Are europe and tech startups incompatible?

I might be wrong, since Italy might be different, but in my experience, incorporating in another EU (or elsewhere) country isn't a big issue at all. A lot of people incorporate in the UK, other European countries, or the US, Delaware especially. Of course if you pay salary to yourself from that company, and you live in Italy, you'll still be taxed at the tax rate of your residence. But in general, there is no law against opening up a company elsewhere, if you properly report about your business, and don't use it to avoid taxes. Yes, you have to deal with some bureaucracy, but nothing major. If you're one guy/girl with a laptop, meaning no outside people involved, do you have a product yet? Do you have something people use? Do they have to pay to use it? If yes to all of that, then you need a company. Earlier than that you shouldn't worry too much about it.