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Employees who live in Italy but work for a foreign company

Employees who live in Italy but work for a foreign company

Always more often multinational companies that do not have headquarters in Italy find themselves in the situation where workers request the possibility to work remotely in countries different from those where they were hired.

Common cases include, for example, an Italian worker who, after years abroad, decides to take advantage of the opportunity to continue working in Italy or a worker hired by the company's foreign headquarters who obtains the possibility to mainly work from Italy in smart working.

In both cases, the scenario is that of a foreign company that does not have a local unit in Italy (which can directly employ the worker).

But from a tax perspective, what needs to be considered?

Employees should carefully evaluate:

  1. The procedures for transferring tax residency to Italy
  2. The type of employment contract

Non-resident companies in Italy, on the other hand, have several options, namely:

  1. Establishment of a representative office in Italy
  2. Establishment of an "EWE" (Employee Without Entity) in Italy
  3. Establishment of a secondary office (branch) in Italy
  4. Establishment of a NewCo in Italy.