Space Law 2026 Comparisons

Last Updated July 14, 2026

Contributed By ICT Legal Consulting

Law and Practice

Authors



ICT Legal Consulting (ICTLC) is an international law firm providing strategic legal compliance support in privacy, intellectual property (IP), and technology, media, cybersecurity and telecommunications (TMT) law. The firm also advises on the design and implementation of governance, organisational, management, security, and control models for data-driven organisations. ICTLC has built a cohesive team of over 80 qualified professionals with deep expertise in ICT, privacy, data protection, cybersecurity, and IP law. With offices in Italy, the Netherlands, Croatia, Denmark, Finland, France, Greece, Spain, Kenya, Nigeria, Australia, Suriname, and Saudi Arabia – and partnerships in 63 other countries – ICTLC ensures clients access to highly qualified legal experts tailored to their specific needs.

International space law is still anchored in the UN treaties – the 1967 Outer Space Treaty, the 1968 Rescue Agreement, the 1972 Liability Convention, and the 1975 Registration Convention – which together supply the only globally binding rules for exploration, liability and transparency in orbit. On top of these four treaties – which are ratified in the Italian legislation – there is a fifth treaty, the Moon Agreement, which has not been ratified by Italy.

Countries such as the United States (Commercial Space Launch Competitiveness Act 2015) and Luxembourg (Space Resources Law 2017) have gone further, granting private title over extracted space resources and thereby testing the non-appropriation norm laid down in the UN framework.

Italy aligns with this multilateral vision but has also taken a proactive stance through the new Space Economy Law (Law 89/2025) entered into force on 25 June 2025.

Simultaneously, a further systemic development emerged at EU level. On 25 June 2025, the European Commission presented its proposal for an EU Space Act, structured on three pillars – safety, resilience and environmental sustainability – and intended to reduce fragmentation among the national regimes of the 13 Member States that already have national space laws. Italy’s Law No 89/2025 must therefore now be read not only as a pioneering national measure, but also as legislation that, in the medium term, will have to coexist with, and be interpreted alongside, a future EU regulatory layer.

Italy does not recognise property rights over space resources but permits their use under state authorisation. Unlike unilateral approaches taken by others, Italy remains within the framework of international law while asserting strong national oversight.

The Italian Space Economy Law made space activities a “strategic national interest” and imposes a single-window licensing regime with tiered insurance and state-recourse provisions, giving Italy its first full domestic framework for launches, in-orbit operations and downstream services. Policy co-ordination now runs through the Interministerial Committee for Space, while the “Autorità responsabile” (namely, the President of the Council of Ministers or a delegated minister) issues the licences.

Between late 2025 and early 2026, the industrial response moved beyond policy statements into concrete transactions and operational developments. On 23 October 2025, Leonardo, Airbus and Thales signed a memorandum of understanding to combine their space activities into a new European company. In launch services, Avio was formally designated as launch service provider for the Vega family on 10 July 2025 (Launchers Exploitation Declaration approved at ESA headquarters in Paris) and obtained a ten-year French administrative licence on 19 August 2025 to operate from the Guiana Space Centre. At ESA’s CM25 Ministerial Council in Bremen (26–27 November 2025), member states committed approximately EUR22.3 billion (final figure as updated on 2 December 2025) – the largest envelope in ESA’s history – with priority given to strategic autonomy, competitiveness, resilience, SMEs and new entrants; the next Ministerial (CM28) will be hosted by Italy in 2028. IRIDE has moved from planning to deployment: following the launch of seven HEO satellites on 3 May 2026 from Vandenberg, the constellation reached 31 satellites in orbit by early May 2026, with deployment expected to continue through 2026–2028.

Public procurement is likewise pivoting to service models: the over-EUR1 billion IRIDE Earth-observation constellation, funded via the National Recovery and Resilience Plan and the National Complementary Plan, co-ordinated by ESA with the support of ASI, will deliver multi-sensor data to government and commercial users by 2027 instead of simply adding state-owned hardware.

Italy is one of the few countries with a comprehensive space supply chain, which encompasses everything from launch services and satellite manufacturing to downstream applications for end users. Italy’s industrial base includes a handful of large, internationally recognised aerospace companies (eg, Leonardo – which holds stakes in Avio and Thales Alenia Space Italy – and the independent firm D-Orbit), but the majority of the sector is composed of small and medium-sized enterprises. These SMEs – including innovative start-ups and spin-offs – are spread across regional technology clusters and specialise in niche technologies, making the industry highly dynamic.

Italy’s current focus areas mirror global trends. Significant investments are directed toward Earth observation, satellite communications and navigation, space exploration projects (often in partnership with ESA/NASA), in-orbit services (such as satellite servicing and debris removal), and downstream services that leverage space data. Notably, Italy has a strong launcher segment through the Vega rocket programme (developed by Italian industry, namely Avio, via ESA) and is exploring the development of a domestic spaceport for suborbital flights at Grottaglie Airport in Puglia. The Italian Space Agency (Agenzia Spaziale Italiana, ASI) often partners with private industry on these initiatives, illustrating a healthy public-private ecosystem.

Italy’s legal system is a civil law system, meaning space activities are governed primarily by written laws and regulations rather than case law. The main sources of Italian space law are outlined below.

