With its world-class cuisine, culture, cities, coasts, fashion, and history, and now a newly introduced digital nomad visa, Italy now offers remote workers the chance to live and work in one of the world’s most iconic countries. Italy launched its Digital Nomad visa in April 2024, marking a significant step in making the country competitive in the global digital nomad market. Known as the “Visa for Remote Workers,” it allows freelancers, self-employed individuals, and foreign company employees from outside the EU to legally live and work in Italy.
In this article, we look at everything American remote workers need to know to take advantage of this opportunity.
Eligibility for Italy’s digital nomad visa
Italy’s digital nomad visa is designed for non-EU citizens who can work remotely using digital tools. The visa is valid for one year and can be extended for an additional year. To qualify, you must meet the following criteria:
- Employment: Highly-skilled individuals who work remotely using digital tools, either as freelancers or employees for companies outside of Italy, who must provide proof of a valid employment contract.
- Work duration: You need to show at least six months of documented work experience in the industry you plan to work in remotely, or, ir you don’t hold a university degree, you must provide proof of up to five years of work experience.
- Clean record: Provide evidence of no criminal record and no entry bans from Italy. Professionals must also submit an affidavit signed by their employer confirming they haven’t been convicted of immigration crimes over the last five years.
- Financial stability: You must demonstrate proof of an annual income of at least €28,000 (around $29,800). This income does not necessarily need to come from your current employment, but it must be documented.
- Accommodation: Provide proof of accommodation, such as a rental agreement, booking confirmation, or a certified copy of a property purchase contract.
- Medical insurance: You must have coverage for medical treatment and hospitalization for your entire stay in Italy. Alternatively, you can enrol in the Italian National Health Service for approximately €2,000 (around $2,144) per year.
- Visa fees: Proof that you have paid the application fee of €116
- For employees with contracts from foreign companies: Your employer must confirm that your position allows for remote work and explicitly authorize you to work remotely from Italy.
- For freelancers: You need to show proof of engagement with at least one company outside Italy, with contract terms that specifically permit remote work.
How to obtain the Italian digital nomad visa
To apply for an Italian digital nomad visa, submit your application to the Italian Consulate responsible for your area of current residence. Apply before you travel though, as applications can only be made from within Italy if you already hold a valid Italian immigration permit. After submitting your application, the process takes up to 90 days.
Another advantage of the Italian digital nomad visa is that you can sponsor a family visa for a spouse (as long as you are not separated or in the process of separation) and children under 18. This makes the Italian digital nomad visa an excellent opportunity for families to experience life in Italy together. Additionally, the visa provides the flexibility to travel within the Schengen Area, which encompasses 27 European countries with abolished border controls, offering a wealth of cultural experiences across Europe.
Required documentation and supporting papers
To apply for Italy’s digital nomad visa, you’ll need to submit a completed application form (available from the Italian embassy or consulate in your current country of residence), your passport, which must be valid for at least three months beyond your intended stay in Italy, proof of your employment and income meeting the minimum income requirement, health insurance for the duration of your entire stay in Italy, proof of accommodation in Italy, and proof of having a clean criminal record.
Unlocking the tax benefits of Italy’s digital nomad visa
Italy’s digital nomad visa presents several tax advantages for remote workers. One of the principle benefits is the flat-rate tax regime. Under the “Impatriate Tax Regime”, digital nomads can enjoy a reduced income tax rate of 7% on income earned in Italy, as opposed to the standard Italian income tax rates that can reach up to 43%. While you’re still liable to file US taxes as a US citizen, you can claim the Foreign Earned Income Exclusion when you file, which allows you to exclude income earned while living abroad from US tax up to an annual limit of $126,500 (in 2024).
Further tax benefits include the deductibility of certain expenses related to remote work, such as equipment and internet costs, which can reduce your taxable income. It’s important to keep detailed records and consult with a tax professional to maximize these deductions. Italy also offers various tax credits that may apply to expatriates, such as credits for contributions to Italian social security.
Final thoughts
Italy’s Digital Nomad Visa presents an exciting prospect for Americans seeking to live and work remotely in Europe. With the ability to bring your family along, tax advantages, and flexibility for collaborating with foreign companies with the whole of Europe on your doorstep it’s an appealing option for those looking to combine work with an adventure living abroad. Whether you’re drawn to Italy’s culture, historic charm, stunning coastlines, or vibrant city life, the Italian Digital Nomad visa opens doors to a multitude of experiences in one of Europe’s most enchanting and iconic destinations.
If you have any questions about financial planning as an American living in the EU, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
