Can I work remotely in Italy for a US company? The no-BS guide

Remote work has made it possible to live in a country while working for a company on the other side of the world. And for many professionals, Italy is right at the top of their wish list. They love the culture and the lifestyle, not to mention how easy it is to access Europe from Italy! But with that dream also comes a practical question: can you work remotely in Italy for a US company?

Now, the short answer is yes. But, unfortunately, it’s not as simple as moving to Rome and carrying on as usual. If you plan to spend some time in Italy (and I’m not talking about a 2-week vacation), you’ll need to think about visas, residency, taxes, and even about how your employer will handle your payroll!

What status do you need to be in Italy and work legally?

If you’re planning to live in Italy while also keeping your US job, the very first thing you have to do is understand your immigration status matters. I mean, you can’t simply show up with a tourist visa and assume you’re good to go!

Let’s start with short stays (90 days in any 180-day period). These only cover tourism, business meetings, and personal visits and do not authorize you to work while in Italy. The Italian government has been very explicit on this: a tourist visa does not allow for any kind of work activity, including remote working for a foreign employer.

So, what are your options if you really want to work from Italy?

• Digital Nomad Visa: This visa was introduced in 2024 and is designed specifically for highly skilled non-EU citizens working remotely for foreign companies or as self-employed professionals. To get it, you should submit proof of sufficient income and a valid health insurance as well as other documents. 
• Self-employment + Partita IVA: If you plan to work as an independent contractor, you can apply for a D visa for self-employment. To operate, you’ll then need to register for a Partita IVA (the italian VAT number) and invoice your clients or employer directly as well as pay Italian taxes and social security contributions.
• EU/EEA/Swiss passport: If you have an EU, EEA, or Swiss passport, you benefit from freedom of movement. This means you don’t need a visa to live and work in Italy. You’ll still have to register your residency and handle taxes though.
• Other visas: Some visas (e.g. the student visa) allow you to work under specific conditions. Depending on the type of work and stay you’re planning, they might work just fine for you too!

Employee VS contractor: what changes if you’re on US payroll?

As you’ve seen, sorting out your immigration status also means choosing how you’re actually going to work for your US company while living in Italy. Because rules and consequences change a lot depending on whether you remain a US-based employee or if you switch to contractor status. Let’s break it down!

If you remain a US employee working from Italy

• Immigration: Since you’ll be physically working in Italy, you need the right visa (the Digital Nomad one is the most natural fit)
• Payroll and employer risk: Just like all foreign companies, a US company with an employee working long-term from Italy might need to register for Italian payroll. In some cases, your presence in Italy may also trigger a Permanent Establishment (PE) risk, especially if you sign contracts or generate Italian-sourced revenue
• How employers deal with this: Most employers choose to use an Employer of Record (EOR) in Italy to stay compliant with Italian regulations. Others might choose to limit your authority and activities to avoid risks.

If you switch to independent contractor status

• You’ll have to register a Partita IVA and operate as a “libero professionista”. Basically, you’ll have to invoice your US employers or clients directly and pay Italian taxes and social security contributions yourself.
• This removes all the payroll burden and PE risk for the US company. However, you lose all traditional employee benefits like healthcare coverage, any eventual retirement contribution, and paid time off.
• To protect yourself, get a written contract and make sure it is airtight with clear deliverables and payment terms (in both USD and EUR), and discuss anything relevant regarding intellectual property and data security.

What about taxes when working remotely from Italy?

Once you’ve figured out your visa and work setup, the next big issue is (not unexpectedly) taxes. This is a really important point and it’s also where most digital nomads and remote workers get caught off guard. Because Italy doesn’t just care about your employer’s location, it also cares about where you are living and working.

When do you become a tax resident in Italy?

As a rule of thumb, you become a tax resident if you spend more than 183 days in Italy during the calendar year. However, recent regulations made this even stricter by also counting partial days of presence toward the 183-day threshold. And remember: if your center of vital interest (that is where your home, family, or main economic ties are) shifts to Italy, you'll be treated as a tax resident even before reaching the 183 days!

Once you’re a tax resident in Italy, the country taxes your worldwide income and not just what you earn in Italy. So, if you’re planning more than a simple short stay, just assume you’ll be filing Italian taxes.