  • International law heavily influences Italian space law. Italy has ratified all core UN space treaties (except the Moon Agreement) and incorporates their principles into domestic practice (often via implementing laws; eg, Law 87/1970 for the Outer Space Treaty). Italy is also bound by its commitments in the ESA and other multilateral agreements, which can shape national regulations (for instance, obligations under the ESA Convention or EU agreements on satellite navigation). In case of conflict, international treaty obligations trump national law, as Italy’s Constitution gives duly ratified treaties a status above ordinary legislation.
  • As an EU member, Italy is subject to EU regulations and directives relevant to space. These include the Regulation (EU) 2021/696 establishing the Union Space Programme (programmes like Galileo, EGNOS, Copernicus) and EU technology export controls, as well as broader regulations on data protection, cybersecurity, and product safety that impact space operations. EU law has direct effect or is implemented in Italy and must be considered by space sector players.
  • Under national legislation, specific acts of Parliament and government decrees are providing the legal basis for space activities. For instance, Law 186/1988 established the ASI, and Law 7/2018 reorganised space policy governance under the Prime Minister’s office. Most recently, on 25 June 2025, the new Space Economy Law (Law 13 June 2025, No 89/2025) entered into force, which for the first time comprehensively regulates commercial space operations, licensing and oversight. By 2026, it is also clear that Law No 89/2025 operates in many respects as a framework statute: several matters are expressly left to future implementing measures, including technical requirements, contributions and instruction costs, criteria for cyber and physical resilience, risk-based insurance thresholds, the regime governing reception, management, use and dissemination of space-origin data, the technical requirements of spaceports (Article 13), the National Plan for the Space Economy (Article 22), the operation of the Space Economy Fund (Article 23) and the technical criteria for radio coexistence and gateway location (Article 26). As of mid-May 2026, no implementing decree covering these matters appears to have been published, so the authorisation regime is formally in force but still operationally dependent on secondary legislation. The 2026 picture is therefore better described as a combination of:
    1. Law No 89/2025 as the centrepiece;
    2. the Presidency of the Council of Ministers/UPSA governance, including the sectoral functions attributed to the space policy structure within the Presidency of the Council of Ministers;
    3. ASI as the national technical authority for technical regulation under Article 14 of Law No 89/2025;
    4. MIMIT for frequencies, transmission capacity and economic instruments;
    5. ENAC for the SASO/Higher Airspace side; and
    6. the EU/international framework, including the proposed EU Space Act, NIS2 as implemented by Legislative Decree No 138/2024, and the dual-use regime as updated by Delegated Regulation (EU) 2025/2003 where controlled goods, software or technology are involved.
  • Regulations and technical rules issued by bodies like the National Civil Aviation Authority (ENAC) and ASI also form part of the space regulatory framework. For example, ENAC’s Suborbital and Space Access Operations (SASO) Regulations (first issued in 2023) set technical and licensing requirements for sub-orbital operations. ASI may also issue guidelines or directives within its mandate.

In sum, Italy’s space regulatory regime is a layered mix of domestic statutes (now crowned by the 2025 Space Economy Law), regulatory rules, EU legislation, and international legal obligations – all interpreted in the context of a civil law tradition.

Italy now plays all three roles in space – regulator, facilitator and active participant – thanks to a governance system tightened by the Space Economy Law and to long-standing defence and research activities.

Its regulatory function was newly established with the Space Economy Law, which created a single-window licensing system, mandatory insurance tiers and state recourse rules for any launch or in-orbit activity under Italian jurisdiction. It remains a participant, funding national missions such as the IRIDE Earth observation constellation and co-financing major ESA programmes like Galileo, Copernicus and Vega. Through large NRRP allocations and sector-specific grants announced by the Ministry for Business and Made in Italy (Ministero delle Imprese e del Made in Italy, MIMIT), the state also acts as facilitator, steering investment toward launchers, in-orbit services and downstream applications.

Political leadership and policy co-ordination are vested in the President of the Council of Ministers or a delegated minister, who is designated as the “political authority for space” under the law and is empowered to sign licences and apply “golden power” controls. Supporting that authority is the Presidency’s Office for Space and Aerospace Policies (UPSA), which assists in the high-level direction and inter-ministerial co-ordination of national space and aerospace policy. The Interministerial Committee for Space and Aerospace (COMINT), chaired by the Prime Minister, sets multi-year priorities and published the January 2025 Government Space Guidelines, which frame industrial policy, R&D and regulation.

The Italian Space Agency (Agenzia Spaziale Italiana, ASI) is the technical regulator and programme agency. It was designated by the law as the national technical authority, responsible for evaluating licence applications, monitoring compliance, and contributing to scientific missions and public-private programmes such as IRIDE.

Moreover, MIMIT holds the governmental portfolio for the civil space economy. It co-drafted the 2025 law, manages national and EU-backed industrial incentives, and represents Italy in EU competitiveness councils. On the defence side, the Ministry of Defence and its Space Operations Command (COS) have, since 2020, managed national space-domain awareness, safeguarded military assets and co-operated with NATO on space security.

Italy regulated space missions through a decentralised and fragmented approach. Authorisations for launches into suborbital space were issued by ENAC, the Italian Civil Aviation Authority, which regulated and supervised aviation and sub-orbital activities, while orbital missions and satellite operations were handled case by case or under foreign/ESA rules. For sub-orbital and higher-airspace operations, regulatory requirements were set out in ENAC’s Suborbital and Space Access Operations (SASO) Regulation, of which only Sections I, II and III and Annex 1 are currently available; Sections IV and V, dealing with launching into space and re-entry from orbit, are still under development. The first comprehensive domestic framework for access to outer space was introduced by Law No 89/2025.

With the adoption of the Space Economy Law 2025, Italy introduces a comprehensive licensing regime that completes the previous model by regulating orbital missions. Under the new Space Economy Law, any Italian company, individual, or entity intending to launch a space object, operate a satellite, or offer space-related services must hold an authorisation granted by the responsible authority (the Prime Minister or their delegate), following a technical assessment by the ASI. Licence criteria cover: proof of the applicant’s technical and financial fitness (including tailored rules for start-ups and SMEs), demonstration of mission safety and sustainability (full life cycle environmental footprint analysis and debris mitigation measures), compliance with Italy’s international obligations, and mandatory insurance cover (see 2.8 Insurance and State Measures on Liability for Damages).

The administrative procedure is designed to streamline approvals while maintaining rigour: an operator submits its application to the ASI, which completes its review (including any site inspections) within 60 days and forwards its findings to the responsible authority; a final decision then follows within 120 days. The ASI’s assessment may involve COMINT and, where national security is implicated, the Ministry of Defence and other security agencies.

