Italy: Corporate and Company Law

Italy's Revenue Agency has issued Resolution No. 7/2026, fundamentally reshaping the VAT treatment of transaction costs in merger leveraged buy-out structures. The ruling addresses whether special purpose vehicles qualify as taxable persons and whether acquisition-related expenses can be classified as deductible preparatory costs, marking a significant departure from previous formalistic interpretations that focused narrowly on shareholding activities.

Italy will host the Winter Olympic and Paralympic Games in Milan and Cortina d'Ampezzo starting February 6, 2026, bringing global attention back to the country for one of the most prominent international sporting events.

On July 21, 2025, the Constitutional Court, with Judgment No. 118/2025, declared the constitutional illegitimacy of Article 9, paragraph 1 of Legislative Decree 23/2015.