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‘Be as curious as you possibly can’

Leah Dunlop, from the UK, has come a long way since working as a waitress in Calabria in the 1980s. Now head of corporate practice in Italy for the Hogan Lovells' law firm, she talks to The Local about setting up a law firm, bridging business cultures and the rewards of learning Italian.

'Be as curious as you possibly can'
Leah Dunlop's first experience of Italy was as a waitress in Calabria. Photo: Leah Dunlop/Hogan Lovells

What brought you to Italy?

The first time I came, I took a gap year after the Law Society finals.

I knew nothing about Italy but a friend of mine at university had a cousin who was setting up a restaurant deep in southern Italy and I said:“OK, if she’s looking for help then I’ll go there”. I arrived in Calabria in August 1982.

How did you find southern Italy in the 1980s?

I thought somebody would speak English or French; when I got down there nobody spoke French, nobody spoke English and nobody spoke Italian – they all spoke Calabrese. It was like landing on Mars.

My friend’s cousin did speak English, but after about two weeks she said she was only going to speak Italian and she never spoke to me in English again. I found that, gradually, I could understand her and in three months I was fluent.

So how come you stayed for more than a year?

The link is always love. Within the first month my friend’s cousin fell head-over-heels in love with a man and invited me on a blind date to meet his cousin. He turned out to be the first person I had met so far who spoke some French, so we could talk, and to cut a long story short he’s my husband now.

We both returned to London in September in 1983 and I started my training contract with Lovells.

Fast forward almost 20 years, you returned to Italy. So what brought you back?

In the mid-to-late 1990s Hogan Lovells started looking at setting up in Italy. The reason I came out was because people there felt that you can only really replicate the culture if you have someone here who represents it and can act as a bridge back to partners in London.

Italy has a very well-established and excellent local law firm system, but it was very difficult to find people who had the same cultural aspirations and so we felt that it would be better for us to set up greenfield.

We started to look for like-minded, international lawyers and in October 2000 we opened with three partners and six associates spread between Milan and Rome. We now have around 90 lawyers.

It was initially a secondment for three to five years and it worked out so well that after four or five years I decided to stay.

How does the work differ?

The Italian economy has a greater level of individual entrepreneurs compared to the UK, which is much more institutional and corporate.

One of the first deals we advised on was the acquisition of Birra Peroni by SAB Miller from the remaining Peroni family. That was the deal that made me want to stay because it was so difficult.

You had SAB Miller, which is corporate, and the Peroni heirs who ran Birra Peroni; it was a complete contrast in cultures and closing that deal used all of my skills.

As you work on such international deals, do you feel like you live in Italy?

With technology, it doesn’t really matter where you are and I’m still doing deals which are based on English law. We really do have coordination at the international level, so I’m living and breathing that during the workday.

But I would say my life outside of work is entirely Italian. We speak Italian at home; the kids all went to international school but they don’t speak to me in English, although they can.

We don’t regularly see any English-speaking friends. Expats are all nice people but they tend to live in an isolated world where they talk to other expats; you don’t learn much from them.

What advice do you have for professionals thinking of making the move?

Go for it and learn as much as you can, all the time – working and while you’re not working – because it’s the only way you’ll really start to appreciate differences in culture.

It’s a great confidence boost to meet the challenge of going to a strange country, working in a different system, and to actually succeed or get through it well and to learn new skills.

The same thing applies to cultures and really understanding people, which is why it’s so nice to learn the language so you can go to the Italian cinema and read Italian books; and listening to Italian comics is great. All that gives you a better understanding.

Learn the language and be as curious as you possibly can about everything. 

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Working remotely from Italy: What are the rules for foreigners?

Moving to Italy to work remotely may seem easier than ever before, but what rules do you need to consider if you’re working internationally?

If you work remotely, can you just move your life and laptop to Italy?
If you work remotely, can you just move your life and laptop to Italy? Photo by Persnickety Prints on Unsplash

All you need is a computer and an internet connection for many jobs, meaning that living in Italy while working for a company based in the US, Canada or the UK, for example, is technically straightforward.

In fact, it’s easier than ever before after the pandemic created a worldwide shift to working from home – including in Italy, where the concept was practically unheard of before.

