Freelancer tax benefits in Italy: what you need to know before relocating

Author

Emma

Professional Development Specialist

Over the past decade, Italy has quietly transformed into a top destination for digital nomads and independent professionals. With its world-class cuisine, rich history, and slower pace of life, it’s not difficult to see why. But beyond the romance of espresso in sunlit piazzas or working from a Tuscan village, there’s another major draw: freelancer tax benefits in Italy.

Italy now offers compelling tax incentives to attract highly skilled workers and remote professionals. Coupled with an improving digital infrastructure, a vibrant expat community, and a cost of living lower than much of northern Europe, the country presents a unique opportunity for freelancers looking to relocate.

However, moving your freelance business to Italy comes with legal and administrative hurdles. In this guide, we’ll walk you through Italy’s tax landscape, highlight available tax benefits, and show how Hightekers makes it possible to enjoy all the perks, without the paperwork headaches.

Overview of the Italian tax system for freelancers

If you’re planning to freelance in Italy, it’s essential to understand how the local tax system works and how it applies to you.

By default, freelancers must register as a libero professionista, which means operating as a sole trader. Once registered, you’re expected to:

• Pay income tax (IRPEF) based on a progressive scale (23% to over 40%)
  
• Register for VAT (IVA) and issue invoices accordingly
  
• Contribute to social security (INPS), which can be significant
  
• Maintain accounting records and file quarterly VAT returns and annual tax returns

This traditional freelance setup is feasible but involves regular dealings with tax offices, understanding Italy’s shifting regulations, and ideally working with a commercialista (accountant) to stay compliant.

However, Italy also offers special tax regimes designed to attract foreign talent, which make the tax burden much lighter for eligible professionals.

The tax regime for returning workers (Rientro dei cervelli): who qualifies and what are the benefits?

One of Italy’s most generous tax incentives to freelancers is the Impatriates Regime (Regime impatriati). Designed to reverse brain drain and attract highly skilled individuals, this regime significantly reduces income tax for those relocating to Italy.

How does it work?

If eligible, you can benefit from 70% of your income being exempt from taxation for five years. That means you’ll only pay income tax on 30% of your gross income — a dramatic reduction compared to standard IRPEF rates.

Even better, if you relocate to certain southern regions (like Sicily, Calabria, Puglia, or Campania), the exemption rises to 90%, making it one of the most attractive tax offers in Europe for remote workers and freelancers.

The benefits can also be extended for up to ten years if you meet further criteria, such as buying property in Italy or having dependent children.

To qualify, you must:

• Become an Italian tax resident (by staying more than 183 days a year)
• Not have been tax resident in Italy for at least two years prior to relocating
• Carry out a work-related activity in Italy (including freelance or remote work)
• Maintain tax residency in Italy for the duration of the benefit
• Have specialised skills or qualifications that align with your freelance work

This regime is especially attractive for digital professionals, creatives, consultants, and tech freelancers who work with foreign clients but live in Italy.

Other tax considerations when relocating to Italy

Relocating to Italy as a freelancer offers lifestyle and financial advantages, but it also means stepping into a complex legal and fiscal environment. Understanding Italy’s broader tax landscape — beyond headline income tax rates — is essential to ensuring a smooth and compliant transition. From tax residency rules to social contributions and regional benefits, here’s what you need to know before making the move.

Tax residency and worldwide income

Italy determines tax residency primarily through the 183-day rule. If you spend more than half the year (183 days or more) within Italian territory, or if your primary home or centre of vital interests is in Italy, you are considered an Italian tax resident. This means you’re legally required to declare your worldwide income in Italy, not just the income earned from Italian sources.

This rule can catch some freelancers off guard, especially those who split their time between countries or work for foreign clients. Once you’re classified as a tax resident, failing to report overseas income or not registering properly with the Italian tax authorities could lead to fines or issues with local compliance.

Double taxation agreements

Fortunately, Italy has signed double taxation agreements (DTAs) with many countries, including the UK, the United States, Canada, Australia, and most EU member states. These agreements are designed to ensure that income is not taxed twice—once in the source country and again in Italy.

However, to benefit from DTA protections, you’ll need to formally declare your foreign income in Italy and often submit supporting documentation, such as tax certificates or proof of tax paid abroad. It’s not an automatic exemption: it requires accurate reporting and sometimes the assistance of a local tax advisor.

For example, if you’re receiving income from UK clients, you may be eligible for a credit against taxes paid in the UK, applied to your Italian tax bill. The same applies for pension income, royalties, or dividends received from abroad. However, each case has its own nuances, so careful planning is key.

Social security and access to healthcare

Another critical area to understand is social security. In Italy, freelancers are typically required to register with INPS (Istituto Nazionale della Previdenza Sociale), the national social security system. Contributions to INPS are mandatory once you open a freelance position and start generating income locally.

