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WORKING IN ITALY

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

Italy does not (yet) have a special 'digital nomad' visa - so what other options are available to freelancers and remote workers? Here's what you need to know if you're planning a move.

Remote workers: What are your visa options when moving to Italy?
Living the remote-working dream in Italy will involve a bit of paperwork. So where should you start? Photo by David Espina on Unsplash

Italy has announced that a new visa option for ‘digital nomads’ or remote workers is on the way for non-EU nationals wanting to move to the country.

Though the government is yet to give details of how the application process will work, it’s hoped that the new visa will mean a far easier route to a new life in Italy for the growing number of people who can work from anywhere with just a laptop and an internet connection.

READ ALSO: What do we know so far about Italy’s digital nomad visa?

The idea of swapping a spare bedroom office in colder climes for a new life in Italy is proving especially tempting in combination with the country’s growing number of discount home purchase or rental schemes aimed at repopulating remote, rural villages.

While it is possible for many non-EU nationals to spend up to 90 days in Italy without any visa at all, those wishing to work legally while here must apply for a visa and work permit

And the current visa options available are not always viable for self-employed freelancers and remote workers, immigration law experts say, due to the strict quotas and requirements involved.

Here’s a breakdown of the other visa options available at the moment for those hoping to make the move to Italy.

Self-employment visa

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.

Successful applications, however, are rare.

So rare, in fact, that Costanza Petreni, a senior immigration consultant at the immigration firm Mazzeschi, says she actively discourages clients from taking this route.

READ ALSO: Working remotely from Italy: What are the rules for foreigners?

“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.

The visas are released in annual quotas, via Italy’s decreto flussi, on a first come, first served basis. For the last few years, including in 2022, only 500 have been made available each year.

Petreni says one of the main issues they face, however, is less a lack of available permits than the absence of clear guidance from consulates as to exactly what documentation they need.

A common obstacle, for example, is that the consulate will require the applicant to be registered with the relevant professional body or guild for their profession – but won’t specify which one they have in mind.

READ ALSO: How many people does Italy grant work permits to every year?

If you work remotely, can you just move your life and laptop to Italy?
Just 500 self-employment visas were released by Italy in 2022. Photo by Persnickety Prints on Unsplash

In Italy, membership of such bodies is standard, but in most other countries, it tends to be only very established professions that even have their own guilds or royal societies – making this a significant stumbling block for many applicants.

“Even for photographers, they’d say, well, you need to register with the relevant body; but there isn’t one, that’s the problem,” says Petreni.

She says the process can sometimes be a little easier for those who are already in Italy on, say, a study visa.

That’s partly because those who are already present in Italy and applying to convert their existing residency permit into a work permit come under a different quota, with more spaces available (7,000 in 2022).

It’s also because once you’re in Italy, it’s your local prefecture, rather than an Italian consulate, that handles the application process – and in Petreni’s experience, dealing with the prefecture can be simpler.

“In theory, the requirements are the same whether you convert your permit or whether you do a one-time visa application for self-employment. But the authorities checking are different.”

One key difference, she notes, is that prefectures will generally be able to tell you whether they have any spaces left in their quota and whether it’s worth filing an application as a result, whereas consulates typically won’t share this information (“I don’t know if they know”).

READ ALSO:

She warns, however, against assuming that entering the country on a study visa and then converting to a self-employment visa is a silver bullet, as success is by no means guaranteed.

“If I were proposing this to a client, I would have to be very careful in managing expectations, so that after one year of a study permit they don’t become very cross that they didn’t convert it,” Petreni says.

How to work remotely in Italy.
Moving to Italy on a study visa may smooth the path for those hoping to apply to work there as a freelancer. Photo by Hannah Wei on Unsplash.

Intra-company visa

If the barriers to obtaining a self-employment visa are so prohibitively high, what other options are out there?

One alternative that Petreni will sometimes suggest to clients is the Intra-Company Transfer (ICT) work permit.

This entails setting up an Italian branch of a foreign-headquartered company, which she says can work for clients who have “even a small company in the US or UK”.

In this case, the worker would be applying for a visa not as a freelancer but as the employee of a foreign company that has posted them to Italy. The visa has a five-year duration (as opposed to the self-employment visa, which is valid for an initial period of two years).

