Posted Workers in Italy: the procedure

If you are a foreign company and you need to carry out work in Italy, you must inform the authorities about the workers who will be present in the Italian territory for a specific range of time.

Posting workers in Italy: the procedures to follow.

Posting workers to Italy and the European Union are regulated by EU Directive 957/2018. In Italy, the Ministry of Labor regulates the procedures for posted workers.

Posting of Employees in Italy: requirements.

When considering the posting of employees in Italy, companies must navigate a complex framework of legal requirements and adherence to EU regulations and directives.

Still, it also necessitates strict observance of specific rules related to labour laws, taxation, social security, and health and safety standards, such as the new “Patente a Crediti” system.

Compliance with these legal aspects is essential to mitigate the risk of legal consequences.

Additionally, companies must ensure that their policies align with EU directives governing the posting of workers, which include provisions for equal treatment, pay, and working conditions.

The procedure to follow:

• Transmit a mandatory declaration completed with all the information relating to the posted workers and the duration of the posting at least 24 hours before the day of the posting.

• Amend the communications within five days in the event of changes occurring after the start of the posting;

• Prepare a copy in Italian of the documentation concerning the employment relationship;

• Appoint a contact person domiciled in Italy in charge of sending and receiving deeds and documents;

• Appoint a legal representative in charge for the posting period and the following two years.

• Apply for the Patente a Crediti in Italy.

If a referent domiciled in Italy is not appointed, the posting company’s legal address will be considered the hosting company’s legal seat for the duration of the posting and two years after the termination of the employment relationship.

The legal representative is not asked to be present during the performance of the posted working activities.

Still, he must be available when receiving a motivated request for the duration of the posting up to two years after the employment relationship termination.

A copy of the documents must also be kept for the duration of the posting and two years after the employment relationship termination.

Posted Workers to Italy: Immigration requirements.

Posting workers in Italy from both EU and non-EU countries involves specific immigration requirements, particularly in relation to Schengen regulations.

For EU-posted workers in Italy, the process is simplified due to freedom of movement within the EU, requiring only compliance with Italian labour laws regarding wages, social security, and working conditions.

Non-EU posted workers in Italy, if the worker holds a valid residence permit from another EU country, may be able to stay in Italy for up to 90 days within a 180-day period under Schengen short-stay rules.

However, depending on the nature of the posting, a work permit or visa may still be required for more extended stays or specific assignments.

Employers must ensure that non-EU workers are legally authorized to work in Italy by following the correct administrative procedures and adhering to labour laws to avoid penalties.

Tax Duties for Foreign Companies Posting Workers to Italy.

When foreign companies post workers to Italy, understanding the tax duties is essential to ensure compliance with Italian laws.

Generally, foreign companies without a permanent establishment in Italy are not subject to corporate taxes within the country.

However, tax obligations can arise if the foreign company creates a permanent establishment (PE) in Italy.

A PE occurs when the company has a fixed place of business, such as an office, branch, or substantial ongoing activity.

If a PE is established, the company becomes subject to Italian corporate income tax (IRES) and local taxes (IRAP) on the income attributable to that PE.

Additionally, foreign employers must comply with Italian labour regulations, including withholding taxes on employees’ income, and contribute to Italian social security if the posted workers are employed locally for an extended period.

Short-term postings typically don’t require a PE, but if the company operates in Italy for more than 183 days in 12 months or if significant economic activities are managed from Italy, the establishment of a PE becomes necessary, triggering tax obligations.

Companies must carefully evaluate the duration and nature of their activities to avoid unintentional tax liabilities in Italy.

If you need assistance or advice on tax duties when posting empolyees in Italy, book a consultation with us.

What do we need to file your posted worker’s declaration?

• Your company details;
• Company legal representative ID documents;
• Posted-workers ID documents;
• Details of work’s activities together with place, time, host’s details, etc.;
• payslips, statements indicating the start, end, and duration of daily working hours, documentation proving the payment of wages or another equivalent document, as well as the certificate relating to the applicable social security legislation (form PD A1) and the communication / public registration of the establishment of the employment relationship.

What we will do for you:

• File and submit the documentation on your behalf;
• Appointed as your domiciled communications representatives;
• Organize the documentation to keep it in compliance with legal obligations.

If you need help posting your workers to Italy, fill out the form below or book a consultation with our experts.

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