Maritime cabotage as well as maritime services of port areas are reserved for Italian and Community-owned ships. Registration of Italian flag vessels is reserved for Italian and EU citizens, and companies headquartered in Italy or in the EU, with a majority the share capital owned by Italian or EU citizens. Registration is also possible for newly built ships or ships originating from a foreign non-EU register, belonging to natural, legal persons or non-EU foreign bodies which directly assume the operation of the ship through a permanent establishment on the national territory with management entrusted to a natural person or legal entity of Italian nationality or of other European Union countries, domiciled in the place of registration of the ship, which assumes all responsibility for its exercise towards the administrative authorities and third parties, with a declaration to be made to the office of registration of the ship, according to the rules laid down for the declaration of shipowner

"Art. 143. (((Nationality requirements of owners of Italian ships).))
 (((1. They meet the nationality requirements for registration in the freshmen or in the registers referred to in Article 146:
a) ships that belong for a share exceeding twelve carats [majority owned by] to natural persons, legal entities or entities from Italy or other European Union countries;
b) newly built ships or ships originating from a foreign non-EU register, belonging to natural, legal persons or non-EU foreign bodies which directly assume the operation of the ship through a permanent establishment on the national territory with management entrusted to a natural person or legal entity of Italian nationality or of other European Union countries, domiciled in the place of registration of the ship, which assumes all responsibility for its exercise towards the administrative authorities and third parties, with a declaration to be made to the office of registration of the ship, according to the rules laid down for the declaration of shipowner.))
[...]
Art. 224. (((Reservation of the provision of cabotage services and maritime service)))
((1. The cabotage service between the ports of the Republic is reserved, within the terms set out in Council Regulation (EEC) No. 3577/92, of 7 December 1992, to Community shipowners who use vessels registered in a Member State of the European Union and flying the flag of the same Member State, provided that such ships fulfill all the necessary conditions for admission to cabotage in that Member State.
2. The provisions referred to in paragraph 1 apply to ships carrying out maritime services in ports, bays and beaches.))[...] (Navigation Code (ROYAL DECREE 30 March 1942, n. 327), last amended by DECREE-LAW 14 August 2020, n. 104, Articles 143 and 224 [google translation])
Navigation Code (ROYAL DECREE 30 March 1942, n. 327), last amended by DECREE-LAW 14 August 2020, n. 104, Articles 143 and 224 
[<a href="http://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:regio.decreto:1942-03-30;327!vig=2014-09-12">Code</a>]