South Tyrol is located amidst some of Europe’s most important and dynamic markets: Italy, Germany, Austria and Switzerland are all within easy reach. So as a business location, the province has huge market potential just outside the front door. The best entry into these markets is via South Tyrol, a bridge at the intersection between Northern and Southern Europe.

Italy’s Green Region

South Tyrol is a particularly attractive business location for innovative companies. The province is Italy’s leading green energy location and has been consistently growing this market. By 2020, 75 per cent of South Tyrol’s energy demand should be met through renewable sources; by 2050, the number should reach 90 per cent. Italy’s very ambitious energy plans open up great opportunities throughout the country: it plans to make massive investments, amounting to about 40 billion euros, into innovative energy technologies.

South Tyrol as Market

Even South Tyrol itself should not to be underestimated as a market: in recent years, the province recorded steady growth and boasts the highest GDP per capita (36,600 euros) in Italy. The rate of reinvestment back into the province is also above average. South Tyrol leads Italy in terms of per capita income, too. It is clear that South Tyrol’s high standard of living also means high purchasing power. The employment-to-population ratio is 71 per cent and the unemployment rate, at 4.3 percent, is the lowest in Italy.

Everything Bilingual

Thanks to its strategic location, South Tyrol has always been a meeting point of languages and cultures. Here, people speak German AND Italian (and in some valleys, also Ladin) from a young age and have contact with several cultures and mentalities as a matter of course. This is an unparalleled advantage, especially in business: South Tyrolean workers, who move seamlessly from situation to situation, are a unique fusion of German reliability and precision with Mediterranean creativity and flexibility. The public administration is, of course, bilingual. What this means for you as an entrepreneur is that you can easily communicate in your native language, and can become familiar with the Italian systems of law and administration. Communication with business partners, service providers, and service structures are also carried out in the language of your choice.

Anyone who wants to invest in Italy has many good reasons to do so in South Tyrol. Here are a few:

• Targeted development of the economy and infrastructure: contributions such as for research and development, continuing education of employees, exports and business start-ups, rent subsidies for newly formed companies, etc.
• A reliable, efficient and bilingual public administration
• A pro-business attitude and a great deal of stability thanks to South Tyrol’s autonomous status, which allows for an independent economic policy
• Italy's highest concentration of top companies (according to the CRIF rating agency)
• Pioneer in the area of renewable energy and energy efficiency
• World market leader in the Alpine technologies sector
• Lowest tax burden in Italy: maximum reduction of the IRAP (regional production tax) to 2.98 per cent. Further reduction to 2.5 per cent under certain conditions (see below). Starting in 2013: five years of IRAP exemption for all start-up businesses in South Tyrol.

South Tyrol, the Green Region 

Sustainability and environmental compatibility are very important themes for South Tyrolean economic policy. In fact, these are issues that determine the present and future of the province. Italy’s Green Region therefore supports companies operating in the green sector in partucular. This not only protects the environment but also stimulates the economy. Innovation is also of great importance: much attention is given to funding research and development, especially in South Tyrol’s key sectors of renewable energy and energy efficiency, sustainable mobility, food, and Alpine technologies.

Reduced Taxes

In order to emphasise this propensity, the province government has decided to grant a reduction of IRAP to 2.5 per cent to all companies that:

• conduct research and development
• increase productivity
• add on staff
• are located in economically underdeveloped areas
• and/or produce electricity from renewable energy sources.

South Tyrol has had a statute of autonomy since 1948; the statute was renewed the 1972. As a result, the province has wide-ranging jurisdiction in all key areas from education to health to culture to transportation. Of particular importance to businesses is South Tyrol’s independent decision-making of economic policy. This allows the public administration to make targeted investments in the environment and to stimulate the economy. It also benefits South Tyrol that unwavering economic and political relationships have resulted in decades of stability – a prerequisite for healthy economic growth.

Proven Pro-Business Environment

Through prudent and proactive management over the years, a very business-friendly environment has been created. This is something that has been repeatedly confirmed by numerous surveys and studies (including those performed by Confartigianato, an Italian union of craftsmen and small businesses, the most important Italian financial newspaper Il Sole 24 Ore, and the newspaper ItaliaOggi). These surveys and studies take into account criteria such as:

• Satisfaction of residents
• Satisfaction of business owners
• Quality of life
• Prosperity
• Healthcare
• Cultural and recreational offering
• Financial support from private individuals and entrepreneurs
• Low crime rate
• Levels of education and training
• Efficiency of the public administration
• Quality of infrastructure

The Province of Bolzano scores very well across the board in all these areas, and thus offers the best conditions for a company to grow and expand.

