Entering the Italian market through an acquisition, joint venture, or investment can be an excellent strategic move.
However, if your target operates in a strategic sector, you need to be aware of Italy’s Golden Power regime: a set of rules that can directly impact your transaction.
In this guide, we explain what the Golden Power is, when it applies, and how foreign investors can stay compliant.
What Is the Golden Power?
The Golden Power gives the Italian government special authority to screen, block, or impose conditions on certain transactions involving strategic assets.
It applies mainly to foreign investors and aims to protect national security, critical infrastructure, and key technologies.
Over the past few years, its scope has been significantly expanded and the rules are actively enforced.
Which Sectors Are Affected?
The Golden Power can apply to deals involving:
- Defence and national security
- Energy (electricity, gas, renewables)
- Telecommunications and 5G
- Transport and critical logistics
- Finance and banking infrastructure
- Healthcare, including pandemic-related technologies
- AI, cybersecurity, robotics, semiconductors, cloud computing
- Food supply chains and dual-use technologies
Even minority stakes can trigger a filing, depending on the company’s strategic relevance.
When Is Notification Required?
A mandatory notification must be filed before completing certain transactions involving non-EU (and sometimes EU-based) investors if the target operates in a covered sector.
Key triggers include:
- Acquiring control or significant voting rights
- Gaining access to sensitive technology or data
- Any deal that could affect management, security, or ownership
What Are the Risks of Non-Compliance?
Failure to notify can result in:
- The transaction being declared void
- Fines of up to double the transaction value
- Reputational damage and increased scrutiny in future deals
How Should Foreign Investors Prepare?
- Start with early due diligence to check if Golden Power rules apply.
- Engage legal counsel with experience in the regime and sector-specific issues.
- File proactively with a clear, complete submission.
- Plan your timeline: reviews usually take 45 days, but can be extended.
Final Thoughts: Italy Welcomes Foreign Investment, with Conditions
Italy remains open to foreign capital but will not compromise on national security.
The Golden Power is now part of a broader European trend, similar to France’s FDI rules and Germany’s investment screening.
Let’s Talk About Your Project in Italy
If you are considering a deal, joint venture, or strategic investment in Italy, it is essential to assess Golden Power implications from the start.
At SCAI Legal, we help investors evaluate risks, structure deals to comply with regulations, and navigate the notification process smoothly.
We are happy to provide an initial orientation at no cost, giving you a clear view of the process before you commit.
Contact us to start your informed entry into the Italian market.
