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Working in Italy
Relationship-first, expressive and warm, with a strong North-South contrast: the codes of Italian working life, for international professionals of any nationality.
Italy draws internationally mobile professionals to Milan, its economic capital, and to Rome, which between them hold most of the country's international roles, while Tuscany, Puglia and a long list of mid-sized towns attract people for the way of life. Italy is both an EU member state and a full member of the Schengen area, so what arriving takes depends on your passport: nationals of the EU, the EEA and Switzerland move under free movement, other nationalities are either visa-exempt for a short stay or need a Schengen visa from the outset, and in every case working, or staying beyond 90 days, is a separate authorisation.
The appeal lies in a recognised quality of life, a diversified economy (fashion and luxury, industry, tourism, pharmaceuticals) and two tax regimes built to attract arrivals: the impatriate regime and the flat tax for new residents. In return, pay for comparable roles is often below the levels found in the higher-earning Western European economies, and the rental market in Milan is tight. Living costs vary far more between the North and the South of Italy than any single national average can convey.
This guide answers the practical questions first (entry and residence, the cost of living in Milan and Rome, employment, company formation, the tax regimes and property), before decoding Italian professional culture, Latin yet markedly individualistic, built on the personal relationship and shaped by the North-South contrast. The tax, legal and immigration information here is general information rather than advice; for any personal situation, a qualified professional is recommended.
Living, working and doing business in Italy
Before the cultural codes, here are the concrete decisions that shape a move to Italy. Where to live and on what budget, how to work and on what authorisation, how to start a business, how the tax regimes work, how property purchase is regulated, and what registration a stay requires.
1. Living in Italy: cost of living
Living costs in Italy are moderate by Western European standards, but the internal spread is wide. Milan is the most expensive city in the country; Rome sits below it, and Turin, Bologna, Florence, Naples and the towns of Puglia are noticeably more affordable. The North-South gradient is one of the keys to reading an Italian budget.
Housing is the most variable line item. In Milan the rental market is tight and rents are high; elsewhere they remain more accessible. International arrivals tend to split between Milan for professional opportunity, Rome, and the lifestyle regions such as Tuscany or Puglia for a life or retirement project.
Rather than reasoning from national averages, the more reliable approach is to compare your current net position with the one projected locally, taking income tax and social contributions into account:
Estimate my budget and net salary in Italy →2. Working in Italy
The Italian labour market is driven by fashion, luxury and design (Milan), automotive and mechanical engineering (Turin, Emilia-Romagna), pharmaceuticals and chemicals, agrifood, tourism, finance (Milan) and technology. Pay ranges by sector are set out further down, in the Sectors and salaries section.
Texts and sources in detail
Two realities are worth anticipating. First, pay for comparable roles is often below the levels found in the higher-earning Western European economies; the tax regimes and more measured living costs can offset part of the gap, to be assessed case by case. Second, net income depends on IRPEF, on the regional and municipal surcharges of your commune of residence, and on employee social contributions to INPS (on the order of 10% of gross for most private-sector employees), all of which belong in any comparison.
The working language depends on the sector and the city:
Milan concentrates the country's international employer base: Italian groups with global operations, the Italian subsidiaries of foreign luxury, retail, pharmaceutical and technology companies, French groups long established in luxury and retail among them, and the finance sector. It is where English-language roles are most numerous. Access to the labour market itself is not the same for everyone: nationals of the EU, the EEA and Switzerland work on the same conditions as Italian citizens with no permit, while a third-country national needs an entry route and a residence permit that allows work, set out in the entry and residence decision below. This is general information rather than immigration advice, and a qualified professional is the reference for an individual application.
3. Starting a business (SRL, regime forfettario) and taxation
The most common vehicle for doing business is the SRL (società a responsabilità limitata), Italy's private limited company. It exists in a simplified form (SRLS), with capital from 1 EUR to under 10,000 EUR, and in an ordinary form (minimum capital of 10,000 EUR). It can be wholly owned by foreign shareholders, from the European Union or from third countries, and incorporation, which goes through a notary, can now be completed online. A codice fiscale, a partita IVA and registration with the Registro Imprese are required. Owning or directing an Italian company does not in itself create a right to live in Italy: a third-country national who intends to move and work in the business needs a separate entry route, and the self-employment route (lavoro autonomo) sits inside the annual quotas set by the flows decree.
