Are you considering the possibility of buying a rural property in Italy and converting it into an agriturismo? Are you dreaming of the rolling hills and grapevines of Tuscan countryside for an agriturismo, or are you considering, for example, Sicily with its sparkling sea and rugged landscape?
Before starting, let’s have a preliminary focus on the the main topics that we will cover in this article to help you with the process:
- What is agritourism?
- How to start an agritourism
- Italian agritourism legislation
- Starting an agritourism: the costs
- 1 Agriturismo Italy: introducing the legal steps
- 2 What is agritourism?
- 3 How to start an agritourism business: requirements and obligations
- 4 How much land does it take to open an agritourism business?
- 5 What are the requirements to start an agritourism in Italy?
- 6 Legislation to start an agritourism in Italy
- 7 The EU funding program: the importance of agritourism in 2024-2025
- 8 Agritourism tax legislation
Agriturismo Italy: introducing the legal steps
Starting an agritourism in Italy (or indeed anywhere) can be complicated and involves many different aspects (real estate, legal, technical, commercial, and others). While you consider these aspects, having Italian professionals helping you through the legal and technical aspects will be necessary.
As with many other businesses in Italy, to achieve success, there are certain requirements you need to consider. Starting with a deep knowledge of the local legislation will help you proceed in the right direction from the beginning. First, you need to consider the main legislative institutions – the national law regarding agritourism (Legge 96 febbraio 2006 – “Disciplina dell’agriturismo”), the different regional receptions and applications. Like the Tuscan law or the Lombardy one, and the specific municipal laws.
What is agritourism?
Before starting your own agritourism, it is important to have a wide knowledge of the ground you are going to operate in. Take your time to navigate the official Italian government portal in the English language regarding touristic activities in the countryside Here you will find the legal definition of agritourism.
To understand what kind of economic activity agritourism is, let’s start focusing on the main definition. “An agritourism is a reception and hospitality business managed by agricultural entrepreneurs (referred to the article 2135 of the Codice Civile – Civil Code). that could also be arranged as limited companies or partnerships, or associated with each other, by applying their business in connection with the activities of soil cultivation, forestry and animal husbandry.
Who’s in charge of the Agriturismo?
There is an important thing to note regarding workers in the agriturismo. The farmer’s family members can be included as workers in the business (as provided in Article 230-bis of the Civil Code) in addition to any temporary, permanent and part-time employees. Including external parties is only permitted to perform complementary activities and services.
A solid link to the territory
Agritourism is a growing sector, enriched by the strong connection with the territory. This is because it offers a unique local experience with the typical features and products of Italian agriculture.
If you are deeply moved by the love for your land and the feeling of hospitality and sharing, starting an agritourism is the right choice for you.
How to start an agritourism business: requirements and obligations
Now that we have clarified the definition, we need to answer the most important question: What do we need to do to start an agritourism business?
Here we are going to explain every important legal aspect that you will have to consider in order to start your agritourism.
What do you need to start an agritourism
It is necessary to conform to a specific standard in order to start a new business, and this is also extended to agritourism. We will now analyze in detail the fundamental requirements.
1) Get a VAT Number
As for all the business activities in Italy, if you want to start a business in the agricultural management field, first of all, you have to get the Italian VAT (Partita Iva). This is one of the prerequisites.
2) Apply to the Italian Business Register
Another fundamental requirement is the registration of your future business at the Italian Business Register (Registro delle Imprese – Register of Companies). The registration should be completed at the competence Chamber of Commerce (Camera di Commercio), attaching all the necessary documentation.
3) Open a Tax Account
Another less known requirement for starting an agritourism is opening a tax account. This is simply a “virtual” account, very similar to a bank account. With this account, you can record debits and credits with the Italian Internal Revenue Service (Agenzia delle Entrate).
Through this account, payments and credits relating to income tax, substitute taxes, taxes paid based on supplementary declarations as well as IRAP and VAT are monitored.
4) Register at the regional register of agritourism operators
If you want to start agritourism, as well as a guesthouse, your business will be partially regulated by the relative region. Compared to American states, regions in Italy are less autonomous, but they can legislate regarding specific subjects like agriculture, schools, and public health.
Every Italian region has its own register regarding this matter, the Registro regionale degli operatori agrituristici. This is why enrolling at the regional register of tourism operators is part of the fundamental requirements to start your agritourism.
5) Receive the authorization from the municipality
Receiving authorization from the municipality of residence to carry out the business is crucial. The so-called “green light” from the municipal administration is another fundamental step before starting.
The type of authorization and the procedures for its release may vary from the municipality or from the region, requiring you, for example, to fill out the SCIA (Segnalazione Certificata di Inizio Attività).
