Italy’s Faster Work Start Date: Considerations for Non-EU Nationals

Italian immigration has always been a lengthy process in comparison to those of other EU countries. Therefore, the recent announcement that a new legal amendment in Italy would result in faster start dates for non-EU nationals was welcome news. However, while this does speed up the overall timeline, it also presents new challenges, as well as opportunities, for clients looking to send staff members to Italy.

Counterintuitively, a work permit and work visa alone did not authorise an individual to work in Italy until recently. Instead, a foreign national would previously have to arrive in Italy and then visit the local authorities to sign an agreement known as a “contract of stay” before being considered work-compliant. Contracts of stay could formerly be obtained within a week, but over the years they have become increasingly hard to book following arrival due to resourcing challenges at government offices. Many employees would arrive in Italy only to be in limbo for weeks, sometimes months, while waiting for an appointment to become available so that they could sign the contract of stay and compliantly begin working.

Fortunately, the situation has now changed so that any non-EU national with the relevant permit type (Blue Card, ICT or EU ICT) can begin/start working as soon they land with their work permit and D visa in hand. This change can save precious weeks in an otherwise lengthy process.

This improvement is in the context of a challenging labour market and is consistent with a broader trend for countries to look to relax select entry requirements for foreign workers. However, as with any change, there are knock-on effects of which clients should be mindful.

Fast-track process

Italy launched a fast-track process in 2014, which removed a key decision maker in the process (the Italian Labour Board) for registered Italian entities. Although many clients registered for the program, in practice it did not gain as much traction as hoped given that although the work permit processing times were reduced to a matter of weeks (as opposed to months), foreign nationals still needed to present various legalized documents at the contract of stay stage to start working. In many cases, these documents would take as long as a work permit to obtain; therefore, in practice (and despite the program name), the overall lead time was similar to the standard process.

Under the new process, however, knowing that foreign nationals can start working before the contract of stay, an expedited work permit process is much more appealing. Fast-track registered businesses will benefit from a faster work permit issuance, with processing times estimated to be two to three weeks, as opposed to two to five months compared to the standard process. Theoretically, this would mean that a business could potentially have a given foreign national working within one month of filing a work permit.

To be considered for the fast-track program, employers must have made all minimum social security payments before applying and ultimately sign an agreement with the Ministry. Once registered, a password will be issued so as to access the online system and check pending work permit applications. Following the permit’s approval, the foreign worker may then apply at the relevant Italian consulate for their entry visa, travel to Italy after the visa’s issuance and begin working upon arrival. The contract of stay can then be attended at a later date once all documents are ready.

Tax code considerations

An Italian tax code is similar to a National Insurance number in the UK or a Social Security number in the US. Known in Italy as a “Codice Fiscale,” it identifies individuals for tax and administrative purposes, but is also required from a right-to-work perspective. Furthermore, it has practical purposes for the applicant as it helps with:

• • Opening an Italian bank or phone account;
  • Buying or renting property; and
  • Importing shipped goods (such as household items) duty-free.

Although a tax code is issued automatically at the contract of stay stage, given the earlier start dates and the delays with the contract of stay, applicants will most likely need this to be obtained much sooner than usual.

Fragomen can assist, and we recommend that clients begin work on this at least one month ahead of the expected arrival date so that the applicant can be suitably set up from day one in Italy.

Need to know more?

Although an earlier start date is a net positive for businesses, as with any change there is a knock-on effect to other stages of the process, and advance planning is critical to benefit from this process change. Fortunately, Fragomen can assist with navigating these obstacles, be it registering for the Fast Track, tax code procurement or overall case strategy. For further information and support, please contact Senior Manager Ben Morgan at [email protected], Manager Luigi Grecola at [email protected] and Immigration Supervisor Elena Pasini at [email protected].

This blog was published on 7 August 2023, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, Twitter, Facebook and Instagram.