SHARE
COPY LINK
For members

WORKING IN ITALY

Digital nomad: What are the rules on working remotely from Italy?

Many jobs can now be done from anywhere with only a laptop and a decent wifi connection - but what are the rules if you want to work remotely in Italy for a company back in your home country?

Digital nomad: What are the rules on working remotely from Italy?
Working from home might be technically easy, but there other things to consider. Photo: Chris Delmas/AFP

Remote work, or even just working from home, was almost unheard of in Italy just a few years ago but that’s all changed since the pandemic.

These days it’s perfectly possible to be physically located in Italy while working remotely for a company based in the UK, the USA or elsewhere. More companies worldwide are open to the idea of remote working, and Italy’s internet connections are (gradually) improving.

So it seems easier than ever before to move abroad and take your existing job or freelance business with you.

But anyone considering doing this will also have to factor in paperwork: namely residency and work permits, and tax status.

What are the rules?

What you need to do depends on where you’re from and how long you intend to be in Italy for. 

If you want to live in Italy longer term, rather than just passing through for a short while, you’ll need to get some paperwork in order.

If you are an EU national, there will be no requirement to obtain a visa or work permit.

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

READ ALSO: Remote workers: What are your visa options when moving to Italy?

Person working on their laptop in a cafe

The rise in remote working means more people are looking to work temporarily in different countries. Photo: Alizée Baudez, Unsplash

If you’re from a country that doesn’t benefit from EU freedom of movement, 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.

See more details on these rules in a separate article here.

This may be enough if you only want to spend a short time in Italy before returning home. However, if you want to stay longer, you’ll most likely need a visa.

What type of visa will you need?

You might have heard the term Digital Nomad, which is usually used to describe someone spending a short time in a country, or moving between various countries while doing some short-term tech-based work – for example bloggers or Instagram influencers.

Italy doesn’t have a specific Digital Nomad visa – at least, not yet. One has been promised in Italy for some time, and was even approved in March 2022 – but the process has since stalled and there’s no sign of this visa becoming available any time soon.

And unfortunately the options available at the moment are not always viable for self-employed freelancers and remote workers, immigration law experts say.

The self-employment visa, or visto per lavoro autonomo, is the permit that most non-EU freelancers would probably expect to apply for when seeking to move to Italy for work. 

But successful applications are rare. So rare, in fact, that Costanza Petreni, a senior immigration consultant at specialist law firm Mazzeschi, says she actively discourages clients from taking this route.

READ ALSO: Italy confirms how many work permits it will grant in 2023

“We have so many clients asking for this type of application, because in the absence of a digital nomad visa there’s almost no other option. But what we tell them is it’s extremely hard and uncertain,” Petreni says.

As well as a low number of work permits available via this route (the limit has been set at 500 per year for the past few years) experts say another problem is the absence of clear guidance from consulates as to exactly what documentation applicants will need.

Here’s a breakdown of the visa options available at the moment for those hoping to work in Italy.

Find more information on the Italian Foreign Ministry’s visa website here, which details the visa requirements that may apply in your circumstances.

Will you need to pay Italian taxes?

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,” clarifies tax expert Nicolò Bolla who runs Accounting Bolla.

If you’re a resident in Italy, your income will be subject to tax known as ‘Irpef’.

READ ALSO: Reader question: Do US nationals in Italy have to pay taxes twice?

For employees, 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.

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 or tax office (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 of the two states to set taxes,” to the Italian tax authority’s website says.

Please note that The Local is unable to advise on individual cases. For more information on visa applications, consult the Italian embassy or consulate in your country or an immigration law professional.

Member comments

  1. A quick note for Americans…if you’re a 1099 freelancer, you can theoretically work for whomever from wherever, including 90 days in Italy. But if you’re a remote W2 employee for a US company, the IRS requires you to be physically present in the state you’re a resident of “the majority of the time.” So 98% of “remote” jobs are not “work from anywhere” positions, and would presumably require federal and probably state approval, not just permission from the Italian side. Given the complexities and the fact there’s already a freelance visa, I don’t think the digital nomad visa is likely to see daylight anytime soon, if ever.

Log in here to leave a comment.
Become a Member to leave a comment.
For members

MOVING TO ITALY

Can you work in Italy on an elective residency visa?

The elective residency visa is one of the most popular routes to Italian residency, but what exactly are the rules on working in the country once you arrive?

Can you work in Italy on an elective residency visa?

If you’re looking to relocate to Italy as a non-EU national without close family ties or a job offer from an Italian employer, you’ll likely have come across the elective residency visa, or ERV.

The ERV is the Italian visa best suited to many applicants, with a relatively low minimum income threshold and few other strict barriers to entry. But does it allow you to work and receive a salary once you arrive in Italy?

The short answer is no: Italy’s elective residency visa is specifically designed for people who want to move to Italy without working.

Applicants for the ERV must meet a passive income requirement of at least €31,000 per person per year or €38,000 for married couples, plus five percent per dependent minor. 

READ ALSO: Five expert tips for getting your Italian elective residency visa approved

The key is in that word ‘passive’ – while annuities, pensions and rental income all count, you can’t receive an active income from work while on the visa.

Italy’s unemployment rate is one of the highest in Europe, so the government is very careful to protect the domestic jobs market (which is why many were surprised when parliament last month approved a digital nomad visa that does allow foreigners to work from Italy, in theory for Italian employers).

READ ALSO: How easy is it to get Italy’s new digital nomad visa?

That means the vast majority of the people who move to Italy on the ERV are retirees in their 60’s or older.

Of course, that doesn’t mean that there won’t be some people who try to get around the rules by working under the table or remotely.

But if caught, you’d be found to be in breach of the terms of your visa and face being kicked out of the country – so it’s safest to follow the rules. 

Read more about the ERV and other visa options in The Local’s Italian visa section.

SHOW COMMENTS