Here's a guide on how to start and work as a freelancer in Italy, covering visa requirements, tax obligations, and setup essentials for operating legally.
*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.
Obtain a Self-Employment Visa:
If you’re not an EU citizen, you’ll need a self-employment visa. Start by checking if your profession is regulated (requiring specific qualifications or licenses). For unregulated fields, like translation or freelance writing, fewer formal qualifications may be required.
Apply Through the Chamber of Commerce:
After verifying any profession-specific requirements, apply for the freelance visa through Italy’s Chamber of Commerce. Some professions also require security clearance, which is only available during specific periods under Italy’s Decreto Flussi immigration policy.
Apply for Italian Residence:
Once your freelance visa is approved, apply for a residence permit through the Vital Records Office, presenting necessary documents, such as proof of health insurance.
Request a Codice Fiscale:
This unique tax code is essential for all business and tax activities in Italy. Obtain it from the Single Desk for Immigration or a local police station.
Select Your Legal Structure:
Freelancers generally work as either:
Freelancers: For independent professionals like journalists and consultants, without additional employees.
Sole Proprietors: Suitable for those in trade or craft businesses, such as painters or shop owners, with the option to employ workers.
Registering with Authorities:
Freelancers engaged in unregulated activities register with the National Institute for Social Security (INPS), while those in regulated activities may need to register with a professional association. Sole proprietors also register with the Italian Business Register, the National Institute for Insurance Against Accidents at Work, and the INPS.
Income Taxes:
Italy’s income tax rate is progressive, ranging from 23% to 43%. Regional income taxes vary from 1.23% to 3.33%, with municipal taxes ranging from 0% to 0.8%. Non-citizens are only taxed on Italian income, which must be reported annually.
VAT (Value Added Tax):
Freelancers earning over €65,000 annually are required to register for VAT. Expats must report VAT on all income, with a standard VAT rate of 22%. Certain services may qualify for reduced VAT rates.
Freelance Business Setup Steps:
Visa Application: Obtain a freelance visa for legal residence and work eligibility.
Secure Required Documentation: Be mindful of registration periods for security clearances, if applicable.
Residence Permit: File for residence in Italy to live and work legally.
Apply for Tax Code: Essential for opening a business bank account and registering for VAT.
Register Your Business: Based on your chosen legal structure, register with the required social security and business organizations.
Open a Business Bank Account: Necessary for VAT and business-related financial transactions.
Register for VAT: Mandatory if your income exceeds the annual threshold.
Launch and Market Your Business: Establish your client base and begin offering services.
Ongoing Financial and Tax Management:
After setting up, ensure regular tax filings and VAT compliance, keeping thorough records of all business income and expenses.
Conclusion
Freelancing in Italy offers numerous benefits, from setting your own work schedule to enjoying financial independence. Although establishing a freelance business involves several bureaucratic steps, once set up, you’ll gain control over your career, income, and work-life balance.