Employing in Italy

Access and hire global talent & deploy them anywhere in the world by removing restrictions from only hiring from local markets.

Enter the Italian market without the requirement of opening a local entity.

Expanding into
Italy

Expanding to countries such as Italy – which is characterised by a talented and multicultural workforce, multifaceted employment and tax laws, a strong infrastructure network linking to the rest of Europe, and leading sectors in tourism, precision machinery, motor vehicles, chemicals, pharmaceuticals, electrical goods, and textiles – can bring both excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.

Dedicated to Offering You 24/7 Support

Get the Support You Need

Global Expansion is a step to make for any business, regardless of your goal. But the opportunities that can come with an expansion can be stimulating as well as intimidating and confusing, especially when you consider all of the registration procedures that need to be done and the documentation required.

Going at it without the proper support can increase the costs, time and risks involved.

The legwork and potential red tape can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, primarily through our Employer of Record (EOR) framework.

It can be best utilised when businesses are just beginning their expansion process and require more information before incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to Italy

Learn all about expanding into Italy and see what we can do to make your expansion easier.

Download our Guide to Italy

Learn all about expanding into Italy and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in Italy

Hiring Staff
in Italy

The Main Sectors of the Italian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The Italian service sector is an industry which continues to grow. 68% of Italians work in the service sector, which contributes to 74% of the nation’s GDP. The banking sector flourished in medieval Italy, and it is still a major component of modern Italy’s economy. UniCredit Bank is ranked among the top in Europe in terms of market capitalization.

Italy is home to the world’s second largest insurance company in revenues, namely the Assicurazioni Generali. The citizens of Italy are served by a network of banks and other credit enterprises. The thriving tourism industry has triggered the development of hotel and accommodation infrastructure, as well as tour companies.

The country’s 4,600 miles of coastline feature many ports which support maritime transport. The Italian railway lines not only connect its cities, but other European nations as well.

Italy has also developed an expansive road transport system in addition to efficient air transport. Italy’s telecommunication sector is impressive in the number of subscribers and internet penetration rates.

It is estimated that tourism accounts for 11.8% of Italy’s GDP and 12.8% of the total jobs. The country boasts 51 UNESCO as world heritage sites, the most of any other country in the world. The cities of Pisa, Rome, Florence, Trento, Venice, Trieste, Milan, and Turin are among the most visited cities in the country.

Visitors flock to Italy from countries such as Germany, China, Austria, US, Switzerland, France, and the UK. In 2014, Italy welcomed approximately 48.6 million visitors, making it the fifth in the world by number of international arrivals.

In 2015, international visitors accounted for nearly 36 billion euros, which was equivalent to 7.2% of the value of Italy’s exports. It is calculated that the sector of tourism, including the activity it generates, contributes approximately one-third to the overall GDP by creating over one million jobs.

A total of 1.6 million farms were identified in Italy in 2010, which total 12.7 million hectares of land. 63% of these farms lie in the south of Italy. Nearly all of the farms are family-operated and have an average size of eight hectares.

Agricultural production in the nation took off with the Land Reforms Act (1950), which redistributed land and facilitated efficient use of land. The act was subsequently reformed to rectify its weaknesses.

Grain fields account for 31% of agricultural land, while olive tree orchards and vineyards take up 8.2% and 5.4% of the surface area, respectively. Sugar beets account for 2.4% of land use and 2.4% for horticulture. Southern Italy largely produces citrus fruits and wheat, while the northern region produces dairy products, maize corn, fruits, meat, soybeans, rice, and sugar beets. Italy is the world’s largest producer of wine, including the popular Piedmontese Barolo, Frascati, Barbaresco, and Tuscan Chianti.

The country is a leading producer of fruits like oranges, kiwi fruits, peaches, olives, plums, lemons, apples, cherries, apricots, and grapes. Italy also has thriving fishing and livestock sectors.

Rather than a large pool of global multinational corporations, Italy has more small and medium-sized businesses, most of which are grouped in clusters. These enterprises specialize in high-quality products and lower labor costs enable them to withstand competition from upcoming economies.

The north is mainly industrialized with a network of private companies. The emergence of the Fiat Company in Turin in 1899 facilitated the development of an automobile industry in Italy. The industry was decentralized following the establishment of other automobile plants in Naples, Milan, and Brescia.

