UK goods eligible for hyper depreciation scheme in Italy
in ItalyTrade barrier summary
Italy introduced a hyper depreciation tax incentive in its 2026 budget to support business investment in a range of new tangible and intangible capital goods. The scheme allows businesses to claim higher depreciation or leasing deductions on eligible assets.
The original rules limited access to goods manufactured in the EU or European Economic Area. This restricted UK businesses supplying capital goods to the Italian market.
Italy’s government has since removed the geographic origin requirement. As a result, capital goods manufactured in the UK now qualify for the incentive on the same basis as EU made goods. This applies to eligible investments made between 1 January 2026 and 30 September 2028.
An exception remains for solar photovoltaic installations used for self generation of energy. These must still meet specific technical standards and be manufactured in EU member states to qualify under the scheme.
You can find more information at: https://www.programmagoverno.gov.it/it/notizie/firmato-il-decreto-attuativo-sull-iper-ammortamento/
Sectors affected
- Advanced engineering
- Aerospace
- Technology and smart cities
Resolved
Yes - April 2026
Date reported
16 January 2026
Last updated
20 May 2026
Public ID
PID-GW5NVB
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