Starlink’s Italian Expansion Raises Fiscal Questions
Starlink, the satellite internet service operated by Elon Musk’s SpaceX, is expanding its presence in Italy despite operating without any direct employees within the country, according to a report from La Repubblica. This unusual structure is prompting scrutiny regarding potential tax implications for the Italian government.
While Starlink doesn’t maintain a traditional workforce in Italy, it currently processes over 50,000 invoices monthly from Italian customers. These invoices, however, are managed and billed through Starlink’s operations outside of Italy, raising concerns about potential revenue leakage for Italian tax authorities. The situation highlights the challenges governments face in taxing digital services provided by companies with a global footprint.
The company is also seeking to expand its spectrum access within Italy, Reuters reported in March 2025, as Rome awaits a unified stance from the European Union on spectrum allocation. This move comes as the Italian government has considered a potential $1.6 billion agreement with SpaceX for secure telecommunication services, a deal that sparked controversy across Europe.
Talks between Italy and SpaceX reportedly began in mid-2023 but were stalled until a meeting between Italian Prime Minister Giorgia Meloni and then-President-elect Donald Trump. While the Italian government has acknowledged discussions with SpaceX, it has denied any contracts have been signed for Starlink services and refuted claims that SpaceX was discussed during Meloni’s meeting with Trump. Ars Technica notes that the potential deal could undermine the development of Iris², a European-led satellite constellation designed to provide secure communications for European nations.
Starlink currently operates commercially in Italy, but a governmental contract would represent a significant shift, potentially prioritizing a U.S.-based service over a European alternative. This situation underscores the increasing tension between national interests and the growing influence of private space companies like SpaceX in the global telecommunications market.