The industry’s stagnation in the 1970s began to improve in the 1990s. Italy boasts some of the largest numbers of automobiles per capita. The iron and steel industry in Italy has been privatized since the 1990s. Four extensive iron and steel plants from the old republic continue to operate in Trieste, Genoa, Taranto, and Piombino.

The northwest region of Italy is home to the “Industrial Triangle,” which links Milan, Turin, and Genoa, and is characterized by a modern group of industries focused on naval production, machinery, aerospace, as well as automobiles. The central and northeast regions feature small businesses of high craftsmanship and low technology. Sassuolo, for example, is renowned for the production of ceramic tiles, while Nogara is known for producing wooden furniture products.

Other businesses specialize in textiles, jewelry, footwear, appliances and spare parts, clothing, and machine tools. Italy also has many chemicals and food and beverage manufacturers spread across the country.

The country’s position along the Mediterranean Sea has enabled it to cultivate a vibrant trading industry especially with North Africa, Eastern Europe, as well as the Middle East. Italy’s participation in the EC from 1957 multiplied its trading options.

Italy’s economy, however, began recording a rising trade deficit with nearly all nations and it was not until the 1990s when positive trade balances were recorded. Italy is currently the 8th top exporter in the world.

In 2016, exports amounted to $436.3 billion. Among the exports of Italy are engineering products, precious metals, paper, stone, aircraft, footwear and clothing, vehicles, textiles, cement, electrical equipment, in addition to food and beverage. Germany, the United States, Spain, the UK, Switzerland, and France are Italy’s primary export partners. Italy’s imports in 2016 were valued at $372.2 billion.

The bulk of the country’s imports consisted of textiles, minerals, automobiles, base metals, engineering products, plastics, and chemicals. Italy mostly trades with territories of the EU and other countries such as Russia and China.

The Main Sectors of the Italian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The Italian service sector is an industry which continues to grow. 68% of Italians work in the service sector, which contributes to 74% of the nation’s GDP. The banking sector flourished in medieval Italy, and it is still a major component of modern Italy’s economy. UniCredit Bank is ranked among the top in Europe in terms of market capitalization.

Italy is home to the world’s second largest insurance company in revenues, namely the Assicurazioni Generali. The citizens of Italy are served by a network of banks and other credit enterprises. The thriving tourism industry has triggered the development of hotel and accommodation infrastructure, as well as tour companies.

The country’s 4,600 miles of coastline feature many ports which support maritime transport. The Italian railway lines not only connect its cities, but other European nations as well.

Italy has also developed an expansive road transport system in addition to efficient air transport. Italy’s telecommunication sector is impressive in the number of subscribers and internet penetration rates.

It is estimated that tourism accounts for 11.8% of Italy’s GDP and 12.8% of the total jobs. The country boasts 51 UNESCO as world heritage sites, the most of any other country in the world. The cities of Pisa, Rome, Florence, Trento, Venice, Trieste, Milan, and Turin are among the most visited cities in the country.

Visitors flock to Italy from countries such as Germany, China, Austria, US, Switzerland, France, and the UK. In 2014, Italy welcomed approximately 48.6 million visitors, making it the fifth in the world by number of international arrivals.

In 2015, international visitors accounted for nearly 36 billion euros, which was equivalent to 7.2% of the value of Italy’s exports. It is calculated that the sector of tourism, including the activity it generates, contributes approximately one-third to the overall GDP by creating over one million jobs.

A total of 1.6 million farms were identified in Italy in 2010, which total 12.7 million hectares of land. 63% of these farms lie in the south of Italy. Nearly all of the farms are family-operated and have an average size of eight hectares.

Agricultural production in the nation took off with the Land Reforms Act (1950), which redistributed land and facilitated efficient use of land. The act was subsequently reformed to rectify its weaknesses.

Grain fields account for 31% of agricultural land, while olive tree orchards and vineyards take up 8.2% and 5.4% of the surface area, respectively. Sugar beets account for 2.4% of land use and 2.4% for horticulture. Southern Italy largely produces citrus fruits and wheat, while the northern region produces dairy products, maize corn, fruits, meat, soybeans, rice, and sugar beets. Italy is the world’s largest producer of wine, including the popular Piedmontese Barolo, Frascati, Barbaresco, and Tuscan Chianti.

