Job Discussion Forums

[expatwannabe]

I am moving to Rome at the start of September and in addition to looking for work in a school was thinking of trying to find some freelance work. Although I have a Codice Fiscale, I'll be new to Italy so wondered if someone could please advise me about the issues I need to consider about freelance work.

Many thanks,

expatwannabe.

[Teacher in Rome]

A codice fiscale is the first step - you'll need that for everything, including getting paid, opening a bank account, and so on.

If you go the freelance route, pay attention to how much you're invoicing. Anything over �5000 per year means that the Finance Ministry considers you to be a "dipendente" (i.e. employee) and therefore that you should be paid as such - rather than invoicing. Anything under �5000 a year can be invoiced as "lavoro occasionale" and you only need to deduct 20% for tax.

If you're going to invoice more than �5000 a year, you'll need to get a Partita Iva number (= VAT number). Your invoices will look different (and you'll earn less) because you'll need to impose IVA (=VAT) at 21% and do the 20% deduction for income tax. Your gross income will also be subject to a mandatory 20% deduction for INPS (pension, social security.)

To get a P Iva, you also have to be resident, which can be a time-consuming process in its own right.

If you're coming over in September, I imagine you're less likely to earn �5000 before the end of December, so you can see how it goes, get the residency process in motion and so on. Then from January 2013 (which is when the new tax year begins) you can decide whether or not to open a P Iva.

If you do decide to do that, make sure you get yourself an accountant. The rules keep changing (there's a relatively new one which incentivises people under 35, for example) and there's plenty you can do to offset tax. But you'll need an accountant to work all that out for you, submit tax forms and so on. It's not simple, believe me! You'll have to submit all your invoices quarterly, and pay tax twice a year: once in June / July for the previous year, and once in November for forward tax. You should also pay your INPS then, though I always pay mine two years in arrears, and then have to pay a fine on top for late payment...

Sorry, this is quite a lot of detail, but the risk of not doing it properly is being investigated by the financial police. I heard via the news that they're starting to crack down on unofficial "tutors" - teachers who moonlight and get paid in cash, that sort of thing. So be careful.

The only other thing I should mention is that to work here legally, you need either to be Italian, married to an Italian, full-time student or EU. If you're not, then any sort of work will be precarious and you won't have any protection against unscrupulous employers / clients. Plus you're in danger of getting deported from the Schengen zone.

[expatwannabe]

Dear Teacher in Rome,

That is incredibly helpful and just what I needed, thanks very much indeed.

I'm a British national so should be ok about working and will start the process of getting a residence certificate when I arrive. Fingers crossed, I'll be ok with getting the latter because although I won't have a job on arrival I have saved some money to get me through the first three months!

Thanks again,

expatwannabe.