Welcome to our regular look at everything you need to know about life in Italy for The Local’s readers from the US. This newsletter is published monthly and you can receive it directly to your inbox before we publish by going to newsletter preferences in ‘My Account’ or following the instructions in the newsletter box below.

Freelancing is an attractive option for those seeking the freedom and flexibility of working for themselves.

In Italy, this may occasionally also be the only viable route as many companies are unable (or unwilling) to pay high employee taxes, and instead only work with self-employed contractors.

Generally speaking, freelancers in Italy pay two main types of tax: income tax and social security contributions to INPS.

Under the ‘ordinary regime’ (regime ordinario), you’ll pay Italy’s standard income tax IRPEF, which ranges from 23 to 43 percent of your taxable income depending on your earnings. But if you qualify for Italy’s popular ‘flat-tax regime’, you’ll pay five percent of your taxable income for the first five years and 15 percent from there on out.

As for social security, freelancers who are not enrolled in a professional association must pay into a state benefits scheme called gestione separata (literally ‘separate management’), with contributions set at 33 percent. 

But a special Italy-US bilateral agreement aimed at mitigating the effects of citizenship-based taxation means that American freelancers can significantly lower their tax bills by paying social security in the US instead of Italy.

Here’s how you can take advantage of it. 

How to lower your social security bill as an American freelancer in Italy

Driving is often a necessity in Italy as, outside of large urban areas, many parts of the country lack adequate public transport services.

But this can be tricky for holders of non-EU licences as Italian rules state that they can drive on national roads for a maximum of one year from acquiring residency.

After that, they need to exchange their non-EU licence for an Italian licence or, if that’s not possible, take an Italian driving test in order to get one.

As, barring diplomatic staff and their family members, the US doesn’t currently have a bilateral licence exchange agreement with Rome, American nationals living in Italy must get an Italian licence to continue legally driving in the country following the one-year window.

But passing Italy’s driving test can be a major challenge, not least because the theory quiz requires a significant amount of technical knowledge and cannot be taken in English. 

US citizen Barbara Giuliano Di Fabio told us how she managed to get her own Italian driver’s licence, sharing her best tips for fellow Americans looking to do the same. 

‘I felt like a rookie’: How one American finally got her Italian driver’s licence

While the theory quiz is generally regarded as the most daunting part of Italy’s driving test, that doesn’t mean that the road exam is without challenges. 

Driving a manual car (macchina con cambio manuale) after you’ve driven automatic transmission vehicles (macchine con cambio automatico) all your life can be one of them.

But can you only take Italy’s practical driving test if you drive a car with a manual gearbox or is there an option for automatic vehicles?

Can you only take Italy’s practical driving test if you drive a manual car?

Have your say: If you’d like to share your opinion or tell us about an experience you’ve had while living in Italy, please leave a comment below this article or get in touch by email.

And if you have any advice for other American readers who are considering moving to Italy, or questions of your own, you can add them to our ongoing survey here.

Thanks for reading and please get in touch with us by email if you have any feedback on this newsletter.