READ ALSO: Freelance or employee: Which is the best way to work in Italy?

Dubbed ‘smart working‘ in Italy, remote work is widely seen as an opportunity to boost economies outside of the main cities and reverse ‘brain drain’ in the south. It has even kickstarted much-needed efforts to improve the country’s internet speeds and accessibility.

Some of Italy’s many depopulated towns are also offering incentives to remote workers who could help revive the area.

But while it’s becoming increasingly feasible to work remotely in Italy, foreign nationals taking this option need also to consider how it affects their residency, work permits and tax status.

Here’s what you need to know before you pack your laptop and passport.

Digital Nomad or Italian resident?

Digital Nomad is a term used to describe people who work from their laptop or smartphone and move around, from country to country.

It usually involves spending a short time in each place while doing some short-term tech-based work, like blogging or publishing content. Instagram influencers are counted among such type of workers.

Some countries including Spain are even offering Digital Nomad visas to tempt people to head to under-populated areas of the country.

READ ALSO: Will Italy really pay you to move to its ‘smart working’ villages?

Remote working in Italy
Photo: Helena Lopes on Unsplash

While Italy doesn’t specifically have a Digital Nomad visa, there are tax breaks on offer for people moving to Italy to become self-employed – see below for how to obtain this type of visa.

What you need to do depends on how long you intend to be in Italy for. If you want to live in Italy rather than just pass through for a short while, working digitally as you go, you’ll need to get some paperwork in order.

It’s important to have a strategy if you’re planning to work remotely in Italy, according to Nicolò Bolla who runs finance firm Accounting Bolla. His advice is to create a rigorous plan regarding immigration and tax.

“If you fail to set up a proper immigration and business strategy, it could cost you time and money. Make your calculations before making any decisions,” he said.

Working in Italy

If you come here for a short amount of time and continue working for a company in your home country, does that count as working in Italy?

Firstly, you need to consider where your home country is as that has an influence on your first step.

If you hold a passport of any EU country, including Ireland or a Schengen zone country, then you are covered by the European Union freedom of movement rules and can move to Italy with much more ease than is the case for non-EU nationals.

READ ALSO:

In fact, EU citizens and also nationals from Norway, Iceland, Liechtenstein or Switzerland don’t need a permit to work in Italy.

However, if you belong in this category you will need an Italian residence permit for stays longer than three months.

If you’re from a country that doesn’t benefit from EU freedom of movement, such as the UK, New Zealand, Canada or the US for example, you can take advantage of the 90-day rule, which means you can travel to Italy visa-free for up to 90 days in every 180.

This may be enough if you’re a digital nomad and only want to spend some time in Italy before returning home. However, if you want to stay longer, you’ll most likely need to work out which visa you’ll need.

Work visas

If you’re planning to move to Italy outside of these parameters you’ll need a work visa. Let’s look at non-EU citizens, as work visas apply to this group.

As a non-EU citizen, there are three main documents you need to live and work in Italy:

  • a work permit
  • a work visa
  • a residence permit (permesso di soggiorno) within 8 days of arriving in Italy.
Photo by Avi Richards on Unsplash

If you’re working remotely, you may choose to be self-employed or, if you have a really understanding boss who’ll let you live abroad, you may continue working for a company in your home country.

Let’s look at the self-employment route first.

READ ALSO: ‘Smart working’? Here’s what you need to know about going self-employed in Italy

If you’re planning on working for yourself, with potentially various clients, but you want to do so while living in Italy, you’ll need a self-employment visa.

The process can be tricky and take months, so it’s best to ensure you account for long timescales before transferring your life to Italy.

It’s also far from guaranteed, even if you’re ready to take on the bureaucracy. Tax advisor Bolla warned that this visa has one of the highest rejected application rates.

What’s more, there is a cap on how many foreign national workers are allowed to come into Italy each year, which is determined by the so-called Inflow Decree, or ‘decreto flussi’.

This only opens for a few months every year and it’s the only time non-EU nationals can apply for all kinds of work visa.

This year’s cap has still not been released, but for 2020 the government decree set the limit at 30,850. Very few of those are allocated to self-employed workers – just 500 in 2020 – so you’ll need to be tenacious and quick to get hold of one.

