A year working in Italy sounds dreamy, and with a visa like this on offer, employers are hard pushed to refuse. However, not only does Andy make a great point below around permanent establishment, tax, social security and payroll risk, but employers need to look at the downstream effects on their #employeebenefits programmes. Yes, there is a requirement for individuals to take out medical insurance (and employers can choose not to fund this), but employers should also look at other parts of their benefits - it's not unknown for life insurance to become invalid for long absences out of the country of employment. Rights to contribute to pensions may also fall out for longer periods, eg if breaking tax residence. Such risks can be mitigated (through #expatpolicies, for example), but puts cost and admin burden on employers unless they adequately indemnify themselves. Let me know if you'd like to discuss! (I should note that this is not an Italy-specific issue - but Italy is the latest country to offer a #digitalnomadvisa, and it got me thinking about a nice Aperol spritz sitting on a piazza...)
Interesting announcement from the Italian government. What is not mentioned in the article is what obligations this will place on employers from a payroll perspective, nor the implications for potentially creating a permanent establishment. When considering these initiatives, a thorough understanding on the part of both the employer and employee of all aspects of the arrangement (of which tax is just one) is critical. https://lnkd.in/egzkYb32
Tax Director - Global Mobility - Vialto Partners Italia
6moHi Tomm, happy to meet you again. working from Italy?..... you are right: a dream! 😉