Enforcement is robust: the responsible authority can modify, suspend, or revoke a licence ex officio in urgent cases and transfer operational control to a public body. Ongoing supervision rests on timely reporting and transparency. Operators must notify the ASI at least 30 days before any mission operation and submit semi-annual activity reports; the ASI, in turn, registers all Italian state launches in the National Registry and notifies the UN under Articles 15–16. Collision avoidance capability – procured from a certified provider under technical decrees – is mandatory, ensuring orbital safety co-ordination.

Radiofrequency co-ordination is a critical aspect of space operations that Italy manages through both national and international processes. Italy’s Electronic Communications Code (Legislative Decree No 259/2003) and the National Frequency Allocation Plan (Piano Nazionale di Ripartizione delle Frequenze, PNRF) set out how frequency bands are allocated to various services. Space services (such as satellite downlinks, uplinks, TT&C frequencies) are assigned in the PNRF consistent with international allocations. Any satellite operator in Italy must obtain frequency clearance and potentially a frequency usage licence from MIMIT/AGCOM, separate from the space activity licence. This involves co-ordination to ensure no harmful interference with other domestic spectrum users.

Internationally, Italy is a member of the International Telecommunication Union (ITU) and follows ITU procedures for satellite frequency and orbital slot co-ordination. When an Italian operator (or the government) plans to launch a satellite requiring ITU registration, Italy’s administration files the required notifications with the ITU’s Radiocommunication Bureau. Italy engages in the ITU’s co-ordination processes: it consults and negotiates with other countries to resolve potential frequency conflicts and to secure orbital slot positions for satellites.

If frequency interference issues arise, Italy employs the ITU frameworks to address them. Operators are required as part of their licensing to use only the frequencies assigned and to operate within the technical parameters co-ordinated internationally. In case of harmful interference involving an Italian satellite (either caused by or affecting it), the Ministry (through its spectrum management department) will co-ordinate with foreign administrations and may escalate unresolved disputes to ITU forums.

Italy also maintains a reserve capacity principle: Article 25 of the Space Economy Law reserves national satellite capacity for strategic connectivity – eg, ensuring part of certain orbital resources are kept for satellites operated by Italian or European entities, to bolster national and EU digital sovereignty. This reflects Italy’s policy of safeguarding access to critical orbital resources in the face of mega-constellations and global competition.

Moreover, Article 26 of the Space Economy Law promotes initiatives for efficient use of the radio spectrum for satellite communications. It tasks the MIMIT with promoting advanced use of the radio spectrum through technical coexistence models to reduce interference between space and terrestrial systems, defining criteria to reduce interference between different satellite networks operating in Italy, and studying suitable areas for terrestrial gateways to enable multiple simultaneous satellite station operations with minimised aggregated interference.

In Italy, the role of the state in the launching of space assets is structured through a multilayered framework in which the state acts as regulator, authoriser, and international guarantor, rather than a direct service provider. The Italian Space Economy Law defines this role clearly, aligning with international obligations while fostering private sector involvement.

Under the new law, launching space assets is considered a space activity (attività spaziale) and is subject to prior authorisation by the designated responsible authority (see 2.4 Role of the State in the Licensing Process for Space Activities). This applies both to activities on Italian territory by any operator and to activities abroad by Italian operators.

In line with the Outer Space Treaty and the Liability Convention of 1972, Italy assumes international responsibility for national space activities, even when conducted by private entities. This implies that the state must ensure that private launches are authorised and supervised and that Italy may be held liable for damages caused by such launches to other states or third parties.

Italy is a party to all four principal UN space treaties:

  • Outer Space Treaty (1967);
  • Rescue Agreement (1968);
  • Liability Convention (1972); and
  • Registration Convention (1975).

However, Italy has not ratified the 1979 Moon Agreement, aligning itself with most other major spacefaring nations in this regard.

Italy is an active member of the UN Committee on the Peaceful Uses of Outer Space (COPUOS) and participates in both its Legal and Scientific and Technical Subcommittees. It also contributes to UN General Assembly resolutions on transparency and confidence-building in space. Regarding arms control, Italy takes part in the Conference on Disarmament, confirming its commitment to the peaceful use of outer space.

In the 2025–2026 period, Italy’s engagement in multilateral and bilateral fora has further intensified. At UN level, Italy will chair COPUOS during the 2026–2027 term, with Teodoro Valente (President of ASI) nominated as Chair following confirmation by the Italian Ministry of Foreign Affairs and International Cooperation. Bilaterally, the United States and Italy held the second U.S.-Italy Space Dialogue in Washington DC, on 9–10 April 2026, following the April 2025 commitment of Prime Minister Meloni and President Trump to strengthen space co-operation. The European Commission’s proposal for an EU Space Act of 25 June 2025, with its three pillars (safety, resilience, sustainability) and the planned Union Register of Space Objects (URSO), is the most significant new EU-level development in the period and will need to be coordinated with Law No 89/2025 when adopted.

Italy faithfully implements international space law into its national legal framework. Treaties ratified by Italy, such as the Outer Space Treaty and Liability Convention, are transposed through national laws. These instruments are binding and take precedence over ordinary domestic laws.

The Space Economy Law incorporates and expands these obligations. It mandates:

  • authorisation and continuous supervision of national space activities, even if performed abroad;
  • due consideration for international standards (eg, on debris mitigation and planetary protection); and
  • possible recognition of foreign authorisations if they meet equivalent criteria.

Under Article VI of the Outer Space Treaty and Article VII as developed by the 1972 Liability Convention, Italy bears international responsibility and liability for both governmental and private activities. The Space Economy Law reinforces this framework by:

  • requiring operators to obtain authorisation, which is granted only after a technical and security assessment (see 2.4 Role of the State in the Licensing Process for Space Activities);
  • demanding financial soundness and insurance coverage (up to EUR100 million per incident) to manage liability risks (see 2.8 Insurance and State Measures on Liability for Damages); and
  • providing mechanisms for state recourse against private entities in case the state compensates third parties for damages.

The Italian model assigns a central role to public authorities (the responsible authority, COMINT, and the ASI) in authorising, supervising, and inspecting space activities. Private operators are subject to continuous monitoring and fulfil regulatory requirements. If such requirements are not met any longer, or if activities pose national security risks or violate international obligations, the responsible authority is empowered to suspend, modify or revoke authorisations.

