Long-lasting investments for Italy’s economy and citizens
Our investments in Italy have been increasing consistently, confirming a long-lasting commitment to the country. Since 2010, our total investments have reached €16.9 billion. This includes both capital expenditure (such as the infrastructure we build, our logistics centres, corporate offices, and cloud infrastructure) and operating expenditure (such as the salaries we pay to our employees in Italy). In 2022 alone, we invested over €4.3 billion in Italy, a growing commitment which – as certified by a study* carried out by The European House - Ambrosetti – sees Amazon ranked third among all the large foreign companies that have invested the most in terms of capital expenditure in Italy in the 2020-2022 three-year period.
“We are proud to reaffirm that our dedication to Italy remains resolute. Amazon has invested more than €16.9 billion into Italy since 2010. Our commitment reflects our trust in the country's resilience and demonstrates our aspiration to be an active player in contributing to its success,” said Mariangela Marseglia, VP Country Manager Amazon.it and Amazon.es. She added: “It is part of our daily commitment and for the future: the promotion of a thriving ecosystem that enhances talent, local companies, and the communities in which we operate. In line with the main challenges faced by Italy’s government, we will continue to offer our skills to promote technological innovation, the improvement of infrastructure, and the digital knowledge of businesses and citizens in Italy.”
We currently have 60 facilities throughout Italy including operations, corporate offices, data centres, and customer service centres. Amazon's economic impact not only benefits large urban areas, but also smaller towns in different regions with limited employment opportunities.
According to a study carried out by Nomisma, on the economic impact in the areas where Amazon is present, our investments are an engine of growth, stimulating the success of businesses that are already present and attracting investments and innovation from new companies. For example, the study shows that, five years after the opening of the Amazon fulfilment centre in Passo Corese (Rieti), the unemployment rate in the province has fallen by 5% and companies located near the centre have increased their turnover (+16%), profits (+26%), and created jobs (+16%) in greater proportion than those that are further away from it.
Quality and inclusive jobs
Amazon’s local Italian-based workforce has grown to reach 18,000 people – with 4,000 jobs created in 2022 only. According to a study* carried out by The European House - Ambrosetti, Amazon maintains a leading position among private companies that have created the greatest number of jobs in Italy in the 2013-2022 period, confirming itself as one of the main employment creators in the country. Amazon also ranks third in terms of total employment among foreign companies operating in Italy and 20th among all Italian companies (from 27th place last year).
As of October 1 2023, Amazon has increased the initial gross salary for logistics network employees in Italy to €1,764. This represents an increase of 21% compared to the wages paid in 2019 and +8% compared to the average wages prescribed by the National Collective Bargaining Agreement for transport and logistics.
At Amazon we review the salaries of our logistics network employees every year, so that we can guarantee competitive pay for our employees. We also offer employees additional opportunities, such as our Career Choice programme which covers up to 95% of the cost of tuition and textbooks for those who wish to specialise in a specific field by attending professional courses, for an amount of up to €8,000 over four years.
In 2022, Amazon paid an average of €49.6 million a month in wages and salaries to our Italian employees - a substantial increase compared to the €35.8 million per month paid in 2021, due mainly to the increase in the number of our employees committed to supporting our customers. Amazon offers jobs to people regardless of their place of origin and age; across Italy, there are over 100 different nationalities represented, with an average age of 34. Amazon also hires elder workers, with 8% of staff members in Italy above the age of 50, with the oldest employee being 64 years old.
According to a recent Keystone Strategy study, through the indirect effects of our investments, more than 40,000 new jobs were created in 2022 - for example, in construction, logistics, and services. Total indirect jobs reached a record number of 100,000, with the addition of 60,000 jobs created by Italian SMEs using Amazon’s services to grow their businesses and export Italian products all over the world.
Total tax contributions in Italy
As we continue our commitment in Italy, we contribute to fund public services and infrastructure throughout the country. We do this through the taxes that are collected by the government as a consequence of our business activities in Italy. These taxes fall into two categories:
- Directly incurred taxes: The taxes that are directly incurred and payable by Amazon, including Corporation Tax (IRES and IRAP), taxes paid for land acquisition or construction (Property Tax, Registration Tax), payroll taxes and social security paid by employers, import duties and digital service tax.
- Indirect taxes collected and submitted: The taxes we collect and submit from our customers, employees and other third parties as a direct result of our business activities in Italy. These include VAT and the taxes paid by our employees.
It is important to understand both of those categories, because focusing narrowly on one aspect of taxation, such as Corporation Tax, does not tell the whole story: according to recent research conducted by the OECD, Corporation Tax accounts for only around 5% of total tax revenues from Italian taxpayers.
Amazon is a growing business with a high volume of sales, but, as is the case for other retail businesses, operating profits remain relatively low due to price pressure in a very competitive market, intense capital investment, and increasing operating costs (including those from a growing workforce and inflation).
- In 2022, the total revenues from Amazon’s business activities in Italy amounted to over €9.44 billion (+8% vs. €8.75 billion in 2021).
- Our investments amounted to over €4.3 billion (+8% vs. €4 billion in 2021). Total investments include €581 million as capital expenditure (i.e. infrastructure including fulfilment centres, corporate offices, and data centres).
- Our total tax contribution – combining directly incurred and indirect taxes – amounted to over €1.147 billion (+53% vs. €751 million in 2021). This can be broken down into:
- Our total directly incurred taxes, which amounted to more than €321 million (+24% vs. €258 million in 2021). Employer taxes accounted for a large proportion of these. Other direct taxes included corporate income tax, taxes paid for land acquisition or construction, digital service tax, and import duties.
- We collected an additional €826 million in indirect taxes (+68% vs. €493 million in 2021) as a result of our business activities in Italy. These are taxes we collect and submit from our customers, employees and other third parties, including VAT and the taxes paid by our employees. The increase in 2022 was largely driven by net VAT. From July 1 2021, Amazon has been collecting and submitting Italian VAT on transactions involving overseas sellers. This VAT is calculated by Amazon and collected from customers at checkout.
Italy is a nation rich in exceptional talent and huge opportunities. We are delighted to contribute to nurturing this environment by innovating for Italy’s local communities, businesses, and our Italian customers.
* The European House – Ambrosetti carried out a study on the employment generated by large Italian and foreign companies operating in Italy over the last ten years (2013-2022), updating the same study published in 2022 (for the 2012-2021 period). As a new area of research, the 2022 study also analyses the total amount of investments in Italy, in terms of Capital Expenditure (CAPEX), by large foreign companies operating in the country over the last three years (2020-2022). The study is based on the AIDA (Bureau van Dijk S.p.A.) database, containing the balance sheets of all active and liquidated companies. The latest available data on employment, turnover and investments refer to the year 2022.
To ensure homogeneity and comparability of data, the analysis considered all companies (with financial statements filed in Italy) which in 2022 had more than 250 employees and €50 million in turnover. As of September 28 2023, the companies that have filed their financial statements for 2022 compared to the total sample of large companies (those with over 250 employees and €50 million in turnover) is equal to 35%.