How much land does it take to open an agritourism business?
As an agricultural business closely connected to the territory, if you decide to serve food and beverages (which by law must be mainly of your own production), you will need to cultivate a portion of land. This is necessary to meet the fundamental needs of your activity.
In Italy, there are standard tables you can use to calculate how much land is needed to open an agritourism, depending on the type of crop, the animals you want to raise, and the type of business. According to those tables, you can also calculate an estimate of the working hours needed for a particular surface of the soil to be managed.
Be careful not to get over-excited about having a huge expanse of land. Remember that you will have to cultivate it or, at least, make it beautiful and productive. A respected Sicilian or Tuscan agritourism not only brings daily fresh products to the table, but also manages to keep the surroundings of the building in perfect order and well-maintained.
What are the requirements to start an agritourism in Italy?
In addition to what we have just listed, there are more requirements for opening an agritourism. Let’s have a look at the list below:
- Register at I.N.P.S. e I.N.A.I.L
- Ask permission from the fire department
- Ask permission to install any sign and road sign
- Obtain a health certificate
- Ask for a health permit for the premises
- Pay the waste tax
- Join trade associations
Legislation to start an agritourism in Italy
After having analyzed in detail the necessary fulfillments and requirements, it is now time to better understand what is and how the legislation for agritourism works. What it is the law that regulates agritourism in Italy?
It is Law 96/2006 (Discipline of agritourism) which determines the definition we just saw and the general regulation, and also has, among its main purposes, the promotion of rural development. Having said that, it’s important to remember that this law transfers numerous competencies and responsibilities to the regions (like Tuscany, Emilia-Romagna, Piemonte, Lombardy), in defining the obligations and requirements for agritourism to be respected. This is why you should always check what your specific region requires.
The regions are responsible for 5 crucial points:
- Criteria and limits of agritourism activities
- Sanitary regulations
- Qualification and fiscal discipline
- Communications relating to opening periods and pricing
- Funding to start an agritourism
The EU funding program: the importance of agritourism in 2024-2025
Even though it depends a lot on your situation, starting an agritourism in 2024-2025 without money is nearly impossible. Notwithstanding that, because it concerns rural development an agriturismo business can have access to public European funds. You may have access to incentives to open an agritourism site. In fact, funding for agritourism is usually part of the measures to support agricultural development, managed by the agricultural local departments.
The funding instruments are mainly the Rural Development Programs (Programmi di Sviluppo Rurale – PSR), in which general themes called “priority axes” are defined and that include various measures to improve both agricultural management businesses from a structural point of view and the agricultural and food system of the region.
PNNR and RDP 2023-2027
These are the measures that legislate the agritourism, which holds the ceiling of financing through European funds for opening an agritourism (Regolamento della Commissione 69/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty) with 100,000 Euros per individual applicant over 3 years.
The Italian legislative decree n. 152/2021, also known as the “PNRR Decree” partially modified during the conversion into law n. 233/2021, has introduced a non-repayable grant, up to a maximum of 100,000 euros with a percentage not exceeding 50% of the expenses incurred,
and an 80% tax credit. Those funds are at disposal until December 2024 for agritourism activities.
For the 2023-2027 programming period, the Rural Development Policy is being merged with other instruments of the Common Agricultural Policy (CAP). At this point, the legislative initiative is in the hands of individual Italian regions, which, within their calls for rural development for the 2023-2027 period, establish aspects like:
- the total funds available
- the beneficiaries
- eligible interventions
- natural and territorial constraints.
If you’re looking to obtain funding for your agricultural business in Italy, contact our firm today. We can advise you on the best course of action regarding issues such as:
- What are the most attractive areas;
- Which rural properties to acquire;
- How to carry out renovations and conversions of environments and structures;
- Which crops to plant based on your business model;
- How to address the issue of tourist accommodation in your agriturismo.
Agritourism tax legislation
Furthermore, we also need to consider that the costs to open an agritourism include the taxes relative to this type of business.
Agritourism is subject to a flat-rate tax system as it produces business income. Law 96/2006 says that in compliance with the provisions foreseen by the specific region involved, authorized with article 6, the fiscal provisions of the article 5 of Law 30 December 1991, n.413 are applied, as well as any other social security or sectoral regulation, referable to the agritourism activity.
Simplifying, the tax legislation for agritourism provides:
- For direct taxes: a flat-rate tax, on which will be applied a profitability coefficient of 25%
- For IVA: flat-rate tax with a reduction of 50% for taxable transactions.
It is always possible to adopt the ordinary regime for both direct taxes and IVA.
The contents of this page should not be taken as an authoritative statement of Italian law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.