Glossary

Glossary

The comprehensive dictionary about global mobility

The Register of Italians Living Abroad (A.I.R.E.) was established by Law No. 470 on October 27, 1988, and is administered by municipalities utilizing data provided by Consular Representations. Registration is both a right and a duty (Article 6, Law 470/1988), enabling the exercise of various rights, such as mail voting, obtaining identity documents and accessing consular services.

Italian citizens who reside abroad for more than one year or are already foreign residents due to birth or acquisition of citizenship must register with AIRE.

Registration is free of charge and must be completed within 90 days of changing residence through the Consular Services online portal. This process also involves simultaneous removal from the Register of Italian resident Population (Anagrafe della Popolazione Residente, A.P.R.).

The Register of Italians Living Abroad (A.I.R.E.) was established by Law No. 470 on October 27, 1988, and is administered by municipalities utilizing data provided by Consular Representations. Registration is both a right and a duty (Article 6, Law 470/1988), enabling the exercise of various rights, such as mail voting, obtaining identity documents and accessing consular services.

Italian citizens who reside abroad for more than one year or are already foreign residents due to birth or acquisition of citizenship must register with AIRE.

Registration is free of charge and must be completed within 90 days of changing residence through the Consular Services online portal. This process also involves simultaneous removal from the Register of Italian resident Population (Anagrafe della Popolazione Residente, A.P.R.).

A period spent working internationally as an Assignee

A period spent working internationally as an Assignee

The Blue Card is a procedure outlined in art. 27c of the Italian Consolidated Immigration Act, as amended by Legislative Decree 152/2023 (effective Nov. 17, 2023). It enables the hiring of non-EU personnel who are deemed “highly qualified” at any time of the year, without being subject to the quotas set by the flow decree (Decreto Flussi).

According to the new Decree 152/2023, the non-EU candidate to be considered “highly qualified”:

  • must have completed a tertiary level education program that lasts at least three years or have a professional qualification at the post-secondary level that also lasts at least three years, or is equivalent to level 6 of the National Qualifications Framework.
  • must possess a higher professional qualification, attested by at least 5 years (3 for ICT managers and specialists) of experience, comparable to tertiary level higher education qualifications, relevant to the profession or field specified in the job contract or binding offer.
  • the job offer must be for a minimum of 6 months and include an employment contract that guarantees an annual salary equal to or greater than the amount specified in the relevant CCNL and, in any case, not less than the ISTAT gross annual average salary.

The Blue Card is a procedure outlined in art. 27c of the Italian Consolidated Immigration Act, as amended by Legislative Decree 152/2023 (effective Nov. 17, 2023). It enables the hiring of non-EU personnel who are deemed “highly qualified” at any time of the year, without being subject to the quotas set by the flow decree (Decreto Flussi).

According to the new Decree 152/2023, the non-EU candidate to be considered “highly qualified”:

  • must have completed a tertiary level education program that lasts at least three years or have a professional qualification at the post-secondary level that also lasts at least three years, or is equivalent to level 6 of the National Qualifications Framework.
  • must possess a higher professional qualification, attested by at least 5 years (3 for ICT managers and specialists) of experience, comparable to tertiary level higher education qualifications, relevant to the profession or field specified in the job contract or binding offer.
  • the job offer must be for a minimum of 6 months and include an employment contract that guarantees an annual salary equal to or greater than the amount specified in the relevant CCNL and, in any case, not less than the ISTAT gross annual average salary.

Fringe benefits, also known as in-kind benefits, are non-monetary compensation granted by an employer to an employee. These payments may include the use of company assets such as cars, cellular phones, and computers, or services, such as educational courses.

In-kind benefits are typically awarded to expatriate staff and may include housing, international schooling for their children, cars, and flights back to their home country.

To optimize the management of costs associated with expatriation, it is advisable to review the taxation arrangements and any tax concessions for in-kind benefits in the foreign country of assignment.

Fringe benefits, also known as in-kind benefits, are non-monetary compensation granted by an employer to an employee. These payments may include the use of company assets such as cars, cellular phones, and computers, or services, such as educational courses.

In-kind benefits are typically awarded to expatriate staff and may include housing, international schooling for their children, cars, and flights back to their home country.

To optimize the management of costs associated with expatriation, it is advisable to review the taxation arrangements and any tax concessions for in-kind benefits in the foreign country of assignment.

For Italian tax residents, income earned abroad falling under the category governed by paragraph 8-bis of Article 51 of the Italian tax Code /TUIR) is subject to taxation. This is an exception to the ordinary criteria for determining the taxable base and is based on conventional wages defined annually by a special interministerial decree. In Italy, personal income taxation is based on the conventional salary, which is a lump-sum taxable amount that includes any additional compensation paid to employees who are sent abroad. The conventional salary serves as a reference point for taxation purposes, regardless of the actual remuneration package received by the employee.

To apply conventional remuneration, the employee must work abroad continuously and exclusively as the object of the relationship. Additionally, the employee must be a tax resident in Italy for at least 183 days during a 12-month period.

For companies that establish conventional remuneration by bands, the applicable conventional remuneration should be determined by referring to the amount of remuneration that the employee would receive if they performed their work in Italy, divided by twelve.

The conventional remuneration is also the basis for the calculation of the social security contributions due for the compulsory insurance of Italian workers operating abroad pursuant to DL 317/87 (law 398/87) in non-EU countries with which social security agreements are not in force.

Conventional salaries are issued each year by Decree of the Ministry of Labour and Social Policy.

For Italian tax residents, income earned abroad falling under the category governed by paragraph 8-bis of Article 51 of the Italian tax Code /TUIR) is subject to taxation. This is an exception to the ordinary criteria for determining the taxable base and is based on conventional wages defined annually by a special interministerial decree. In Italy, personal income taxation is based on the conventional salary, which is a lump-sum taxable amount that includes any additional compensation paid to employees who are sent abroad. The conventional salary serves as a reference point for taxation purposes, regardless of the actual remuneration package received by the employee.

To apply conventional remuneration, the employee must work abroad continuously and exclusively as the object of the relationship. Additionally, the employee must be a tax resident in Italy for at least 183 days during a 12-month period.

For companies that establish conventional remuneration by bands, the applicable conventional remuneration should be determined by referring to the amount of remuneration that the employee would receive if they performed their work in Italy, divided by twelve.

