With the entry into force of Legislative Decree 124/2023, known as the “DL Sud,” published in the Official Gazette on September 19, 2023, the creation of the Single Special Economic Zone (ZES) of the South has begun. This new provision, effective from January 1, 2024, marks an important change in the economic landscape of Southern Italy, as it has merged the previous 8 Special Economic Zones into a single entity.
The ZES Unica of the South covers the municipalities of the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily. The aim of this initiative is to promote economic development in these areas through tax incentives and administrative simplifications to attract investments and encourage the growth of business activities.
This legislative move represents a significant turning point for Southern Italy, opening new perspectives for the economic and social development of the involved regions.
Support measures and incentives
Specifically, the DL Sud provides a tax credit for investments in businesses that acquire capital goods or land and properties used for investments. Additionally, administrative simplifications are introduced, reducing processing times.
Single authorization and tax credit
Two of the main measures provided by the DL Sud are the Single Authorization and the Tax Credit. On one hand, the lack of implementing decrees for these measures has created uncertainty among the businesses involved, but on the other hand, the business sector is in constant movement and is trying to understand how to proceed to obtain these benefits.
Single Authorization
Through the Single Authorization, it will be possible to start economic activities within the ZES Unica by submitting an application through the digital one-stop shop. This measure aims to reduce the processing times for authorizations, but its implementation is currently awaiting the decrees.
Tax Credit
The tax credit, proportional to the value of investments in capital goods, provides financial incentives to businesses that invest in the ZES Unica.
ZES Unica: investment projects and photovoltaic systems
Investment projects must meet specific criteria to be eligible for incentives. Eligible expenses include the purchase of machinery, plants, equipment, land, and properties used for investments.
The 2024 Single Special Economic Zone (ZES) also offers financial assistance to businesses investing in photovoltaic systems, granting incentives of up to 60% of the total cost. To ensure that these incentives are directed towards relevant projects, a minimum investment threshold of 200,000 euros has been established. This requirement ensures that investments are significant and focused on promoting energy transition and environmental sustainability.
Digital One-Stop Shop
Starting from March 1, the S.U.D. ZES online service, the Digital One-Stop Shop dedicated to productive activities within the Single Special Economic Zone of Southern Italy, is active. This service allows businesses to submit their application for single authorization to the Mission Structure. This process involves 2,550 municipalities across the 8 regions of Southern Italy and the Islands.
Despite the potential of the ZES Unica in promoting economic development in the affected regions, the implementation of the measures outlined in the DL Sud is still under definition. It is crucial to closely monitor the evolution of the situation and adopt a flexible strategy to maximize the benefits derived from this new opportunity for economic growth.