Lastly, Italy’s domestic framework, especially under the 2025 Space Economy Law, internalises the principle of “due regard” as articulated in Article IX of the Outer Space Treaty. Italian operators are required to assess the potential impact of their missions on other states’ activities and the space environment, including through risk mitigation, environmental considerations, and international co-ordination where needed. The Law mandates compliance with international norms and best practices – such as those on debris mitigation and radiofrequency management – and empowers public authorities to suspend or revoke authorisations if operations threaten international peace, security, or the lawful interests of other space actors.

Italy fully implements the 1972 Liability Convention, under which the “launching state” is internationally liable for damages caused by its space objects. As a result, the Italian state may have to compensate third parties and subsequently seek recourse from the responsible space operator. This dual structure ensures compliance with international obligations while protecting national interests.

Space operators in Italy must obtain liability insurance prior to initiating their activities. According to the new insurance model provided by Articles 6(d) and 21 of the Space Economy Law, the authorisation process requires proof of insurance coverage proportionate to the mission’s risk level. The standard insurance coverage is set at EUR100 million per incident, but the law allows reductions (down to as low as EUR20 million) for missions classified in lower-risk categories. This insurance must be active before the launch or operations begin, and any lapse in coverage may trigger the suspension or revocation of the operator’s licence.

Risk is evaluated through a tiered classification system introduced by government decree. This structure allows for tailored insurance requirements that help to keep premiums manageable, offering a particular advantage to SMEs and start-ups.

Operators are strictly liable for damages up to their insurance limit, which varies according to risk classification and operator type (Article 18 Space Economy Law). Beyond these limits, the Italian state assumes liability internationally but can subsequently seek reimbursement from the operator. Operators lose their liability cap entirely if they conduct activities without authorisation, breach licence conditions, operate without insurance, or act with gross negligence or wilful misconduct.

Italy currently has no specific statutory framework explicitly regulating “very high altitude” (VHA) operations, such as stratospheric balloons deployed to provide internet connectivity. However, the regulation of these activities does not fall entirely into a grey zone. Under existing aviation law, the Italian Civil Aviation Authority (ENAC) explicitly includes balloons and other high-altitude platform systems (HAPS) within its Sub-orbital and Access to Space Operations (SASO) Regulation, defining them as part of “higher airspace operations” (HAO). According to SASO, commercial or specialised operations require operators to obtain a vehicle system operator licence, adhering to general safety engineering, hazard analysis, and insurance provisions. Detailed regulatory guidelines specifically tailored to VHA are still subject to discussion.

Conversely, the Space Economy Law sets a comprehensive national licensing system for missions explicitly entering outer space, assigning technical oversight to the ASI. The 2025 law is not silent on the higher airspace: Article 2 of Law No 89/2025 expressly includes, within the definition of “space activity”, activities conducted through stratospheric platforms and sounding rockets. The remaining question is therefore not the absence of statutory reference, but the better co-ordination between the general space-law regime under Law No 89/2025 and the ENAC/SASO rules for higher-airspace operations, an area on which ENAC continues to work, including through European projects on Higher Airspace Operations (HAO).

The Italian Space Economy Law significantly updates Italy’s national framework for space activities; however, it does not provide specific provisions on any particular domain — such as healthcare, life sciences, agri-food, mobility, environment, and energy — which are guided by a combination of national, EU, and international law.

At the international level, Italy is a party to key treaties such as the 1967 Outer Space Treaty and the 1972 Liability Convention. These treaties obligate Italy to conduct space activities with due regard for the interests of other states and to avoid harmful interference. Additionally, Italy adheres to the United Nations Committee on the Peaceful Uses of Outer Space (COPUOS) guidelines on space debris mitigation and the long-term sustainability of outer space activities, which promote responsible behaviour to prevent interference with other missions.

Nationally, the Space Economy Act establishes a licensing regime for space activities conducted by entities operating within Italy or under Italian jurisdiction requiring operators to demonstrate that their activities will not cause harmful interference, including through the submission of detailed mission plans and risk assessments.

In terms of technical oversight, ENAC for sub-orbital activities and the ASI for space activities are responsible for verifying regulatory requirements mandating that operators conduct comprehensive hazard analyses and implement safety measures to prevent interference with other airspace users and space operations.

Italy’s regulatory framework for space activities is shaped by its longstanding commitment to international treaties and, more recently, by the provisions introduced in the Space Economy Law. Accordingly, Italy is bound by foundational principles such as (i) the peaceful use of outer space; (ii) non-interference; (iii) international responsibility for national activities; (iv) liability for damage; and (v) the duty to avoid harmful contamination. These treaty principles now also find domestic implementation through the Space Economy Law, which establishes a centralised licensing and oversight regime co-ordinated by the Presidency of the Council of Ministers, in consultation with the ASI and the inter-ministerial COMINT.

In this respect, operators must obtain prior authorisation for any space activity launched from Italy or conducted by an Italian entity abroad. The legal framework imposes obligations on operators to conduct comprehensive environmental and debris mitigation analyses, ensure controlled re-entry where applicable, and integrate collision avoidance capabilities through accredited services. Furthermore, missions are subject to stringent insurance requirements (see 2.8 Insurance and State Measures on Liability for Damages). Operators must also notify the competent authorities in advance of operations, file periodic reports, and accept inspections from the regulatory bodies to ensure compliance.

The Space Economy Law embeds safety, resilience, environmental sustainability and life cycle environmental footprint considerations directly into its structure. It mandates a mission-wide environmental footprint assessment and requires that all implementing regulations reflect principles of security, resilience, and sustainability. This aligns Italy’s approach with UN COPUOS guidelines and shows substantive convergence with ESA’s Zero Debris Charter, which, however, is not, in itself, a binding source of Italian law. Non-compliance with safety or environmental obligations can lead to licence suspension or revocation.

