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WORKING IN ITALY

Longer hours but more flexibility: How ‘smart working’ has changed Italy’s work culture

Remote working was widely embraced in Italy for the first time amid the pandemic. But along with the positives have come longer working hours and an inability to switch off from the job, a new study shows.

Working from home, often known as lavoro agile or ‘smart working‘ in Italian, was rare in Italy before the pandemic forced many companies to move their operations online.

With just a few thousand people working from home at the end of 2019, smart working has since “exploded” in Italy – raising new questions about how the nation’s working culture will look in future, according to a study carried out by the Italian Metalworkers’ Federation and the Catholic University of Milan.

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

“Agile work is challenging but allows a flexibility appreciated by workers – now we need more negotiation to get out of the emergency,” said the Federation’s secretary general, Roberto Benaglia.

The survey revealed that over half of respondents (59 percent) complained that their hours now extended beyond what was agreed in their contract, while almost two thirds (61 percent) said they couldn’t disconnect from work at the end of the day.

One in ten said they were suffering from loneliness and a quarter of respondents revealed the relationship with their colleagues is what they “miss a lot”.

Photo: Euan Cameron/Unsplash

Not having a clear divide between work and a personal life hasn’t all been negative, however.

On a scale of one to 10, people scored the flexibility of home working as an 8, with over a quarter (28 percent) saying they don’t want to return to the office at all.

Almost one in six (14 percent) rated smart working positively, because of the opportunity to spend more time with their children, while one in five (21 percent) claim to have had improved concentration.

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Some 80 percent of the almost 5,000 respondents said they had never worked from home before the pandemic, but thought the shift in the way Italy is doing business had created new ideas for how to work in the future.

Over half (58 percent) said they would like to work in a hybrid model, spending some days in the office and some days remote working.

How this would work in practice is up for debate: “The experience of the pandemic must now give way to a sustainable and lasting model of agile working, which focuses on skills and generates both capacity for companies, and wellbeing and satisfaction for employees,” stated the Federation.

“These months have been a big test, there is no going back – the challenge is to promote and improve agile working by increasing the degree of control by workers, while maintaining good living conditions,” it added.

READ ALSO: ‘You might not want to stay here, it’s crazy’: What to expect when you work for an Italian company

The findings are based on employees mostly in the aerospace, ICT, software production and automotive sectors in companies based in large cities including Rome, Milan, Turin, Bologna, Genoa and Trieste.

Other emerging figures have also nodded towards a new way of working in Italy in the future.

In a study by Illimity Bank, flexibility came up again as a positive outcome of the ‘smart working’ trend, but the study also found that it had its impacts on mental health.

“After our experiences, we can now say that even psychologically, 100 percent remote working is not a sustainable method for too long,” said the bank’s HR manager Marco Russomando.

“Apart from the difficulty of separating private life and work, working all the time through a screen is not in our nature, which is also expressed through sharing, co-creation and training side by side,” he added.

Russomando said “the right balance” was needed, although how this will be implemented across all companies is unclear.

However, regardless of how employees and companies decide to operate in future, he pointed to results – rather than simply being present – as the real measure of success.

“At last we can experience a new way of working in which people are evaluated on the basis of objectives and not on the basis of the hours they spend in the office, as should be the case in the advanced service sector of a truly modern country,” he added.

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TAXES

‘How we moved to Italy and only pay tax on 50 percent of our income’

Italy’s impatriate tax scheme appeals to many foreigners planning to relocate to Italy, but how exactly does it work? One British couple who used it tell reporter Silvia Marchetti about their experience.

'How we moved to Italy and only pay tax on 50 percent of our income'

Thanks to Italy’s appealing impatriate tax scheme, John and Linda Baker, both 42, from Brighton, now pay tax on just 50 percent of their income – which is about as low as any Italian could ever dream of.

Both remote workers, John is a web designer working for UK clients, while Linda is a freelance copywriter.

In November they rented out their house in Brighton and moved to the Italian seaside resort of Amantea, in Calabria, where they bought a two-bedroom cottage in the countryside, far from the touristy coast, for €59,000.

“We applied for the impatriate tax scheme as soon as we realised we wanted to change life, quit the rat race and move to a sunny place where life was slower-paced,” John tells The Local. 

“It sounded like a great deal, paying tax on just half our income means we get to save a significant amount of money we would never have in the UK.”

This special tax regime for those moving to Italy was approved in 2019 and is available to people who move to any part of the country. Aimed at qualified and skilled foreign workers, it’s for both employed and self-employed people who become fiscal residents and reside in Italy at least 183 days per year.

READ ALSO: What is Italy’s impatriate tax rule and how is it changing?

The 50-percent tax relief on income applies for a maximum of five years and can be extended for another five.

The benefit is capped at an annual salary of €600,000, while no relief is in place for earnings over this amount. The exempt portion of income rises to 60 percent for a worker with at least one child under 18. 

The scheme has been amended over the past few years, and though it has become somewhat less appealing, it still gets plenty of interest. Italians living abroad can also apply and benefit from it. 

Italy’s government introduced the scheme mainly to lure back qualified Italian workers and researchers who had moved abroad. But those taking advantage of it are often foreigners longing to live in Italy.

The Bakers got help from an immigration legal expert in Rome, who sorted out the paperwork for them and filed their application to the Italian authorities. 

READ ALSO: If you want quality of life, choose Italy’s sunny south over the efficient north

“We could have applied directly from the UK but we thought it was better to hire an Italian professional on the ground, with deep knowledge of Italian bureaucracy and the required skills to navigate through procedures,” says Linda. 

The lowest tax band rate in Italy is 23 percent, while the highest is 43 percent. While the Bakers prefer not to disclose how much each one of them earns, they say they will be saving a lot of money, considering income tax in the UK hovers around 40 percent. The couple is confident that the two of them together could save up to €30,000 in taxes per year. 

With the extra money, the Bakers would like to buy another holiday home in Naples, so as to be closer to Rome.

READ ALSO: ‘Research and more research’: How do you choose the right part of Italy to move to?

They decided to ditch the UK due to soaring living costs, and because they wanted to live the Italian dream before they retired, while they were still actively working. 

“Usually when couples retire they start looking for a fresh start, but we did not feel like waiting until we were 60 or 70 to make the big leap and relocate to Italy,” says John. 

Amantea is relatively cheap. Dinner for two people is €35, while utility bills are among the lowest in Italy, adds Linda.

“There are also premium foods like Tropea’s red onions, Calabria’s famous chili peppers, and delicious pasta dishes which we could never even dream of back in the UK”, says John. 

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