Corporate income tax (IRES)
24% (2026 financial year)
Regional tax on productive activities (IRAP)
around 3.9%, varying by region and by activity
Regime forfettario (self-employed)
15%, reduced to 5% for the first five years of a new activity, up to 85,000 EUR of revenue
VAT (IVA)
standard rate 22%, reduced rates 10%, 5% and 4%
Texts and sources in detail
To operate as a self-employed worker, the regime forfettario applies a substitute tax of 15% (5% for the first five years of a genuinely new activity), up to 85,000 EUR of annual revenue. The 2026 Budget Law extended to 2026 the rise to 35,000 EUR of the employment or pension income received in the preceding year above which a person is excluded from the 15% regime. It is the regime of small Italian self-employed workers, not to be confused with the flat tax for new residents (see the Tax regimes decision), which is a separate scheme.
Self-employed workers pay their own social contributions (the INPS Gestione Separata, or a professional fund for the regulated professions, on the order of 24 to 27%), which belong in the net income calculation.
The rates and thresholds above are set by the annual budget law and can change from one year to the next: it is preferable to check the values in force in the year of your project rather than relying on a fixed figure.
The choice of structure and regime depends on your activity, your projected turnover and your personal circumstances, in particular your tax residence.
This information is provided for educational and factual purposes and does not constitute tax, legal or accounting advice. For an individual situation, review by a qualified professional (lawyer, chartered accountant, commercialista) is recommended.
4. The tax regimes for settling in (impatriates, new residents)
Italy taxes personal income through a progressive tax, IRPEF. For 2026 the scale has three bands: 23% up to 28,000 EUR, 33% from 28,000 to 50,000 EUR and 43% above, the middle rate having been cut from 35% to 33% by the 2026 Budget Law (Law 199 of 2025). Article 1, comma 4, of that law neutralises the reduction above 200,000 EUR of total income, by cutting the deduction from gross tax by 440 EUR. Regional and municipal surcharges are added on top and vary by commune of residence, so the local tax level is not the same in Milan, in Rome or elsewhere.
Impatriate regime (lavoratori impatriati)
employment and comparable income produced in Italy counts towards taxable income at 50% of its amount (40% for a worker with a minor child), within an annual limit of 600,000 EUR, for the tax year of the transfer and the four following years. It requires high qualification or specialisation, no Italian tax residence in the three preceding tax periods (six or seven where the work continues for the same employer or group), and a commitment to remain tax-resident in Italy for at least four years
Flat tax for new residents
an annual flat-rate substitute tax on foreign-source income, in place of IRPEF, for up to fifteen years, open to people who have not been tax-resident in Italy for at least nine of the ten tax periods preceding the start of the option. Set at 200,000 EUR by Decree-Law 113/2024, it was raised to 300,000 EUR by article 1, paragraphs 25 and 26, of the 2026 Budget Law, for transfers of residence from 1 January 2026, with a further 50,000 EUR for each tax period for each family member who exercises the option (that second amount raised from 25,000 by the same comma 25)
Texts and sources in detail
Beyond the scale, Italy operates two regimes aimed at people relocating, which are not to be confused with each other:
An important point when estimating net pay: the impatriate reduction lowers the income tax base, not the social contributions, which remain due in full. Actual net pay is therefore computed on both the tax and the contributions.
These two regimes are distinct from the regime forfettario for small self-employed workers (the previous decision: a 15% substitute tax up to 85,000 EUR of revenue). They are separate schemes that searches often conflate.
This information is provided for educational and factual purposes and does not constitute tax advice. Eligibility for these regimes, and whether they are worth using, depend on the individual situation and on the double taxation convention between Italy and your own country of tax residence. Italy has a treaty network covering more than a hundred jurisdictions, among them the United States (in force 2009), the United Kingdom (1990), Canada (2011), Australia (1985), India (1995) and Ireland (1975). Assessing any of it is a matter for a qualified professional (tax lawyer, commercialista).
