Working in Italy may sound like a dream, but if you're an American independent contractor trying to gain a contract, the dream may seem more like a nightmare. While some countries make it simple to work in their country, Italy makes contractors jump through hoops before they even sign a single contract. Understanding the requirements is the first key to success in Italy.
It all boils down to two main requirements – finding an employer sponsor and getting a work permit. You have to have an employer to sponsor you before you can get a work permit. The sponsor can be the employer in Italy or a third party umbrella company. Many American independent contractors working in Italy choose to use an umbrella company since they don't have to gain a new sponsor with each new contract.
The next thing you need is ample time to study all of Italy's tax laws for international contractors. It's not as simple as just complying. As with America's tax system, it pays to know what tax benefits that may be available to contractors. Once again, the benefits of using an umbrella company versus doing it yourself are numerous. Umbrella companies know how to ensure you comply, yet get the most tax benefits.