The country is a leading producer of fruits like oranges, kiwi fruits, peaches, olives, plums, lemons, apples, cherries, apricots, and grapes. Italy also has thriving fishing and livestock sectors.

Rather than a large pool of global multinational corporations, Italy has more small and medium-sized businesses, most of which are grouped in clusters. These enterprises specialize in high-quality products and lower labor costs enable them to withstand competition from upcoming economies.

The north is mainly industrialized with a network of private companies. The emergence of the Fiat Company in Turin in 1899 facilitated the development of an automobile industry in Italy. The industry was decentralized following the establishment of other automobile plants in Naples, Milan, and Brescia.

The industry’s stagnation in the 1970s began to improve in the 1990s. Italy boasts some of the largest numbers of automobiles per capita. The iron and steel industry in Italy has been privatized since the 1990s. Four extensive iron and steel plants from the old republic continue to operate in Trieste, Genoa, Taranto, and Piombino.

The northwest region of Italy is home to the “Industrial Triangle,” which links Milan, Turin, and Genoa, and is characterized by a modern group of industries focused on naval production, machinery, aerospace, as well as automobiles. The central and northeast regions feature small businesses of high craftsmanship and low technology. Sassuolo, for example, is renowned for the production of ceramic tiles, while Nogara is known for producing wooden furniture products.

Other businesses specialize in textiles, jewelry, footwear, appliances and spare parts, clothing, and machine tools. Italy also has many chemicals and food and beverage manufacturers spread across the country.

The country’s position along the Mediterranean Sea has enabled it to cultivate a vibrant trading industry especially with North Africa, Eastern Europe, as well as the Middle East. Italy’s participation in the EC from 1957 multiplied its trading options.

Italy’s economy, however, began recording a rising trade deficit with nearly all nations and it was not until the 1990s when positive trade balances were recorded. Italy is currently the 8th top exporter in the world.

In 2016, exports amounted to $436.3 billion. Among the exports of Italy are engineering products, precious metals, paper, stone, aircraft, footwear and clothing, vehicles, textiles, cement, electrical equipment, in addition to food and beverage. Germany, the United States, Spain, the UK, Switzerland, and France are Italy’s primary export partners. Italy’s imports in 2016 were valued at $372.2 billion.

The bulk of the country’s imports consisted of textiles, minerals, automobiles, base metals, engineering products, plastics, and chemicals. Italy mostly trades with territories of the EU and other countries such as Russia and China.

Commercial Laws in
Italy

National employment legislation, collective agreements, and works council agreements are the main sources of employment law in Italy, which govern employment conditions, benefits, and health and safety regulations. The conditions performed vary according to the industry and sector.

To be fully aware of what you can and cannot apply to your employment practices in Italy, it is important for the employer to know the existing labour laws and employee entitlements, as well as collaborate with the appropriate local employment organisations.

  • The Revenue Agency – The Revenue Agency is a non-economic public body that operates to ensure the highest level of tax compliance. It is mainly responsible for collecting tax revenues, providing services and assistance to taxpayers, and carrying out assessment and inspections aimed at countering tax evasion. It also provides cadastral and geocartography services, manages all the payment to public administration through the F24 online system, handles the e-invoice for all the public authorities and the Health Insurance Card.
  • The Labor Inspection Directorate – The Labor Inspection depends on the Ministry of Labor and Social Policy. Its structure includes an authority at the central level, a regional labor directorate (Direzione Regionale del Lavoro: DRL) for each region and a provincial labor directorate (Direzione Provinciale del Lavoro: DPL) for each province.

In Italy, an employment contract is not required by law to be concluded in writing. Oral contracts are also practiced. However, for a contract to be valid, certain clauses must be in writing, and they must be presented to the employee within 30 days of starting employment. This document must include:

  • Name and address of the employer and the employee
  • The place of work
  • The commencement date of employment
  • Anticipated duration of employment, specifying whether it is indefinite or fixed term
  • The probationary period
  • The job title or category
  • The employee’s salary
  • The duration of annual leave
  • The working hours
  • The length of the notice period (in case of termination)
  • A reference to any collective bargaining agreements, works or services agreements that are applicable to the employment relationship (if there are any)

Commercial Laws in
Italy

National employment legislation, collective agreements, and works council agreements are the main sources of employment law in Italy, which govern employment conditions, benefits, and health and safety regulations. The conditions performed vary according to the industry and sector.