5. Buying property in Italy
Whether a foreign national may buy property in Italy depends on nationality and residence, under article 16 of the preliminary provisions to the Civil Code and article 2 of the consolidated immigration act (Legislative Decree 286/1998). Nationals of the European Union and of the EEA buy on the same footing as Italian citizens. For third-country nationals the position turns on residence: article 2, comma 2, provides that a foreign national lawfully staying in Italy enjoys the civil-law rights attributed to Italian citizens, save where an international convention or the consolidated act provides otherwise. A third-country national who is not resident in Italy may buy only where the condition of reciprocity is satisfied, that is, where an Italian citizen could carry out the same transaction in that country, or where a treaty provides for it. The notary verifies that point transaction by transaction, against the reciprocity records held by the Ministry of Foreign Affairs. A codice fiscale is required in every case, and the deed is completed before a notary (rogito).
Acquisition taxes depend on the property and on the seller. For a purchase between private individuals, the registration tax (imposta di registro) is 2% for a main residence (prima casa, subject to conditions) and 9% otherwise. For a new-build purchase from a developer, VAT applies instead (4% for a main residence, 10% standard). The annual property tax (IMU) is exempt on a main residence, excluding luxury properties.
Two points deserve attention. First, owning property in Italy confers no right of residence on anyone. Nationals of the EU, the EEA and Switzerland have free movement in any case; a visa-exempt third-country owner remains bound by the 90 days in any 180-day period limit, and living in the property beyond that requires a long-stay national visa and a residence permit obtained on their own terms. Second, financing: non-residents can obtain a local mortgage, generally with a higher deposit (on the order of 30 to 40% of the price), on terms that move with market rates.
The phenomenon of one-euro houses is often misunderstood: it is not a national programme but calls for applications launched by certain municipalities to revitalise villages. The purchase comes with an obligation to renovate within a set period, a security deposit, and the real cost of the work frequently exceeds 50,000 EUR. It is a renovation project, not a simple one-euro acquisition.
This information is provided for educational purposes and does not constitute investment, tax or legal advice. For a specific transaction (reciprocity, taxation, cadastral value, financing, notarial aspects), the support of a qualified professional is recommended.
6. Entry, residence and registration
Italy is an EU member state and a full member of the Schengen area, and what entry requires depends on your nationality. Nationals of the EU member states, and on the same footing nationals of the EEA states (Iceland, Liechtenstein, Norway) and of Switzerland, move under free movement: no visa, no work permit, and access to employment or self-employment on the same conditions as Italian citizens. For everyone else, Regulation (EU) 2018/1806 decides the short stay. Nationals of the visa-exempt countries listed in its Annex II, among them the United States, the United Kingdom, Canada, Australia, New Zealand, Japan, South Korea and Brazil, may enter for up to 90 days in any 180-day period provided they take up no gainful employment. Nationals of the countries listed in Annex I, among them India, China, Nigeria, South Africa, Turkey, Vietnam and the Philippines, need a Schengen short-stay C visa even for a brief visit. Since 10 April 2026 the Entry/Exit System has been fully operational across the Schengen states and records entries, exits and refusals of third-country nationals with a facial image and fingerprints, in place of passport stamping; ETIAS, the travel authorisation for visa-exempt travellers, is announced for the last quarter of 2026 and is not yet in force.
Texts and sources in detail
Working, or staying beyond 90 days, is a separate authorisation for third-country nationals, and the routes have their own names. Entry for subordinate or seasonal employment runs through the flows decree (decreto flussi): the decree of the President of the Council of Ministers of 15 October 2025 set 497,550 places for 2026 to 2028, of which 164,850 for 2026, and the employer files a request for a work clearance (richiesta di nulla osta al lavoro) with the single immigration desk (Sportello Unico per l'Immigrazione) through the Interior Ministry's ALI portal, on the dated filing windows the decree sets and after a form pre-completion phase; the Sportello Unico then issues the nulla osta, and the worker applies for the entry visa afterwards. Highly qualified workers apply instead for the EU Blue Card, under article 27-quater of Legislative Decree 286/1998 as recast by Legislative Decree 152/2023, which sits outside the quotas and is open year-round, and whose pay condition is not a single national figure but a floor set by the applicable national collective agreement and, in any case, not below the average gross annual pay recorded by ISTAT (article 27-quater, comma 5, letter c). Remote workers and digital nomads have their own route under article 27(1)(q-bis), opened by the interministerial decree of 29 February 2024: it is reserved to highly qualified remote work, the applicant having to show that they are a highly qualified worker within the meaning of Legislative Decree 286/1998; it sits outside the quotas, requires no nulla osta, and is conditional on a minimum annual income of at least three times the healthcare cost-sharing exemption level, which the Italian consular network gives as 8,500 EUR, so 25,500 EUR a year, on health insurance valid in Italy, on proof of accommodation and on at least six months of prior experience as a digital nomad or remote worker. Whichever route applies, a long-stay national visa (91 to 365 days) is obtained from the Italian consulate before departure, and the residence permit (permesso di soggiorno) is applied for at the local Questura within eight working days of arrival. A few registration steps then govern settlement, whatever your nationality:
Beyond three months, an EU, EEA or Swiss national must be able to show employment, self-employment, study, or sufficient means together with sickness insurance if not economically active. Third-country nationals hold the residence permit corresponding to their entry route and renew it on its own timetable. In both cases the codice fiscale and the iscrizione anagrafica are worth dealing with as soon as you arrive, since they condition access to most services.