Although Italy has not yet introduced specific national provisions for the protection of areas such as lunar heritage sites or scientific research zones, the Space Economy Law allows for the imposition of licence conditions to mitigate risks, and safeguarding such areas may fall within these conditions.

Protection of national civil and defence interests is a cornerstone of the new legislative framework. pursuant to Articles 4, 6 and 7 of Law No 124/2007. Article 28 of Law No 89/2025 excludes from its scope the space activities directly conducted by the Ministry of Defence and by the intelligence services.

Italy’s new Space Economy Law introduces for the first time specific provisions governing space data (“dati di origine spaziale”).

Article 13(h‑i) empowers a series of governmental decrees to define “the modalities by which activities of reception, management, use and dissemination of space data may be carried out on national territory” and to list the earth observation datasets that may be restricted for security or foreign policy reasons. These implementing decrees will set high standards for data security, resilience and sustainability, tailoring requirements to scientific operators, SMEs and start-ups alike. Nothing in the Space Economy Law, however, derogates from the GDPR (Reg. UE 2016/679) or the Italian “Codice Privacy” (d.lgs. 196/2003). Whenever space data make a natural person identifiable – directly (eg, a face or licence plate) or indirectly (timestamped location traces, fused ground data) – operators must take into account all relevant data protection obligations, such as:

  • finding a lawful basis for the processing;
  • conducting a DPIA – eg, for any “systematic, large-scale monitoring”;
  • embedding privacy-by-design safeguards such as resolution throttling, on-board blurring and zero-trust ground-segment architectures; and
  • applying Chapter V GDPR rules when personal data leave the EU.

Beyond these implementing rules, the legislation embeds two complementary state roles. First, Article 24 establishes the principle of the “promoting state”, committing Italy to foster equitable, non-discriminatory access to space data and services, including via public-private partnerships for downstream applications. Second, national security considerations run throughout the Law, so the responsible authority is entitled to deny, revoke or modify any authorisation after assessing national interest. This dual framework ensures that while data flows freely for civilian uses, the state can step in to safeguard defence and critical-infrastructure interests.

Under Article 11 of Law No 89/2025, ASI may access operators’ documents and information, request further data and carry out inspections. The data, information and documents collected are processed and stored in compliance with confidentiality and secrecy requirements and are excluded from the access rights under Law No 241/1990.

From a business-to-business standpoint, space data exchanges will largely be governed by these decrees alongside Italy’s broader legal regime. In particular, proprietary databases of satellite imagery enjoy the sui generis database right under Directive 96/9/EC, while ownership and licensing are contract-based, often with ASI or ESA in the loop for publicly funded missions. Interoperability is fostered by the state’s push for open data standards (Article 24) and by alignment with Copernicus/ESA “full and open” data policies, balanced by case-by-case security carve-outs handled with the Ministry of Defence.

Transfers of space data to third countries are governed by GDPR Chapter V (where personal data are present) and by any security restrictions to be detailed in the forthcoming decrees under Article 13 of the Space Economy Law.

In Italy, there is no dedicated legal regime for “space data spaces” as such: data generated by space systems fall under the general rules on space activities and on public sector information, rather than a bespoke “data space” framework.

Full interoperability with the forthcoming European Space Data Space (ESDS) remains a work in progress. Italy has demonstrated commitment to shaping the ESDS architecture: ASI participates in the Commission’s technical working groups, and major Italian aerospace actors such as Leonardo, Telespazio, and Thales Alenia Space are actively developing cloud-based SAR services and federated data access frameworks, with a view to contributing to a future pan-European space data infrastructure alliance.

Italian space cybersecurity compliance is now a layered framework. Depending on the operator and mission architecture, the relevant regimes may include the National Cybersecurity Perimeter, NIS2, and the EU Cyber Resilience Act.

Ground stations, mission-control systems, satellite networks and related ICT infrastructures may fall within the National Cybersecurity Perimeter only where the statutory designation criteria are met. Separately, Legislative Decree No 138/2024, which transposes NIS2 in Italy, expressly covers certain space-sector operators, including operators of ground-based infrastructures supporting space services, subject to the exclusions provided by the decree.

For covered NIS entities, cybersecurity requires risk-management measures, incident handling, continuity planning, supply-chain security, secure development and maintenance, vulnerability management, access control and protected communications where appropriate. ACN remains the central competent authority for the Italian NIS framework.

The Italian Space Economy Law adds a sector-specific layer. Law No 89/2025 makes space activities subject to authorisation and links technical suitability to safety and resilience requirements, including resilience of satellite infrastructure against cyber, physical and interference risks.

The Cyber Resilience Act adds a product-security layer for hardware and software products with digital elements placed on the EU market. This is relevant for space operators mainly through procurement, supplier qualification, vulnerability management, conformity documentation and life cycle support for software, firmware and connected components.

The takeaway shall be that Italian space cybersecurity compliance should be managed across the mission life cycle, starting before launch, during operations and in downstream data processing. The key evidence is that cybersecurity has been designed, governed, contracted, monitored and maintained as part of the lawful and resilient conduct of the space activity.

Italy has recently begun establishing a national framework for space activities that includes environmental considerations. The Space Economy Law and the ENAC “SASO” Regulation (2023) provide the primary domestic legal instruments addressing space operations. These measures incorporate general environmental safeguards, including pre-launch environmental impact assessments and licensing conditions aimed at minimising orbital debris and ensuring safe re-entry. Since June 2025, the European environmental context has also evolved through the proposed EU Space Act of 25 June 2025 (COM(2025) 335 final), one of whose three pillars is precisely sustainability and debris mitigation.

Italy’s adherence to the Artemis Accords signals alignment with emerging international norms. These accords promote the designation of “safety zones” and the protection of historic sites in space, although such commitments remain non-binding until implemented through national regulation.

Regarding space resource extraction, Italy does not currently have a legal framework regulating the appropriation or commercial exploitation of extraterrestrial minerals. While the 2025 legislation sets the stage for future regulatory development – through enabling provisions for implementing decrees – it currently lacks specific rules for commercial space mining. Italy actively participates in European and international initiatives related to in-situ resource utilisation (ISRU), particularly through the ASI.

