Are you planning to work as freelancer abroad? How about Italy? Becoming a self-employee in a cheap Mediterranean country is, for many, a dream.
You get to be your own boss and work the way you want.
However, becoming a freelancer in Italy is not the same as any other country. For an extensive financial guide, check this article about how to legally become a freelancer in Italy.
Some requirements need to meet to become one. Only when you fulfill these needs, you will receive permission to be a freelancer.
What it is like to freelance in Italy?
Freelancers are growing in number all over the world. The USA has the largest number of freelancers. Whereas Italy has a growing quantity of freelancers itself. Statistics show that 25 percent of the workers in Italy are self-employed.
Many sectors are hiring freelancers for their services. It includes consultants, doctors, legal workers are more. The workers love freedom from freelancing. Similarly, companies like the idea of hiring someone for cheap, rather than hiring an employee.
So, both sides gain when they are going for a freelancing contract. Since it is a win and win condition, freelancing is increasing day by day in Italy.
The expats are especially benefited by self-employment. They can enjoy working from home at their pace, rather than worrying about an office.
Who is bound to pay a tax to the Italian government?
There are many rules regarding this. First, if you work in Italy, but your freelancing business is back in your home country. Then you don’t have any problems.
Similarly, if you belong to the Schengen area of Europe, you have the right to stay and work in Italy as much as you want. A Non-European citizen can get a travel Visa for 90 days. Anything beyond that needs paperwork of freelancing and business.
Another way to enter the country is by taking a student Visa. But for that, you need to take admission to an Italian University. Additionally, the Visa should be attained at least 8 days before reaching Italy.
If you have everything done in Italy, you will face some trouble with the government without proper self-employment papers.
What are the requirements for becoming a freelancer in Italy?
Like we said before, there are some requirements to become a freelancer in Italy. You can’t claim a work directly from a company and start with it.
In order to become self-employed in Italy, you will need to go through legal procedures. At first, you need to select the business line you want to enter.
Then you have to take legal permission to work on that field. Once you are approved, you will need to complete the following registrations to work;
• Companies house
• Tax register
• Business register
• Duty register
That’s not all you need to complete registration for;
1. VAT
2. Registration with the regional tax office
3. Certificate of registration
How many forms of self-employment are there in Italy?
For a freelancer
After you have completed the paperwork above, you can take the next. If you have registered for VAT, you have received a VAT number.
Now when a company hires you, he will pay for the VAT charged by the government. In Italy, this is 20 percent of your payment.
Individual trader
When you register as an individual trader, it means you are the only shareholder, and you are a limited liability company.
Tax payment
If you are a permanent resident in Italy, you have to pay income taxes. This is applicable for money earned worldwide, with no exception to freelancers.
Two conditions decide if you are a permanent resident of Italy;
• If you live in Italy for more than 183 days a year.
• Somehow your life is related to the country, for example, your children attend schools of Italy, or spouse stays there.
In any case, if you are not a resident of Italy, but stay in Italy, they have to pay tax according to their income in Italy.
How to become a freelancer in Italy following the law?
At first, you need to open for the individual trader registration. Once accepted you will get the tax number.
A tax number is compulsory for getting payments in Italy. With it, you can send invoices to your employers. When they pay you, they also pay the taxes, so it keeps things organized.
In order to do this, you can visit the chamber of commerce in the city you live in. There you will find the National Institute of Social Security (INPS).
They are the one who is responsible for the public pension system in Italy. All types of business rules and legislation can be clarified here, and the procedure to start a new business is also commenced here.
Since everything is developing on the internet nowadays. You can follow this process from online after 2020. The process is complicated, and it is strongly advised to have a legal consultant with you while you are at it.
Keep in mind there is a cost of €150 to finish the entire procedure. It is simple, but lengthy because you must complete all the forms related to the matter.
What you need to know before becoming self-employed in Italy?
The most important thing you have to consider before opening a business is how much you can earn. It is vital because you have to keep up with the taxes and other payments.
If your payment is less than € 5000 a year, then opening a business is not the wisest decision.
Another fact about it is, different areas require different payments for business. For every activity of your business, there is a tax debt involved.
You need to contact the Revenue Agency for the matter, or you can ask your accountant what to do.
Final words
As you can see, becoming a freelancer in Italy is a bit different from in any other country. At first, there are some paper works to complete.
Once you are done with it, you can earn money at your convenience. All you need to do is go through the first difficult step. So, start working today to get registrations done and earn money.