In practice the first two steps on arrival are the same for everyone: obtain the codice fiscale, then register with your commune. What differs beforehand is the entry route, and that depends on your nationality.
This information is provided for educational and factual purposes and does not constitute immigration advice. Quotas, routes, thresholds and supporting documents change from one year to the next, and an individual application is a matter for a qualified professional.
Key sectors & salaries in Italy
Ranges are indicative and reflect the expatriate packages offered by international companies (salary + housing + benefits).
EXPATRIATION.IO
Calculate your net salary in Italy
Simulator built on official tax brackets and employee social contributions, with a comparison to your home country.
Calculate my net salary →Cultural dimensions in Italy
Understand the professional cultural codes that shape everyday work in Italy.
Communication
Italian professional communication gives significant weight to context, relationship and personal expression. Part of the message travels through tone, gestures, shared history and networks, more than through strictly literal explicitness. Exchanges are warm and eloquent, and direct contact is readily preferred to writing. The more industrial North tends toward a slightly more direct style than the more relationship-oriented South, but the importance of the personal bond is present everywhere.
Do
- Tend to the relationship and use direct contact for important matters
- Read the context, tone and the unspoken as much as the words
- Adapt your style to the North (more direct) or the South (more relationship-oriented)
Avoid
- Do not limit yourself to terse, purely factual emails
- Avoid a tone too abrupt that would neglect the relational dimension
- Do not mistake eloquence and warmth for a firm agreement
Real-world scenario
An Italian counterpart will often prefer a call or a coffee to settle a delicate point rather than an email. The tone of the exchange and the quality of the relationship count as much as the content.
Feedback
Feedback in the Italian context spares the relationship and the person's image, which is what the notion of bella figura covers. Criticism exists but is often expressed orally, in private, and in a cushioned way. Head-on, public reproach is poorly received. It is useful to pay attention to context and tone to decode a reservation or dissatisfaction that will not always be stated directly.
Do
- Frame your criticism in private, with tact and care
- Preserve the image and face of your counterpart
- Decode indirect signals and implicit reservations
Avoid
- Do not criticise a person in public
- Avoid blunt frankness without a relational preamble
- Do not take a polite answer for full agreement
Real-world scenario
Your Italian manager will not correct you in front of the team; they will raise the points to address one to one, protecting your image, while staying clear about what is expected.
Persuasion
As in the Latin sphere, persuasion in Italy readily starts from a framework, a vision or principles before descending to concrete cases. Setting out the reasoning and the overall logic, with a certain eloquence, reassures more than a simple succession of practical examples. The quality of the argument and its form is appreciated, provided it stays grounded in the concrete.
Do
- Present the framework and overall logic before the details
- Build structured, reasoned argument
- Tend to the form and clarity of the presentation
Avoid
- Do not limit yourself to a list of examples without a common thread
- Avoid purely utilitarian presentations without perspective
- Do not neglect the relational dimension of persuasion
Real-world scenario
To defend a project, start with the vision and overall logic before the figures. An Italian counterpart buys in more readily when the frame of thought precedes the concrete applications.