Depending on your profession and tax regime, INPS contributions can range between 25% and 30% of your income. This represents a significant part of your total tax burden and must be paid quarterly, in advance.

On the positive side, these contributions entitle you to access Italy’s national healthcare system, including GP visits, hospital care, and subsidised prescriptions. Registration with INPS also contributes to pension rights and maternity benefits, making it a comprehensive, if costly, part of the system.

Freelancers relocating from other EU countries may be able to transfer contributions or claim exemptions under EU coordination rules. Non-EU nationals should check whether their country has a social security agreement with Italy to avoid paying into multiple systems unnecessarily.

Regional incentives and local tax relief

While Italy’s national tax system applies across the country, some regional authorities offer additional incentives to attract remote workers, entrepreneurs, and digital professionals. These local benefits can include tax reductions, relocation grants, or financial support for housing and business setup.

Southern Italy, in particular, has taken steps to attract foreign professionals by offering extended tax exemptions, regional grants, and lower property costs.

However, it’s important to note that regional incentives can vary significantly, not just by location, but also by the year or political administration. Accessing these benefits often requires submitting applications in Italian and working through local government channels, which can be daunting for non-native speakers.

As with many aspects of the Italian system, success depends on having the right support and a clear understanding of your obligations. Relocating with a trusted partner like Hightekers ensures you can benefit from these opportunities without getting lost in bureaucracy.

The challenges of freelancing in Italy the traditional way

Registering as a libero professionista is possible, but it comes with a learning curve.

First, there’s the language barrier. Most tax forms and government resources are in Italian, and communicating with local tax offices can be challenging for newcomers.

Second, the administrative burden is considerable. You must keep digital records, issue tax-compliant invoices (often through government-registered platforms), calculate VAT, and file multiple returns each year. Even seasoned freelancers find this time-consuming and costly, especially if you need to hire an accountant.

Third, the rules change often, and keeping up with legal and fiscal updates is a job in itself. For many remote professionals, especially those working with clients outside Italy, this traditionally makes freelancing a frustrating experience.

How Hightekers helps freelancers access tax benefits without setting up a company

If you want to live in Italy, benefit from local tax advantages, and keep your current clients, without managing business registration, INPS contributions, or invoicing headaches, there is a better way.

Hightekers offers an all-in-one solution tailored for freelancers relocating to Italy.

Instead of registering as a libero professionista, Hightekers acts as your legal employer in Italy. We establish a compliant service agreement with your existing client or clients (whether they’re based in the UK, US, or elsewhere), allowing you to continue working independently, but under a fully legal framework.

You gain the freedom of a freelancer with the security and simplicity of an employee contract.

Here’s what we take care of:

• Tax registration and compliance: No need to learn the system or manage filings. We handle it for you.
  
• Payroll and monthly payments: You get paid on time, in the local currency, with clear payslips and deductions.
  
• Social security contributions: We manage your INPS payments and ensure you’re covered for healthcare and benefits.
  
• Impatriates regime eligibility: If you qualify, we help you access the regime and benefit from up to 90% income exemption.
  
• Client peace of mind: Your clients simply pay Hightekers. They don’t have to deal with international paperwork or tax implications.
  

One of our cases is when Daniel, a freelance software developer from Canada, decided to relocate to Sicily. He wanted to keep working with his North American clients without the burden of setting up a company or registering as self-employed in Italy. Learning the Italian tax system, social contributions, and local invoicing laws felt overwhelming, especially with everything in a new language.

That’s when he turned to Hightekers. As his legal employer, we provided Daniel with a legal employment contract in Italy, allowing him to live in Sicily while continuing his freelance work seamlessly. We handled all his tax registrations, social security contributions, and monthly invoicing, while his clients continued working with him through a simple agreement with Hightekers. Daniel now enjoys life in southern Italy (lower living costs, beautiful landscapes, and generous tax benefits), all without dealing with Italian bureaucracy.

This solution is perfect for freelancers who want to focus on their work, settle into Italian life, and enjoy tax benefits, without getting buried in bureaucracy.

Work freely, benefit fully

Italy offers more than just a beautiful place to live: it offers real financial benefits for freelancers who relocate under the right conditions. Between the local incentives and a lower cost of living, you could enjoy significant savings and a higher quality of life.

However, accessing these benefits through traditional self-employment can be complex, especially in a new country.

That’s where Hightekers comes in. We give you the best of both worlds: the ability to live and work in Italy, legally and compliantly, without needing to open a business or deal with tax offices alone.

Simplify your relocation to Italy with Hightekers

Author

Emma

Professional Development Specialist

A seasoned career development specialist based in Bristol, where she helps international professionals manage the complexities of establishing their independent careers in the UK. With over a decade of experience in talent management and professional mobility, she leads initiatives to support freelancers and independent consultants across various high-skilled sectors. When she's not advising professionals on their career journeys, you might find Emma exploring Bristol's street art scene or cheering on her beloved Bristol City FC!