If you are to start contracting in Italy, or you are looking at starting contract work within Italian borders, the abundant variations and regulations surrounding income tax and immigration can be a huge administrative nightmare. The Italian tax regulations are detailed and extremely complicated, obtaining a permit for work without a fixed employer is endlessly complex and can lead to severe set backs. To relieve the stress aggravated by trying to obtain an Italian work permit and reduce tax-related paperwork, a vast number of contractors choose to use an Italian Umbrella Company.
Learning about the benefits of using an umbrella company for contracting within Italy can help determine whether an umbrella company is right for personal and individual circumstances.
Italian Umbrella Company: How does it Work?
An Italian Umbrella Company formation protects an individual from the implications around the administration that comes with being an independent contractor. Instead of dealing with your own paper work, you become an employee of the Umbrella Company. The Umbrella Company will pay your income tax as you earn. Despite the technicality that you are an employee of the Umbrella Company, in truth and in the reality of everyday working, you will still act as a contractor.
Going for Umbrella employment will result in the benefit that not only are you are being looked after but your administration and tax matters are being managed professionally. Therefore, you also aren’t tied down to only one client. You can toil away, invoice the umbrella company for your hours worked and then relax as the Umbrella Company collects your wage, takes off the necessary taxes and pass you what is rightfully yours.
Italian Umbrella Company: What are the Benefits?
Dealing with your own taxes in your home country can be an incomprehensible task. Therefore, dealing with your taxation matters in a country foreign to you can be mind numbing and labour intensive. Learning the intricate dealings of the Italian tax system is no easy task. It doesn’t take a large error to end up unfairly paying hand over fist at a higher rate of tax. Even Italian nationals get their tax returns wrong. However, Italian Umbrella Companies have a broad understanding of the entire tax system and can ensure that you don’t fall behind with the required social security payments, tax payments and voluntary or compulsory payments. The knowledge these firms hold can also help you to gain the best that you can from your wage packet, while some can also help with tax obligations within your home country or country of origin.
Contracting through an Umbrella Company set up doesn’t require very much paperwork at all. You simply submit the invoice for your working hours and then receive a tax receipt in return.
Italian Umbrella Company: What about Immigration?
It is easier to gain an Italian work permit through an Umbrella Company set-up rather than applying individually. The main hurdle for contractors is that there is a requirement for an employer to technically ‘sponsor’ you as an individual within Italy for the duration of the stay. The end client can only, typically, sponsor employees who are permanent and on their payroll.
If you are seriously considering working on several different contracts within Italian borders, then finding sponsorship can be very, very difficult. Individual employers that you are working for might only sponsor you during the duration of the contract while you work for them; this makes coverage for your entire stay in Italy extremely tricky.
If the Italian Umbrella Company set up act as your permanent employer then the problem is subverted and the sponsorship can last as long as is required.
For more information on Italian Umbrella Company Set-Up, Italian Payroll, Working in Italy or Contracting in Europe visit the Euro Accountancy & Finance Services website.