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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?

Published: 27 October 2021 17:04 CEST
Updated: 14 March 2022 09:09 CET
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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WORKING IN ITALY

Cafe culture and clocking out: Why remote work is so unpopular in Italy

The era of working from home in Italy ended with the Covid pandemic as Italians still overwhelmingly prefer to commute to the office and network in person, writes Silvia Marchetti.

Published: 4 September 2023 17:00 CEST
Cafe culture and clocking out: Why remote work is so unpopular in Italy

With the Covid pandemic over, most Italians are now back to the office, sitting behind their desks and again clocking in at work. What happened to remote working or teleworking (also called ‘smart working’ in Italy)?

In my view this is (or was) the greatest novelty to come out of the pandemic, but it does not seem to have stuck in Italy. What have we learned from the pandemic about revolutionising the traditional workplace? Nulla.

Almost 80 percent of Italians worked from home during the pandemic – mostly for the first time, as the concept was almost unheard of before. But just 14.9 percent still work remotely today.

One reason for this is the simple fact that Italians need to hang out. They’re real political animals and for many the office is their most important social hub, after the family setting.

Unlike in other Western countries, the office is where 90 percent of one’s career is built by networking and PR, rather than on real merit and achievement. My dad always says that an after-lunch espresso with “important colleagues” is more valuable than a 12-hour shift sitting in front of a computer.

Italians have a saying: “le conoscenze contano”, meaning that knowing the right people can advance your career.

I once had a job contract at a leading industrial lobby in Rome, and I remember hours spent at the bar or having lunch chatting with colleagues and employees about future projects and summits, when all I wanted to do was rush through the speeches and papers I had to write. Eventually, I quit.

READ ALSO: ‘It’s crazy’: What to expect when you work for an Italian company

Italians are also very physical in everything they do, so the workplace must be a concrete spot, set apart from home. 

Multi-tasking is hard, and flexibility at work is as feared as the plague. It is seen as working seven days a week, on a 24-hour basis if you do it remotely. Italian workers would rather be with colleagues in person at the office, then at the beach having to answer emails.

The working week in Italy is as sacrosanct as Sunday mass. Once you’ve clocked out, you’re out. The universe may collapse but it’s not your call to step in and rescue it. Smartphones may have somewhat blurred the work-home boundary even in Italy, but haven’t destroyed it.

Lately I have noticed that virtual press conferences, events, and festivals are no longer available, during the pandemic I just needed a laptop to listen to speeches. Now I often need to take a taxi to get to the venue. It’s aggravating. 

Back to the daily commute: in Italy, seeing colleagues in person is all-important. Photo by JEsse on Unsplash

All over the world people go to cafés and bars to work from their laptops. But in Italy it’s a bit different. 

Over here, we do things our way: writing a paper while you devour a cornetto would not be cool. My gran had a saying: “Ogni cosa a suo tempo”, meaning ‘everything has its time’.

Cafés for most Italians are hangout spots where you chat with friends or colleagues and have a quick coffee on the run, gulping it down at the counter rather than sitting down. They’re not ideal places for working. 

READ ALSO: Italy ranked one of the worst countries for expats to work in – again

In some northern Italian cities, sitting for hours at nice panoramic cafés with a steaming cappuccino while answering emails may be more popular, mainly because many cafés in Milan, Bologna and Turin are huge and have several rooms. But this is not something you can do in the south.

All of this means Italy is probably one of the worst countries in Europe for remote work, and it’s not just because of the mindset. 

Many parts of the country still lack high-speed internet, especially rural areas, but also cities. I live north of Rome and don’t even have a home WIFI, so I’m considering subscribing to one of those internet companies that provide signal to yachts in the middle of the sea and campers on isolated mountain tops. 

This lack of digital infrastructure makes it hard both for Italians teleworking and for foreigners hoping to relocate to Italy and work remotely for companies abroad or as freelancers. 

READ ALSO: What happened to Italy’s planned digital nomad visa?

However, I still think that even if all of Italy was hooked up with supersonic internet, Italians would still prefer to commute to a physical workplace each day.

Foreigners have long been waiting for the ‘digital nomad’ visa, approved in 2021 and then forgotten by the new government that seems to have other priorities. One politician from the ruling coalition told me the law is rotting in parliament simply because there are so many other ways to lure foreign money which are viewed as safer.

The cheap homes bonanza, the 7 percent flat tax rate for expat retirees in several southern regions, and the elective residency visa for pensioners, are all examples of more concrete measures sure to bring significant taxes into state coffers. 

Meanwhile, digital nomads are often seen as ‘vague’ freelancers whose job isn’t quite clear, who can’t be easily classified and tracked down. In other words, digital nomads are somehow perceived by authorities, in my view, as potential tax dodgers.

I think Italy has lost an opportunity to really embrace remote work. If not even a global pandemic has the power to modernise the Italian workplace, I don’t know what can.

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