Leadership
The relationship to authority in Italy is moderately hierarchical. Position, status, age and titles are respected, and the manager (il capo) is expected to be a point of reference. This hierarchy remains embodied in a personal, warm relationship, rather than in cold distance. Relational practice counts as much as the org chart, and a direct bond with the leader makes things easier.
Do
- Identify and respect the chain of command and titles
- Cultivate a personal relationship with your manager
- Address the right level for important decisions
Avoid
- Do not bypass your manager to go above them
- Avoid mistaking relational warmth for an absence of hierarchy
- Do not neglect the marks of respect due to status and age
Real-world scenario
An Italian leader can be very warm and close day to day while still expecting important decisions to come back to them. Human closeness and respect for hierarchy go hand in hand.
Decision-making
The final decision most often rests with the manager or the leader, even when discussion has taken place beforehand. Consultation and exchange, often informal and relationship-based, have their place, but they do not necessarily lead to a formalised consensus. Networks and trusted relationships help move matters forward, sometimes more than formal channels.
Do
- Identify the decision-maker and build a relationship of trust with them
- Secure informal support ahead of the decision
- Accept that the final call rises to the manager
Avoid
- Do not expect a formalised consensus among peers
- Avoid relying solely on formal channels
- Do not confuse an open discussion with a settled decision
Real-world scenario
After a phase of often informal exchanges, it is the leader who decides. Having built a relationship of trust beforehand noticeably speeds up the process.
Trust
Despite a marked individualism, professional trust in Italy is largely built on the personal relationship, family and networks. Trust is granted to a person with whom a bond has formed and whose reliability is proven, as much as on the sole basis of competence. Meals and moments of conviviality are part of the work. Once established, trust is lasting and opens doors, including as a way around the heaviness of formal rules.
Do
- Invest in the relationship, meals and informal moments
- Give time to the relationship before expecting firm commitments
- Show yourself reliable and present over time
Avoid
- Do not neglect invitations to lunch or dinner
- Avoid a strictly transactional and hurried approach
- Do not underestimate the importance of personal networks
Real-world scenario
An Italian partner will often want to meet you several times, over a meal, before committing. This relational time is not a digression; it is where trust is built.
Disagreement
Disagreement is voiced fairly readily in Italy, in an exchange that is often lively, animated and expressive. Debate is part of the culture and is not experienced as a rupture, as long as the personal bond and each person's face are preserved. This expressiveness is nonetheless tempered in front of a superior and in public, where restraint remains the norm. The absence of open opposition does not always mean full agreement.
Do
- Express your disagreement in a reasoned and engaged way
- Accept a lively exchange as a sign of engagement, not hostility
- Preserve the personal relationship beyond the debate
Avoid
- Do not contradict a superior head-on in public
- Avoid taking a lively debate for a personal attack
- Do not let a disagreement erode the relationship
Real-world scenario
A discussion can rise in intensity and volume without anyone feeling attacked. Debate is part of the exchange, and the relationship resumes normally once the point is settled.
Time
The relationship to time in Italy is fairly flexible and polychronic: several matters can be handled at once, and relational availability often comes before strict adherence to the clock. This flexibility is nonetheless tempered by a marked taste for rules and planning, and by an industrial North (Milan, Turin) that is more punctual and demanding on deadlines than the South. Important commitments remain taken seriously.
Do
- Keep some flexibility, especially in the Centre and the South
- Be more rigorous on deadlines in the industrial North
- Confirm important appointments and key deadlines
Avoid
- Do not read a slight delay as systematic disrespect
- Avoid imposing a rigid schedule with no margin
- Do not underestimate the time devoted to the relationship
Real-world scenario
In Milan, punctuality and meeting deadlines are expected much as they are across Northern Europe; further south, the relationship to time is more flexible and the relationship takes priority over the clock.
