The European Commission gave the green light at the beginning of May 2025 to the reintroduction of the Italian International Register, a state aid scheme offering tax and social security benefits to shipping companies that register their vessels in the European Union or European Economic Area. The measure, which will be in effect until 31 December 2033 with total funding of 5.4 billion euros, aims to encourage the return of ships under European flags, strengthen the competitiveness of the Italian fleet and ensure higher standards in social, environmental and safety matters.
This scheme had already been authorised by the Commission in 1998, then again in 2004 and once more in 2020, when it was extended until the end of 2023. The new approval by Brussels is based on the scheme’s compliance with the Eu guidelines on state aid to maritime transport, considering it a necessary and proportionate tool with limited impact on competition among European operators. In particular, the Commission recognised that the initiative seeks to support the development of the maritime sector, protect employment and counteract the trend towards delocalisation, which has become widespread in recent years.
The benefits under the scheme include a reduction in corporate income tax, exemption from the payment of social security and welfare contributions for seafarers on board, a discount on insurance tax for ships and a reduction in the tax on the registration of seafarers’ employment contracts. These incentives will be available to shipping companies, whether resident or non-resident, provided they have a permanent establishment in Italy and operate vessels flying an Eu or Eea flag engaged in international commercial traffic.
A new feature introduced by the implementing decrees issued between November and December 2023 is the opening of the register to charterers. Not only owners or ship operators but also charterers will be able to apply directly for the registration of a vessel, provided there is coordination with the operator and an agreement with trade union representatives. The application must be submitted to the Ministry of Transport, which will verify compliance with the requirements set out in Italian and European regulations regarding safety, crew composition and the technical suitability of the vessel.
However, the Commission has set certain key conditions to prevent distortions in the single market. The benefits must be granted without discrimination between Italian and other Eu companies, and will only be available to companies whose fleets are at least majority-registered in a European Union or European Economic Area country. Italy must therefore ensure that its national legislation aligns with these criteria, carefully monitoring the implementation of the scheme to ensure compliance with Eu state aid rules.
