Aligned with the increased interest in remote working around the world, the Italian government introduced a long-awaited digital nomad visa program earlier this year.
The legislation for the Digital Nomad Visa had been prepared as far back as March 2022; however, the process to clarify requirements and eligibility for this visa took longer than anticipated.
A digital nomad visa is an immigration authorisation that grants the holder the legal right to work remotely in a foreign country. These schemes can apply to any remote worker but are often aimed at freelance workers and particularly those working in the IT sector.
However, any applicant who meets the below criteria may be eligible as long as they are working entirely remotely and for the benefit of an employer based outside of Italy.
Eligibility criteria
To qualify, applicants must have:
- An income three times the minimum level required for exemption from health care participation expenses (i.e., EUR 8,500);
- Health insurance covering their entire period of stay;
- Proof of accommodation in Italy;
- At least six months work experience as a digital nomad or remote worker; and
- Professional skills equivalent to those required for the issuance of an EU Blue Card (read more on this below).
The emphasis on the proof of work experience and skills indicates that the permit is more aimed at highly skilled workers as compared to other countries where this is of less importance. Proof of this may include:
- A bachelor's degree or recognised post-secondary professional qualification (of at least three years). A "Declaration of Value," i.e., an official Italian document issued by a consulate authenticating the value of the qualifications achieved in a foreign country, may also be required; or
- An officially regulated professional qualification and/or "attestation of competence" issued by Italian-regulated professional bodies & associations; or
- For IT & communications professionals or senior management applicants, at least three years of relevant professional work-related experience gained within the seven-year period prior to the date of the visa application.
The application must be completed outside of Italy at the consulate in the applicant's country of residence and, once approved, a residence permit must be applied for within eight days of entry.
Dependents (typically spouses and children under 18) of Digital Nomad Visa holders can apply for family residence permits in Italy and may work locally on the basis of their family residence permit.
Benefits
For self-employed or freelance individuals, this programme can help avoid the need for local sponsorship and/or the challenges faced with a "typical" work permit such as the length processing times.
For businesses, these schemes also have many benefits such as helping employers to access a broader pool of talent. They are also a key differentiator, given that the opportunity for remote work has increasingly become a key expectation for prospective candidates. Digital nomad visas can also be key to ensuring that a businesses' workforce remains compliant if working remotely from Italy.
Challenges
However, despite the clear advantages this visa may not be a panacea or workaround to the challenges with obtaining a "standard" work permit.
- Eligibility criteria: The need to prove at least six months of work experience as a digital nomad or remote worker prior to filing may automatically preclude many candidates.
- Work activity restrictions: There may be limitations such as the applicant's ability to interact with the local market. Although it is not fully clear whether foreign nationals can also perform local work in Italy under a Digital Nomad Visa, based on practices in other countries this is unlikely to be an option. This means that applicants who need to interact with local clients or colleagues may not be eligible for this pathway.
- General challenges: As is often the case, we expect teething problems as the consulates face a sudden surge in applications. Processing times may be longer than anticipated or advertised. While some consulates, such as the consulate in London, have outlined the document requirements, many have been less transparent. Requests for further documents and evidence should be expected and even rejections if there is any doubt around the applicant's eligibility.
There are also social security considerations. In the absence of a bilateral social security agreement, Italian social security and insurance coverage regulations will apply. Digital nomads and remote workers will be provided with a tax code but must also request a VAT number from the Revenue Agency.
How can Fragomen help?
Given the anticipated challenges, particularly in the early days of this programme, it is crucial to collaborate with an experienced immigration partner who can provide guidance on not only the requirements but also how to evidence that these have been met and to lobby the case in the event of questions. It will be just as important ensure that the consulates remain consistent with the law and to ensure that applications are processed accordingly.
However, advising on the document requirements is only part of the process and obtaining these documents in their correct format promptly can be even more challenging. With professionals all across the globe, Fragomen has a dedicated document services practice who can assist with guiding and procuring documents as well as the relevant legalisation process.
As the remote work and hybrid work revolution continues to take hold and becomes the new normal, Fragomen is here to help you figure it all out and plan ahead. Whether you're looking to keep your workforce compliant, or the application is for an individual without an employer, we can help you apply for a Digital Nomad visa.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.