One of the advantages of this visa, says Petreni, is that it’s outside of the decreto flussi, and therefore not subject to quota limits.

READ ALSO: EXPLAINED: How to get an Italian work visa

“This is an option we have proposed, and it has worked in many cases,” she says.

“The problem is that it’s quite hard financially, and tax-wise, so it’s not for everyone… you need to put quite a bit of money in the Italian branch and have it running, so you have your yearly taxes, and you need to show that the parent company is reliable.”

“We will suggest having €20,000, €25,000 for an intra-company at least, just to show that it’s in good standing order.”

'Not just extra paperwork': What it's like moving to Italy after Brexit

An ICT work permit might be a viable option for some remote workers looking to move to Italy. Photo by ALBERTO PIZZOLI / AFP

The EU Blue Card

The EU Blue card, introduced via an EU directive, is another option Mazzeschi sometimes proposes to potential clients.

Those coming to Italy on the card must earn a minimum salary of €24,789.93 and have a three-year university degree at minimum.

This scheme allows an Italian company to locally hire highly qualified non-EU nationals, and again operates outside of the decreto flussi quota system.

READ ALSO: ‘Not just extra paperwork’: What it’s like moving to Italy after Brexit

In this case, instead of setting up an Italian branch of a foreign company, the applicant registers a company under Italian law. Checks on the company will be stricter than they are for an intra-company office. 

“They want to see that the Italian company has the funds to hire a non-EU employee,” says Petreni. “For that option, we suggest at least €50,000 share capital for the Italian company.”

“It’s usually someone who already has a company running abroad, and then they decide whether to do the intra-company or the EU Blue Card. But for self-employees, the most-used option would be the intra-company, when they can do it.”

What type of visa will you need to move to Italy?

The EU Blue Card could be the best option for some would-be Italian residents. Photo: Filippo Monteforte/AFP

Petreni says that people considering applying for the EU Blue Card often want to know whether it allows the holder to move around freely and work anywhere within the EU once they arrive.

It’s not quite that simple, she says – in the beginning you can only work from the country where the company you’re working for is based –  but holding the card can facilitate the worker’s move to a different EU country.

In the case of Italy, someone who has worked in another country in the European Union for eighteen months can move to Italy and apply for an EU Blue Card permit to work for an Italian company within one month of arriving.

Final tips

To the average freelancer just wanting some mobility, these two latter options might sound somewhat daunting.

For those who want to attempt a self-employment visa application in spite of the challenges involved, Petreni has some advice: contact your consulate to get as much information as possible before starting the application process.

“See if they have very specific requirements, because the information is not clear and it can be discordant for self-employment options, so it’s very important get in touch and see how the consulate is and what kind of answer they can give.”

“Self-employment is a bit of a jungle, it’s crazy,” says Petreni.

Find more information on the Italian Foreign Ministry’s visa website here.

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.

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BUREAUCRACY

EXPLAINED: What is Italy’s new digital invoicing rule for freelancers?

Italy is bringing in new rules from July that mean changes for freelancers on the 'flat tax' rate. Here’s what you need to know about the new ‘fatturazione elettronica’, or digital invoicing system.

EXPLAINED: What is Italy’s new digital invoicing rule for freelancers?

Italy has been slowly moving more of its bureaucratic systems online in recent years, and in many cases this has made it quicker and easier for residents to access services and get their considerable amounts of Italian life admin in order.

It was hoped that the new electronic invoicing rule would do the same for freelancers on Italy’s flat-tax regime, by doing away with the existing need to print out invoices and affix tax stamps by hand.

READ ALSO: Beat the queues: 19 bits of Italian bureaucracy you can do online

But a close look at the details of the new rules shows that it probably won’t make life easier for those on the flat tax rate, who have so far been spared the bulk of that infamous Italian red tape – but now need to get to grips with a new online system.

Known as the ‘regime forfettario‘, Italy’s flat-rate tax scheme for individuals and small businesses was introduced in 2015 to encourage more commercial activity by slashing tax rates and simplifying bureaucracy.

New freelancers who choose this tax system generally pay somewhere between just five and 15 percent tax on earnings, regardless of overheads.

READ ALSO: The pros and cons of Italy’s five percent flat tax for freelancers

Little has changed since its inception seven years ago, but freelancers using the scheme now need to be aware of new rules coming into force from July 1st, 2022.

