An Intro to the Italian Partita IVA – Being a Freelancer in Italy

Updated 04/2024

If you have moved to Italy and are hoping to open a small business or work freelance, you will need a Partita IVA. This is your VAT code as some may know it. The first thing to know about these Partita IVAs is that it is a very complicated regime, and you will absolutely need to get a commercialista, that’s an accountant. Trust me it will make your life much easier.

So what are the benefits of getting a Partita IVA?

In some cases the Partita IVA may be a choice, in others a necessity.

Well if you have been living in Italy for some time and have not been able to obtain a Permesso di Soggiorno for work, you may be looking to the Freelance route. By opening a Partita IVA you can obtain the Permesso di Soggiorno for “Lavoro Autonomo” or freelance.

Instead, if you are planning on running any business while being a resident in Italy, you will need it to legally run your business. It is required anytime you are making more than €5,000. It is also required when you conduct any continuous business (like say, running an e-commerce), or when you have a collaboration with a company that lasts longer than 30 days.

There are different types of Partita IVA, and some allow you to claim purchases to deduct from taxes or purchase certain deals at various electronic stores and others. However, this seems to be nowhere near the level of deduction the US allows for.

If you need any help figuring out freelance in Italy, or getting settled into your new life, book a call and let me help you work it out to make the most of your life in Italy.

What type of Partita IVA do I need?

There are many different types of Partita IVA, my own personal experience has been with the forfettaria but here I will try to give you an overview of the different options.

The forfettaria PIVA is reserved for individuals who make less than 85,000€ a year. Under this PIVA, for brand new businesses, the taxes should be about 5% for the first 3 years, then 15%. On top of about 26% for INPS, your Italian pension and social security contributions.

Under the forfettaria you also have limits in paying employees or collaborators, so it is better to adapt for individuals. This is usually used for Consultants, Social Media Managers, and gig-type work.

Instead, the other Partita IVA is a Regime Contributivo. Under this PIVA, the general taxes you pay will be higher, towards 24%-43%. Then you will need to pay the social security contributions as well. Usually, this is the PIVA required for architects, doctors, psychologists, and other professionals. This type of Partita IVA also allows you to hire employees and write off some tax, but not much.

Then if you are opening a commercial endeavor, a store, or a bar, you will then have to have a different setup, and it is a much longer process. Again, ask your commercialista they will set you up right.

Note for Americans: Social Security and INPS

If you are working both US and Italy jobs, or you choose to send your money into Social Security, rather than INPS, you can do this and pay only one country’s taxes rather than both. Find out more here.

So how do I set up a Partita IVA?

You can try to set it up on your own, or again, just go to your commercialista. If you set it up on your own it will be free, through a commercialista prepare to pay about €50 for the process.

To open a Partita IVA you must head on over to the Agenzie delle Entrate to request it, they will provide you with a form to fill out, asking about the type of work. The forms are AA9/12 o AA7/10, and you will be asked for an ATECO code to identify what you will work as.

Afterwards, you will also have to register at INPS, the most dreaded thing in Italy, yes worse than the Questura. You basically need to head to the office of INPS, get the first have of a password, then register online, and then they also send you a part in the mail. But step one, just go to INPS with a copy of your ID, Passport, Permesso di Soggiorno, and they will walk you through it.

If you haven’t at this point GET A COMMERCIALISTA.

Where can I find an Italian Accountant (Commercialista)?

You can opt to hire an Italian accountant in person, or thankfully with our ever-traveling lifestyles, you can also use an online service.

In-Person Accountants

If language is no barrier you can find a commercialista in every city. However expats in Italy often prefer to search for someone who speaks English and understands their full tax situation – in their home country and Italy. To help you with this I have created this resource here.

A commercialista on average (from a survey of all my fellow PIVAs) costs about €500-700 per year, and that can be broken down into quarterly or bi-annual payments. It may sound like a lot, but an accountant is a seriously good investment. If in-person is important to you, then don’t worry about the cost. However, online options might offer you something cheaper.

Online Commercialista – Italian Accounting Services Online

A few online accounting services have popped up, many with there pros and cons, but one that really stands out to me as a great solution.

Xolo.io is an online accounting service for Italy, in English. A major benefit as the others (FlexTax, FiscoZen) are only in Italian. Xolo connects you to real commercialiste in Italy who will stay in contact and offer any question you may have. They provide a platform for electronic invoicing, and prepare your yearly tax declaration, as well as the payment forms (Dichiarazione dei Redditi and payment is done by f24). Oh and they can set up for your Partita IVA for you!

Additionally they have a really competitive price point – 360€ a year. That includes invoicing, preparing the taxes and payments. Not to mention the great add-ons, where they can help sort out missed payments, closing your partita IVA or business changes. Overall, the best online service. Check them out here.

Seriously, don’t try to figure this out on your own, a commercialista will keep things simple, fill out all your taxes, set you upright, and even keep track of bonuses you may be up for. For example, during the pandemic, my commercialista frequently sends me updates about various government bonuses I qualify for and how I can obtain them.

If you are considering starting a business

I want to send you over to this great resource I found, which comes directly from a legal office. I hope this will help answer some of your business questions!

What if I want a Freelance Visa?

So the Freelance Visa in Italy is a bit different. An Italian Self-Employment visa is a D-Visa, a long-stay one. However, this visa simply gives you permission to ENTER the country, not to work or live. That is right though this allows you to start your journey in Italy, you will need further authorization to stay there.

This means before you even get ready to apply for the visa, you need to already have the partita IVA and other authorizations, meaning you need someone in Italy to figure it out for you. There are usually only 2,400 of these visas available per year, and it is very much first come first serve.

So here are the different versions of those Freelance Visas.
The Startup Visa: to foreigners who want to open an innovative company in Italy, or who join an already existing startup as an executive. There is really great information on how to do this at this link. You will find it all in English with step by step on what you need.
Freelancer Visa: to individuals who want to start with freelance work and don’t have a company to hire them.
Entrepreneur Visa: if you have an investment plan of over €500,000 to implement that will benefit the Italian economy, this one is for you!

Before you get to the Visa, this is the whole process you will need:

1. Apply for a Nulla Osta  from the Immigration Desk (Sportello Unico Immigrazione – SUI). This has to be done in Italy, with proper documentation as to your status and ID.
2. Get the authorization and documentation needed for self-employed activity in Italy. (Partita IVA & such)
3. Apply for the Self-Employment Visa at the Italian Consulate in your home country.
4. Enter Italy and apply for an Italian residence permit (permesso di soggiorno) for lavoro autonomo.

Do you need the Partita IVA if you are a Digital Nomad?

The digital nomad is Italy’s latest visa option that can be very helpful for remote workers. However, when it comes to taxes, you’ll still find yourself in a situation like most freelancers.

By living more than 182 days of the year in Italy, you are a “tax resident”. That means you will need to set up the proper tax code and pay income taxes to Italy in order to remain compliant.

Final Thoughts on the Italian Partita IVA

Setting up and running your freelance business in Italy can be really exhausting. It isn’t for the faint of heart let me tell you. But if you need to do it, it’s gotta get done.

Make sure you have great support on your side by choosing commercialista that that be there with you through it all. An in-person accountant or a service like Xolo, both are great options, decide what is best for you.

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