clusters mirror Turkey's Bursa automotive suppliers. Emilia-Romagna's packaging and automation companies carry the same engineering culture as Tekirdağ's industrial zones. When Turkish manufacturers expand to Italy, they find a market that is familiar in structure but very different in compliance.
Market Insight: In 2026, Italy approved 164,850 non-EU work permits under its Decreto Flussi program, with a three-year plan of 500,000 visas through 2028. The Italian government is actively opening its labor market to international workers, which creates both opportunity and compliance responsibility for foreign employers.
Choosing the Right Legal Structure for Your Italian Subsidiary
The first decision every Turkish company faces is which legal form to use when setting up company in Italy. The good news is that for most cases, the answer is straightforward.
S.r.l. (Limited Liability Company): The Standard Choice
The Società a responsabilità limitata (S.r.l.) is Italy's equivalent of a limited liability company. It is the most common structure for foreign-owned subsidiaries because it limits shareholder liability to the capital contributed, requires no complex governance structure, and can be managed by a single director.
The minimum share capital is technically €1, but practical guidance from Italian accountants is to capitalize at €10,000 or more. Companies capitalized below €10,000 must set aside one-fifth of net profits each year until reserves and capital together reach €10,000.
An S.r.l. is right for most Turkish companies entering Italy for commercial activity, whether that means a sales office in Milan, a distribution subsidiary, or a manufacturing operation in the north.
Structure | Best For | Liability | Complexity |
|---|---|---|---|
S.r.l. (LLC) | Standard subsidiary: sales, distribution, manufacturing | Limited to capital contributed | Low-medium |
S.p.A. (Joint Stock) | Large subsidiaries with multiple shareholders or Italian listing plans | Limited | High |
Branch Office | Extension of Turkish parent, no separate legal entity | Turkish parent fully liable | Medium |
Representative Office | Market exploration only, no commercial activity | Turkish parent fully liable | Low |
Branch Office and Representative Office: When They Make Sense
A branch office is an extension of the Turkish parent company in Italy. It does not have its own legal personality. The Turkish parent company is fully liable for all branch obligations, which is a significant risk exposure.
A representative office can only perform non-commercial activities such as market research, promotion, and liaison. It cannot sign contracts or generate revenue in Italy. Most Turkish companies planning real operations should rule it out early.
For commercial activity at any scale, the S.r.l. is the right choice.
Key Documents Turkish Companies Must Prepare
Turkish companies face a documentation challenge that EU companies do not: most Italian authorities and notaries require documents to be apostilled under the Hague Convention and translated into Italian by a certified translator.
Key documents required:
Certificate of incorporation of the Turkish company (apostilled and Italian translation)
Articles of association of the Turkish company (apostilled and Italian translation)
Board resolution authorizing Italy subsidiary establishment
Power of attorney for the Italian notary (if directors cannot attend in person)
Identity documents for all directors and shareholders (passport copies)
Proof of registered address for the Turkish parent company
Expert Tip: Start the apostille process in Turkey at least 3 weeks before your planned notary appointment in Italy. Turkish notary and apostille queues, combined with certified translation timelines, routinely cause delays that push the entire setup timeline back by 2-4 weeks.
How Long and How Much: The Italy Company Registration Process
Turkish CEOs often ask the same question during our initial corridor briefings: "How long will this actually take?" The honest answer is 6-10 weeks from decision to a fully operational entity, longer than most estimates found online, because those estimates usually ignore the bank account bottleneck.
