Why is South Tyrol an ideal location for businesses?

• Best point-of-entry into the Italian market
• Best business environment in Italy
• Lowest tax burden in Italy
• Targeted business development, especially in the sectors of research and development
• A pioneer in renewable energy
• An international leader in the alpine technology sector

 
South Tyrol is particularly interesting as a business location for innovative companies. The region is at the forefront of green energy use in Italy, and is zealously building this market. Italy’s ambitious energy plan is opening the door to many opportunities. The nation’s goal is that 75% of power demand will be met using renewable energy sources by 2020; that number should increase to 90% by 2050. Investments into the project of about 40 billion euros are planned.

• The Italian market offers interesting conditions to businesses, particularly in the sectors of renewable energy and energy efficiency.
• Conto Energia IV ensures the continuation of attractive feed-in tariffs for solar power, allowing business to plan ahead.
• South Tyrol practices targeted support of the transfer of know-how from universities and research facilities to innovative companies.
• South Tyrol has the reputation within Italy as Silicon Valley for energy efficiency.
   

 Advantages of the region: Transport and Infrastructure

South Tyrol is extremely well-positioned, geographically speaking. The province is located at the crossroads between northern and southern Europe, bordering Austria, Switzerland and the rest of Italy. A well-developed infrastructure and proximity to major economic hubs in Europe facilitate your cross-border economic ventures within Europe.

• Direct connection to the Brenner highway, the A22, as one of Europe’s main north-south arteries
• The Brenner Railroad Line, with direct connections between Munich and Verona for both freight and passenger rail transport
• Bolzano regional airport, which offers special for individual air traffic
• You can reach Innsbruck, Verona, Bergamo, Milan and Munich airports by car in two to four hours.
• The Brenner Tunnel, slated for completion in 2022, will carry freight and passengers through the Brenner Pass, and is part of an express train route that is planned to run from Berlin to Palermo. 

South Tyrol's economy is number one in Italy, and among the strongest in Europe. The South Tyrolean market has a purchasing power of about 3.7 billion euros (2007 value), representing considerable strength. Italy’s highest GDP per capita and full employment are more clear evidence of the region’s prosperity. The Autonomous Province of Bolzano-Bozen also optimises tax laws to foster economic development.

Peerless as a Business Environment A survey analysed 39 separate indicators grouped into 11 categories that make a location advantageous for conducting business: enterprise density, job market, taxation, unfair competition from the black economy, bureaucracy, credit systems, duration of civil law processes, the legal system and litigiousness, utilities and local social services, regional capitalisation and infrastructure. The Province of Bolzano earned the highest number of points again in 2010, ranking first among all the provinces in Italy.

The Lowest Taxes in Italy South Tyrol lowered its tax burden the maximum amount possible, reducing the IRAP (Regional Tax of Productive Activities) by 0.92 percentage points. That means real profit: in 2009, South Tyrolean companies enjoyed around 70 million euro in tax relief.

Ahead in Europe The EU commission’s statistical institution, Eurostat, compared 271 European regions, and placed South Tyrol among the most prosperous areas in Europe, based on its gross domestic product (GDP) per capita. South Tyrol ranked number 1 in Italy and number 23 in all of Europe. South Tyrol’s investment levels are also above: 22.9% of GDP is reinvested. The 2010 figures show that, at 1.5%, South Tyrol is above the EU27 average of 1.0% growth.

Ahead in Energy Efficiency South Tyrol is Italy’s frontrunner in the fields of renewable energy and energy efficiency. The province takes a proactive position regarding green energy, allocating subsidies to the sector and legislating tax incentives. Between 1992 and 2008, South Tyrol gave 245 million euros to green energy, which resulted in investments of about 1.61 billion euros.

Italy has set an important goal for itself: by 2020, 75% of the nation’s power demand should be met renewable energy sources. Since the potential for expanding hydroelectric power stations is already nearly exhausted, Italy is planning to make massive investments into innovative energy technologies. This can, of course, benefit your business.

Ahead in Employment Recording an unemployment rate of only 2.4%, South Tyrol has full employment. The rest of Italy, by contrast, has an unemployment rate of 6.8%.

Ahead in Per Capita Income South Tyrol is clearly in the first place for per capita income in Italy. The disposable income of a South Tyrolean family exceeds the national average by 21.8%. Also, the gross domestic product (GDP) per capita exceeds the national average by a whopping 23%, at € 33,792. (Istat, 2008, IMF 2009)

Links:

• The Autonomous Province of Bolzano-Bozen: Division of trade, Industry and Commerce
• The Autonomous Province of Bolzano-Bozen: Division of Innovation, Research, Development and Cooperatives 

South Tyrol leads Italy in the sectors of green energy and energy efficiency. Numerous foreign companies in this sector have used South Tyrol as a launching pad from which to introduce their products or services onto the Italian market.