The support of research and development is a key priority for South Tyrol’s province government. Substantial subsidies are available here for businesses, including grants for basic research, industrial research, and for process and organisational innovation. Incentives are also given for cooperation with other companies and research institutions. A number of institutions supported by the Province of South Tyrol have had long associations with the areas of renewable energy, climate change, energy efficiency and sustainable mobility:

• The Institute for Renewable Energy at EURAC in Bolzano
• The Energy and Environment area of TIS Innovation Park
• The KlimaHaus master's programme at the Free University of Bolzano
• Fraunhofer Innovation Engineering Center (IEC), a subsidiary of Germany’s Fraunhofer-Gesellschaft
• The Institute for Innovative Technologies (IIT)
• The ClimateHouse Agency, a specialist in energy-conscious construction

All of these entities work hand in hand with local companies. They help ensure that South Tyrol keeps its position as the Italian leader in the field of green energy and energy efficiency and that the province serves as a role model for all of Europe.

A Technology Park for South Tyrol

South Tyrol will have its own technology park in the spring of 2015. The facility, which will be located in Bolzano Sud (Bozen Süd), is being designed to bring research institutes and academic establishments together with innovative companies. The main focal point of the park will be the green sector. This includes energy, food and sustainable technologies.  South Tyrol’s technology park will be targeted mainly at companies that are already doing research and development in these areas and those that would like to start up.

The close proximity of companies and research institutions results in an intensive exchange of knowledge and experience. Put together with input that companies continually receive from their customers and suppliers, new and innovative solutions will arise from working together in such a close way, accompanied by the above-mentioned institutions.

Made-to-Measure Headquarters

The comprehensive services and leisure facilities at Bolzano’s technology park will create optimal conditions for an excellent working environment: the palette will range from sports and cultural events to enticing dining options to child care. The spaces for the companies that settle in the technology park will be made-to-measure in the truest sense of the phrase. The facility will be built with a modular design that can be custom tailored to the needs of each individual company and will allow for future extensions.

>> Factsheet. Technology Park (PDF)

South Tyrol is Italy's Green Region: here, a respectful approach towards the environment is carried out in harmony with sustainable economic development. This course was set years ago, thanks to a very forward-looking policy regarding the environment and energy. Comprehensive education about the environment in schools, extensive public awareness projects, targeted education, and tangible support of companies focusing on green technology were some of the milestones along the way.

Where the Green Economy Thrives

Thanks to this solid groundwork, South Tyrol is now an ideal environment for companies working in the green sector. There are currently more than 500 companies working in this field of business activity. There’s plenty of support from partners that can transfer knowledge and pass on know-how: these include EURAC, the Free University of Bolzano, Fraunhofer Innovation Engineering Center (IEC), the Institute of Innovative Technology (IIT) and Eco Research, all of whom have dealt intensively with renewable energies, climate protection and energy efficiency for a very long time. Service agencies like TIS innovation park and BLS also provide important support.

Green Showcase

A key project for the green sector will soon come to fruition in the province capital: the technology park located in Bolzano Sud, which is being designed in a sustainable way, of course. Its energy concept is a role model at the EU level and has already won an award – a symbol of how far ahead South Tyrol already is in the green sector. The province has already far exceeded the European requirement that 20 per cent of energy demand should be met by renewable energy by 2020.

Model Pupil in Europe

South Tyrol is a real model pupil when it comes to being green, taking action on several fronts. A whole string of planned measures and substantiated facts and figures leaves no doubt that South Tyrol has earned the right to the title of Italy’s Green Region:

• In South Tyrol, 56 per cent of energy consumption (excluding transport) is covered by renewable energy; it should be 75 per cent by 2020 and 90 per cent by 2050.
• Per-capita energy consumption and CO² emissions must be drastically reduced by 2020 through tangible measures.
• Due to the concept of ClimateHouse certification, South Tyrol also has a big head start in sustainable construction: there are currently more than 5,100 climate-certified buildings in South Tyrol.
• South Tyrol has declared the progressive introduction of sustainable mobility systems as one of its strategic objectives. Ambitious projects in electric and hydrogen-based mobility are on the way.
• Of Italy’s 23 energy self-sufficient communities, 16 are located in South Tyrol. The frontrunner in all Italy is Varna (Vahrn).
• Two of the sector’s important trade fairs, Klimahouse and Klimaenergy, take place in Bolzano every year.
• The Free University of Bolzano has launched its own KlimaHaus master’s programme.

Mountain and Outdoor Sports

Amidst spectacular mountain scenery and beautiful ski areas, technologies have emerged in South Tyrol that are an indispensable part of today’s mountain and outdoor sports sectors. Examples include high-tech lifts, modern snowmaking systems, automated access control, snow groomers and high-tech sports equipment. Nearly 50 companies in the province work in ​​Alpine winter technology including industry leaders such as Leitner, Prinoth, TechnoAlpin, Salewa and Intercom as well as many innovative small and medium-sized businesses. South Tyrol is also home to branches of renowned international specialists such as Reusch, Doppelmayr and Kässbohrer. The conditions in South Tyrol are ideal for the sector. A long tradition of winter and mountain sports and proximity to the market brought considerable experience and know-how. These were enhanced by ongoing research performed both by corporations and by research organisations such as the Fraunhofer Innovation Engineering Center. This formed a strong network of global players, SMEs, researchers and experts such as the Alpine Technologies centre of expertise at TIS innovation park. This industry also meets in Bolzano every year, at the Prowinter and Alpitec trade fairs.