Step-by-Step Registration Timeline (Weeks 1-10)
Week | Action | Who Handles It | Key Notes |
|---|---|---|---|
1-3 | Prepare and apostille Turkish documents | Turkish side | Allow for notary and apostille queue times |
2-3 | Engage Italian notary and commercialista | Italian advisors | Start in parallel with apostille process |
3-4 | Sign deed of incorporation before Italian notary | Directors or power of attorney | Remote signing via PoA is possible |
4 | Register at Camera di Commercio | Notary | 7 business days once submitted |
4-5 | Obtain codice fiscale and partita IVA (VAT number) | Commercialista | Required before any invoicing or contracts |
4-8 | Open Italian corporate bank account | KYC process with chosen bank | Biggest bottleneck: 2-6 weeks due to KYC |
5-6 | Activate PEC (certified email) and digital signature | Commercialista | Mandatory for all official communications |
6-8 | Register with INPS (social security authority) | HR/Payroll provider | Must be completed before the first hire |
The bank account is consistently the most cited delay for non-EU companies entering Italy. Italian banks (including major international banks with Italian branches) apply strict Know Your Customer (KYC) checks on foreign-owned entities. Choose a bank with documented experience handling non-EU company clients before you start.
Typical Setup Costs to Budget
Item | Estimated Cost |
|---|---|
Italian notary fees | €1,500-€3,500 |
Chamber of Commerce registration and duties | €500-€1,500 |
Commercialista (first-year setup and filing) | €2,000-€5,000 |
Certified translation and apostille of Turkish documents | €500-€1,500 |
Bank account setup | €0-€500 |
Total first-year entity setup estimate | €5,000-€12,000 |
These figures cover entity formation only, not rent, equipment, insurance, or staff. Plan your Italy P&L with the full picture before board approval.
Italian Labor Law: What Turkish HR Teams Need to Know
This is where Turkish companies most often underestimate complexity. Italian labor law is built on a combination of the Civil Code, the Workers' Statute (Statuto dei Lavoratori), and sector-specific collective bargaining agreements. Together, they create a framework that is materially different from Turkish employment law in almost every dimension.
Warning: Never apply Turkish HR policies directly to Italian employees. Notice periods, termination rules, overtime calculations, and salary structures all operate on different legal bases in Italy. Companies with 15 or more employees face significantly heightened obligations under the Statuto dei Lavoratori.
CCNL: The Compliance Rule Turkish Companies Most Often Miss
The CCNL (Contratto Collettivo Nazionale di Lavoro) is Italy's sector-level collective bargaining agreement. Every Italian employer must apply the CCNL that corresponds to their industry. Italy has 44 active national CCNLs, each covering a different sector.
The CCNL is not optional and it is not a general reference document. It governs minimum salaries by job classification, overtime rules, notice periods, disciplinary procedures, mandatory welfare fund contributions, and additional leave entitlements. Applying the wrong CCNL, or no CCNL at all, results in back-pay claims, regulatory fines, and employment disputes that can be costly and time-consuming to resolve.
Turkish companies in manufacturing and industry will typically fall under one of these CCNLs:
Sector | Applicable CCNL | Notes |
|---|---|---|
Metalworking, automotive, machinery | CCNL Metalmeccanici | Italy's largest manufacturing CCNL |
Chemicals, plastics, rubber | CCNL Chimici | Common for Turkish polymer and plastics companies |
Textiles, leather, fashion | CCNL Tessile-Abbigliamento | Key for Turkish textile expansion |
Logistics, warehousing, transport | CCNL Logistica e Trasporti | Distribution operations |
Commerce, retail, B2B sales | CCNL Commercio | Sales offices and commercial agents |
Identify your applicable CCNL on day one, before you post your first job description. Your Italian commercialista and HR consultant can confirm the right CCNL for your operations.
Employment Contract Types in Italy
Italian labor law recognizes several contract types. The most common are:
Contratto a Tempo Indeterminato (CDI): The permanent employment contract. Most common, strongest employee protections, hardest to terminate.
Contratto a Tempo Determinato (CDD): Fixed-term contract. Maximum duration of 24 months, with limited renewal rights. Useful for project-based roles or phased ramp-up.
Apprendistato: Apprenticeship contract for workers under 29. Lower initial salary, with a training obligation. Can convert to a permanent contract.
All contracts must be written and must specify: the applicable CCNL, the employee's job classification level, gross salary, working hours, notice period, and place of work.
