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Self-employment in Italy - easy or hard? General advice needed

Last activity 16 October 2023 by hovigA

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nilonilonilo

Hello,

I'm considering moving to Italy from Malta with my family. I work as freelancer and can work remote, so no issues with a job.

However, all my Italian friends here tell me: "Don't set up your business in Italy, it's too much hassle, keep everything in Malta."

But my point of view is that, if you move somewhere, you do it properly and so set up everything there (taxes, social security etc.)


So, my general question is: how easy/hard is it to work as a self-employed person in Italy?

More specifically:

  • tax rates: are they high/low? VAT: how much is it? (although 99% of my billing would be outside Italy, so I don't need to charge VAT)
  • social security contributions: high/low? (people tell me you don't get much in return for social security contributions ... is it better to go private for health etc?)
  • amount of red tape? bureaucracy?
  • i will need to get the help of an accountant (for tax returns etc)? i saw in other posts they are called "commercialista"? how much should I budget for this?
  • anything else I need to be aware of?


Thank you,

Nil

M Hunt

Hi Nil,

You like to ask the most difficult of  questions.


Vat is at standard 22% but there are variables, 10% on gas & electric IF you are resident or its 22%. To charge Vat (IVA) you must be registered and as a business the cheapest for is a sole trader if charged in Italy. That said your world wide income is taxable in your country of residence and as it is a technical nightmare to sort out I'd opt for a commecrialista who will charge you according to the amount of work they have to do so it can range from 60 euro's to over 2000 for a larger business with employees for example. They are now responsible for mistakes unless they can prove you withheld information in order to defraud the tax office, who naturally are out to make as much as they can and the fines are heavy if caught. The annual tax rates are easily found on line, so knowing your current income you should be able to make a reasonable estimate.


We paid into the health card as the health system is very good, but Italians prefer to pay privately for dental care which is not cheep, the pension return we don't know as yet. Much will depend on your dependants if you are the only provider


Red tape/bureaucracy is an art form here and the wheels turn slowly so be prepared to have patience.


Perhaps contact an accountant here and ask these questions giving them the idea of the business you do and the turnover then they'll be able to give you fuller answers.

nilonilonilo


   
You like to ask the most difficult of  questions.


Hehe, sorry 1f609.svg

Thanks for taking the time to reply.

Any idea where I could find the tax rates/a tax simulator, to get an idea of how much i'd be left with?

Thank you!

M Hunt

Try this site:

https://www.icalculator.com/italy/incom … lator.html


This link to explain taxes:

https://www.expatica.com/it/finance/tax … aly-79671/

nilonilonilo

Thank you for answers, this was very helpful.

hovigA

Perfect timing for me  - as I am potentially looking to freelance. Thank you for all the information.

As far "Red tape/bureaucracy is an art form here and the wheels turn slowly so be prepared to have patience.":

Someone once told me in so many words (through a long joke which I will spare you) that the same reasons you want to vacation in Italy may be the same reasons you don't want to live here.

It even seems to be the lament of Italians to the point I wonder why things don't change - but that seems like a naive question...

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