Italy - Digital Nomad Visa - Touchstone Lifestyle

Italy - Digital Nomad Visa

Italy is one of the world’s favourite holiday destinations. But now, with millions of people no longer required to stay in the office, the Mediterranean country is becoming a favourite for digital nomads – those who work outside of their home countries and change location frequently.

What is a Digital Nomad?

A Digital Nomad Visa is a special type of residency permit that allows individuals to live and work in a foreign country while conducting business online. These visas are specifically designed for remote workers, freelancers, and entrepreneurs who can perform their jobs from anywhere with an internet connection. With a Digital Nomad Visa, you can enjoy the benefits of living abroad without the hassle of traditional work visas or residency permits.

Digital Nomad Visas offer a host of benefits for remote workers and entrepreneurs alike. From access to world-class amenities and affordable living costs to the freedom to travel and explore at your own pace, these visas provide a unique opportunity to design the life you’ve always dreamed of. With the ability to live and work in multiple countries without the constraints of traditional employment visas, Digital Nomad Visas empower individuals to embrace a truly global lifestyle.

Program Overview:

Italy has launched a new digital nomad visa for “highly skilled” workers who earn around €28,000 a year. A digital nomad is, according to the Italian government, a non-EU citizen who does “highly qualified work activity with the use of technological tools”, either for a company or on a self-employed basis. The work cannot be for an Italian company.

Program Benefits:

Flexibility: The Digital Nomad Visa allows remote workers to live and work in Italy without the need for a traditional work visa, providing unparalleled flexibility in where and how they work.
Access to Beautiful Destinations: Italy is known for its stunning landscapes, rich cultural heritage, and vibrant cities. With the Digital Nomad Visa, you can explore iconic destinations like Rome, Florence, and Venice while enjoying a high quality of life.
Cultural Immersion: Living in Italy offers a unique opportunity to immerse yourself in Italian culture, cuisine, and way of life. From sampling authentic Italian dishes to participating in local festivals and events, you’ll have the chance to fully experience the Italian lifestyle.
Networking Opportunities: Italy is home to a thriving expat community and a burgeoning startup scene, making it an ideal destination for networking and collaboration. With the Digital Nomad Visa, you’ll have the opportunity to connect with like-minded professionals from around the world.
Inspiring Work Environment: Whether you choose to work from a bustling cafe in Milan or a picturesque villa in Tuscany, Italy offers an inspiring work environment that can enhance creativity and productivity.
High-Speed Internet: Italy boasts excellent internet connectivity, with high-speed broadband and reliable mobile networks available in most urban areas. This makes it easy to stay connected and productive while working remotely.
Affordable Cost of Living: While certain cities like Rome and Milan may have higher living costs, Italy overall offers a relatively affordable cost of living compared to other European countries. This makes it an attractive destination for digital nomads looking to stretch their budget.
Healthcare Access: Italy has a comprehensive healthcare system that provides access to quality medical care for residents and visitors alike. With the Digital Nomad Visa, you can enjoy peace of mind knowing that you’ll have access to healthcare services if needed.
Work-Life Balance: Italian culture prioritizes work-life balance, with a strong emphasis on leisure, family, and community. As a digital nomad in Italy, you’ll have the opportunity to embrace a more relaxed pace of life and savor the moments outside of work.
Path to Residency: While the Digital Nomad Visa is initially valid for a limited period, it can serve as a stepping stone to long-term residency in Italy. By establishing roots in the country and meeting certain criteria, you may be eligible to apply for permanent residency or citizenship in the future.

Requirements & Eligibility:

To be eligible for Italy’s Digital Nomad Visa, you must meet the following requirements:

1. Non-EU Citizen: This visa is specifically designed for those living outside of the European Union.
2. Highly Qualified Remote Worker: The program targets “highly qualified” remote workers. While the Italian authorities haven’t released an official job list yet, a range of professions could be applicable, from experienced tech workers to online entrepreneurs.
3. Remote Work for Outside Entities: Your work must be remote, meaning you’ll be working for a company, clients, or your own business located outside of Italy.
4. Minimum Income Requirement: You must demonstrate a monthly income exceeding €2,335, which translates to roughly €28,000 annually. This is based on a minimum threshold of three times the Italian national minimum wage.
5. Health Insurance: Comprehensive health insurance valid in Italy is mandatory.
6. Criminal Background: As with most visa programs, you’ll need to provide a clean criminal record.

Taxation:

Once you obtain the residence permit and settle in Italy you are required to become a tax resident, paying taxes on your employment/self employment income, as well as social security on your earnings.

Generally you are not required to contribute towards the Italian Social Security in case of secondment, A1 coverage, or other international assignment to Italy. In particular US citizens must opt for the US coverage, abiding the US – Italy social security agreement, thus paying social security to the United States only, and pay income tax to Italy. In order to do that, you must obtain the US Social Security Certificate of Coverage.
This becomes essential to avoid any unwanted challenge from the INPS – Italian Social Security Administration.

Digital nomads must trade from Italy under the Partita IVA, and can essentially pick between two regimes:

Regime forfettario
New residents regime

The first one allows you to pay tax using a flat 5% tax scheme for 5 years (which increases to 15% in the subsequent years), on a set percentage of your revenues. For instance, if you are a computer programmer and you invoiced € 50,000, your taxable income is adjusted to 67% (€ 33,500) on which you pay a 5% income tax amounting

This regime is non VAT registered, and you don’t charge any output VAT; moreover, your income calculation disregards the applicable costs

The Regime Forfettario is better suited to Digital Nomads earning up to € 85,000/year with minimal to no costs, such as digital marketers, SEO specialists, computer programmers among others.

The new residents scheme provides a 50% income tax exemption for up to 5 years. This regime allows the cost itemisation, therefore you can reduce your revenue by the costs incurred in the trade; furthermore, you charge output VAT and deduct any VAT incurred. In addition, you can write off tax credits, including the health expenses, house renovations, rental costs among others.

The new residents regime is better suited for individuals trading with companies located overseas (no VAT) who also incur in trade costs.

Regardless of the tax regime you pick, you are also required to pay tax on your worldwide income, thus your foreign (non Italian) financial income sources, rentals, royalties, and any other income source has to be disclosed to the Italian authorities through your annual self assessment tax return.

In addition, you must also report your non Italian assets, and potentially pay wealth tax on such items.

Required Documents:

Valid Passport: Your passport must be valid for at least three months beyond your intended stay in Italy and have at least two blank pages.
Passport-Sized Photos: Typically two recent, color passport-sized photographs. These must meet specific size and quality requirements.
Proof of Employment: Either contracts with clients outside of Italy demonstrating ongoing work or a letter from your employer (registered outside of Italy) confirming your remote work status.
Proof of Income: Bank statements, tax returns, or other documents that show you meet Italy’s minimum income requirement, which is roughly around €28,000 annually.
Health Insurance: Comprehensive health insurance with coverage valid in Italy throughout the duration of your stay.
Proof of Accommodation in Italy: A rental agreement, hotel reservation, or other documentation demonstrating suitable lodging arrangements in Italy.
Criminal Background Check: A clean criminal record certificate from your home country or country of residence may be required.