Italy is joining the club of European countries with digital nomad visas (DNV). We couldn't be more excited about this and quite honestly, it couldn’t be in any other way. We always expected Italy to be part of this renaissance in both the very notion of work and global mobility patterns.
Digital nomadism seems appropriate for Italy, which has historically adopted habits and mentalities that then later disseminated across the rest of Europe. As leading companies, governments around the world and individuals rethink how working is going to look like in the future, having one more jurisdiction embracing these trends is great news.
We’ve talked before about the benefits of digital nomadism for local economies and cultures. Though whenever a new country plans to get into the digital nomad visa game, usually the debate reemerges and many need to be convinced. Specifically, in Italy, over the past few years there has been a strong national debate about immigration. Particularly, immigration from Africa and the Middle East has been portrayed by many as a negative phenomenon for the country.
However, Italy is no stranger to the task of attracting qualified workforce. This European country maintains programs and special visas to support self-reliant professionals relocating there. There is even a preferential tax regime for individuals relocating to Italy. It looks like Italy’s new digital nomad visa will build on this and expand the benefits and incentives for DNV holders.
Taxes in Italy
Taxation is a fundamental part of the value proposition behind Italy’s new digital nomad visa. The bureaucracy that accompanies taxation matters often becomes a significant obstacle in relocation plans. That’s why Italy wants to make it easier for newcomers.
Currently, Italy has two very attractive tax regimes that can be used by newcomers.
Regime forfettario
The Regime Forfettario allows you to pay a flat 5% tax on your earnings for the first five years. This is ideal for self-employed individuals.
the Impatriates Regime
This system allows for a 70% to 90% exemption in calculating earned income subject to tax. This applies to both employees and self-employed individuals.
Though is still early to talk about the specifics of taxation under the new digital nomad visa, it is fair to assume that tax responsibilities will be significantly low for temporary residents. We’re still waiting for the details on other key issues such as the main requirements for applicants, the application process itself and processing timeline.
However, Italy’s DNV sounds very promising. Authorities already announced that interested individuals will have to apply for a visa at an Italian consulate abroad and request a stay permit once they’re in Italy. The visa application process is not clear yet, as it will be defined by Italian authorities in the next few weeks. In terms of requirements, we now know that as usual, authorities will ask for health coverage, appropriate minimum monthly income and proof of employment or freelance activities.
Core Requirements: Digital Nomad or Remote Worker;
Applicants must:
- currently run a freelance business; and,
- have a qualifying health coverage
Application Process: Unclear yet, but applicants should apply at a foreign Italian consulate
Processing Timeline: 30 Days
Stay tuned as we gather more information on Italy's version(s) of the Digital Nomad Visa.
Meanwhile, check out our Italy page to discover other immigration pathways, connect with Italian tax and immigration advisors, and read about the details of living in Italy.