A Pioneer in Green Energy Today, South Tyrol produces 56% of the energy it requires for electricity and heating from renewable sources. This figure is expected to climb to 75 % by 2013. South Tyrol’s 930 hydroelectric plants produce more than twice the electricity the province currently needs, and are capable of ensuring an independent energy supply. Fully half of the solar panels installed in Italy are found in South Tyrol, further evidence of the region’s commitment to sustainable energy.

Partners with Expertise The high level of expertise and extensive experience of the more than 100 South Tyrolean companies doing business in this key sector make valuable partners. A wide range of institutions and projects launched by the government underlines the importance South Tyrol places on renewable energy, climate protection and energy efficiency.

• The Institute for Renewable Energy at the European Academy of Bolzano
• The Energy and Environment branch of TIS Innovation Park
• Fraunhofer Italia Research Consortium, a subsidiary of the German-based Fraunhofer Institute
• The Institute for Innovative Technology (IIT)
• The KlimaHaus master's degree program at the Free University of Bolzano
• The KlimaHaus Agency, which specialises in energy-conscious construction

These organisations all work hand in hand with local companies, and contribute to ensuring that South Tyrol continues to play a pioneering role in the sectors of green energy and energy efficiency in Italy and functions as a model for the whole of Europe.

An Ambitious Project: South Tyrol Technology Park South Tyrol offers targeted incentive programs, business development and non-bureaucratic support to attract innovative companies and institutions into the province. An optimal infrastructure for energy research will be integral to the project. The province government in Bolzano expects to complete the technology and knowledge park by 2014. The government has allocated twelve hectares of land for research institutions and businesses with a focus on green energy and green technology.

South Tyrol's goals with the technology park are to:

• create a network of high-level players in research, services, industry and trade.
• promote cross-sector research and development.
• further strengthen the province’s position as Italy’s number one location for green energy.
• further improve South Tyrol’s relationship with the climate by improving energy efficiency, developing innovative energy sources, and general measures against climate change.

On the Cutting Edge: Alpine Technology South Tyrol’s perfectly groomed slopes and state-of-the-art lift systems never fail to impress. Cutting-edge expertise in the alpine technology sector and good old-fashioned know-how make South Tyrol one of the world’s top destinations for winter sports enthusiasts. This success is based on the consistent cooperation of pioneering manufacturers and scientific institutions.

South Tyrol’s expertise in alpine technology is based on:

• a long tradition of winter sports in the province.
• decades of experience in developing and producing winter sports equipment, lifts, snowmaking systems and much more.
• proximity to major markets and winter sports centers.
• the expertise of numerous leading international manufacturers like Leitner, Technoalpin, Intercom and Oberalp.
• the innovative power of a strong network of global players, SMEs, researchers and experts.

An entrepreneur needs stable conditions, both economically and politically. With only two province governors in nearly 50 years, South Tyrol displays a level of political stability in its top offices that is unprecedented, particularly in comparison with the rest of Italy.

Less Red Tape South Tyrol’s autonomy statue confers wide-ranging powers of self-administration onto the regional government, including in core elements such as education, health, culture and infrastructure.

The Taxes Stay Here Like other regions that possess special status in Italy, the Province of South Tyrol has a great deal of financial autonomy, and manages the majority of tax revenue internally. Fully 90% of the region’s collected taxes stay within the province. It is thus possible for the region to guarantee a relatively high level of public expenditure and investment into infrastructure as well as direct and indirect stimulation of the economy.

Investors More Willing to Finance South Tyrolean Companies The political stability of the region guarantees maximum reliability and predictability during the process of starting a business, and throughout its future development.  A well-balanced economic structure is another factor that ensures stability and reliability in the long term. It is significant that investors are markedly more willing to invest in relevant sectors of the economy of South Tyrol than in the rest of Italy or countries such as Austria or Germany.

Targeted Subsidies South Tyrol’s autonomous status means that the province can pursue independent economic policies geared towards achieving sustainable growth and a strong competitive advantage. The region offers industrial, trade and services sectors specially tailored subsidies in specific areas:

• Physical Capital: up to 23%
• Research and Development: 25-90%, depending on the project
• Operational Innovation: up to 15-30%
• Consulting and Training: up to 80%
• Export and Internationalisation: up to 50%
• Start-ups: beneficiary loans up to € 30,000
   

Financial Support for Green Energy from South Tyrol
From contributions to tax benefits: the Province of South Tyrol involves itself directly in investing in better energy efficiency. Anyone who refits their heating system, heat insulation, doors or windows can have up to
30 % of their costs refunded. As long as an appropriate tax basis is met, private individuals and businesses alike have the alternative of taking a 55 % tax deduction set by Italian financial law.

