Italy draws foreign entrepreneurs with its blend of lifestyle, culture, and economic weight. As the Eurozone’s third-largest economy, it offers access to more than 60 million consumers domestically and hundreds of millions more across the European Union. The “Made in Italy” brand carries enormous global prestige, spanning luxury fashion, automotive, food, design, and innovation.
But alongside its appeal, Italy has a long-standing reputation for bureaucracy, corruption, and mafia involvement in parts of its economy. Popular imagination often paints the country as one where doing business is risky or complicated. So, what’s the reality in 2025? Is Italy a safe and sensible place for English-speaking expats to start or invest in a business?
The answer is nuanced. Italy has challenges that entrepreneurs need to understand, but it also offers significant opportunity – particularly as the government continues reforms to modernise its economy. Let’s take a look at the risks and rewards, from crime and corruption to digital threats, bureaucracy, and business potential.
Everyday Crime Risks for Businesses
In day-to-day terms, Italy is not a particularly dangerous place for business owners. Violent crime rates are relatively low compared to some other European countries, but property crimes – like burglary, shoplifting, and cargo theft – do occur, especially in large cities such as Rome, Milan, and Naples. Retailers and logistics businesses may find themselves more exposed, but these risks are broadly in line with those in France, Spain, or the UK.
Petty theft is a common nuisance in tourist-heavy areas. Entrepreneurs in hospitality and retail sectors should expect to take standard precautions: install modern security systems, train staff in loss prevention, and maintain comprehensive insurance.
Organized Crime: Myth vs. Reality
Perhaps no issue casts a longer shadow over Italy’s business environment than organized crime. Mafia groups such as the Cosa Nostra (Sicily), ’Ndrangheta (Calabria), Camorra (Naples), and Sacra Corona Unita (Puglia) are infamous worldwide. For decades, these syndicates controlled rackets, infiltrated local economies, and siphoned billions through illegal activities.
The “Pizzo”
A classic example is the “pizzo,” or extortion payments. Businesses – particularly in sectors like agriculture, restaurants, construction, and food retail – were pressured to pay protection money under threat of violence. One estimate suggested that in some Sicilian towns in the early 2000s, nearly all businesses were affected. ABC News reported that mafia turnover reached €140 billion annually, making it “Italy’s largest business”.
Changing Trends
Today, the landscape is shifting. Foreign companies and multinationals are rarely targeted directly – mafia groups typically prefer to pressure local, family-run enterprises. Law enforcement has also scored major victories. In February 2025, Reuters reported on a massive operation in Palermo that arrested 130 suspects, striking a heavy blow to the Cosa Nostra.
Grassroots Resistance
Civil society movements have also pushed back. The Addiopizzo campaign in Palermo, for example, encourages businesses to refuse extortion and gives consumers the choice to support mafia-free establishments. More than 1,000 businesses now openly declare their refusal to pay the pizzo.
The Ongoing Impact
Still, mafia influence remains economically significant. The Confesercenti report estimated organized crime’s turnover at around €140 billion annually – roughly 7% of Italy’s GDP. Beyond extortion, syndicates launder money through legitimate businesses and sometimes exploit economic crises to seize struggling firms. The COVID-19 downturn, for instance, saw mafia groups step in with illicit loans to acquire stakes in companies.
Takeaway: The mafia is still a force in Italy, particularly in the South, but its direct threat to foreign entrepreneurs is limited. The state’s anti-mafia apparatus is robust, and grassroots support is on the side of legitimate business.
The Digital Threat: Cybercrime
Like other advanced economies, Italy faces a rising tide of cybercrime. In fact, it ranked third in the EU and sixth worldwide for ransomware attacks in 2024, according to the Italian National Cybersecurity Agency.
Small and medium enterprises are especially vulnerable, often due to weaker IT defenses.
The Italian government is treating ransomware as a national security issue. New legislation under discussion would ban ransom payments for critical infrastructure operators, mandate faster incident reporting, and strengthen support for SMEs hit by attacks. In parallel, private-sector investment in cybersecurity is climbing – more than 80% of Italian companies planned to increase spending in 2024.
For foreign entrepreneurs, this means cybersecurity must be a priority. Using secure systems, training staff, and maintaining backups are essential safeguards in the Italian market.
Corruption and Bureaucracy
The Perception Problem
Italy has long been perceived as one of Western Europe’s more corruption-prone economies. In Transparency International’s 2024 Corruption Perceptions Index, it scored 54/100, ranking 52nd worldwide.
Where It Happens
Corruption risks are most acute in public procurement and local government interactions, where bribery, favoritism, or mafia infiltration have historically influenced outcomes. Petty bribery (“grease payments”) is officially illegal and less common than in the past, but entrepreneurs may still encounter bureaucratic delays that test patience.
Bureaucratic Hurdles
Italy’s bureaucracy is infamous. Obtaining permits, registering property, or enforcing contracts can take significantly longer than in other EU countries. For example, enforcing a commercial contract through the courts averages over three years, roughly double the OECD average, according to the World Bank.
Regional disparities add complexity: Milan is considered relatively efficient, while Naples or Palermo can be far slower.
Reforms and Improvements
Italy has made real progress. The 2018 “Spazzacorrotti” (Corruption Sweeper) law toughened penalties, barred convicted individuals from public office, and increased transparency in party financing. The national anti-corruption authority (ANAC) oversees procurement processes, while e-procurement platforms reduce opportunities for graft.
Practical advice: Expats should avoid shortcuts, use reputable lawyers or consultants, and stick to compliance best practices. Many Italian businesses today embrace formal compliance programs, and whistleblower protections are stronger than ever.
Reforms and the Future Outlook
Italy is not standing still. Reforms tied to the EU-funded National Recovery and Resilience Plan (NRRP) are modernising the country’s business environment:
- Digitalisation: More government services are moving online, reducing face-to-face bureaucracy.
- Judicial Reform: Specialised business courts and mediation incentives are cutting case times.
- Simplification Decrees: “Silent consent” rules and one-stop shops streamline approvals.
- Investor Support: Programs like Invest in Italy promise “red carpet” treatment for foreign investors.
While implementation can be uneven, the trajectory is positive. Italy’s international rankings are slowly improving, and public pressure for transparency is stronger than ever.
Final Thoughts: Balancing Risk and Opportunity
So, is it safe to do business in Italy? The short answer is yes – with preparation.
Italy has its challenges: organized crime in some regions, a still-complex bureaucracy, and vulnerability to cybercrime. Yet these are increasingly counterbalanced by strong state action, civil society resistance, and EU-backed reforms. For foreign entrepreneurs, the likelihood of being directly targeted by the mafia or drawn into corruption is low – provided you follow compliance best practices.
On the other side of the ledger, the opportunities are substantial. Italy’s position in the EU, its skilled workforce, and its world-renowned industries make it a highly attractive place to build a business. For expats willing to learn the system, partner with reputable locals, and take sensible precautions, Italy can offer not just lifestyle appeal but real commercial rewards.
In 2025, doing business in Italy is less about avoiding danger and more about navigating complexity. And with reforms underway, the future looks increasingly open for those ready to seize the opportunity.