The conventional remuneration is also the basis for the calculation of the social security contributions due for the compulsory insurance of Italian workers operating abroad pursuant to DL 317/87 (law 398/87) in non-EU countries with which social security agreements are not in force.

Conventional salaries are issued each year by Decree of the Ministry of Labour and Social Policy.

The cost-of-living differential is a percentage index that quantifies the difference in prices and exchange rates between the expatriate’s country of origin and the destination country. These indices are essential in determining the corresponding allowance (please see “Cost of Living Allowance” for further details) required to maintain equal purchasing power for the expatriate in the host country, especially in situations where the cost of living (in the host country) is higher.

The ECA methodology provides three indices for each location, based on the consumption basket/model and the characteristics of the international allocation:

  1. Standard, Home-Based
  2. Cost-effective
  3. Cost-effective International.

The cost-of-living differential is a percentage index that quantifies the difference in prices and exchange rates between the expatriate’s country of origin and the destination country. These indices are essential in determining the corresponding allowance (please see “Cost of Living Allowance” for further details) required to maintain equal purchasing power for the expatriate in the host country, especially in situations where the cost of living (in the host country) is higher.

The ECA methodology provides three indices for each location, based on the consumption basket/model and the characteristics of the international allocation:

  1. Standard, Home-Based
  2. Cost-effective
  3. Cost-effective International.

The system identifies a portion of basic pay, known as “home spendable income”, which corresponds to the part of net salary used to meet ordinary expenses in the home country. In cases where the foreign country has a higher cost of living, the cost of living index is applied on the home spendable income to obtain a ‘foreign spendable share’ or host spendable income.

The objective is to determine additional compensation that offsets the cost-of-living differential and allows the worker to maintain the same purchasing power abroad as they had at home.

The Expendable Share of the annual home net salary that is ‘protected’ is determined based on the family status of the employee in the foreign country of expatriation.

Alternatively, expatriates may receive a fixed amount (Food & pocket) to reimburse their expenses on a monthly/lump-sum basis, regardless of the cost-of-living differential between their home and host country. The allowance is determined by valuing a basket of goods (including food, non-food items, and services) based on local prices that reflect the expatriate’s consumption patterns.

The system identifies a portion of basic pay, known as “home spendable income”, which corresponds to the part of net salary used to meet ordinary expenses in the home country. In cases where the foreign country has a higher cost of living, the cost of living index is applied on the home spendable income to obtain a ‘foreign spendable share’ or host spendable income.

The objective is to determine additional compensation that offsets the cost-of-living differential and allows the worker to maintain the same purchasing power abroad as they had at home.

The Expendable Share of the annual home net salary that is ‘protected’ is determined based on the family status of the employee in the foreign country of expatriation.

Alternatively, expatriates may receive a fixed amount (Food & pocket) to reimburse their expenses on a monthly/lump-sum basis, regardless of the cost-of-living differential between their home and host country. The allowance is determined by valuing a basket of goods (including food, non-food items, and services) based on local prices that reflect the expatriate’s consumption patterns.

A posted worker is “a worker who, for a limited period, carries out his work in the territory of a Member State other than the State in which he normally works”, as defined under Article 2 of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services.

Over the years, EU regulations and directives – enforced by all EU member States, EEA countries and Switzerland – have provided the instructions to comply with the various obligations. When the conditions are fulfilled, although the worker may move freely within the EU Member States, the most favorable rules are observed, as stated by the Directive 957/18/EU amending Directive 96/71/EC which replaces the term ‘minimum rates of pay’ with ‘remuneration’. Article 3 provides with the list of terms that must reflect the most favorable conditions, regardless of the jurisdiction under which the employment contract is drawn up.

The  Directive 2014/67/EU  provides a list of administrative obligations for the posting employer in the Member States:

  1. (prior) declaration of posting, to notify the authorities in the country of destination the posting of employees;
  2. archiving and translating of the posting documentation, to be presented to the inspector at the time of any inspection;
  3. controls: the foreign authority has the possibility of carrying out the necessary controls relevant to a given posting. A company may therefore be penalized even after the end of the assignment;
  4. appointment of representative(s) domiciled in the foreign country, with whom the inspector and/or social parties will liaise during the inspection.

Directive (EU) 2019/1152 provides for the obligation of the employer to communicate certain data to the posted workers, such as the salary and wage level to which they will be entitled for the period of the posting abroad.

From a social security standpoint, Article 12 of Regulation (EC) No. 883/2004 on the coordination of social security establishes that an employee or self-employed worker who is posted to an EU country (if conditions are met) remains insured (maximum 24 months or if the request for extension for a longer period is accepted) by applying for a (single or multi-State) A1 certificate.

A posted worker is “a worker who, for a limited period, carries out his work in the territory of a Member State other than the State in which he normally works”, as defined under Article 2 of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services.

Over the years, EU regulations and directives – enforced by all EU member States, EEA countries and Switzerland – have provided the instructions to comply with the various obligations. When the conditions are fulfilled, although the worker may move freely within the EU Member States, the most favorable rules are observed, as stated by the Directive 957/18/EU amending Directive 96/71/EC which replaces the term ‘minimum rates of pay’ with ‘remuneration’. Article 3 provides with the list of terms that must reflect the most favorable conditions, regardless of the jurisdiction under which the employment contract is drawn up.

The  Directive 2014/67/EU  provides a list of administrative obligations for the posting employer in the Member States:

  1. (prior) declaration of posting, to notify the authorities in the country of destination the posting of employees;
  2. archiving and translating of the posting documentation, to be presented to the inspector at the time of any inspection;
  3. controls: the foreign authority has the possibility of carrying out the necessary controls relevant to a given posting. A company may therefore be penalized even after the end of the assignment;
  4. appointment of representative(s) domiciled in the foreign country, with whom the inspector and/or social parties will liaise during the inspection.

Directive (EU) 2019/1152 provides for the obligation of the employer to communicate certain data to the posted workers, such as the salary and wage level to which they will be entitled for the period of the posting abroad.

From a social security standpoint, Article 12 of Regulation (EC) No. 883/2004 on the coordination of social security establishes that an employee or self-employed worker who is posted to an EU country (if conditions are met) remains insured (maximum 24 months or if the request for extension for a longer period is accepted) by applying for a (single or multi-State) A1 certificate.