Working Hours, Leave, and Termination Rules
Standard Italian working hours are 40 hours per week, spread across five or six days depending on the sector's CCNL. The legal maximum is 48 hours per week including overtime, averaged over a four-month reference period.
Employees are entitled to a minimum of 4 weeks of paid annual leave, plus Italy's 11 national public holidays and any additional CCNL-specific leave days. Manufacturing CCNLs often include additional collective leave days built into the calendar.
Termination is where Turkish companies face the steepest learning curve. Italian law requires giusta causa (immediate just cause, such as serious misconduct) or giustificato motivo (justified reason, such as genuine redundancy) for any dismissal. Companies with 15 or more employees at a single site must comply with the full reinstatement and compensation rules of the Statuto dei Lavoratori. Wrongful dismissal can result in reinstatement or compensation equivalent to 2-32 months of salary.
The Real Cost of Hiring in Italy: A Breakdown for Turkish CFOs
The most common budget error Turkish companies make when planning their Italian subsidiary is underestimating employment costs. Turkish employer-side social security contributions are approximately 20-22% of gross salary. Italian employer costs are nearly double that, and then there are additional mandatory costs on top.
The total cost of a permanent Italian employee typically reaches 155-165% of their gross annual salary. Here is what makes up the difference.
Employer Social Security Contributions (INPS and INAIL)
INPS (National Social Security Institute) is the primary contribution. Employers pay approximately 28-32% of the employee's gross salary toward pension and social security. The employee pays an additional 9-10% from their gross.
INAIL covers workplace accident and occupational disease insurance. The rate varies by sector risk: roughly 0.5-1% for office roles, and 2-3% or more for manufacturing and industrial operations.
TFR: Italy's Mandatory Severance Fund
The Trattamento di Fine Rapporto (TFR) is a mandatory accrual of approximately 7.4% of the employee's gross annual salary each year. It is not paid monthly. It accumulates and is paid to the employee when they leave the company, regardless of the reason: resignation, redundancy, or retirement.
From the employer's perspective, TFR is a balance sheet liability that grows with every pay period. For companies with 50 or more employees, Italian law requires TFR contributions to be redirected to INPS rather than held internally.
13th and 14th Month Salary
Italy mandates a 13th month salary (tredicesima) paid at Christmas. This is equivalent to one additional monthly salary, typically paid in December. For manufacturing and industrial CCNLs, a 14th month salary (quattordicesima) is also common, paid in June or July.
Both are included in gross annual salary calculations, but Turkish companies accustomed to discretionary annual bonuses sometimes miss that these payments are mandatory under the applicable CCNL.
Total Employment Cost Table
Cost Component | Approximate Rate | Notes |
|---|---|---|
Gross annual salary | 100% | Base reference |
Employer INPS contributions | +28-32% | National social security and pension |
INAIL (workplace insurance) | +0.5-3% | Higher for manufacturing roles |
TFR (severance accrual) | +7.4% | Paid on departure, not monthly |
13th month salary | +8.3% | Mandatory at Christmas |
14th month salary (if CCNL mandates) | +8.3% | Common in manufacturing CCNLs |
CCNL welfare fund contributions | +1-3% | Supplementary healthcare and pension |
Estimated Total Employer Cost | ~155-165% of gross | Varies by sector and CCNL |
By the Numbers: A Turkish company hiring an Italian mechanical engineer at €40,000 gross should budget €62,000-€66,000 in total annual employment cost, before office rent, equipment, or training. Turkish CFOs who use Turkish cost structures as a reference consistently underestimate Italian labor budgets by 30-40%.
Finding and Hiring Talent in Northern Italy's Manufacturing Belt
Setting up the legal entity is one challenge. Building the team is another, and for Turkish companies entering Italy without brand recognition, this is often the harder part. Understanding how recruitment agencies help companies in new markets becomes essential at this stage.