It’s also worth bearing in mind that, among other documents, you’ll also need to show proof of accommodation, funds exceeding €8,500 and a police check.

If you do manage to claim one of these elusive self-employment visas, you can enter Italy.

Once you’re in the country, you have eight days to apply for a ‘permesso di soggiorno’ (a residence permit), which will be issued by your local Questura (the provincial police headquarters).

The visa is valid for two years initially and can be renewed.

What about being an employee for a company in another country?

In this case, you’re still on a payroll somewhere and don’t count as self-employed in Italy.

As stated above, provided you are an EU national, there will be no requirement to obtain a visa or work permit.

If you’re not lucky enough to be in this group, it gets tricky.

EXPLAINED: How to get an Italian work visa

How to work remotely in Italy.
Photo by Hannah Wei on Unsplash

If you are British and covered by the post-Brexit Withdrawal Agreement (for people resident in Italy before December 31st 2020) – the carta di soggiorno maintains your right to work in Italy.

However, the UK/EU Trade and Cooperation Agreement does not contain any provisions to allow new remote working arrangements in the way that UK citizens may hope is possible.

EXPLAINED: What Brits need to know about visas for Italy after Brexit

Employees are entitled to stay in Italy for a maximum period of 90 days without needing to apply for a visa or a residence permit.

Beyond that, it’s currently not possible to stay working in Italy for any longer under these conditions – that is, remotely and without a work visa.

For everyone else, Italy’s official visa portal has created a questionnaire which shows the visa requirements that may apply to you, depending on your reason of stay and how long you intend to stay.

Furthermore, the EU guidelines on moving and working in Europe have provided this advice: “As a basic rule, you are subject to the legislation of the country where you actually work as an employed or a self-employed person. It doesn’t matter where you live or where your employer is based.”

Living and working in Italy

If you decide to make the move and live and work in Italy, what do you need to do?

Once you’ve figured out which work visa is right for you (for those who need one), you’ll then need to apply for residency.

A work visa is a type of long-stay visa that allows you to enter Italy only. After that, you will also have to get an Italian residence permit (permesso di soggiorno) in order to be allowed to stay for longer than 90 days.

READ ALSO:

There are a few different types of permit to stay in Italy and it must correlate with your intentions and with the conditions of your visa.

The permesso di soggiorno is usually processed in about three to six months, and the duration varies according to the type. Having the permit will give you full access to public healthcare, social assistance and education.

After five years of residence in Italy a non-EU citizen can apply for a permesso di soggiorno per soggiornanti di lungo periodo (permission to stay for a long period), which can be renewed less frequently. But you’ll need to meet certain conditions like having a minimum income and passing a language test.

Tax and social security

This is often an area that trips people up if they work for international clients but live in Italy. Where do the taxes get paid to?

“If you live in Italy, you pay taxes in Italy,” Bolla clarified.

If you’re a resident in Italy, as an employee you are subject to Italy’s income tax rates known as ‘Irpef’ (L’imposta sul reddito delle persone fisiche), which currently range from a minimum of 23 percent to a maximum of 43 percent.

The employer is also required to pay the social security contributions to Italian Social Security Authority (INPS) – even if the employer is based outside Italy.

READ ALSO:

This is currently equal to a minimum of 33 percent of earnings, of which approximately 9 percent falls to the employee.

Different tax rates apply for freelancers with tax breaks available to new residents – and of course, you’re responsible for paying social security contributions too.

You’ll need to file an annual tax return in Italy as stipulated by the worldwide taxation principle, which dictates that you must report your worldwide income and therefore file your taxes in the country where you reside.

You shouldn’t be paying your taxes twice, however, according to Italy’s Inland Revenue (Agenzie delle Entrate).

“Italy has bilateral agreements with many foreign countries to avoid double taxation on income and capital. These agreements establish the range of the power to set taxes of the two States,” the tax authorities stated.

The subject of tax for remote workers is complicated, so please seek professional advice based on your personal circumstances before proceeding.

Have you moved to Italy to work remotely? Please get in touch or leave a comment below to tell us about your experience.

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