From 1992 to 2008, the Autonomous Province of Bolzano-Bozen granted a total of 245 million euro in contributions for energy conservation and utilisation of renewable energy sources. During that period, investments made in this sector in South Tyrol reached a magnitude of 1.61 billion euro. The annual budget for subsidies has continually increased in the last years: in 2008, it totalled 32 million euro. South Tyrol thus donated 6,300 euro per 100 inhabitants in support of this sector in 2008.

Financial Support for Green Energy from Italy The Italian government is thus offering attractive funding instruments such as Green Certificates, feed-in tariffs, and tax incentives similar to those offered by other states.

South Tyrol Invests in Infrastructure Good infrastructure is crucial to accomplishing anything, and South Tyrol knows it: in 2009, the province allocated 400 million euro to infrastructure.

Support in Technology A wide range of institutions and projects launched by  the government underlines the importance South Tyrol places on renewable  energy, climate protection and energy efficiency.  Companies receive valuable input from science and research and are supported directly from your plans. The high level of expertise and extensive experience of the more than 100 South Tyrolean companies doing business in this key sector make valuable partners.

Reap the benefits of South Tyrol’s strong network of experts:

• The South Tyrol Export Organization (EOS) supports domiciled companies in consolidating existing markets and in opening up new markets outside of South Tyrol.
• TIS Innovation Park provides advice, and supports start-ups in innovation and technology transfer.
• The KlimaHaus Agency performs energy-efficient building certifications for new construction, and offers  consulting services, education and training by experts. 
• The Fraunhofer Innovation Engineering Center (IEC) offers businesses access to applied research.
• The European Academy of Bolzano/Bozen is an innovative research and training institute that works in cooperation with partners from industry and business in South Tyrol.

We help you:

• as you enter the South Tyrolean and Italian markets.
• with any questions you may have about South Tyrol.
• by giving you an overview about available real estate.
• by acting as intermediary between your business, administrative offices, and institutions.
• by assisting with grant requests for purchasing land.

South Tyrol’s well-trained workforce is an important pillar of the region’s economic strength. The reliability and commitment of employees in the province increase South Tyrol’s attractiveness as a business location.

Efficiency is Environmental South Tyrolean culture combines German industriousness with Italian joie de vivre. Linguistic diversity, cultural wealth and global awareness distinguish the people of South Tyrol, as they do the province itself. Studies show that the better a person is able to function in more than one culture, the more efficient his thinking and his behavior. South Tyrol is excellent proof of this theory: the region has more entrepreneurs and freelancer workers than average, and the people are independent, determined and motivated.

Commitment and Diligence In fact, a full 28 percent of the workforce in South Tyrol comprises self-employed and freelance workers. This translates to one in three economically active men and one in five economically active women. Entrepreneurial thinking is widespread in South Tyrol, and is reflected in the commitment of the workforce: an average full-time employee in South Tyrol works 41.8 hours per week, well above the European norm.

Training and Hands-On Experience
South Tyrol’s continuing education and vocational training system is unique in Italy: students attending vocational school simultaneously learn skills in the workplace. Vocational schools respond to the ever-changing requirements of the economy and work closely with companies to ensure that apprentices receive comprehensive training oriented towards practical application. The merits of this system are confirmed by results in the biennial WorldSkills Competition: young South Tyrolean apprentices have won nearly 40 medals in seven competitions.

A Superior Education The PISA survey, which compares standards of literacy, mathematics and science attained in schools, awarded top marks in 2006 to South Tyrolean students in all subject areas covered. The survey revealed that students in South Tyrol performed far better than their peers from the rest of Italy. They significantly exceeded standards set by the OECD, coming in ahead of Germany.

South Tyrol offers superb quality of life: South Tyrol is much more than unspoilt nature and magnificent mountain scenery.  The popular holiday destination also has a vast array of cultural attractions and excellent infrastructure.

Number One for Quality of Life Year after year, South Tyrol earns top ratings for quality of life, including a study performed by the national daily newspaper Italia Oggi.

Sunny Side of the Alps South Tyrol is located on the southern side of the Alps.  Here, you have all of the advantages of a mountain region yet the climate is mild and the landscapes are diverse.

Eight nature reserves and the magnificent mountain scenery of the Dolomites, which UNESCO has designated a World Natural Heritage Site, form an awe-inspiring backdrop. The recreational value is staggering: 20,000 km of walking paths and hiking trails, 2,500 km of trails for mountain biking, 7 golf courses, cycle pathways that cross the region, countless sports centres, and bathing lakes. For winter sports enthusiasts, there are 30 different ski areas—all with excellent infrastructure.

Living in South Tyrol The region is much more than a fabulous holiday destination, though. Choosing the province as a site for your business has many advantages:

• an excellent education system
• political and economic stability
• the efficiency of the public administration
• reliable infrastructure
• home-grown and varied retail trade