Where to Find Manufacturing and Engineering Talent
Italy's industrial heartland runs across three northern regions: Lombardy (centered on Milan), Emilia-Romagna (the Bologna-Modena-Parma corridor), and Veneto (the Verona-Vicenza-Padova triangle). These three regions account for the majority of Italy's manufacturing employment and contain the densest concentration of mechanical, electrical, and industrial automation engineers.
Despite record overall employment levels, technical and engineering roles are among the hardest to fill in Italy. More than 40% of Italian manufacturers report difficulty recruiting for technical and engineering positions. Italy is experiencing structural talent shortages driven by demographic decline, a low birth rate, and decades of brain drain, with skilled workers emigrating to Germany, Switzerland, and Northern Europe for higher wages and better career opportunities.
The primary job platforms for professional hiring in Italy are LinkedIn (dominant for mid-to-senior roles), InfoJobs (Italy's leading general job board), and sector-specific portals. For engineering and manufacturing roles in the north, LinkedIn sourcing combined with direct headhunting delivers faster results than relying on inbound applications alone.
Southern Italy holds an underutilized talent pool, particularly for roles that can operate remotely or with hybrid arrangements. For on-site manufacturing or operations roles in the north, however, northern candidates are the practical target.
Why Italian Candidates Hesitate with Unknown Foreign Companies
An unknown Turkish company posting engineering roles in Lombardy will encounter something that Turkish companies rarely face at home: immediate candidate skepticism. Italian job seekers in manufacturing prioritize stability, contract compliance, and employer reputation. Without established Italian brand recognition, the questions a candidate either asks or does not ask are about CCNL compliance, contract type, and long-term company commitment.
The hesitation is rational. Italian employment protections are strong, but they only protect workers once they are hired. Before accepting an offer, candidates want to know that the employer understands Italian rules. An unknown foreign company that cannot demonstrate compliance credibly during the recruitment process loses candidates to established Italian employers, even when the compensation offer is competitive.
The same challenge affects Italian companies hiring in Turkey from the other direction. Local candidate trust is earned through demonstrated compliance, not just job title and salary.
Market Insight: Wide and Wise clients in the Turkey-Italy corridor reduce their time-to-fill for engineering and operations roles to an average of 36 days, compared to the 60-90 days Turkish companies typically experience when hiring in Italy without a local recruitment partner. The difference is credibility at the candidate level, not just the job description.
For a deeper look at how a subscription model compresses these timelines, see how RaaS shortens time-to-fill from 40+ days to 14.
How Wide and Wise Supports Turkish Companies in the Italy Market
Wide and Wise operates in the Turkey-Italy corridor from offices in both Istanbul and Milan. When Turkish companies enter the Italian market, they are not an unknown quantity to our team. We know both sides of the corridor and have placed professionals across manufacturing, operations, finance, and commercial functions in northern Italy.
Our Milan-based recruiters maintain networks across Lombardy and Emilia-Romagna's industrial clusters. For Turkish companies establishing a subsidiary, this means shortlists of qualified, compliant candidates, not applications that have to be screened from scratch. Every candidate we present is evaluated against the applicable CCNL requirements and the Italian employment expectations for their level.
For Turkish HR teams building Italian payroll for the first time, we also provide corridor briefings on CCNL compliance, employment contract structure, and the practical expectations Italian candidates bring to an offer conversation.
Frequently Asked Questions
How long does it take to set up a company in Italy?
From the initial decision to a fully operational entity with a bank account and INPS registration, Turkish companies should plan for 6-10 weeks. The Chamber of Commerce registration itself takes 7 business days once documents are submitted, but the apostille process for Turkish documents, bank account opening (2-6 weeks for KYC), and coordination between the Italian notary and commercialista add significant time. Eight weeks is the realistic minimum for most cases.
Best Company Structure for Turkish Businesses in Italy?
For most Turkish companies, the S.r.l. (Società a responsabilità limitata) is the right choice. It limits shareholder liability to the capital contributed, is straightforward to operate, and is the standard structure for foreign-owned Italian subsidiaries. A branch office is simpler to set up but exposes the Turkish parent company to full liability for all Italian operations.