How Italy compares
| Dimension | Typical Anglo-American practice | Italy |
|---|---|---|
| Communication | Explicit and direct in North America, more indirect and understated in the UK | High-context, expressive and relationship-based |
| Feedback | Direct in North America, more often hedged in the UK | Indirect, in private, mindful of bella figura |
| Persuasion | Applications first, led by practical examples | Principles and framework first |
| Hierarchy | Flatter and more egalitarian, accessible management | Moderate but real, embodied in the relationship |
| Decision-making | Delegated and made fairly quickly, individual accountability | The manager decides; networks and informal channels matter |
| Punctuality | Clock-time, punctuality expected | Flexible in the Centre-South, more rigorous in the North |
| Trust | Task-based, built through reliable delivery | Relational, built on family and networks |
| Disagreement | Raised in a more measured, less heated register | Lively, expressive debate, without breaking the relationship |
Practical advice
Your first month in an Italian company
- Invest in the relationship from the outset; meals and conviviality are part of the work
- Identify the chain of command and titles, and cultivate human closeness
- Learn Italian, and adapt your style to the North or the South
- Anticipate the formalities: codice fiscale, iscrizione anagrafica, and the residence permit within eight working days if you arrived on a long-stay national visa
Establishing a partnership with an Italian company
- Plan several meetings and relational time before a commitment
- Tend to the personal relationship and networks as much as the technical file
- Present the vision and overall logic first, then the details
- Stay reliable and present over time; trust is built over the long term
Frequently asked questions
Do you need a visa to move to Italy?
It depends on your nationality. Nationals of the EU, the EEA and Switzerland need neither a visa nor a work permit: free movement applies, and beyond three months they register with their commune (iscrizione anagrafica). For everyone else, two situations: nationals of visa-exempt countries, among them the United States, the United Kingdom, Canada and Australia, may enter for up to 90 days in any 180-day period provided they take up no gainful employment, while nationals of visa-required countries, among them India, China, Nigeria, South Africa and Turkey, need a Schengen C visa even for a short visit. Working, or staying longer, is a separate authorisation in both cases: a long-stay national visa first, then a residence permit applied for at the Questura within eight working days of arrival. See decision 6: Entry, residence and registration.
What is the impatriate regime (lavoratori impatriati) in Italy?
Employment income produced in Italy counts towards taxable income at only 50% of its amount (40% for a worker with a minor child), within an annual limit of 600,000 EUR, for the tax year of the transfer and the four following years. It requires high qualification or specialisation, no Italian tax residence in the three preceding tax periods (six or seven where the work continues for the same employer or group), and a commitment to remain tax-resident in Italy for at least four years. The reduction applies to the tax, not to the social contributions. See decision 4: Tax regimes.
What is the Italian flat tax for new residents?
It is an annual flat-rate substitute tax on foreign-source income, replacing IRPEF on that income for up to fifteen years, for people who have not been tax-resident in Italy for at least nine of the ten preceding tax periods. The amount is 300,000 EUR for transfers of residence from 1 January 2026, against 200,000 EUR before that, with a further 50,000 EUR a year for each family member who exercises the option. It is a scheme distinct from the regime forfettario for the self-employed. See decision 4: Tax regimes.
What is the cost of living like in Italy?
It stays moderate by Western European standards, with a wide internal spread: Milan is the most expensive city in the country, while the Centre and the South are markedly more affordable. For an estimate based on your own profile, see decision 1: Living in Italy.
Do you need to speak Italian to work in Italy?
Italian is most often essential in Italian companies; English is often enough in technology, finance and multinationals in Milan, and French is an asset in luxury and tourism, sectors in which several French-owned groups operate in Italy. See decision 2: Working in Italy.
Can you set up an SRL while living abroad?
Yes. An SRL can be wholly owned by foreign shareholders and its incorporation, which goes through a notary, can be completed online. A codice fiscale and a partita IVA remain necessary. Owning or directing the company does not in itself create a right to live in Italy: a third-country founder who intends to move and work in the business needs a separate entry route, and the tax residence question warrants a qualified professional. See decision 3: Starting a business.
Can you really buy a one-euro house in Italy?
These are not national sales but calls for applications from certain municipalities, coming with an obligation to renovate, a security deposit, and a cost of work that often exceeds 50,000 EUR. It is a renovation project, not a simple one-euro acquisition. Note too that a non-resident third-country national may buy in Italy only where the condition of reciprocity is satisfied, which the notary verifies. See decision 5: Buying property.
Are salaries lower in Italy than in other Western European countries?
For comparable positions, Italian pay is often below the levels found in the higher-earning Western European economies. The tax regimes and more measured living costs can offset part of the gap, to be assessed case by case with the net salary calculator. See decision 2: Working in Italy.
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