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WORKING IN ITALY

What happens to your Italian residency permit if you lose your job?

Losing your job is never ideal, but for those in Italy on a work visa there's another layer of worry. Will you lose your residency rights? Can you stay in Italy while you look for a new job?

What happens to your Italian residency permit if you lose your job?
If you lose your job in Italy, the good news is that your work permit does not immediately become invalid. Photo by Scott Graham on Unsplash

The information in this article applies to non-EU citizens living in Italy who have a residency permit (permesso di soggiorno) linked to a work permit and visa: not to EU citizens or their family members, nor people with other types of residency permit.

The good news is that you won’t be kicked out of Italy the minute you lose your job: the expiry date on your residency permit for employment reasons (permesso di soggiorno per lavoro subordinato) won’t change.

Effectively, if you end up unemployed you’ll have until at least the date on which your residency permit expires to find a new job, and you may still be able to remain in Italy beyond that.

The duration of your residency permit for employment will depend on the type of work permit and visa you received, but it is normally valid for one or two years.

You’ll need to renew your residency permit before it expires, or at least within 60 days of the expiry date, at your region’s police headquarters (Questura).

There’s no rule that states you still have to be doing the same job, or even the same type of job, when you renew – as long as you can still meet all of the residency requirements.

READ ALSO: When and how should I renew my Italian residency permit?

You must provide a valid employment contract to renew your permit. This can be for a different job, including a job in a different sector.

You could also apply for a different type of permit if you meet the requirements.

If you lose a job, one option may be to work on a self-employed basis instead and then apply for a permit based on self-employment (permesso di soggiorno per lavoro autonomo) when it comes to the time to renew.

“If you have a residence permit for employment you can engage in self-employed activities if you have the required qualifications and fulfil the necessary legal requirements,” the European Commission’s immigration portal explains.

“Your change of status will be registered when your original residence permit expires.”

READ ALSO:

What happens if you’re unable to find a new job in time? 

If you’re still unemployed when your residency permit is up for renewal, this doesn’t automatically mean you have to leave Italy either.

You’ll need to register as unemployed when you lose your job. This means you’ll then be entitled to unemployment benefits, usually for up to one year, and that you may also be eligible to apply for a ‘residence permit while awaiting employment’ instead of renewing your current permit.

“If you have a residence permit for salaried employment but lose your job or resign, you may be put on the employment placement lists [meaning registered with the job centre] for the remaining period of validity of your residence permit or for a period of no more than twelve months,” the EC immigration portal website states.

“If you lose your job at the end of your permit you can ask for a renewal for a period of no more than twelve months.”

In fact, it may also be possible for residency permits while awaiting employment to be extended beyond 12 months, since Italian law “has not imposed a maximum limit on the possible renewal of an entitlement document conferred previously,” according to the Italian Labour Ministry’s website.

“It is up to the police to assess the situation of applicants on a case-by-case basis, paying particular attention to their family ties, the number of years spent in Italy, and any previous criminal convictions.”

Please note that The Local is unable to advise on individual cases or assist with job applications.

For more information on how these rules apply in your circumstances, see the Italian labour ministry’s immigration website, visit the sportello unico (immigration ‘one stop shop’), or consult the patronato for free immigration law advice.

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For members

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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