Italy does not have a dedicated space-specific climate change law, but the 2025 Space Economy Law introduces environmental sustainability as a licensing criterion for space activities, requiring impact assessments and end-of-life disposal plans for satellites (Article 5). Operators must adopt measures to prevent debris and minimise environmental harm, aligning with Italy’s broader climate goals.

Moreover, it is worth mentioning Italy’s IRIDE constellation, a flagship sustainable development initiative: it provides high-resolution Earth observation data to monitor air quality, water resources, land use, and climate variables, directly supporting climate action and disaster management.

Italy does not yet have a national law solely targeting space debris. Only Article 5 of Law No 89/2025 expressly includes debris mitigation among the objective authorisation criteria and requires, where possible, controlled re-entry. However, Italy aligns its national regulations with international guidelines, particularly those issued by the United Nations Committee on the Peaceful Uses of Outer Space (COPUOS) and the Inter-Agency Space Debris Coordination Committee (IADC).

In Italy, to date the tax regime applicable to space activities does not introduce a distinct category of space-specific taxation. No new tax category or special fiscal regime has yet been introduced specifically for revenue generated through space operations or space resource extraction.

To date, Italy supports investment in the space sector through indirect fiscal incentives and industrial policy tools, rather than dedicated tax relief measures. The new Space Economy Law complements existing national strategies by establishing the Space Economy Fund (Fondo per l’economia dello spazio), aimed at supporting innovation and commercial development in the space economy.

This fund may issue non-repayable grants (up to 70%) or offer combined financial tools (for the remaining 30%) to support private and public-private space initiatives. These instruments do not operate through direct tax deductions or credits but can significantly reduce the cost burden of investments.

In Italy, the transfer or sale of space assets triggers a range of intricate tax considerations – including corporate income tax on capital gains, VAT treatment, and transfer-pricing rules.

It is worth mentioning that the transfer of ownership, management, or control of space assets (such as satellites or orbital platforms) in Italy will also be governed by Article 10 of the Space Economy Law. Such transfers must receive prior authorisation from the responsible authority.

During the last year, Italy’s NewSpace market has moved from start-up financing into a clearer scale-up and consolidation phase.

The strongest recent signals are industrial consolidation, launch-sovereignty and larger growth capital. In April 2025, D-Orbit combined with Planetek, with D-Orbit acquiring 100% of Planetek’s shares to expand capabilities in Earth observation, in-orbit data processing, AI and space cloud services. In January 2026, Azimut completed a EUR110 million club deal in D-Orbit, structured through a dedicated Luxembourg vehicle and linked to D-Orbit’s ongoing capital increase and international expansion.

At European level, the consolidation trend became even more visible in October 2025, when Leonardo, Airbus and Thales signed an MoU to combine their space activities into a new European space company, expected to become operational in 2027 subject to regulatory approvals and other closing conditions. On the public-programme side, ESA’s CM25 Ministerial Council in Bremen on 26-27 November 2025 approved EUR22.3 billion, the largest funding commitment in ESA’s history, while Italy confirmed a EUR3.5 billion contribution and will host the next ESA Ministerial in 2028.

Launch services also became more strategically important for Italy. On 10 July 2025, Avio was officially designated launch service provider for the Vega launcher family, and on 19 August 2025 it obtained a ten-year French administrative licence to carry out Vega operations from the Guiana Space Centre.

Venture activity remains selective but active. Confirmed 2025 rounds include Pangea Aerospace’s EUR23 million Series A, led by Hyperion Fund and backed by CDTI Innvierte and Primo Space, although Pangea is a Barcelona and Toulouse-based company rather than an Italian start-up; Novac’s EUR3.5 million seed round, backed by Eureka! Fund, CDP Venture Capital and Galaxia; and Astradyne’s EUR2 million seed round, led by Primo Space with Galaxia and Eureka! participation.

A key component of the Space Economy Law is the development of a National Plan for the Space Economy (Article 22), outlining a five-year strategy to identify sector needs and investment opportunities. This includes a multi-year Space Economy Fund to support innovative market growth in space-based products and services, leveraging public and private investments. The law also outlines specific provisions for SMEs and start-ups.

In Italy, public funding remains the backbone of the space sector: combined contributions to the ASI, European Space Agency membership and other national programmes amounted to roughly EUR4.6 billion in 2023, with a government target of EUR7.3 billion by 2026, figures boosted by more than EUR2 billion from the National Recovery and Resilience Plan (NRRP) earmarked for observation constellations, secure-connect broadband and industrial infrastructure. That flow has now been given statutory certainty and a single licensing desk through the Space-Economy Framework Law approved in June 2025, ensuring predictable public procurement and R&D contracts. Non-repayable public incentives complement this spending, most visibly the EUR50,000 zero-equity grants offered by the five Italian ESA Business Incubation Centres to every admitted start-up.

On the private side, equity finance has become dominant: sector-focused venture vehicles such as Primo Space Fund, which closed at EUR85 million, and the public-private Italia Space Venture programme, capitalised with EUR90 million of NRRP money and an additional EUR90 million from CDP with a pipeline exceeding EUR250 million, anchor the majority of seed and Series A rounds, while later-stage cheques are increasingly written by bank-backed deep-tech funds like Neva SGR and by foreign co-investors, as shown by the EUR150 million Series C raised by D-Orbit in late 2024.

Corporate capital reinforces the stack, with Leonardo’s Business Innovation Factory accelerator and Avio’s strategic minority stakes providing both cash and industrial validation.

Debt instruments, though still niche, are gaining traction: Leaf Space completed a capital increase for a total of EUR20 million on top of the availability by the European Investment Bank of a loan for a further EUR15 million through Venture Debt, illustrating how venture debt can sit alongside equity in growth rounds. Also, export-credit agency SACE is expanding guarantee schemes that underwrite satellite exports and technology-transfer projects, according to its 2024 report on the Italian space economy.

