Employing personnel, and running payroll, in Italy in the absence of a local business entity

At Internago we are often asked by international companies how they can employ personnel in Italy without establishing a local entity. In today’s highly competitive employment market, companies are searching for talented employees around the world. And digitalisation is sometimes enabling the right talent to work remotely, without needing a direct physical presence. However, there will still be a need to manage their payroll, while complying with local regulations.

Employing personnel based in Italy as an overseas company

Based on our experience with clients, there is often a straightforward and light touch solution, namely registering as a foreign employer and running payroll locally, without setting up a local business entity. Adopting this approach to payroll does not constitute a permanent establishment in Italy.

Social Security Representative

In Italy this form of arrangement involves appointing a Social Security Representative. They are responsible for the payment of social security charges on behalf of the employer and represent them when dealing with the relevant authorities. The representative can be an employee, or it can be  a bought-in service. Employees are subject to local labour laws just like their counterparts working for domestic companies. Internago will take care of payroll, and provide guidance as to when payments need to be done, ensuring the company remains fully compliant at all times.

Payroll Portal

Working with us gives access to the Internago Payroll Portal, giving you full control over  the payroll process and payments, as well as ensuring that employees based in Italy can access payslips and other relevant information online.

About Internago

Internago can assist with local set-up considerations and cost calculations and offers full payroll services in Italy and in most European markets. Please click **here ** for more information, or if you prefer contact us directly at sales@internago.com.


Please note that this blog post only gives an overview, with some introductory  payroll related examples. In practice, there are more detailed aspects to consider, which is why this blog post should only be seen as a general guide. For a more in-depth discussion, do not hesitate to contact us at info@internago.com

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