SHARE
COPY LINK
For members

MOVING TO ITALY

Can you work in Italy on an elective residency visa?

The elective residency visa is one of the most popular routes to Italian residency, but what exactly are the rules on working in the country once you arrive?

A couple walk past a water feature at the EUR Lake Park on the outskirts of Rome on April 13, 2024.
A couple walk past a water feature at the EUR Lake Park on the outskirts of Rome on April 13, 2024. Photo by Andreas SOLARO / AFP.

If you’re looking to relocate to Italy as a non-EU national without close family ties or a job offer from an Italian employer, you’ll likely have come across the elective residency visa, or ERV.

The ERV is the Italian visa best suited to many applicants, with a relatively low minimum income threshold and few other strict barriers to entry. But does it allow you to work and receive a salary once you arrive in Italy?

The short answer is no: Italy’s elective residency visa is specifically designed for people who want to move to Italy without working.

Applicants for the ERV must meet a passive income requirement of at least €31,000 per person per year or €38,000 for married couples, plus five percent per dependent minor. 

READ ALSO: Five expert tips for getting your Italian elective residency visa approved

The key is in that word ‘passive’ – while annuities, pensions and rental income all count, you can’t receive an active income from work while on the visa.

Italy’s unemployment rate is one of the highest in Europe, so the government is very careful to protect the domestic jobs market (which is why many were surprised when parliament last month approved a digital nomad visa that does allow foreigners to work from Italy, in theory for Italian employers).

READ ALSO: How easy is it to get Italy’s new digital nomad visa?

That means the vast majority of the people who move to Italy on the ERV are retirees in their 60’s or older.

Of course, that doesn’t mean that there won’t be some people who try to get around the rules by working under the table or remotely.

But if caught, you’d be found to be in breach of the terms of your visa and face being kicked out of the country – so it’s safest to follow the rules. 

Read more about the ERV and other visa options in The Local’s Italian visa section.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

RETIREMENT IN ITALY

How many people successfully apply for Italy’s flat tax for pensioners?

Italy's flat tax rate of just seven percent for people who choose to retire in the sunny south of the country has garnered a lot of interest worldwide - but how many people are really able to take advantage of it?

How many people successfully apply for Italy's flat tax for pensioners?

Since 2019, Italy has offered a special seven percent tax rate to those who retire in certain peaceful, sunny, and usually very affordable parts of the country with a foreign pension.

Understandably, this offer has generated a lot of interest from people around the world who are considering a move to Italy for their retirement.

Q&A: What to know about Italy’s flat tax rate for pensioners

While it may sound like the low tax rate would be immensely popular, the scheme has quite a few requirements which mean many would-be applicants find it’s not the right fit for them.

Firstly, you must settle in a qualifying town or municipality with fewer than 20,000 inhabitants. Almost all of these are in the southern regions of Abruzzo, Basilicata. Calabria, Campania, Molise, Puglia, Sardinia, or Sicily.

You must receive a foreign-sourced pension, and you can’t have been a legal resident of Italy at any time in the previous five years.

If you meet all the requirements, you’ll need to be able to prove it when filing your first Italian tax return in order to benefit from the low tax rate.

The scheme is now in its fifth year, but the latest data reveals that fewer than 500 people in Italy are taking advantage of the seven-percent tax rate.

READ ALSO: Retirement in Italy: What you need to know about visas and residency

A total of 474 people declared a foreign pension income under the scheme according to figures from the Department of Finance, published at the end of April, on tax returns filed in 2023.

They declared a total pension income amount of 19 million euros, which works out at 40,210 euros per person on average, according to financial newspaper Il Sole 24 Ore, and a total income from all foreign sources of 28.7 million euros.

This resulted in just under two million euros in tax paid to the Italian state, according to the data.

The flat tax represents a substantial saving, as Italy’s usual Irpef (income tax) rates are between 23 and 43 percent depending on income bracket.

If you’re interested in using the scheme yourself, you can read more about the requirements in a separate article here.

Please note that The Local is unable to advise on individual cases. Find more information about Italy’s flat tax rate for retirees on the Italian revenue agency (Agenzie delle Entrate) website here (in Italian only) or speak to a qualified tax advisor.

SHOW COMMENTS