Alternative or hybrid channels further diversify financing, including public-private partnerships under ASI programmes, pre-commercial procurement via ESA and the EU’s IRIS² secure-connect scheme, equity-crowdfunding campaigns, revenue-share or milestone contracts offered by primes such as Leonardo and Thales Alenia Space, and the tax-credit regime or “Smart&Start” soft loans for early projects.

Italy attracts space investment through a structured mix of regulatory certainty and layered financing tools: the Space-Economy Framework Law introduces a one-stop licensing desk and a National Space Economy Plan, giving private operators clear rules and long-term visibility; public funding remains substantial via ASI budgets and more than EUR2 billion of NRRP resources channelled into Italia Space Venture, a public-private fund that co-invests with market investors. Also, zero-equity grants from the nationwide ESA BIC network de-risk university and research spin-offs. Complementary incentives include R&D tax credits and Smart&Start soft loans that can finance up to 90% of innovative start-up costs.

Article 27 of Law No 89/2025 also contains special rules on space procurement, including, for tenders not divided into lots, the mandatory reservation, through subcontracting, of at least 10% of the contract value for innovative start-ups and SMEs, together with direct payment of subcontractors and an advance payment of 40% of the price. These rules directly affect downstream markets and the access of smaller undertakings to the space supply chain, and should now be read together with Article 28(2), which expressly preserves the application of Golden Power (Decree-Law No 21/2012), the controls under Law No 185/1990 on military materials and Legislative Decree No 221/2017 on dual-use exports, so that opening the sector to private capital and operators does not displace strategic screening, special security regimes or export-control rules.

Italy keeps the sector formally open to foreign capital. However, there are some limitations, as the acquisition of equity, voting rights, assets or security interests in an Italian company active in aerospace, satellite or other “strategic” infrastructure triggers the Golden Power regime (Decree-Law 21/2012, as amended), which obliges the investor to notify the Presidency of the Council of Ministers, empowers the government to authorise, impose conditions or veto the deal, and applies not only to non-EU parties (generally above a 10% stake) but, in defence-related activities, also to EU investors and to intra-group reorganisations, with aerospace expressly listed among the protected sectors.

There are no hard caps on foreign shareholdings, but screening and licensing mechanisms, together with the possible imposition of behavioural or governance conditions (eg, limits on board representation, data-security obligations, or localisation of critical assets), constitute the practical restrictions that overseas investors must navigate when entering Italy’s space market.

The documentation for NewSpace fundraising generally mirrors that of traditional companies, with a detailed business plan and financial projections. In addition, standard legal documents include articles of incorporation, shareholder and subscription agreements, and a term sheet outlining key terms – pre-money valuation, governance rights, use of proceeds – similarly to other venture financings.

What sets NewSpace apart is the possible inclusion of space-specific milestones and regulatory documentation: technology readiness levels (TRLs), orbital-debris mitigation plans, licences, export control compliance or launch site agreements. In Italy, such documentation is not yet standardised, but across Europe investors look for alignment with ESA or national agency milestones.

Due diligence in space sector deals incorporates the usual legal, financial, and commercial checks seen in standard M&A or venture transactions. However, NewSpace adds technical and regulatory layers: rigorous assessment of proprietary technologies (IP, software, hardware), verification of TRLs, evaluation of supply chain robustness (eg, propulsion, avionics), additional defence restrictions or golden power clearance, dedicated cybersecurity audits of satellite and ground segment assets (NIST CSF/ENISA controls, past incidents), and confirmation that any EO products or user data flows meet GDPR and national data protection requirements (eg, lawful basis, DPIA, cross-border transfer safeguards), together with a review of regulatory compliance on export control and orbital debris requirements.

Operational and management due diligence are especially critical: reviewers examine integration risk between engineering teams and commercial teams, supply chain resilience, and the demand from anchor customers (eg, satellites or public contracts). In Europe, this often involves references to ESA business incubation or commercialisation programmes and checks on public funding drawdowns. Cyber findings and privacy liabilities are now routinely monetised in valuation models and can influence escrow or insurance terms. These extra steps distinguish NewSpace diligence from that of a generic company.

Generally, exit processes in NewSpace often follow three routes: trade sale (acquisition by a larger aerospace or defence firm), SPAC merger or IPO (rare in Europe), and liquidation via secondary sales between investors. The steps are analogous to other tech sectors but accommodate longer timeframes reflecting the extended product development cycle in space (eg, satellite constellation build-out).

In practice, European exits are less frequent due to the still nascent market. Where they occur, acquirers perform similar diligence as in major M&A transactions, with additional attention to technology handover, contract novations with launch providers or ground segment operators, and regulatory transfer of orbital licences. Post-exit integration often combines engineering teams and contracts, requiring explicit transitional services agreements and co-ordination. In rare public exits (eg, via SPAC merger), compliance with exchange regulations and investor roadshows become relevant.

Securities markets give Italy’s space ecosystem the scale and flexibility that venture rounds alone cannot supply. On the equity side, start-ups move from seed to Euronext Growth Milan, raising eight-figure sums under a light disclosure regime. Once revenues mature, they can migrate to the STAR segment or the main list beside primes like Leonardo and launch specialist Avio, whose public valuation then anchors cheaper debt.

When equity windows close, issuers pivot to bonds: large contractors draw on multi-billion-euro EMTN programmes, while tier-two suppliers tap the revived mini-bond market or basket bonds that pool risk across clusters, often with CDP as anchor investor.

Retail and institutional flows are channelled through Milan-listed thematic funds and ETFs that track global space and defence indices, providing daily liquidity and price benchmarks for future flotations.

At the programme level, EU and Italian space initiatives, including Copernicus, Galileo, IRIS² and Italy’s PNRR space measures, help create a more visible industrial pipeline, while listed anchors such as Leonardo and Avio provide public-market reference points for private investors. More cautiously, the EU Listing Act and Italy’s DDL Capitali may improve access to market financing, making public markets a complement, rather than a substitute, to grants and venture funding across R&D, launch, constellation deployment and downstream services.

