Tax Identification Code (or Fiscal Code) for foreign companies: how can it be obtained?

For a foreign company planning to establish legal, commercial, or tax-related relationships in Italy, obtaining an Italian tax identification code (codice fiscale) is often the first administrative step. Although it is commonly associated with individuals, legal entities also require this identification number whenever they need to carry out a variety of transactions governed by Italian law.

The tax identification code is the primary means through which the Italian Tax Administration identifies entities operating within the country. It enables non-resident companies to comply with their legal obligations while interacting with public authorities, financial institutions, business partners, and other private entities.

What is the Italian Tax Identification Code for a foreign company?

For companies and other legal entities, the Italian tax identification code consists of an eleven-digit numerical code assigned by the Italian Revenue Agency (Agenzia delle Entrate). It allows the authorities to register the entity within the Italian Tax Registry and to associate all relevant tax and administrative information with that organization.

The legal basis for the tax identification code is Presidential Decree No. 605 of 29 September 1973, which established the Italian Tax Registry and designated the codice fiscale as the official identification number for taxpayers in their dealings with the Public Administration.

When does a foreign company need an Italian Tax Identification Code?

A company established outside Italy may need an Italian tax identification code even if it does not have a permanent establishment in the country or carry on business there on a continuous basis. In many situations, simply carrying out a legal or administrative transaction is enough to require tax identification.

For example, a foreign company may need a tax identification code to register contracts with the Italian Revenue Agency, execute notarial deeds, acquire or transfer real estate, establish banking or insurance relationships, apply for administrative authorizations, or comply with specific tax obligations. Likewise, if a non-resident company earns taxable income in Italy, it must submit the relevant tax returns, which requires prior registration through a tax identification code.

The code also plays an important role in employment matters. Whenever a foreign company hires employees in Italy or is required to fulfill obligations toward Italian social security or insurance institutions, it must first obtain a tax identification code in order to interact with the relevant authorities.

Italian legislation provides limited exceptions to this general rule. In certain circumstances, if a foreign entity has not yet obtained a tax identification code, it may be possible to identify the company by indicating its corporate name and registered office in the documentation submitted to the authorities. The Italian Revenue Agency has confirmed that this option may apply, for example, to the registration of certain contracts, provided that the legal requirements are met.

How can a foreign company apply for a Tax Identification Code?

Applications must be submitted to the Italian Revenue Agency, which is the authority responsible for assigning tax identification codes to non-resident entities. Today, requests can be filed through the Agency's online services, by certified electronic mail (PEC), in person at one of its offices, or by registered mail.

For legal entities that do not carry out activities subject to VAT, the application is generally submitted using Form AA5/6. The request must be accompanied by documentation demonstrating the legal existence of the company and the powers of its legal representative.

Applicants are required to provide essential information regarding the foreign company, including its registered office, an elected address for service in Italy where applicable, and, in certain cases, the Italian tax identification code of its legal representative. Depending on the circumstances, the company may also need to specify the ATECO code corresponding to the business activity it intends to carry out.

When corporate documents originate abroad, additional formalities may be required. In particular, foreign documents often need to be legalized or bear an apostille and must be accompanied by an official Italian translation where required by law.

If any of the information provided subsequently changes, the company must notify the Italian Revenue Agency by submitting the appropriate update.

Which entities may require an Italian Tax Identification Code?

The need to obtain a tax identification code is not limited to commercial companies. Various types of non-resident entities may require one whenever they establish legal or economic relationships with Italy.

These include foreign corporations and partnerships carrying out transactions in Italy, trusts, foundations, and other foreign organizations entering into contractual or financial relationships with Italian counterparts, as well as consortia, associations, and similar entities participating in public tenders, investments, or other business initiatives within the Italian market.

Tax Identification Code and VAT number: what is the difference?

One of the most common questions concerns the distinction between the Italian tax identification code and the VAT number. Although the two identifiers may coincide in certain situations, they serve different purposes.

The tax identification code is the general identification number used in dealings with the Italian Public Administration and is required for numerous legal and administrative procedures. A VAT number, on the other hand, is necessary when a company carries out business activities subject to Italian VAT and must therefore comply with invoicing, accounting, and VAT payment obligations.

For corporations and partnerships, once a VAT number is assigned, it generally corresponds to the same numerical sequence as the tax identification code. However, obtaining a tax identification code alone does not automatically result in VAT registration. A foreign company may therefore possess only a tax identification code if it does not carry out activities requiring VAT registration.

When is a VAT number also required?

If a foreign company intends to conduct business activities in Italy or establish a permanent establishment there, obtaining a tax identification code alone will not be sufficient. In these circumstances, the company must also complete the appropriate VAT registration procedures, either through direct VAT registration or, where applicable, by appointing a fiscal representative.

The existence of a permanent establishment also has implications for tax identification. According to the Italian Revenue Agency, the foreign head office and its Italian permanent establishment constitute the same legal entity. Consequently, both must use the same Italian tax identification code, and separate tax identification numbers cannot be assigned.

Acquiring shares in Italian companies

Another issue concerns foreign investors acquiring interests in Italian companies. Recent guidance has clarified that, in certain procedures relating to the acquisition of company shares, a foreign investor's Italian tax identification code is not always mandatory. Nevertheless, it remains compulsory in specific cases established by the regulations governing the Italian Companies Register, particularly where transactions involve a sole shareholder.

Final considerations

For foreign companies wishing to operate in Italy, the Italian tax identification code represents the primary means of identification before the tax authorities and is often the essential prerequisite for completing a broad range of tax, administrative, and contractual formalities.

Since the applicable procedure and supporting documentation may vary depending on the characteristics of the entity and the activities it intends to perform, it is advisable to determine in advance which requirements apply to the specific case. Obtaining the correct tax identification from the outset helps prevent delays, administrative complications, and future compliance issues when operating in Italy.

Your Way to Italy: our assistance

Our team is available to provide support and assistance regarding Italian citizenship and  immigration law! Contact us to schedule your first consultation! #Yourwaytoitaly

The content of this article is intended to provide general information on the topic. For doubts or specific cases, it is advisable to seek specialized legal advice tailored to your particular situation.

Article written by Alessia Ajelli, Managing Associate of LCA Studio Legale, Italian lawyer specialized on Italian immigration and citizenship law, and Paolo Grassi, Trainee of LCA Studio Legale.