How you invoice – how you send, receive and store receipts, therefore – is due to move from analogue to digital, bringing new requirements and know-how on digital invoicing software.

Here’s what’s changing for freelancers with the so-called ‘fattura elettronica‘.

Who is required to send electronic invoices?

While this was already a requirement for the self-employed on other tax regimes, those on the flat tax rate will now be included from July 1st.

They were previously exempt, but that changed under the PNRR (National recovery and resilience plan or piano nazionale di ripresa e resilienza) – the Italian government’s plan for using EU funding for post-pandemic economic recovery.

Digital invoicing is intended to fight Italy’s major problem with tax evasion, as well as to further automate accounting processes.

For now, not all freelancers under this tax scheme need to move to digital accounting – only those who received an income in excess of €25,000 in the previous year are required to comply with the new rule.

It will then extend to all freelancers using the flat-rate scheme from January 1st, 2024.

From that date, everyone subscribed to the ‘regime forfettario’ will have to switch to electronic invoicing and there are hefty penalties in place for those who don’t.

How will electronic invoices work?

Italy’s tax authority has defined a couple of notable differences between the digital or electronic invoice (fattura elettronica) and a paper invoice (fattura di carta) in its updated guidelines.

Firstly, the digital invoice has to be created using a digital device (a computer, tablet or smartphone), and secondly it has to be sent to the client via an ‘Interchange System’, the so-called Sistema di Interscambio (SdI).

READ ALSO: ‘Smart working’? Here’s what you need to know about going self-employed in Italy

Italy’s flat-rate tax scheme is going digital. Photo by Christian Dubovan on Unsplash

This electronic postal system checks whether the invoice contains the required data for tax purposes, as well as checking the verified e-address (or the so-called PEC address) of the recipient.

In doing so, the electronic invoice automatically checks that the VAT number (partita IVA), or the tax code (codice fiscale) depending on who you send the invoice to, really exist.

Once the checks are completed, the system sends the invoice to the client, which will trigger an alert to the freelancer with a delivery receipt, showing the date and time the document was delivered.

How can you send an e-invoice?

There are a few accounting software options on the market if you’re now faced with having to send electronic invoices.

Some charge a fee of around €1-€4 per month or come at a cost per transaction.

Platforms such as ‘Aruba‘ or ‘Fatture in Cloud‘, are competitive and may offer you a free trial before you deciding to buy.

The Italian revenue agency (Agenzie delle Entrate) has also created free-of-charge services to help send and receive e-invoices. These include websites as well as apps for completing the required steps, which are detailed in their guide here.

You can access their Invoices and Receipts (‘Fatture e Corrispettivi‘) portal to benefit from these free services.

You’ll either need a Spid ID (‘Sistema Pubblico dell’Identità Digitale‘), a Carta Nazionale dei Servizi (CNS) or accounting credentials known as Fisconline/Entrate, which are issued by the Agenzie delle Entrate.

You can also delegate this task to an intermediary, such as an accountant (commercialista) who would do this on your behalf, the revenue agency stipulates 

What about the Italian tax stamp?

Until now, freelancers issuing invoices under the ‘regime forfettario‘ have had to attach a €2 stamp, called a ‘marca da bollo’, to every invoice over the value of €77,47.

So what happens when e-receipts go digital and you can’t physically stick a stamp on a document? Well, that goes digital too and the Inland Revenue has issued a 16-page guide on how you need to go about it.

It seems the previously attractive ‘light’ accounting of this regime is about to get bogged down by time-consuming bureaucracy too.

Authorities will systematically check that the fee has been paid each quarter for all the invoices that require it.

As a general rule, you can see if there are any discrepancies by the 15th day of the first month following each quarter on their Invoices and Receipts portal.

You or your intermediary have until the end of that month to fix any accounting errors, but make sure to check with an accountant if you have any difficulties or need specific advice for your personal circumstances.

Once you receive your final stamp duty bill for each quarter, you can pay either via IBAN, which you set up on the portal, or by filling out an electronic F24 form – details of how to do that are included in the guide.

For further information and FAQ’s, see Italy’s Inland Revenue Agency website on the electronic invoice here.

Please note The Local cannot advise on personal cases and seeking expert financial advice is recommended.

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