The declaration of value is a document issued by Italian diplomatic-consular representations abroad. It provides detailed information on a degree or professional qualification obtained abroad for the purpose of evaluating the same in Italy. This evaluation is necessary for the continuation of studies or the exercise of regulated professions. The information pertains to the issuing institution’s level and nature of the foreign degree, the legal duration of the course, the course’s admission requirements, and the grade received, if applicable.

The declaration of value is a document issued by Italian diplomatic-consular representations abroad. It provides detailed information on a degree or professional qualification obtained abroad for the purpose of evaluating the same in Italy. This evaluation is necessary for the continuation of studies or the exercise of regulated professions. The information pertains to the issuing institution’s level and nature of the foreign degree, the legal duration of the course, the course’s admission requirements, and the grade received, if applicable.

Both companies sending their employees short term to various locations, and individuals travelling to various projects mostly believe that they will not have a tax obligation in the host country because they spend only a couple of days, weeks, months there and they are protected by the provisions of the relevant double-tax treaty. If they are going to a country that uses the “economic employer” concept, depending on the characteristics of the employment, taxation might arise in the host country as of day one.

For many years double tax treaties gave protection to employees working on a short-term basis in countries other than their home countries, provided they were paid by their home location and their stay in the host location did not exceed 183 days in the relevant period. Under this rule, employers and employees did not have to count with additional administration and tax cost resulting from their activities in that other state.

This rule of thumb —the “183-day rule” – is derived from three basic rules set forth in Article 15 of the OECD Model Tax Convention, which is used as the basis for most bilateral tax treaties. Paragraph 2 of Article 15 provides exemption to the general rule, and employment income may be taxable in the country of residency if at the same time:

  • the employee is present in the other State for a period or periods not exceeding in the aggregate the 183 days in the relevant treaty period (e.g. calendar year, fiscal year, any twelve month period), and
  • the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
  • the remuneration is not borne by a permanent establishment which the employer has in the other State.

Based on the OECD Commentary, substance should prevail over form, which means that the term employer should be considered in a broader sense and the whole context of the employment should be reviewed to determine which entity is the “economic employer” of the employee under the provisions of the treaty and to be able to decide whether exemption under Article 15 can be granted to avoid host country taxation.

For this purpose, the key consideration is which entity bears the responsibility or risk for the results produced by the individual’s work. If the risk and responsibility does not lie with the formal employer, additional factors may be relevant to determine which entity will qualify as “economic employer” under the treaty. The OECD Commentary proposes only guidelines to determine which company should be considered the economic employer, however countries might have different interpretation of the “economic employer” principle, or some of the countries might not even use this approach but stay with the formal employer concept.

Both companies sending their employees short term to various locations, and individuals travelling to various projects mostly believe that they will not have a tax obligation in the host country because they spend only a couple of days, weeks, months there and they are protected by the provisions of the relevant double-tax treaty. If they are going to a country that uses the “economic employer” concept, depending on the characteristics of the employment, taxation might arise in the host country as of day one.

For many years double tax treaties gave protection to employees working on a short-term basis in countries other than their home countries, provided they were paid by their home location and their stay in the host location did not exceed 183 days in the relevant period. Under this rule, employers and employees did not have to count with additional administration and tax cost resulting from their activities in that other state.

This rule of thumb —the “183-day rule” – is derived from three basic rules set forth in Article 15 of the OECD Model Tax Convention, which is used as the basis for most bilateral tax treaties. Paragraph 2 of Article 15 provides exemption to the general rule, and employment income may be taxable in the country of residency if at the same time:

  • the employee is present in the other State for a period or periods not exceeding in the aggregate the 183 days in the relevant treaty period (e.g. calendar year, fiscal year, any twelve month period), and
  • the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
  • the remuneration is not borne by a permanent establishment which the employer has in the other State.

Based on the OECD Commentary, substance should prevail over form, which means that the term employer should be considered in a broader sense and the whole context of the employment should be reviewed to determine which entity is the “economic employer” of the employee under the provisions of the treaty and to be able to decide whether exemption under Article 15 can be granted to avoid host country taxation.

For this purpose, the key consideration is which entity bears the responsibility or risk for the results produced by the individual’s work. If the risk and responsibility does not lie with the formal employer, additional factors may be relevant to determine which entity will qualify as “economic employer” under the treaty. The OECD Commentary proposes only guidelines to determine which company should be considered the economic employer, however countries might have different interpretation of the “economic employer” principle, or some of the countries might not even use this approach but stay with the formal employer concept.

Fringe benefits, also known as in-kind benefits, are non-monetary compensation granted by an employer to an employee. These payments may include the use of company assets such as cars, cellular phones, and computers, or services, such as educational courses.

In-kind benefits are typically awarded to expatriate staff and may include housing, international schooling for their children, cars, and flights back to their home country.

To optimize the management of costs associated with expatriation, it is advisable to review the taxation arrangements and any tax concessions for in-kind benefits in the foreign country of assignment.

Fringe benefits, also known as in-kind benefits, are non-monetary compensation granted by an employer to an employee. These payments may include the use of company assets such as cars, cellular phones, and computers, or services, such as educational courses.

In-kind benefits are typically awarded to expatriate staff and may include housing, international schooling for their children, cars, and flights back to their home country.

To optimize the management of costs associated with expatriation, it is advisable to review the taxation arrangements and any tax concessions for in-kind benefits in the foreign country of assignment.

Footnote reimbursement involves the company reimbursing the actual costs incurred by the employee during the trip, such as overnight stays and meals.

The reimbursement is credited directly to the payslip upon presentation of the expense details and relevant supporting documents, such as receipts and invoices.

Article 51, paragraph 5 of the TUIR establishes the tax treatment of travel, distinguishing between exemption and tax thresholds depending on whether the travel is to Italy or abroad.

Footnote reimbursement involves the company reimbursing the actual costs incurred by the employee during the trip, such as overnight stays and meals.

The reimbursement is credited directly to the payslip upon presentation of the expense details and relevant supporting documents, such as receipts and invoices.

Article 51, paragraph 5 of the TUIR establishes the tax treatment of travel, distinguishing between exemption and tax thresholds depending on whether the travel is to Italy or abroad.