How is employee income taxed?

If you become a tax resident in Italy, your salary becomes subject to IRPEF (Italy’s progressive income tax) and to any regional and municipal surcharges that apply. And even if your company continues to pay you in dollars, someone (either you, your employer or an Employer of Record) still needs to manage Italian payroll withholdings. Otherwise, you may need to reconcile things yourself when you file your annual return!

How is freelance income taxed?

If you choose to set yourself up as an independent contractor, your income is taxed differently from employees. 

Most freelancers use the simplified regime forfettario, where the taxable base is calculated using a fixed-cost coefficient. You then pay a substitute tax of either 5% or 15% plus the mandatory INPS social security contributions (which are around 26% in 2025). However, if your revenue exceeds €85,000 or if you are excluded by the regime forfettario for any other specific rule, you move into ordinary accounting and the standard progressive IRPEF system.

How to avoid double taxation between the US and Italy?

As an American citizen you can never escape the IRS and must file a US return every year, even if you are abroad. The good news? The US-Italy tax treaty and domestic rules help prevent double taxation!

Typically, you’ll have to rely on:

• the Foreign Earned Income Exclusion (FEIE), which lets you exclude a part of your foreign-earned salary.
• the Foreign Tax Credit (FTC), which gives you credit for taxes paid to Italy.

Also on the Italian side you can claim a credit for taxes paid to the US; the tricky part is coordinating the timing, exchange rates, and withholding on both sides. This is why cross-border tax advisors are worth their weight in gold!

Frequently asked questions

Can I just come on a tourist stamp and “work quietly” for 3 months?

Not legally. As we explained, a tourist status (the 90 days in 180) is strictly for tourism, family visits, or short business meetings and the Italian government has explicitly stated that any kind of work activity is prohibited under a tourist visa.

Do I still have to apply for a residence permit within 8 days?

Yes. If you enter Italy with a long-stay visa (like the Digital Nomad Visa or a self-employment visa), you’re required to apply for your permesso di soggiorno within 8 working days. Skipping this step means you’re technically out of status, even if your visa is valid!

If I stay under 183 days, am I safe from taxes?

Not necessarily. If Italy becomes your center of vital interests (for example, your permanent home, family ties, or main economic base), you could be treated as an Italian tax resident even if you clock fewer than 183 days. 

Can my US employer just keep paying me in the US?

Sometimes, but it creates risks. From Italy’s perspective, if you’re their employee and physically working in Italy, your US company could be seen as having an Italian payroll obligation. And in some cases, it may even trigger Permanent Establishment (PE) risk, especially if you’re signing contracts or representing the business locally.

I’m US-based. What about Social Security?

This is an important topic. The US and Italy have a totalization agreement, which prevents you from paying into both systems at once. In many cases, if you’re a US citizen working in Italy for a US employer, you can stay under US Social Security by getting a certificate of coverage from the SSA. However, if you’re freelancing under a Partita IVA, you’ll generally pay into the Italian system (INPS).

Do I need an Italian bank account to work remotely?

You don’t need it for the work itself but in practice, if you’re staying long-term, you do. You’ll need an Italian bank account for things like rent, utilities, or enrolling in the health system. And some US employers may also prefer to pay you via an Italian account if you’re on local payroll.

Can I use the Elective Residence Visa to keep working?

No. The Elective Residence Visa is specifically designed for retirees or financially independent people who live off passive income and does not allow any work activity. If your goal is to actively work for a US employer or clients, this visa isn’t the right fit.

TL;DR

• Legality: You can work remotely in Italy for a US company. To do it legally, you’ll need either Italy’s Digital Nomad Visa or a self-employment visa.
• Money matters: If you stay more than 183 days in a calendar year, you’ll become an Italian tax resident and owe taxes on worldwide income. This means that you can opt into regime forfettario (if eligible) or work other the progressive IRPEF rates.‍
• US specifics: You must keep filing US taxes but, to avoid double taxation, you can use the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC). For Social Security, check the US-Italy totalization agreement!

Remember: this guide is pure information, not legal or tax advice. For your specific case, speak with an Italian immigration attorney and a cross-border tax professional before you book that one-way ticket!