Self-Employment in Italy

Introduction

EU citizens are entitled to carry out self-employed work on a permanent or temporary basis in Italy under the same conditions as Italian citizens:

Be over 18 years of age
Register with the chamber of commerce for Industry, Craft and Agriculture
Have a business tax number (IVA-VAT)
Possess the prerequisites for each area of ownership

Note that the proportion of women among all entrepreneurs in Italy is the lowest in the EU.Types of self-employment

- running your own business
- working in one of the liberal professions
- working as a freelance

Where to Start

If you enter Italy as a self-employed non-EU citizen and wish to carry on your trade or business in Italy, you need to do the following:

Within 8 days of your arrival in Italy, you will need to apply for a residence permit by submitting the following documents:

application completed and signed in person;
photocopy of all pages of your passport or equivalent travel document;
evidence that you have sufficient funds to start your planned activity in Italy;
certificate of enrolment in professional or trade registers, if required;
certificate from the appropriate authority showing that there are no impediments to the issuing of an authorization or licence for your planned activity;
evidence that you have appropriate accommodation;
evidence of an annual income in excess of the minimum income required by law for exemption from health service payments. In alternative, you can submit a guarantee from an organization, an Italian citizen or a foreign national legally staying in Italy.

Financial Help and Subsidies

Financial help is available to people over 18 years of age who are not employed at the time of application and are resident in areas entitled to benefit from the finance provided by EU Structural Funds. The types of activity financed are:

- self-employed work
- micro-enterprises
- franchises

Subsidies are also available for the setting-up and development of the following types of enterprises by young people in depressed areas through various measures:

- production of goods and services to enterprises;
- provision of services;
- entry into farming;
- type B social cooperatives.

Taxes

A self-employed person is liable for tax on his income as Tax will be payable on income earned in Italy and overseas by an individual who meets the requirements of a "permanent resident" of Italy. One of two requirements must be met to be considered an Italian resident: a life centered in Italy (kids going to school in Italy), or being registered in the Population Registry as living more than 183 days a year in Italy. A foreign resident who is employed in Italy pays tax only on income earned in Italy. More info >>

To file your tax returns you will need the assistance of a commercialista (accountant) as the Italian tax system is notoriously bizarre and very complicated.