Payroll in Italy

You’ll know it as the home of Pasta, Pizza and the Tower of Pisa, as well as the guys who gave us straight roads and the names of many of our towns and cities. Italy’s successes are certainly long term, with the Italian economy the 3rd largest in the Eurozone and the 8th largest in the world.

Italy is a founding EU member with comprehensive integration into the single market, as well as a leader in science, engineering, manufacturing, automotive and energy. Italy’s workforce of roughly 23 million is highly educated, highly skilled and contributes to an advanced, mixed economy worth over $2 trillion.

Italian workers enjoy extensive access to employment law, regulated employment practices and Italy ranks top ten globally in terms of quality of life. Foreign investment is actively encouraged and the labour market is divided between a mix of Italian and international organisations, much like the rest of the EU.

Italy is perhaps most famous for its culture, its fashion and its food, but its economic strength shouldn’t be overlooked either. Among countries in the European Union, it trails only France and Germany, and it ranks eighth in the world by GDP, so it’s no surprise that it’s a popular destination for incoming international businesses.

Like many other highly developed economies, Italy’s is largely service-driven (accounting for around three-quarters of its GDP). However, it does retain a strong industrial sector and is the EU’s second-largest manufacturer, leveraging its strong links with other EU countries, the United Kingdom and the United States to export hundreds of billions of dollars of goods every year.

But from a payroll perspective, what does doing business in Italy look like? This guide sets out the basic facts you need to know.