Working in Italy for a Foreign Company

Working as an employee full time in Italy If you are an employer outside Italy and thinking of hiring an employee in Italy, the legal, tax and social security ramifications can be complex. Liability of the employer to Italian social security If the employee is […]

Hiring an Employee – the Permanent Establishment risk

A non-Italian business considering employing an individual in Italy needs to consider whether the activities carried on by an Italian based employee in Italy create a corporate income tax (IRES) liability on the profit attributable those activities. Foreign corporations with a “permanent establishment” (or fixed […]

TFR – the Trattamento di Fine Rapporto or Employee Leaving Indemnity

What is the TFR? Employment agreements in Italy are generally governed by the terms and conditions of the relevant national collective labour agreement (CCNL) negotiated from time to time by the Italian government, the trade unions and employer organisations.  These standard contracts make provision for a series of provisions applicable to the hire of individual employees in Italy. Regardless of […]

Italy (nearly) enacts new Digital Nomad Work Visa

Subject to Implementing Legislation! A further decree of the relevant Ministries (Interior, Labour, Foreign Affairs and Tourism) is  awaited (and has been delayed presumably by Parliamentary elections on 26 September) We will post further once we have further news. Italy has introduced new rules to […]

Petrol/Gas coupons

Decree Law no. 21/2022 (the “Ukraine” Decree) provides, for FY 2022, for the possibility of giving employees with up to Euro 200 worth of petrol coupons. Up to that limit the monetary amount  provided is exempt from Italian social security contributions and income tax. The […]

Italian Public Holidays – 2022

Date Weekday Name in English Name in Italian 01/01/2022 Saturday New Year’s Day Capodanno 06/01/2022 Thursday Epiphany Epifania 17/04/2022 Sunday Easter Pasqua 18/04/2022 Monday Easter Monday Lunedì di Pasqua 25/04/2022 Monday Liberation from Nazi-Fascism (1945) Liberazione dal nazifascismo (1945) 01/05/2022 Sunday Labour Day Festa del […]

Tax credit for employment income

Italy has no personal relief nor (any longer) a no-tax zone.  This means that you start paying income (at 23% – see the marginal rates here) of the first euro of income.  However Italy has an intricate system of tax credits (described as “deduzioni” – […]