In case of double taxation of the same income (between Italy and a foreign country), the individual can claim foreign tax relief for the taxes paid abroad.

The Italian tax system has implemented the “foreign tax credit” to address issues of double taxation for its residents on income earned abroad. This credit is regulated by Article 165 of the TUIR.

The relief can be claimed only when the foreign taxes become “final and settled” by filing the Italian tax return or through the Italian employer (withholding agent) during the annual balance by the month of February.

The foreign tax credit is calculated using a specific formula. If income is calculated at a reduced rate under Article 51, paragraph 8-bis, of the TUIR, the individual working abroad is entitled to a tax credit for the taxes paid there. This credit is proportional to the income determined under Article 51, paragraph 8-bis, of the TUIR. According to Italian Revenue Agency Resolution no. 48/2013, foreign taxes must be calculated based on the ratio between conventional remuneration and the employee’s income that would have been taxable under normal circumstances (according to the analytical criteria outlined in paragraphs 1 to 8 of Article 51 TUIR).

In case of double taxation of the same income (between Italy and a foreign country), the individual can claim foreign tax relief for the taxes paid abroad.

The Italian tax system has implemented the “foreign tax credit” to address issues of double taxation for its residents on income earned abroad. This credit is regulated by Article 165 of the TUIR.

The relief can be claimed only when the foreign taxes become “final and settled” by filing the Italian tax return or through the Italian employer (withholding agent) during the annual balance by the month of February.

The foreign tax credit is calculated using a specific formula. If income is calculated at a reduced rate under Article 51, paragraph 8-bis, of the TUIR, the individual working abroad is entitled to a tax credit for the taxes paid there. This credit is proportional to the income determined under Article 51, paragraph 8-bis, of the TUIR. According to Italian Revenue Agency Resolution no. 48/2013, foreign taxes must be calculated based on the ratio between conventional remuneration and the employee’s income that would have been taxable under normal circumstances (according to the analytical criteria outlined in paragraphs 1 to 8 of Article 51 TUIR).

The International Assignment Policy should be designed to enable international movement of employees. The policy outlines the rules for regulating and compensating personnel working in foreign countries. The goal is to ensure consistent and efficient operations that align with the company’s objectives.

The Global Mobility policy should be based on current international market trends and serve as a guide to ensure consistency and uniformity in the application of compensation and regulations for expatriate workers. Due to the fragmentation of situations and opportunities, compensation methods may need to vary depending on the type of expatriation (long-term, short-term assignment) and on the purpose of the assignments (career development, business driven, etc.)

A well-designed Global Mobility policy should:

  • Support Group strategy and aid international investment;
  • Enable the international movement of employees in a fair and equitable manner;
  • Aid in the education and career development of employees;
  • Assist in promotion of knowledge and technology transfer within the Group;
  • Provide a consistent approach to all Assignments;
  • Adopt the best practice in International Assignment processes.

The International Assignment Policy should be designed to enable international movement of employees. The policy outlines the rules for regulating and compensating personnel working in foreign countries. The goal is to ensure consistent and efficient operations that align with the company’s objectives.

The Global Mobility policy should be based on current international market trends and serve as a guide to ensure consistency and uniformity in the application of compensation and regulations for expatriate workers. Due to the fragmentation of situations and opportunities, compensation methods may need to vary depending on the type of expatriation (long-term, short-term assignment) and on the purpose of the assignments (career development, business driven, etc.)

A well-designed Global Mobility policy should:

  • Support Group strategy and aid international investment;
  • Enable the international movement of employees in a fair and equitable manner;
  • Aid in the education and career development of employees;
  • Assist in promotion of knowledge and technology transfer within the Group;
  • Provide a consistent approach to all Assignments;
  • Adopt the best practice in International Assignment processes.

The Hardship Allowance may be paid to Assignees for certain Host Country locations. Hardship criteria include culture, language, political unrest, inhospitable surroundings and unexpected hardship.

The allowance is calculated as a percentage of annual Home Base Salary and is determined following reference to external data provided by External Service Providers.

The Hardship Allowance may be paid to Assignees for certain Host Country locations. Hardship criteria include culture, language, political unrest, inhospitable surroundings and unexpected hardship.

The allowance is calculated as a percentage of annual Home Base Salary and is determined following reference to external data provided by External Service Providers.

The inpatriate regime is a temporary tax scheme that provides preferential treatment to workers who move their residence to Italy (introduced by Article 16, paragraph 1, Legislative Decree No. 147/2015).

From 2024 the new provisions of the Legislative Decree no. 209/2023 will take effect. To be eligible for the scheme, the worker must not have been a resident in Italy during the three tax periods prior to the transfer and must commit to residing in Italy for at least four years. Additionally, the work activity must be primarily carried out within Italian territory and the taxpayer must be highly qualified.

For taxpayers who meet these conditions, the Legislative Decree confirms the 50% tax exemption within the annual income limit of 600.000 euros, with a commitment to reside in Italy for at least 4 years.

An increase of the tax exemption to 60% has been introduced if the worker moves to Italy with a minor child or in the case of birth/adoption during the period in Italy, from the tax period in progress at the time of the birth or adoption and for the remaining time the benefit is available.

In addition, the inpatriate scheme (50 percent) will be extended for further 3 tax years for those who are going to register their residence with the Anagrafe in 2024 but have purchased a property in Italy used as their main abode by December 31, 2023 (and in any case within the 12 months preceding the transfer).

To take advantage of the facility, employees must submit a written request to their employer. Italian citizens who are not registered in the Register of Italians Resident Abroad (AIRE) are also eligible for the regime, provided that they have resided in another state under a convention against double taxation on income in the three tax periods prior to the transfer.

Workers who move to Italy to work for the same employer (including returns from a secondment position) or for an entity belonging to the same group, will then be eligible for the tax benefit; however, for them there is an increase in the minimum period of residence abroad requirement: six or seven tax years, depending if the worker has (or not) previously been employed in Italy in favor of the same entity or an entity belonging to

A transitional regime remains for those who have registered their residence in Italy with the Anagrafe by Dec. 31, 2023, who will be eligible for the old regime conditions.

The inpatriate regime is a temporary tax scheme that provides preferential treatment to workers who move their residence to Italy (introduced by Article 16, paragraph 1, Legislative Decree No. 147/2015).

