Freelancing in Italy: How to Move to Italy as a Digital Nomad

Italy has long been a destination of choice for foreigners seeking a high quality of life, exceptional cuisine, and a mild climate. However, it is also becoming an increasingly attractive option for remote work. The country's recent implementation of updated visa options, streamlined tax regimes, and revised self-employment regulations positioned it as a favorable destination for digital nomads and freelancers.

If you're wondering how to move to Italy and work remotely, the following guide provides all the necessary information: from taxes and VAT to visas, and from residency to Italy's Digital Nomad Visa.

How Much Tax Do Freelancers Pay in Italy?

Let’s start with what matters most: Freelancers operating under the Regime Forfettario (flat-rate scheme) benefit from reduced income tax rates and simplified filing requirements. Under this regime:

• A flat 15% tax applies to taxable income.
• For newly established activity, the rate drops to. 5% for the first five years, provided certain conditions are met.
• Only a portion of your gross income is considered taxable, typically 78% for most service-based professions.
• Social Security contributions (INPS) range from 24% to 28%, depending on profession.

Eligibility is capped at €85,000 in annual gross revenue. Those exceeding this amount must transition to the ordinary tax regime, where progressive rates apply.

Practical Case

Let’s say you’re a freelance graphic designer earning €60,000 in 2025. You’re under the Regime Forfettario, and this is your first year in business, so you qualify for the 5% flat tax.

• Taxable income: €60,000 × 78% = €46,800.
• Income tax (5%): €2,340.
• INPS (Gestione Separata at ~26%): €12,168.

That would bring your total tax and contributions to approximately €14,500—an effective rate of about 24% on gross income, exempt of VAT, and with simplified reporting.

The “30% Rule” Still Applies?

When researching taxes in Italy, one might have read about a very generous tax break for expats, the so-called “30% Rule.” But as of January 1, 2024, the rules have changed. And if you're planning your relocation in 2025, you’ll want to understand the new version of Italy’s Impatriate Tax Regime.

• Under the updated regime, eligible workers now pay tax on 50% (and not 30%) of their income from employment or self-employment. While this remains a strong incentive, it represents a reduction from the previous system, which offered income tax exemptions for 70% (or even 90%) of earnings.

Furthermore, a cap has been implemented, limiting eligibility to the first €600,000 of earned income.

What About the Southern Italy Bonus?

Prior to the recent changes, relocating to southern regions such as Sicily or Calabria typically resulted in taxation of only 10%(!) on one's income. The 90% exemption is no longer applicable. All regions now offer the same deal: taxation on 50% of one’s income, regardless of the place of residence.

Do Freelancers in Italy Pay VAT?

VAT obligations for freelancers in Italy depend on the structure of their activity. Italy offers a variety of tax regimes, each with its own unique compliance requirements. Choosing the correct setup is essential, especially for those billing clients in multiple jurisdictions:

• Regime Forfettario: exempts freelancers from charging VAT, filing VAT returns, and maintaining VAT books.
• Ordinary Regime: on the other hand, freelancers under the ordinary regime must charge 22% VAT on domestic sales and services, file quarterly returns, and comply with electronic invoicing regulations.

For international clients, intra-EU and non-EU VAT rules apply, often involving reverse-charge mechanisms or VAT exemptions, depending on the service and client location.

How to Move to Italy?

Relocating to Italy as a freelancer involves several key steps — both before you arrive and once you're on the ground:

• Codice Fiscale (Tax Identification Number) – This is your Italian tax identification number, required for signing contracts, opening a bank account, renting property, and more.
• Visa application – Non-EU nationals should apply through their nearest Italian consulate. If you're working remotely for foreign clients or companies, the country’s Digital Nomad Visa provides a suitable pathway.
• Partita IVA (VAT Number) – Once in Italy, and after starting the residency process, you’ll need to register as self-employed. This means getting a Partita IVA and choosing a tax regime (like the Regime Forfettario for simplified taxation). To get a Partita IVA, you’ll generally need to have your visa approved and have begun establishing legal residency (including your residence permit).
• INPS enrollment (National Social Security Institute) – You’ll also need to register with INPS to gain access to public healthcare, contribute to your pension, and fulfill mandatory social security obligations. 
• Permesso di Soggiorno (Residence Permit) – This must be requested within eight working days of arriving in Italy.
• Anagrafe registration (Municipal Residency) – Finalize your legal residency by registering with your local comune (town hall).

What is Italy’s Digital Nomad Visa?

Italy’s Digital Nomad Visa allows non-EU nationals to live in Italy while working remotely for foreign clients or companies. This new visa category was created to attract highly skilled remote professionals and freelancers. EU nationals, on the other hand, don’t need a visa to live or work in Italy and can register locally with fewer administrative steps.

Key points:

• It targets non-EU remote workers.
• Requires proof of remote work or freelance income.
• Annual minimum income of €28,000.
• Health insurance and a clean criminal record are required.
• Local registration (residency + permesso di soggiorno) is mandatory.

It’s important to note that the 183-day rule applies: spending more than 183 days in Italy within a year typically triggers tax residency leading to tax obligations on global income. 

How to Move to Italy from the USA?

Italy’s introduction of its own Digital Nomad Visa in 2024 created a special pathway for remote workers to establish legal residency in the country. US nationals moving to Italy can apply for the visa through an Italian consulate in the United States.  

The application must be supported by the following:

• Proof of remote income from non-Italian sources.
• Annual income above €28,000 (regional thresholds may vary).
• Private health insurance.
• Clean criminal record.
• Proof of housing in Italy.

Once approved, entry is followed by registration with local authorities and residence permit issuance. 

Freelancing in Italy: Bureaucratic Maze or Italian Delight?

With a streamlined visa process, competitive tax incentives, and fewer administrative hurdles for self-employed professionals, freelancing in Italy is becoming ever more attractive. Remote workers in Italy can benefit from low tax rates under the Regime Forfettario and/or from relief through the impatriate regime. In addition, there is a clear legal framework for residency based on the Digital Nomad Visa.

If you're exploring how to move to Italy and work from there, then early-stage planning is essential, as is consulting with a tax advisor to determine the correct setup based on income source, location, and residency goals.

At Tytle, we provide global tax services, including:

• Accounting/bookkeeping
• Accurate tax filing
• Estate planning
• Cross-border advice
• Immigration services
• And much more!

For more international tax advice, feel free to explore: “Freelancing in Portugal: Tax Filing Rules for Digital Nomads” and “Freelancing in Spain: Tax Filing Rules for Digital Nomads”