Freelancing In Italy - Globaloptimizer.com

Freelance is becoming more and more common in Italy. 13.8% of the population, or more individuals, work freelance, and more than 30% are under 40. Italian cities are increasingly evolving into “smart cities,” providing infrastructure and services that are extremely helpful to independent contractors and digital nomads.

Freelance Vs. Self-Employed In Italy

Freelancers and self-employed people are legally the same, although some distinctions exist. First of all, while all self-employed people are self-employed, not all self-employed people are freelancers. While self-employed people are more likely to be entrepreneurs, business owners, or start-up founders, freelancers often work on various short-term assignments for various companies.

However, your legal situation and the documentation about it are identical.

How you work is the crucial distinction between self-employed people and freelancers. Legally, they are the same, but self-employed persons typically manage their firm and have greater control. In contrast, freelancers typically work a variety of short-term contracts for many companies.

Freelance

A freelancer is a self-employed who receives payment for each project or activity they do, usually for a brief period.

The opportunity to work from home or a non-traditional workspace, a flexible work schedule, and a better work-life balance are advantages of freelancing.

Self-Employed

According to the concept of “self-employed,” a person who works for themselves rather than a specific employer makes their living through contracts with businesses. Because they frequently work for several employers, they do not get stable salaries or pay from any company. Self-employed persons might be sole proprietors or independent contractors.

Is Freelancing Allowed In Italy?

Before legally working as a freelancer in Italy, you must get a self-employment visa if you are not an EU citizen. This visa is extendable if necessary and is suitable for two years.

How To Obtain A Freelance Visa In Italy

Obtain a visa for self-employment in Italy.

Before you may legally work as a freelancer in Italy, you must get a self-employment visa if you are not an EU citizen. This kind of visa has a two-year validity period and is renewable if required.

Let’s look at the application process for your visa for independent employment.

Italy makes a distinction between two types of vocations. Your need for paperwork for the following stages depends on your line of employment.

1. Non-regulated professions are independent contractor positions that don’t call for a professional license or degree. This group includes, for instance, freelance writers and translators.

When requesting a self-employment visa, this kind of work is more permissible. It will be the responsibility of the Italian Chamber of Commerce to give you the appropriate documents.

2. Legally regulated professions are carefully controlled by law and considered freelancing. To perform this freelancing work, one needs a degree or professional certification.

This includes independent architects, attorneys, and engineers, for instance.

Before you can receive your security clearance, you must work with the regional associations of your profession to obtain the necessary documentation.

Get a Security Clearance (Nulla Osta)

It should be noted that Italy has a law called Decreto Flussi that regulates immigration and establishes quotas for certain sorts of freelance employment.

Every year, the Decreto Flussi is only open for a few months. The opening hours are very unpredictable and challenging to forecast. You can apply for your security clearance once you learn the dates of the upcoming Decreto Flussi term.

The Police Headquarters in the area where you want to conduct your commercial activity is where you must personally submit your request.

You heard correctly; it was said in person.

Therefore, you’ll need some assistance from an immigration attorney or a reliable contact in Italy. Additionally, it will be beneficial to have support during all phases of the visa application procedure. This nation is infamous for its bureaucracy, which can be pretty taxing and perplexing to work with, even more so if you don’t speak Italian.

The paperwork required to request Nulla Osta is:

copy of your passport
evidence of an appropriate accommodation
Written assurance that there are no obstacles
Clearance from a professional body that oversees your freelancing activity or clearance from the Chamber of Commerce (for unregulated professions) (regulated professions)

After acquiring your Nulla Osta, you have three months to apply for a freelancing visa.

You will have to supply:

a filled entry visa application form
two recent passport-sized photograph
legal travel document with an after-visa expiration of at least three months
Nulla Osta (police clearance)
evidence of an appropriate accommodation
The income statement for the most recent fiscal year is higher than Italy’s minimal allowance.
Clearance from a professional body that oversees your freelancing activity or clearance from the Chamber of Commerce (for unregulated professions) (regulated professions)

Once you have all the required documentation, you’ll need to make an appointment at your nation’s Italian embassy or embassy.

Assuming all goes according to plan, you ought to get your Italian self-employment visa within a few weeks.

Apply for an Italian residence permit

Within eight days after you arrive in Italy, you must apply for a residence permit in Italy.

Registering as an EU citizen in Italy

You must register as an EU citizen if you want to stay in Italy for some time longer than three months.

If your stay is less than one week, you don’t need any authorization.

To register, you must schedule an appointment for a Cambio di Residenza at the Ufficio Anagrafe (Vital Records Office) of the Italian municipality where you currently reside.

Make sure to get the following paperwork ready:

a valid passport (a copy and original)
evidence of self-employment
evidence of adequate financial resources
health insurance

The registration certificate (attestato d’iscrizione anagrafica), valid for five years, will be given to you immediately.

Registering as a non-EU citizen

Fill out the postal kit available at the local post office with a Sportello Amico counter to obtain your Italian residency permit.

Sportello Amico will schedule an appointment for you at the neighborhood police station when you send the postal kit with all of your documentation (Questura). Your fingerprints will be taken, and you may pick up your permit soon.

Get your Codice Fiscale

Codice Fiscale is the first item you’ll require if you’re an Italian resident. This tax code uniquely identifies you and your business in Italy. Without it, there is nothing you can do.

You can take your passport and freshly issued residence card to the Single Immigration Desk or the neighboring police station to get your codice fiscale.

Getting VAT number

To begin working, freelancers must have to:

With the Agenzia delle Entrate, request a Partita Iva (VAT number).
Unregulated professionals must register with the INPS as Gestione Separata.
Regulated professions are required to register with the relevant social security funds.