From 2024 the new provisions of the Legislative Decree no. 209/2023 will take effect. To be eligible for the scheme, the worker must not have been a resident in Italy during the three tax periods prior to the transfer and must commit to residing in Italy for at least four years. Additionally, the work activity must be primarily carried out within Italian territory and the taxpayer must be highly qualified.

For taxpayers who meet these conditions, the Legislative Decree confirms the 50% tax exemption within the annual income limit of 600.000 euros, with a commitment to reside in Italy for at least 4 years.

An increase of the tax exemption to 60% has been introduced if the worker moves to Italy with a minor child or in the case of birth/adoption during the period in Italy, from the tax period in progress at the time of the birth or adoption and for the remaining time the benefit is available.

In addition, the inpatriate scheme (50 percent) will be extended for further 3 tax years for those who are going to register their residence with the Anagrafe in 2024 but have purchased a property in Italy used as their main abode by December 31, 2023 (and in any case within the 12 months preceding the transfer).

To take advantage of the facility, employees must submit a written request to their employer. Italian citizens who are not registered in the Register of Italians Resident Abroad (AIRE) are also eligible for the regime, provided that they have resided in another state under a convention against double taxation on income in the three tax periods prior to the transfer.

Workers who move to Italy to work for the same employer (including returns from a secondment position) or for an entity belonging to the same group, will then be eligible for the tax benefit; however, for them there is an increase in the minimum period of residence abroad requirement: six or seven tax years, depending if the worker has (or not) previously been employed in Italy in favor of the same entity or an entity belonging to

A transitional regime remains for those who have registered their residence in Italy with the Anagrafe by Dec. 31, 2023, who will be eligible for the old regime conditions.

Italian Legislative Decree Dec. 29, 2016, No. 253 implemented Directive 2014/66/EU by adding two new articles to the Consolidated Immigration Act (“Testo Unico Immigrazione”, TUI).

  • article 27 quinquies regulates the entry and stay of foreign workers for intra-corporate transfers (ICT),
  • article 27 sexies pertains to cases of short (under 90 days) and long-term (over 90 days) mobility within the European Union of foreign workers who have already been admitted to another member state (under ICT) and are subsequently transferred to Italy at the request of the employer.

The ICT posting rule applies to non-EU employees who work for their foreign employer in Italy for more than 3 months as managers (maximum duration 3 years), skilled workers (maximum duration up to 3 years), or trainees (maximum duration 1 year). To be eligible, the worker must have been employed by the foreign company for at least 3 consecutive months prior to the application for the ICT work permit.

Italian Legislative Decree Dec. 29, 2016, No. 253 implemented Directive 2014/66/EU by adding two new articles to the Consolidated Immigration Act (“Testo Unico Immigrazione”, TUI).

  • article 27 quinquies regulates the entry and stay of foreign workers for intra-corporate transfers (ICT),
  • article 27 sexies pertains to cases of short (under 90 days) and long-term (over 90 days) mobility within the European Union of foreign workers who have already been admitted to another member state (under ICT) and are subsequently transferred to Italy at the request of the employer.

The ICT posting rule applies to non-EU employees who work for their foreign employer in Italy for more than 3 months as managers (maximum duration 3 years), skilled workers (maximum duration up to 3 years), or trainees (maximum duration 1 year). To be eligible, the worker must have been employed by the foreign company for at least 3 consecutive months prior to the application for the ICT work permit.

Law No. 398 of October 3, 1987 (which was converted with amendments from Decree Law No. 317/87) regulates the obligation to make contribution payments for Italian citizens who work in non-EU countries that do not have a social security agreement with Italy in place.

According to Law No. 398/87, Italian workers employed in countries without a social security agreement with Italy must be enrolled in Italian social insurance. This applies not only to those seconded from Italy but also to those directly employed by foreign companies based in such non-EU Countries, irrespective whether the foreign employer is part of the same group of the Italian one. Italian employees working in those countries must be registered with Italian social insurance, even if the employment relationship is with a foreign employer.

Foreign employers who are required to provide Italian social security coverage for their Italian employees must appoint a social security representative based in Italy to pay the contributions on behalf of the foreign company.

The salary subject to contribution is the amount found in the notional salaries (retribuzioni convenzionali), with a 10% reduction in the employer’s overall rate for pension (IVS). In addition to the mandatory Italian contribution required by L. 398/87, it is important to consider any contribution obligations in the destination country, if applicable, that may still be required.

Law No. 398 of October 3, 1987 (which was converted with amendments from Decree Law No. 317/87) regulates the obligation to make contribution payments for Italian citizens who work in non-EU countries that do not have a social security agreement with Italy in place.

According to Law No. 398/87, Italian workers employed in countries without a social security agreement with Italy must be enrolled in Italian social insurance. This applies not only to those seconded from Italy but also to those directly employed by foreign companies based in such non-EU Countries, irrespective whether the foreign employer is part of the same group of the Italian one. Italian employees working in those countries must be registered with Italian social insurance, even if the employment relationship is with a foreign employer.

Foreign employers who are required to provide Italian social security coverage for their Italian employees must appoint a social security representative based in Italy to pay the contributions on behalf of the foreign company.

The salary subject to contribution is the amount found in the notional salaries (retribuzioni convenzionali), with a 10% reduction in the employer’s overall rate for pension (IVS). In addition to the mandatory Italian contribution required by L. 398/87, it is important to consider any contribution obligations in the destination country, if applicable, that may still be required.

The term LOCALIZATION refers to a modification of the actual contractual conditions, which may occur after a first period (e.g. 5 years) of Temporary Assignment in the same country.

It results in a transformation from the status of “assignee” to local employee through termination of the existing working relationship with the Home Company and the start of a new employment contract with the foreign Hiring Company, where the Assignee was working, with additional benefits compared to local employees (“local plus”) such as cost of living allowance, settling-in allowance, accommodation.

The local base salary is determined based on the local labor market, as well as the laws, the collective-bargaining agreements and the practices found in the foreign Country.

The public and supplementary social-security systems of the Country in which the new place of work is located will apply, with all social-security obligations and procedures in the Home Base Country ceasing (apart from Italian employees hired in Countries with no social security agreement with Italy. In this case, Italian social security scheme applies, in compliance with the provision of the law n. 398/87).