Alpine Agricultural Technologies

South Tyrol is Europe’s largest contiguous fruit-growing area. It is responsible for half of Italy’s apple production, and wine is one of the major agricultural products of the province. South Tyrolean know-how in these areas is in international demand. South Tyroleans have also known for decades how to cultivate soil on hilly and steep sites in a sustainable way. Scientific institutions in the province (Laimburg Research Centre for Agriculture and Forestry, Free University of Bolzano) are continually augmenting this wealth of knowledge in the area of alpine agricultural technologies through intensive research. Companies then translate this know-how into products that are in international demand such as caterpillar equipment for steep slopes, spraying equipment, crop protection devices, atomisers for narrow-gauge tractors, and shredders. In the area of ​​lift technology for orchards, South Tyrol is No. 1 in Europe.

Alpine Construction

South Tyrol is one of the pioneers of sustainable and energy-efficient construction. The ClimateHouse brand makes South Tyrol Italy’s competence centre for low-energy and passive houses and one of the leading regions in the fast-growing market of wooden houses. Clusters and work groups at TIS innovation park contribute to pooling and refining the extensive artisanal and technological know-how in this sector. Companies find test laboratories and academic support in research institutes such as EURAC or Fraunhofer Italia. Trade fairs like Klimahouse also underline South Tyrol’s leading role in the area of Alpine construction.

Alpine Safety and Civil Defence

It’s part and parcel of life in the Alps: South Tyrol’s knowledge and expertise in the area of ​Alpine safety and civil defence are plain to see. It starts with a leading international rescue system and goes through a network of over 15,000 volunteer civil defence workers to a broad spectrum of South Tyrolean companies active in safety equipment, analysis and planning. More than 30 companies are pooled in the TIS innovation park’s Civil Defence and Alpine Safety cluster. Scientific input on the topic comes also from the EURAC research centre and its Institute for Mountain Emergency Medicine, the first of its kind in the world. Intense research about the consequences of climate change is also taking place. The associated challenges offer the industry an extraordinary amount of leeway for innovations and start-ups.

Alpine Mobility

The progressive implementation of sustainable mobility systems, with a focus on hydrogen and electric vehicles, is one of South Tyrol's strategic objectives for the coming years. The consistent development of public transport like trains and buses as well as bike paths has already laid the groundwork. Now, comprehensive systems in the area of ​​sustainable mobility will be built in order to better connect the individual forms of mobility to each other. At the same time, we will increase the proportion of emission-free private transport and bus services, with electric vehicles as well as those operated on hydrogen. To achieve these goals, entrepreneurs in the sector are working in close coordination with the public sector and academic partners such as the Fraunhofer Institute and TIS innovation park. The production and management of new technologies offers great economic potential for companies in the sector.

>> Factsheet. Alpine Technologies (PDF)

Entry into a new market is more easily achieved with a competent partner at your side. BLS is South Tyrol’s location agency and will guide you before, during and after your settlement here. Our service is not only free of charge, but also tailor-made: we will provide you with one of our consultants who will be at your side the whole way, giving you personal service with a great deal of dedication and comprehensive knowledge about your request.

Here are some of our services:

• You'll get all the information you need about making an investment in South Tyrol (e.g. about the market, competition, networks, etc.)
• We give you insight into Italian law that relates specifically to your case.
• With our help, you’ll find suitable commercial sites and real estate. The BLS real estate database is the largest in South Tyrol.
• In collaboration with recruitment agencies, we’ll assist you in the search for employees and managers.
• You benefit from our close-knit network of partners, including public authorities, associations, service providers, and company owners.
• We’ll discuss financing options for your project based on your business plan.
• We’ll provide you with an overview of the numerous funding options that are available for businesses in South Tyrol.
• Point of interest: in the foundation stage, our free services represent 70 per cent of what you would spend on external consultants (e.g. for economic consultants, recruitment agencies, lawyers, etc.)

Concentrated Know-How

A number of other institutions and research facilities are also at the day-to-day service of companies in South Tyrol. Take advantage of this powerful network of knowledge, so that your investment in South Tyrol will be as successful as you would wish:

The Export Organisation South Tyrol (EOS) supports local companies in consolidating existing markets and developing new markets outside of South Tyrol.

TIS innovation park advises and supports start-ups in innovation and technology transfer.

The ClimateHouse Agency offers energy-efficient building certification for new construction, consulting, continuing education, and training for professionals.

The Fraunhofer Innovation Engineering Center (IEC) provides companies with access to applied research.

The European Academy of Bolzano (EURAC), an innovative research and training institute, works in cooperation with industrial and economic partners from South Tyrol.