Digital nomads and Remote workers: Italian visa

The relevant provision is Art. 27 Paragraph 1 (q-bis) of the Consolidated Immigration Act, introduced, in the midst of the COVID period, by Decree Jan. 27, 2022, no.4.  It is, in fact, undeniable that the pandemic period has given a significant boost to the development and, increasing, use of remote work - here, albeit partly improperly, including remote work (full remote or not), agile work, telework; being all these methods of carrying out work activities focused on improving overall balancing of work and private life.

With decree of February 29, 2024, in force since last April 4 - titled "Modalities and requirements for the entry and stay of citizens of non-European Union states who carry out highly qualified work through the use of technological tools that allow them to work remotely" (“Modalità e requisiti per l'ingresso ed il soggiorno dei cittadini di Stati non appartenenti all'Unione europea che svolgono un’attività lavorativa altamente qualificata attraverso l'utilizzo di strumenti tecnologici che consentono di lavorare da remoto”) - the Government wanted precisely to give shape and structure to this (out-of-quotas) case of entry in Italy.

Following, we then turn to the recent migration provisions of interest to citizens of a Third Country (thus alluding to any non-EU Country), who as self-employed or employees perform skilled and specialized work remotely in Italy.

First, a definition of the audience and an answer to the curious question: who are the digital nomads?

Although in our minds we picture them accompanied by mobile tents, solar-charged PCs and backpackers, the law sets them out in Art. 2, par. 3, as: foreigners "who perform self-employment activities through the use of technological tools that enable them to work remotely". So, as a result, digital nomads are self-employed people.

Then again, remote workers are, according to Art. 2, par. 4, those who "through the use of technological tools that allow for remote work, carry out subordinate or collaborative work in the manner set forth in Article 2, Paragraph 1 of Legislative Decree No. 81 of June 15, 2015".

With reference to this category, the decree specifies that the activity could also be carried out in Italy on behalf of a company that is not resident in the country.

The provision also details the subjective requirements that digital nomads and remote workers must be in possess of.

In fact, issuing offices should verify that the applicant:

• Holds a minimum annual income: the provision refers to an income of not less than three times the minimum level provided for exemption from participation in health care costs. The minimum level is currently € 8.263,31, increased to € 11.362,05 in the presence of a spouse and € 516,46 for each dependent child; 
• Provides evidence of having coverage of medical treatment and hospitalization for the duration of stay, in the form of medical insurance;
• Has suitable housing accommodation;
• Can prove to have at least six months of prior work experience in the working activity covered by the contract of the digital nomad or remote worker.

The employment contract or binding offer must also be attached to the application. It is necessary that this document evidences the performance in Italy of a particularly high and qualifying employment activity.

In clarification of this, the rule recalls the requirements for the issuance of the EU Blue Card identified in Art. 27 quater of the Italian consolidated text on immigration – October ’23 this provision has been updated by Legislative Decree 152/2023 (in transposition of the EU Directive 2021/1883 concerning precisely the revision of the requirements for EU Blue Card applications). Therefore, the activity performed, as well as the target audience, must be marked by the following requirements (as clarified on this point by the joint circular of the Ministry of Labor and Social Policy and the Ministry of the Interior on March 28):

• A University or College degree (minimum 3 years) from an accredited institution;
• Requirements under Legislative Decree 206/2007 limited to the practice of regulated professions;
• Higher professional qualification stated by at least five years of professional experience of a level comparable to tertiary level higher education qualifications relevant to the profession or field specified in the employment contract or binding offer;
• Higher professional qualification stated by at least three years of relevant professional experience within the seven years preceding the submission of the EU Blue Card application, limited to professionals and specialists in the field of information and communication technologies.

Yet, beyond the entry requirements, what is important to highlight is precisely the intent to ease the mobilization of these individuals. In fact, if the above requirements are met, it is provided that:

• No prior entry authorization (nulla osta) is needed;
• The interested person can apply for a visa directly at the Italian Consulate which is competent for the geographical area (depending on where the home of the remote worker or digital nomad is placed).
• Within eight days, from the arrival in Italy (and before the visa expiration date), the remote worker / digital nomad must apply for a Permit to stay and work in Italy to the competent police headquaters.

The permit thus obtained, which will bear the words "digital nomad - remote worker," is valid for a maximum of one year, renewable for one-year periods, if the same requirements are met as for the first issuance.

Moreover, this permit allows the application for family reunification for the same duration as the permit issued.

So: foreigners can work remotely in Italy with family and without, apparently, lengthy immigration paperwork.

Some considerations on activities carried out worldwide.

Social security and tax consequences and implications:

• being the audience third-country nationals, from a social security point of view it is necessary to verify:

1. If Italy and the foreign Country of origin subscribed a social security agreement;
2. If there is an agreement, it is necessary to analyze its pension coverage - with all consequent pension implications that, although not of immediate relevance, are to be considered in the long term.

For remote workers, the foreign company, most likely a nonresident, may be required to pay Italian contribution (so a social security representative in Italy might be necessary). Untangling this knot, concerning the payment of the Italian social security contribution, for digital nomads may require further investigation of the specific activity performed.

• Fiscal consequences are to be found in the double taxation agreements signed between Italy and the third Country of origin. In this regard Italian provisions, with particular reference to Art. 2 of the Italian consolidated fiscal tax, recently amended by Legislative Decree 209/2023, suggest that the person will most likely be required to pay taxes in Italy at least on the income produced here.

Finally, it is noted that this trend of viewing work activity as unrelated to the corporate office desk, in sharp contrast to previous beliefs, is also detected in the EU area. Among others, an indicator of this is the Framework Agreement on the application of Article 16 (1) of Regulation (EC) No. 883/2004 in cases of habitual cross-border telework, signed by some member states (including Italy, effective from January of this year). In detail this agreement reviews and derogates (in application of Article 16 of EC Regulation No. 883/2004) the criteria for setting the social security legislation applicable to the employment relationship. This too, is all in an effort to make staff mobilization, between the State where the Company is based and the worker's state of residence much smarter.