The term LOCALIZATION refers to a modification of the actual contractual conditions, which may occur after a first period (e.g. 5 years) of Temporary Assignment in the same country.

It results in a transformation from the status of “assignee” to local employee through termination of the existing working relationship with the Home Company and the start of a new employment contract with the foreign Hiring Company, where the Assignee was working, with additional benefits compared to local employees (“local plus”) such as cost of living allowance, settling-in allowance, accommodation.

The local base salary is determined based on the local labor market, as well as the laws, the collective-bargaining agreements and the practices found in the foreign Country.

The public and supplementary social-security systems of the Country in which the new place of work is located will apply, with all social-security obligations and procedures in the Home Base Country ceasing (apart from Italian employees hired in Countries with no social security agreement with Italy. In this case, Italian social security scheme applies, in compliance with the provision of the law n. 398/87).

Every taxpayer who is a fiscally resident in Italy is obliged to file an annual declaration of the income he or she has received in the previous tax year. The 730 form, whether ordinary or precompiled, is commonly used by employees (including those working abroad) and retirees. The taxpayer can submit it independently or through Caf/accountant. They may receive IRPEF refunds directly in their payslip/pension installment.

The “Redditi Persone Fisiche” form can be used by almost all taxpayers as it allows for the declaration of all types of income. However, its use is optional in some cases and mandatory in others. The time frame for obtaining tax refunds is generally longer than that of the 730 forms. Individuals who were not residents of Italy during the tax year being declared are required to use the Redditi form.

In some cases, taxpayers who file the 730 forms must also file certain sections of the “Modello Redditi” (RW, RT, RM form).

Every taxpayer who is a fiscally resident in Italy is obliged to file an annual declaration of the income he or she has received in the previous tax year. The 730 form, whether ordinary or precompiled, is commonly used by employees (including those working abroad) and retirees. The taxpayer can submit it independently or through Caf/accountant. They may receive IRPEF refunds directly in their payslip/pension installment.

The “Redditi Persone Fisiche” form can be used by almost all taxpayers as it allows for the declaration of all types of income. However, its use is optional in some cases and mandatory in others. The time frame for obtaining tax refunds is generally longer than that of the 730 forms. Individuals who were not residents of Italy during the tax year being declared are required to use the Redditi form.

In some cases, taxpayers who file the 730 forms must also file certain sections of the “Modello Redditi” (RW, RT, RM form).

According to Italian legislation, the mission is a temporary displacement of the worker from the original place of work because of occasional and contingent facts (Cass. Aug. 14, 2004, No. 15889).

The only normative reference can be found in Article 51, paragraph 5, of the Italian tax code (TUIR) (which merely regulates the tax and social security treatment of reimbursements of the expenses incurred by workers during the mission). The distinguishing element of the mission is its temporary nature. There is no legal limit on the duration of the mission/business trip.

The essential element of mission is the continuation of the functional link with the original place of work. The worker’s activity continues to be organized and directed by the home company (in whose interest the relocation takes place), the worker is not functionally placed within the organization of the foreign company, which is not involved in the payment of compensation and incurrence of related costs.

According to Italian legislation, the mission is a temporary displacement of the worker from the original place of work because of occasional and contingent facts (Cass. Aug. 14, 2004, No. 15889).

The only normative reference can be found in Article 51, paragraph 5, of the Italian tax code (TUIR) (which merely regulates the tax and social security treatment of reimbursements of the expenses incurred by workers during the mission). The distinguishing element of the mission is its temporary nature. There is no legal limit on the duration of the mission/business trip.

The essential element of mission is the continuation of the functional link with the original place of work. The worker’s activity continues to be organized and directed by the home company (in whose interest the relocation takes place), the worker is not functionally placed within the organization of the foreign company, which is not involved in the payment of compensation and incurrence of related costs.

The term PERMANENT TRANSFER refers to a modification of the actual contractual conditions which results in a transformation from the status of Home Company employee to local Host Company Employee, through the termination of the existing working relationship with the previous Home Company and the start of a new employment contract with the foreign Hiring Company.

The term PERMANENT TRANSFER refers to a modification of the actual contractual conditions which results in a transformation from the status of Home Company employee to local Host Company Employee, through the termination of the existing working relationship with the previous Home Company and the start of a new employment contract with the foreign Hiring Company.

A posted worker is “a worker who, for a limited period, carries out his work in the territory of a Member State other than the State in which he normally works”, as defined under Article 2 of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services.

Over the years, EU regulations and directives – enforced by all EU member States, EEA countries and Switzerland – have provided the instructions to comply with the various obligations. When the conditions are fulfilled, although the worker may move freely within the EU Member States, the most favorable rules are observed, as stated by the Directive 957/18/EU amending Directive 96/71/EC which replaces the term ‘minimum rates of pay’ with ‘remuneration’. Article 3 provides with the list of terms that must reflect the most favorable conditions, regardless of the jurisdiction under which the employment contract is drawn up.

The  Directive 2014/67/EU  provides a list of administrative obligations for the posting employer in the Member States:

  1. (prior) declaration of posting, to notify the authorities in the country of destination the posting of employees;
  2. archiving and translating of the posting documentation, to be presented to the inspector at the time of any inspection;
  3. controls: the foreign authority has the possibility of carrying out the necessary controls relevant to a given posting. A company may therefore be penalized even after the end of the assignment;
  4. appointment of representative(s) domiciled in the foreign country, with whom the inspector and/or social parties will liaise during the inspection.

Directive (EU) 2019/1152 provides for the obligation of the employer to communicate certain data to the posted workers, such as the salary and wage level to which they will be entitled for the period of the posting abroad.

From a social security standpoint, Article 12 of Regulation (EC) No. 883/2004 on the coordination of social security establishes that an employee or self-employed worker who is posted to an EU country (if conditions are met) remains insured (maximum 24 months or if the request for extension for a longer period is accepted) by applying for a (single or multi-State) A1 certificate.

A posted worker is “a worker who, for a limited period, carries out his work in the territory of a Member State other than the State in which he normally works”, as defined under Article 2 of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services.