Italian law generally offers robust IP protection and swift enforcement for activities that also unfold in outer space: the Industrial Property Code (Leg. Decree 30/2005) applies to any infringing act on Italian territory or committed through Italian ground facilities, and jurisdiction over Italian-registered space objects follows them into orbit under Article VIII of the Outer Space Treaty.

EU-level rights reinforce that protection, with unitary patents now litigated before the Unified Patent Court, whose Milan central division section has been operational since June 2024, with decisions and procedural activity of the Milan divisions already recorded in 2025, while customs seizures remain available under Regulation 608/2013.

Italy has no sui generis IP rules for space: the new Space Economy Law does not introduce explicit rules on intellectual property, but it clearly fosters the development, protection, and commercial exploitation of innovative technologies. It encourages technology transfer and recognises the strategic role of highly innovative entities such as start-ups and SMEs. Additionally, it links space activities to the economic and strategic valorisation of intangible assets, including those subject to intellectual property rights.

It is worth noting that remote-sensing data produced within the EU Copernicus programme stays subject to a “free, full and open” access policy for raw datasets, although processed layers can still be protected by copyright, database rights or trade secret law.

Defence secrecy provisions (such as Article 198 of the Industrial Property Code) let the Ministry of Defence classify any patent application whose disclosure might harm national security, and the mechanism is framed in neutral terms that apply to any field of technology, which may include space hardware.

Accordingly, space actors rely on the standard toolkit – Italian or validated European patents limited to national territory, unitary patents, EU trade marks and Community designs covering the whole EU, and worldwide Berne/TRIPS-based copyright or database rights enforceable where communication to the public occurs – and infringement exists whenever manufacture, control, down-link, import or marketing happens in Italy or the EU customs area.

Italian companies may adopt a layered approach to protecting their innovations. In doing so, they may first file an Italian patent application or utility model to secure an early priority date, convert it within twelve months into a Patent Cooperation Treaty application and then enter the European regional phase before the EPO together with only the handful of non-European countries where they expect to manufacture or sell because the cost of duplicating patents everywhere a rocket might lift off is not justified: indeed, under Article VIII of the Outer Space Treaty, jurisdiction in orbit attaches to the state in whose register the spacecraft is entered. Infringement exposure can be controlled by ensuring registration in at least one country where valid rights are already in force.

Software for flight dynamics, autonomy, and ground segment operations can also be retained as a trade secret, protected through layered technical, contractual, and organisational safeguards.

The sector exhibits a higher degree of collaboration than most due to the capital-intensive nature of missions, which are typically executed through temporary groupings of undertakings, ESA- or ASI-led consortia, and EU-funded projects. These structures usually require detailed consortium agreements that define background IP, assign foreground results to the actual developer, and grant other partners non-exclusive, royalty-free rights for project execution and further research. Genuine joint ownership can arise only where contributions are technically inseparable. When unavoidable, parties supplement the default regime of indivisible co-ownership with a tailored agreement addressing prosecution costs, enforcement rights, licensing thresholds, and exit or first-refusal clauses, thus avoiding the commercial deadlock of statutory unanimous consent requirements.

In Italy, intellectual property in the space sector is still governed by the ordinary Code of Industrial Property, EU trade mark and design regulations and the European Patent Convention, so the exclusive rights of a patent, trade mark or design reach only as far as Italian territory and any Italian court seizure or injunction can presently be obtained only for infringing acts that take place on Earth (including launch bases, control rooms, import of satellite hardware, down-linked data, or offers directed to Italian customers) because there is no provision that automatically extends civil IP jurisdiction to a spacecraft.

Currently, there are no publicly documented and easily verifiable precedents specifically cataloguing arbitration clauses included in space-specific commercial contracts in Italy. Unlike well-documented sectors such as energy or construction, the space industry has not generated publicly disclosed arbitration case databases in Italy. The potential for such disputes is nevertheless increasing as the market matures and Law No 89/2025 begins to be applied.

As of mid-May 2026, no publicly documented cases of investor–state arbitration claims specifically related to space law, either involving foreign investors against Italy or against Italian private companies operating in the space sector.

Italy’s involvement in space law dates back to its ratification of international treaties on outer space, including the 1967 Outer Space Treaty and the 1972 Liability Convention. These treaties laid the foundation for international responsibility and liability in the event of damage caused by space objects, principles that Italy incorporated into domestic law early on. However, for decades, Italy lacked a dedicated national law regulating private space activities, relying instead on treaty obligations and administrative measures to deal with potential disputes and responsibilities.

With the gradual privatisation and commercialisation of the space sector, litigation risks have become more complex. The Italian legal framework began to adapt, particularly with the increasing presence of private actors in satellite services, Earth observation, and related technological fields.

At present, space-related litigation in Italy remains rare and largely speculative. There is a prevailing tendency for disputes – especially those involving states – to be settled through diplomatic means. Additionally, the growing role of private actors and complex contractual arrangements means that arbitration remains the preferred mechanism for resolving disputes among commercial players.

However, the litigation spectrum is broadening. Possible disputes now include:

  • recourse actions by the Italian government against negligent operators after state-level compensation;
  • contractual and insurance-related disputes between operators and subcontractors; and
  • issues around satellite data use, IP rights, and cybersecurity breaches involving space infrastructure.
ICT Legal Consulting

Via Borgonuovo 12
20121 Milan
Italy

+39 284 247 194

+39 270 051 2101

info@ictlc.com www.ictlc.com
Author Business Card

Law and Practice in Italy

Authors



ICT Legal Consulting (ICTLC) is an international law firm providing strategic legal compliance support in privacy, intellectual property (IP), and technology, media, cybersecurity and telecommunications (TMT) law. The firm also advises on the design and implementation of governance, organisational, management, security, and control models for data-driven organisations. ICTLC has built a cohesive team of over 80 qualified professionals with deep expertise in ICT, privacy, data protection, cybersecurity, and IP law. With offices in Italy, the Netherlands, Croatia, Denmark, Finland, France, Greece, Spain, Kenya, Nigeria, Australia, Suriname, and Saudi Arabia – and partnerships in 63 other countries – ICTLC ensures clients access to highly qualified legal experts tailored to their specific needs.