To be fully aware of what you can and cannot apply to your employment practices in Italy, it is important for the employer to know the existing labour laws and employee entitlements, as well as collaborate with the appropriate local employment organisations.

  • The Revenue Agency – The Revenue Agency is a non-economic public body that operates to ensure the highest level of tax compliance. It is mainly responsible for collecting tax revenues, providing services and assistance to taxpayers, and conducting assessments and inspections to counter tax evasion. It also provides cadastral and geocartography services, manages all the payments to public administration through the F24 online system, and handles the e-invoice for all the public authorities and the Health Insurance Card.
  • The Labor Inspection Directorate – The Labor Inspection depends on the Ministry of Labor and Social Policy. Its structure includes an authority at the central level, a regional labour directorate (Direzione Regionale del Lavoro: DRL) for each region and a provincial labour directorate (Direzione Provinciale del Lavoro: DPL) for each province.

In Italy, an employment contract is not required by law to be concluded in writing. Oral contracts are also practised. However, for a contract to be valid, certain clauses must be in writing, and they must be presented to the employee within 30 days of starting employment. This document must include:

  • Name and address of the employer and the employee
  • The place of work
  • The commencement date of employment
  • Anticipated duration of employment, specifying whether it is indefinite or fixed term
  • The probationary period
  • The job title or category
  • The employee’s salary
  • The duration of annual leave
  • The working hours
  • The length of the notice period (in case of termination)
  • A reference to any collective bargaining agreements, works or services agreements that are applicable to the employment relationship (if there are any)

FAQ

An Employer of Record (EOR) in Italy legally hires and manages employees on behalf of another company, handling all compliance aspects of employment like contracts, payroll, taxes, and benefits, without the need for the foreign company to establish a local entity. This allows businesses to quickly and compliantly hire staff in Italy, facilitating rapid market entry and operational scalability.

To hire talent in Italy, companies can utilise an Employer of Record (EOR) and Talent Acquisition Solutions to manage all employment-related compliance without needing a local entity, or establish a subsidiary if they prefer direct control over operations. Companies must adhere to Italian employment laws, including contracts, work permits for non-EU nationals, and comprehensive employee benefits as mandated by national and collective agreements.

To manage payroll in Italy, companies can use our Payroll solutions, which handle compliance with local payroll laws, including tax and social security contributions. Companies may choose to manage payroll internally via their subsidiary or outsource to specialised firms to ensure adherence to frequently changing regulations and local employment laws.

You do not necessarily need an entity to hire in Italy; companies can use an Employer of Record (EOR) service to employ staff without establishing a local entity. However, for more control over operations and long-term presence, setting up a subsidiary might be beneficial.

FAQ

An Employer of Record (EOR) in Italy legally hires and manages employees on behalf of another company, handling all compliance aspects of employment like contracts, payroll, taxes, and benefits, without the need for the foreign company to establish a local entity. This allows businesses to quickly and compliantly hire staff in Italy, facilitating rapid market entry and operational scalability.

To hire talent in Italy, companies can utilise an Employer of Record (EOR) and Talent Acquisition Solutions to manage all employment-related compliance without needing a local entity, or establish a subsidiary if they prefer direct control over operations. Companies must adhere to Italian employment laws, including contracts, work permits for non-EU nationals, and comprehensive employee benefits as mandated by national and collective agreements.

To manage payroll in Italy, companies can use our Payroll solutions, which handle compliance with local payroll laws, including tax and social security contributions. Companies may choose to manage payroll internally via their subsidiary or outsource to specialised firms to ensure adherence to frequently changing regulations and local employment laws.

You do not necessarily need an entity to hire in Italy; companies can use an Employer of Record (EOR) service to employ staff without establishing a local entity. However, for more control over operations and long-term presence, setting up a subsidiary might be beneficial.

Contact Us

Join Our Newsletter

Stay up to date with latest service offerings while receiving tips and strategies for making your next remote hire.