Well there are no limitations on who can incorporate a company in Cyprus, so it apply in your case.
Cyprus and Italy has signed a DTA if I'm not mistaken for that reason you can structure the Cyprus company in a way that you only need to pay the 10% corporate Tax in Cyprus and not the corporate tax rate in Italy.
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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.