Many Italian companies are interested in export to France, facilitated by a high level of economic interdependence between the two countries, a unique characteristic in the European context. This close relationship is facilitated by geographical and cultural proximity, as well as predominantly intra-industry trade, which involves sectors such as automotive, pharmaceuticals, agri-food, and electronics. Despite the already well-established economic relations between Italy and France, there are still ample opportunities for growth. France is, in fact, the third target market for Italian exports, accounting for 10.21% of the total.
According to ISTAT data, 2021 was a record year for Italian exports to France, with a value that reached approximately 53 billion, exceeding 50.5 billion in 2019 and 45 billion in 2020. The main export sectors include mechanical engineering, automotive, steel, furniture, pharmaceuticals and fashion.
In addition to trade, economic relations between Italy and France are further strengthened by strong industrial integration, supported by growing mutual investment. Since 2015, Italian investment in the country has been steadily increasing, reaching about 32 billion euros, making France the top European destination for investment projects by Italian companies.
In this article, we analyze the key aspects characterizing Italian exports to this nation, and the relevant regulations to know.
The "Made in Italy" label enjoys widespread recognition globally, particularly within the European Union, where more than half of Italian exports are directed (approximately 56.1%). Tapping into foreign markets therefore represents a major opportunity for Italian companies, fostering pathways to internationalization outside European borders. Exporting to France, In particular, it offers numerous advantages: among these, geographical proximity, cultural affinity, shared values, and solid political relations between the two nations stand out. Furthermore, in recent years, the country has recorded a notable increase in GDP, positioning itself among the fastest-growing European economies, making it a particularly attractive destination for Italian companies.
The French market, although extremely competitive, offers numerous opportunities, even for the digital export. French consumers tend to prefer local brands, appreciate product quality, and value excellent customer service. Sectors like fashion are particularly relevant, with shoppers paying attention not only to quality but also to factors such as sustainability, ethical production, and personalization.
Italian design, with its perfect blend of tradition and innovation, has an irresistible appeal for French consumers.
Furthermore, the export of Italian food and wine products to France is continuously growing, thanks to the uniqueness and variety of the products‘Made in Italy‘.
The sectors with the greatest prospects for future growth are as follows:
Regarding customs clearance and import documents, for intra-EU trade, you need Declaration of Goods (DEB). However, it is not required if the value of the community goods does not exceed €460,000 or if it is the first transaction with the EU country.
For the customs classification of goods, France uses NAF (Nomenclature des Activités Françaises) and CPF (Classification des Produits Français). Updated versions NAF rev. 2 and CPF rev. 2 have been in effect since 2008.
Customs duties in France are generally low, especially for industrial products, with an average rate of 4.21%. However, sectors such as textiles and agri-food are subject to higher duties and restrictive quotas.
If you want to export to France and to open a branch in the territory, it is useful to know that the most common company forms include:
The “Economic Modernization Act”introduced measures to stimulate growth and employment, such as the Auto-entrepreneur Statute, which facilitates the creation of small professional businesses with a simplified system. In 2019, the government passed the PACTE law, aimed at simplifying regulations for SMEs, encouraging their growth and exports.
Corporate income tax (CIT) applies to profits generated in France, with rates ranging from 15% to 28% depending on profits and corporate structure. As of 2022, the standard rate has been reduced to 25%.
The main taxes include:
Personal income tax is progressive, with rates ranging from 0.1% to 4.5% depending on income. VAT in France has four rates: the standard rate of 20%, a reduced rate of 10%, a second reduced rate of 5.5%, and a special rate of 2.1% for certain specific products, such as reimbursable medications.
Octagona It is a consulting firm with extensive experience in internationalization and can assist you if your business objective is export to France. We offer support at every stage of the process and help you penetrate this promising market. Contact us for more information.
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