Over the years, EU regulations and directives – enforced by all EU member States, EEA countries and Switzerland – have provided the instructions to comply with the various obligations. When the conditions are fulfilled, although the worker may move freely within the EU Member States, the most favorable rules are observed, as stated by the Directive 957/18/EU amending Directive 96/71/EC which replaces the term ‘minimum rates of pay’ with ‘remuneration’. Article 3 provides with the list of terms that must reflect the most favorable conditions, regardless of the jurisdiction under which the employment contract is drawn up.

The  Directive 2014/67/EU  provides a list of administrative obligations for the posting employer in the Member States:

  1. (prior) declaration of posting, to notify the authorities in the country of destination the posting of employees;
  2. archiving and translating of the posting documentation, to be presented to the inspector at the time of any inspection;
  3. controls: the foreign authority has the possibility of carrying out the necessary controls relevant to a given posting. A company may therefore be penalized even after the end of the assignment;
  4. appointment of representative(s) domiciled in the foreign country, with whom the inspector and/or social parties will liaise during the inspection.

Directive (EU) 2019/1152 provides for the obligation of the employer to communicate certain data to the posted workers, such as the salary and wage level to which they will be entitled for the period of the posting abroad.

From a social security standpoint, Article 12 of Regulation (EC) No. 883/2004 on the coordination of social security establishes that an employee or self-employed worker who is posted to an EU country (if conditions are met) remains insured (maximum 24 months or if the request for extension for a longer period is accepted) by applying for a (single or multi-State) A1 certificate.

Footnote reimbursement involves the company reimbursing the actual costs incurred by the employee during the trip, such as overnight stays and meals.

The reimbursement is credited directly to the payslip upon presentation of the expense details and relevant supporting documents, such as receipts and invoices.

Article 51, paragraph 5 of the TUIR establishes the tax treatment of travel, distinguishing between exemption and tax thresholds depending on whether the travel is to Italy or abroad.

Footnote reimbursement involves the company reimbursing the actual costs incurred by the employee during the trip, such as overnight stays and meals.

The reimbursement is credited directly to the payslip upon presentation of the expense details and relevant supporting documents, such as receipts and invoices.

Article 51, paragraph 5 of the TUIR establishes the tax treatment of travel, distinguishing between exemption and tax thresholds depending on whether the travel is to Italy or abroad.

Italian resident taxpayers are required to report to the Italian tax administration their foreign financial investments and assets, which can generate foreign-source income subject to tax in Italy. They report their foreign investments by filling out a special part of their annual income tax return referred to as form RW.

This form is also used for the payment of IVIE (Tax on property held abroad) and IVAFE (Tax on financial assets held abroad, even if one has the mere availability of such assets). For example, all co-owners of a checking account must complete the RW form.

Italian resident taxpayers are required to report to the Italian tax administration their foreign financial investments and assets, which can generate foreign-source income subject to tax in Italy. They report their foreign investments by filling out a special part of their annual income tax return referred to as form RW.

This form is also used for the payment of IVIE (Tax on property held abroad) and IVAFE (Tax on financial assets held abroad, even if one has the mere availability of such assets). For example, all co-owners of a checking account must complete the RW form.

A Schengen visa is an authorization that permits travelers to enter the Schengen area for short-term stays or transit, as long as they do not exceed 90 days within a 180-day period.

The visa is issued by the embassy or consulate of one of the countries in the Schengen area. To be eligible for a Schengen visa, you must demonstrate sufficient financial resources to travel and stay in the Schengen zone. Additionally, you must not pose a threat to public order, national security, or public health in any of the Schengen zone countries. The Schengen visa permits free entry and passage through Schengen member countries without border control or customs requirements.

However, it does not allow any work activities.

A Schengen visa is an authorization that permits travelers to enter the Schengen area for short-term stays or transit, as long as they do not exceed 90 days within a 180-day period.

The visa is issued by the embassy or consulate of one of the countries in the Schengen area. To be eligible for a Schengen visa, you must demonstrate sufficient financial resources to travel and stay in the Schengen zone. Additionally, you must not pose a threat to public order, national security, or public health in any of the Schengen zone countries. The Schengen visa permits free entry and passage through Schengen member countries without border control or customs requirements.

However, it does not allow any work activities.

Article 11 (1) of Regulation (EC) 883/2004 provides for the guiding principle that persons to whom the Regulations apply are subject to the legislation of a single Member State only. The regulation establishes criteria for identifying the applicable legislation. According to Article 11(3) (lex loci laboris), the employed or self-employed person is subject to the legislation of the state in which the activity is carried out, with exceptions for the posting of workers to another Member State for a temporary period (which give exemption from the payment of insurance contributions in the State of employment, governed by Article 12 of Regulation 883/2004) and where a person is working in two or more Member States and certain categories of workers such as civil servants. The rules for determining which Member State’s legislation is to apply are set out in Articles 11 – 16 of Regulation 883/2004 and the related implementing provisions are set out in Articles 14 – 21 of Regulation 987/2009.

Article 11 (1) of Regulation (EC) 883/2004 provides for the guiding principle that persons to whom the Regulations apply are subject to the legislation of a single Member State only. The regulation establishes criteria for identifying the applicable legislation. According to Article 11(3) (lex loci laboris), the employed or self-employed person is subject to the legislation of the state in which the activity is carried out, with exceptions for the posting of workers to another Member State for a temporary period (which give exemption from the payment of insurance contributions in the State of employment, governed by Article 12 of Regulation 883/2004) and where a person is working in two or more Member States and certain categories of workers such as civil servants. The rules for determining which Member State’s legislation is to apply are set out in Articles 11 – 16 of Regulation 883/2004 and the related implementing provisions are set out in Articles 14 – 21 of Regulation 987/2009.

Secondment occurs when an employer temporarily places one or more workers at the disposal of another party to perform a specific work activity, to satisfy its own interests (Art. 30, paragraph 1 Legislative Decree 276/2003). The employer remains responsible for the economic and normative treatment of the worker. Secondment changes only the way the employee fulfills their work obligation.

In the case of secondment, it is important to pay close attention to the contractual aspect. An agreement should be drawn up between the companies involved, which should also regulate the cost recharging processes. Additionally, a secondment contract should be established between the original employer and the employee, in which all matters pertaining to the employment relationship abroad are defined.

Secondment occurs when an employer temporarily places one or more workers at the disposal of another party to perform a specific work activity, to satisfy its own interests (Art. 30, paragraph 1 Legislative Decree 276/2003). The employer remains responsible for the economic and normative treatment of the worker. Secondment changes only the way the employee fulfills their work obligation.

