Covid rules

As 2022 draws to a close, the Covid-19 situation in Italy looks increasingly uncertain.

The government has further relaxed most of the remaining containment measures from December 31st, while appearing more cautious in recent days and suggesting that some restrictions could soon return.

Revised rules will remove the requirement for infected people to test negative to exit quarantine following a five-day isolation period and reducing the ‘self-surveillance’ masking period for close contacts from ten to five days.

The amendments also bring an end to a requirement for all visitors to healthcare facilities, such as hospitals and care homes, to show proof of vaccination against Covid-19 or a recent negative test result.

However, the health ministry on Thursday extended a mask mandate in all healthcare settings until April 30th 2023, in an ordinance which also ordered mandatory Covid testing before boarding and upon arrival for all passengers flying to Italy from China amid concern about an explosion in the number of cases there as its borders reopen.

Within Italy case numbers are currently still in decline, but the health minister warned of a likely increase after the festive period, describing the situation as “unpredictable” in a circular published on Friday.

In it, the ministry recommended the voluntary use of masks indoors and said that if infection rates spike it would consider adopting “other measures such as working from home or limiting the size of gatherings”.

Covid hotline closed

From January 1st, Italy’s 1500 freephone Covid information hotline will no longer be operational. It is currently unclear whether or not the line will be replaced by another service.

Italy’s 2023 budget

Italy’s budget bill for 2023 is a very mixed bag, including measures from extending a flat tax rate for higher-earning freelancers to an increase in the cash payment limit and an overhaul of the pensions system.

READ ALSO: EU approves Italy’s 2023 budget despite tax evasion concerns

The government wanted to scrap a requirement for businesses to accept card payments for transactions worth less than €60, but this plan has since been scrapped.

You can read more on the budget and what it means for you here.

Building ‘superbonus’

Italy’s popular ‘superbonus 110’, which offers homeowners the chance to claim a tax deduction of up to 110 percent of the cost of renovation work, has been extended into 2023 under the budget bill – albeit in a reduced form.

READ ALSO: Who can claim Italy’s building superbonus in 2023?

From January the maximum available rebate will drop from 110 to 90 percent, and the scheme will exclude many of those who were previously eligible to claim.

You can read more about the precise changes planned for the bonus HERE.

Economy expectations

It’s not a cheerful picture as we enter 2023, as Italy’s economy is expected to slow down significantly. Italy’s national statistics agency Istat predicts 0.4 percent GDP growth for the year, down from 3.9 percent in 2022.

Credit ratings agency Fitch meanwhile predicts GDP growth of -0.1 percent for Italy – though this was revised up from a previous forecast of -0.7 percent.

Domestic demand is expected to be the driving force behind the economy, with foreign demand providing a net negative contribution.

A slight growth in Italy’s employment rate of 0.5 percent is foreseen for 2023, down from 4.3 percent in 2022.

Inflation is also expected to slow down over the coming year – though the timing and speed of the deceleration is still uncertain.

Property prices

Italy’s property market grew in 2021 and 2022 after years of stagnation. But with soaring inflation and a worsening cost of living crisis, will this trend continue in 2023?

Italy’s housing market is expected to experience modest growth next year, albeit at a slower rate than in 2022, according to forecasts including the most recent one from research institute Scenari Immobiliari.

Factors putting the brakes on growth include the soaring cost of living eroding households’ purchasing power, rising mortgage interest rates, and a shrinking economy.

And some financial aid measures introduced under previous governments to promote home ownership – such as a bonus for first-time buyers under the age of 36 – will come to an end by the start of next year.

Read more about the predictions for Italy’s property market in 2023 HERE.

Energy crisis

In response to the soaring cost of energy due to the knock-on effect of the war in Ukraine, the Italian government has provided energy discounts in 2023 which it plans to extend into the next year.

These measures are primarily aimed at helping businesses and families on especially low incomes, meaning the majority of households will not be eligible for help with rising bills.

The new budget is expected to provide energy aid measures for families with an ISEE of up to 15,000 euros, with funds available until the end of at least March 2023.

Meanwhile, it’s not yet known exactly what will happen with electricity and gas prices from January.

For Italian energy customers it will depend on several factors, mainly the wholesale cost of raw materials used for energy production, which remain high at the moment.

READ ALSO: Heating homes: What are Italy’s rules on using fires and wood-burners?

Electricity prices for some customers in Italy on a fixed-rate tariff will depend on rates set by Italy’s energy price regulator, Arera.

By the beginning of January, Arera is expected to announced its latest changes in rates for electricity (covering the first quarter of 2023) and the new price of gas (for the current month of December)

The update is expected to bring a slight drop in the price of electricity, which currently exceeds 50 cents per kw/h for fixed-rate customers.

Driving licence exchange deal for British nationals

Some good news at last for UK citizens living in Italy: The British government announced just before Christmas that it had signed an agreement with Italy over the long-running issue of exchanging driving licences, meaning an end to uncertainty in the new year.

“If you are resident in Italy you will be able to exchange your UK licence for an Italian one without the need to take a test,” an update on the government’s website stated.

No date has yet been given for when it would come into force, but the government confirmed that a further extension of the grace period allowing drivers with UK licences to drive in Italy had also been agreed.

Further details of the agreement are expected to come once the final text is published.

Public holidays

Italy gets a good number of public holidays, but they sometimes fall on a weekend.

This means Italy can have ‘good’ holiday years, with more opportunities for long weekends, and ‘bad’ ones, with few extra days off work (at least, if you work Monday to Friday).

While 2022 wasn’t a particularly good year in this respect, as four public holidays fell on a weekend, 2023 has a few more opportunities for breaks throughout the year..

Here are the dates to plan for next year.

EU travel dates to watch out for

Finally, there are two bits of EU travel news to keep in mind next year.

Firstly, from May 2023 border controls will be implemented in May 2023  in the EEA countries (EU plus Norway and Iceland), which could cause issues for non-EU citizens visiting the EEA countries.

The EES (‘Entry and Exit System’) means automated passport scans at EU external borders, which will increase security and tighten up controls of the 90-day rule – you can find a full explanation of how they work HERE.

The European Commission told The Local that EES does not apply for non-EU citizens who are living in Italy, meaning residents should not use the automated gates but should go to a manned gate and present their passport and residency papers together.

And EU-wide rules on Covid travel certificates are due to expire on June 30th, unless they’re extended. More on Covid travel certificates here.

READ ALSO: What the EU’s new EES system means for travel to Italy

So, there’s clearly a lot to keep an eye on in 2023. We’ll be following the latest updates on all of these topics and more at The Local over the next year, and as always please get in touch if you have any questions about issues affecting your life in Italy.