Managing payroll in Italy can be challenging. With regulations changing each year, it is important to stay ahead of regulations to maintain compliance.
The corporate tax rate in Italy is 24%, but Italy also collects a regional tax known as IRAP at a varying rate based on region and industry. Foreign companies being managed by Italian residents are taxed on income originating in Italy. The calendar and tax year ends on December 31st, but corporations may request alternative fiscal years to match their global operations calendar.
There is no minimum wage required by the government currently, but collective bargaining is used in various employment sectors to determine minimum pay for workers around the country. There are pension, social security, healthcare, and disability requirements that employers must provide, along with specific vacation and leave policies depending on length of service and collective bargaining agreements. There are also termination policies that must be adhered to in order to maintain compliance
Foreign worker requirements:
- EU citizens and employees from Norway, Iceland, or Liechtenstein do not require work visas, but need to apply for residency in the town they are residing if staying longer than 90 days
- All other foreign workers must get a visa, residence permit, and worker permit in order to gain employment
- The type of visa varies depending on nationality, home country, duration of stay, and more
Italy offers many opportunities for growth. With integrated payroll and operations technology, you can easily manage your workforce in Italy. Blue Marble has simplified global payroll with cloud-based technology and customized monthly reporting so you can manage your payroll in real-time across all countries and currencies. Talk to us today about simplifying your payroll and compliance in Italy – click here to get started