What is a CCNL and does it apply to foreign-owned companies?
Yes, the CCNL applies to all companies operating in Italy, regardless of the parent company's nationality. A CCNL is a national sector-level collective bargaining agreement that sets minimum salaries, job classification levels, overtime rates, leave entitlements, notice periods, and welfare contributions for an entire industry. Italy has 44 active CCNLs. Failure to apply the correct one can result in back-pay claims, fines, and employment disputes.
How much does it cost to hire an employee in Italy?
The total annual cost of a permanent employee in Italy is approximately 155-165% of their gross salary. This includes employer INPS contributions (28-32%), INAIL workplace insurance (0.5-3%), TFR severance accrual (7.4%), 13th month salary (mandatory), and 14th month salary where the applicable CCNL requires it. Turkish companies should use this multiplier when building their Italy P&L.
Can I send Turkish employees to work in Italy?
Turkish employees can work in Italy, but as non-EU nationals they require Italian work permits. Executives and senior managers may qualify for an Intra-Company Transfer (ICT) permit, which bypasses Italy's annual Decreto Flussi quota and can be processed faster. Standard work permits for non-executive roles fall under the Decreto Flussi quota system, which is released annually with 164,850 non-seasonal spots approved for 2026.
Do I need to speak Italian to run an Italian subsidiary?
Contracts, government filings, CCNL documents, and INPS correspondence are all in Italian. You do not personally need to speak Italian, but your Italian commercialista and employment law advisor do, and you need them to be fluent and experienced with foreign-owned companies. Hiring Italian-speaking operational staff early also significantly reduces friction with local authorities, suppliers, and candidates.
Key Takeaways
The S.r.l. is the standard legal structure for Turkish subsidiaries in Italy, limiting liability and incorporated through an Italian notary with apostilled Turkish documents
Realistic timeline from decision to operational entity: 6-10 weeks, with bank account opening (2-6 weeks KYC) being the most common bottleneck
Every Italian employer must apply the correct CCNL for their sector. It governs minimum salaries, overtime, leave, and dismissal rules, and it is not optional
Total Italian employment cost reaches 155-165% of gross salary, significantly higher than Turkish employers typically budget, driven by INPS (28-32%), TFR (7.4%), and mandatory 13th/14th month pay
Engineering and manufacturing talent in northern Italy is competitive and scarce, and unknown foreign companies face candidate skepticism without a credible local presence
Wide and Wise's dual Istanbul-Milan presence means Turkish companies in the corridor get a recruitment partner who understands both markets without translation loss
Ready to Build Your Team in Italy?
Italy offers Turkish manufacturers a compelling combination: EU market access, shared industrial culture, and a proven corridor with the infrastructure to support real operations. The compliance complexity is real, but it is manageable when you enter the market with accurate information and the right partners.
Wide and Wise specializes in Italy-Turkey corridor recruitment. Our Milan and Istanbul offices work as one team, sourcing, vetting, and placing engineering, operations, and commercial talent for Turkish companies at every stage of their Italian expansion. With shortlists delivered within 5 days and an average placement time of 36 days, we move as fast as the opportunity demands.
Schedule a free 30-minute consultation to discuss your Italy hiring strategy. Whether you are at the planning stage or ready to post your first Italian role, our corridor team can help you move forward with confidence.
Related Reading
Italian Companies Hiring in Turkey: The Complete Corridor Guide: the mirror-image guide for Italian companies establishing teams in Turkey across the same corridor
What Is RPO? The Complete Guide to Recruitment Process Outsourcing: How RPO services can help Turkish companies scale hiring across Italy and other new markets
RaaS: International Recruitment Across Multiple Markets on One Subscription: How subscription-based recruitment supports companies expanding across multiple countries simultaneously
RaaS vs RPO vs Recruitment Agency: Choosing the right hiring model for your Italian subsidiary's stage and volume
