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The new Italian space law — a comprehensive regulatory framework for space operations

The new Italian space law: a comprehensive regulatory framework for space operations
Published Date
Jun 25 2025
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On June 25, 2025, Law No. 89/2025 (the “Italian Space Law”) came into force, marking a pivotal development in Italy’s approach to space activities to promote investments in the space economy. For the first time, Italy will have a unified and comprehensive legal framework governing space operations, addressing a sector that, until now, has been regulated only by a patchwork of international treaties and limited domestic provisions.

Background

Prior to the Italian Space Law entering into force, Italy’s legal landscape for space activities was rather fragmented. While Italy is a party to several key international conventions—including the Outer Space Treaty (ratified by Law No. 87 of January 28, 1970), the Rescue Agreement (implemented by Presidential Decree No. 965 of December 5, 1975), and the Liability Convention (ratified by Law No. 426 of May 5, 1976)—there was no single, cohesive national law governing space operations. Additional domestic laws, such as Law No. 23 of January 25, 1983 (compensation for damages caused by foreign-launched space objects) and Law No. 153 of July 12, 2005 (registration of space objects), provided only partial coverage.

The new Italian Space Law fills this legislative gap, offering clarity and certainty for private operators in the sector who—thanks also to continuous technological progress in recent years—are increasingly involved in space missions with significant investments.

Regulations

The Italian Space Law regime will continue to operate alongside special regulations that still apply to the sector, such as those concerning “Golden Powers,” armaments, and dual-use items.

Key provisions of the Italian Space Law

  1. Definition and role of the space operator

The Italian Space Law defines the figure of the “space operator” (operatore spaziale) as any individual or entity conducting space activities, including launching, releasing, managing in orbit, or returning space objects. The law places primary responsibility for compliance, insurance, and liability on the space operator.

  1. Authorization process for space activities

Space operators must obtain authorization from the “responsible authority” (the Italian prime minister or another designated political authority overseeing space policy), with the Italian Space Agency acting as an intermediary. The agency conducts a preliminary assessment within 60 days and communicates its findings to the responsible authority, which must decide on the application within 120 days of its submission. The authorization outlines the rights and obligations of the operator, any specific requirements (such as obtaining security clearances like Nulla Osta di Sicurezza (NOS) or Nulla Osta di Sicurezza Industriale (NOSI)), and the duration of the authorization, which is not fixed in advance.

Authorization to carry out space activities is granted only if specific requirements are met. These include technical requirements, which will be further detailed by an implementing decree—such as ensuring safety, effective risk management, resilience of satellite infrastructure to cyber and physical threats, and environmental sustainability throughout the space object’s life cycle. Additionally, applicants must meet general moral requirements as set out in Italian public procurement law, demonstrate professional capability, and possess adequate financial reliability (with certain exemptions for start-ups, micro-enterprises, and small and medium-sized enterprises (SMEs)).

The issuance of the authorization might be denied for reasons such as national security, connections with hostile states, or conflicts with the fundamental interests of the republic.

  1. Registration and transfer of space objects

All space objects must be registered with the National Registry of Space Objects Launched in the Extra-Atmospheric Space. The space operator is responsible for providing the necessary registration information, including details of ownership. Any transfer of ownership of a space object requires prior authorization from the responsible authority.

  1. Civil liability regime

The law establishes a strict liability regime for space operators, who are liable for damages caused to third parties for the conducting of space activities unless they prove that the damages were caused exclusively by a third party’s willful misconduct or by the injured party. Additionally, the Italian state may seek recourse against the space operator if it is held liable by a foreign state for damages caused by Italian space objects.

  1. Insurance requirements

Space operators are required to maintain insurance (or equivalent security) covering losses related to space activities, with a minimum limit of indemnity of EUR100 million per loss. Ministerial decrees may set lower limits for specific risks, but not below EUR50m (or EUR20m for innovative start-ups engaged in research). Importantly, third parties have a direct right of action against the operator’s insurers.

  1. Criminal and administrative sanctions

Failure to comply with the Italian Space Law’s requirements can result in significant sanctions. Administrative sanctions for obstructing oversight activities range from EUR150,000 to EUR500,000. Criminal sanctions—including imprisonment for three to six years and fines ranging from EUR20,000 to EUR50,000—may be imposed for conducting space activities without proper authorization or after authorization has expired. Furthermore, if violations occur, the authorization may be suspended or revoked. Both the operator and the owner of the space object are required to cooperate fully with the Italian Space Agency, providing all requested information and facilitating inspections.

  1. Special public procurement rules

Special provisions and exemptions from the general Italian public procurement laws apply to the awarding of public contracts in the space and aerospace technology sectors. To support operators—particularly innovative start-ups and SMEs—the Italian Space Law introduces specific rules. Notably, it requires that at least 10% of the contract value must be reserved for these companies through mandatory subcontracting and the percentage of work assigned to SMEs and start-ups may be considered a favorable evaluation criterion for bids. Furthermore, the Italian Space Law also requires that contractors receive an advance payment of 40% of the contract value within 15 days of starting activities.

  1. Space Economy Fund

To foster technological innovation, productive growth, and the commercial development of national activities within the space economy, the Italian minister of Enterprises and Made in Italy (MIMIT) has established the “Space Economy Fund” with an initial budget of EUR35m for 2025. The fund may provide support through non-repayable grants covering up to 70% of its resources or financial instruments, or a combination of both. The specific eligibility criteria and operational procedures will be set out in a decree by MIMIT, which may also enhance existing incentives or introduce public-private partnership models.

Conclusions

The enactment of the Italian Space Law represents a major step forward in the regulation of space activities in Italy. By establishing clear rules on authorization, liability, insurance, and sanctions, the law provides much-needed legal certainty for space operators and aligns Italy with international best practices. Notably, the liability regime is operator focused, with a presumption of liability that can only be rebutted by the operator. However, owners of space objects appear rather shielded from civil liability arising from space operations. This new framework is expected to foster growth and innovation in Italy’s space sector while ensuring robust protection for third parties and the public interest.

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