How Much Tax Do Freelancers Pay In Italy?

Italy is renowned for having high taxes.

The typical tax system in Italy entails graduated rates, with the minimum rate being 23% and the highest rate being 43% on income above €75,000.

Your taxable income is taxed at the standard rate of 25.72% regarding social security benefits. Regardless of the tax structure they choose, every resident of Italy is required to make this contribution.

**Freelancers taxation with flat tax scheme (*Regime Forfettario***)

Italy unveiled the Regime forfettario in 2015.

The taxable income is subject to a 5% rate for the first five years of this tax plan. A 15% rate is imposed following this period.

You’re eligible for Regime forfettario if you:

don’t earn more than € 65 000
incurred costs are totaling not more than €20,000 gross.

When to pay taxes

The calendar year and the tax year are identical in Italy. It begins on January 1st and concludes on December 31st.

Before November 30th, as a freelancer, you must submit the Income Tax Declaration for Individuals (Modello Redditi Persone Fisiche) online.

Based on your tax due from the prior year, you must make two advance payments for the current year:

40% of the tax is paid in June
60% is paid in November

If the deadline is missed, there will be a minimum fine of €250 and a maximum fine of 240%.

Accounting For Freelancers In Italy

Let’s examine accounting and banking issues specifically for freelancers in Italy.

Bookkeeping And Invoices In Italy

Maintaining your books neat and organized when working as a freelancer in Italy is vitally necessary. Your receipts, bank account summaries, and incoming and outgoing invoices must be kept.

For your invoices to be accepted, they must include the following details:

The complete name and address of your client
your whole name and location
The date of the invoice
the invoice’s reference number (you assign the number, and you can never have an invoice with the same number)
Your freelance tax number
Your VAT number and the VAT number of your client (if applicable)
An explanation of the services provided
The total sum
The final cost and the payment deadline

Banking For Freelancers In Italy

We strongly advise that you open a freelancing bank account in addition to your bank account in terms of banking. There are primarily two causes for it.

As the first stage in simple accounting, this is the only way to obtain a clear picture of your business spending and revenue without blending in personal expenses.

Second, most banks that provide bank accounts for personal use do not include the usage for business in their terms and conditions. As a result, your bank account may be stopped or canceled anytime if you break the restrictions. You don’t want this to occur. Therefore when it comes to banking, rigorously separate business from pleasure.

Create a bank account in Italy to get your well-earned cash.

In Italy, there are several well-known and reliable banks. BNL, Banco Nazionale del Lavoro, ING, and Unicredit are among the most well-known. But things can get rather tricky if you don’t speak Italian. The website is often only accessible in Italian.

Instead, you might consider using a global digital banking platform like N26. You may open a free bank account with it, and it will give you an Italian IBAN precisely like a typical bank.

In general, the following documents are required to create a bank account in Italy:

Valid ID or passport
Italian tax code (codice fiscale)
residence permit
filled and signed anti-money laundry (AML) compliance

Insurance For Freelancers In Italy

It is essential to acquire specific insurance when residing in Italy. You may wish to think about getting additional professional insurances in addition to those that solely protect your personal life when you are freelancing in Italy.

Let’s discuss professional liability insurance, which you may want to add as an extra, health insurance, which you must have regardless of your job status, and your social responsibilities as a freelancer in Italy.

Health Insurance For Freelancers In Germany

Everyone who resides in Italy is required to obtain health insurance. However, as a freelancer, you will be responsible for paying 100% of the cost of your health insurance, as opposed to workers who only have to pay 50% of the premium since their company will pay the other 50%.

You will have varied options about whether you may obtain public or private health insurance depending on whether you go to Italy as a freelancer or transition into it after being employed there.

Professional Liability Insurance For Freelancers

Private liability insurance does not cover losses originating from the professional service you provide to someone, even though it does cover damages you cause to third parties. Only professional liability insurance, often known as professional indemnity insurance, can protect against this risk.

You may be required by law to obtain professional liability insurance, depending on your freelancing career or the service you provide. For instance, this is true for physicians, pharmacists, and attorneys.

Professional liability insurance often includes modules that protect your service, your business, its products, and even data hazards and cybercrimes. You can select the module(s) that apply to you.

Is Freelancing Possible While Being Employed In Italy

An excellent method to determine if freelancing is suited for you is to work as a freelancer while you are employed, which is often possible. However, it’s also crucial to ensure your freelancing doesn’t interfere with your regular work, review your employment contract, and acquire your boss’ approval.

It might be frightening to quit your day job and start freelancing full-time. For many of us, it makes more sense to pursue freelancing while still enjoying the stability of a steady position. It’s not always that easy, though.

Your company may have policies and processes if you work elsewhere, mainly if you are a freelancer. Before offering your services, you must discover whether you can function both as a freelancer and an employee. You’ll need to resolve a couple of additional issues if you can.

Examine your employment contract, get permission, keep your boss happy, and plan time for freelancing.

How do I know if you can freelance when I’m employed?

Read the terms of your work contract and be aware of any limitations.
Get ready for a meeting with your boss so you can reassure them and explain why you choose to work for yourself.
Meet with your boss to receive approval and review how you’ll keep your usual employment obligations.
Obtain written authorization before beginning any freelancing job.
As a worker, be sure to keep up the excellent work.

Conclusion

You now fully comprehend the steps in starting a freelance career in Italy. Depending on your field of expertise and the questions you should be asking, you should focus on more particular topics. You may choose what to work on as a freelancer based on your expertise. This guide lets you get all the information you need to start freelancing. Best of luck!