In the case of secondment, it is important to pay close attention to the contractual aspect. An agreement should be drawn up between the companies involved, which should also regulate the cost recharging processes. Additionally, a secondment contract should be established between the original employer and the employee, in which all matters pertaining to the employment relationship abroad are defined.

Working abroad results in different tax obligations for employees compared to if they had stayed in the home country. This is because the income is earned in another country and, in the case of a transfer of tax residence, also in relation to the employee’s resident status.

To reduce potential differences in tax burdens on the employee’s total income, companies adopt tax neutrality policies, with the aim to offset the tax effect of expatriation. International companies typically apply several policies, including:

  • Tax equalization,
  • tax protection,
  • gross-net-gross
  • net guaranteed.

Working abroad results in different tax obligations for employees compared to if they had stayed in the home country. This is because the income is earned in another country and, in the case of a transfer of tax residence, also in relation to the employee’s resident status.

To reduce potential differences in tax burdens on the employee’s total income, companies adopt tax neutrality policies, with the aim to offset the tax effect of expatriation. International companies typically apply several policies, including:

  • Tax equalization,
  • tax protection,
  • gross-net-gross
  • net guaranteed.

Every taxpayer who is a fiscally resident in Italy is obliged to file an annual declaration of the income he or she has received in the previous tax year. The 730 form, whether ordinary or precompiled, is commonly used by employees (including those working abroad) and retirees. The taxpayer can submit it independently or through Caf/accountant. They may receive IRPEF refunds directly in their payslip/pension installment.

The “Redditi Persone Fisiche” form can be used by almost all taxpayers as it allows for the declaration of all types of income. However, its use is optional in some cases and mandatory in others. The time frame for obtaining tax refunds is generally longer than that of the 730 forms. Individuals who were not residents of Italy during the tax year being declared are required to use the Redditi form.

In some cases, taxpayers who file the 730 forms must also file certain sections of the “Modello Redditi” (RW, RT, RM form).

Every taxpayer who is a fiscally resident in Italy is obliged to file an annual declaration of the income he or she has received in the previous tax year. The 730 form, whether ordinary or precompiled, is commonly used by employees (including those working abroad) and retirees. The taxpayer can submit it independently or through Caf/accountant. They may receive IRPEF refunds directly in their payslip/pension installment.

The “Redditi Persone Fisiche” form can be used by almost all taxpayers as it allows for the declaration of all types of income. However, its use is optional in some cases and mandatory in others. The time frame for obtaining tax refunds is generally longer than that of the 730 forms. Individuals who were not residents of Italy during the tax year being declared are required to use the Redditi form.

In some cases, taxpayers who file the 730 forms must also file certain sections of the “Modello Redditi” (RW, RT, RM form).

The principle of ‘Tax Equalization’ ensures that employees do not suffer any financial loss or gain as a result of their overseas assignment. This means that the Assignee should not pay more or less personal income tax on his income from employer as if the assignment had not taken place.

However, they still bear an economic burden due to the taxes hypothetically due in their country of origin.

This concept is practically applied by making a notional tax withholding (Hypotax) equal to the ordinary tax liability that the employee would have incurred if they had stayed in their home country.

When taxes are settled in the foreign state, the company will use the amount withheld from the employee for this purpose. Any differences between the amounts actually paid and the amounts withheld will be at the expense or benefit of the company.

The principle of ‘Tax Equalization’ ensures that employees do not suffer any financial loss or gain as a result of their overseas assignment. This means that the Assignee should not pay more or less personal income tax on his income from employer as if the assignment had not taken place.

However, they still bear an economic burden due to the taxes hypothetically due in their country of origin.

This concept is practically applied by making a notional tax withholding (Hypotax) equal to the ordinary tax liability that the employee would have incurred if they had stayed in their home country.

When taxes are settled in the foreign state, the company will use the amount withheld from the employee for this purpose. Any differences between the amounts actually paid and the amounts withheld will be at the expense or benefit of the company.

The Tax Protection policy ensures that employees do not suffer any financial loss due to their assignment abroad. The policy limits the tax burden to be no greater than if the employee had continued working in Italy.

When it’s time to pay taxes, the employee only needs to pay the amount they would have paid in their home country. If the tax amount is higher, the company is responsible for paying the difference. If the destination country has lower taxes than the country of origin, the employee will benefit from the reduced tax burden.

The ‘Tax Protection’ policy ensures that the employee pays the lower tax between the hypothetical tax (the tax that would be due in Italy if the employee had remained working in the country) and the foreign tax actually due on the entire salary.

This policy has an important feature where the employer does not make any notional withholding, and the employee receives the agreed gross amount.

The Tax Protection policy ensures that employees do not suffer any financial loss due to their assignment abroad. The policy limits the tax burden to be no greater than if the employee had continued working in Italy.

When it’s time to pay taxes, the employee only needs to pay the amount they would have paid in their home country. If the tax amount is higher, the company is responsible for paying the difference. If the destination country has lower taxes than the country of origin, the employee will benefit from the reduced tax burden.

The ‘Tax Protection’ policy ensures that the employee pays the lower tax between the hypothetical tax (the tax that would be due in Italy if the employee had remained working in the country) and the foreign tax actually due on the entire salary.

This policy has an important feature where the employer does not make any notional withholding, and the employee receives the agreed gross amount.

Totalization enables workers who have paid contributions into multiple funds, social security schemes or pension funds to be entitled to a unified old-age pension/various social security benefits by using the periods completed in different countries.

Totalization requires a contribution period in each of the two contracting states to operate. For EU countries, this period is 12 months.

The totalization of insurance periods is a theoretical concept, as the relevant contributions remain invested in the insurance of the country where they were originally paid. The amount of the old-age pension is determined “pro-quota” by each pension scheme concerned, in relation to the accrued registration periods.

Generally, pension shares paid by public social security institutes are calculated using the contributory system rules. However, if the worker registered before 1996 has already completed the minimum requirements for the right to an autonomous pension in one of these schemes, a wage-based scheme/mixed calculation is carried out.

To request totalization, submit the request to the appropriate office of the institution in the country where the pension is sought shortly before retirement. Be sure to attach documentation on the contribution period in the other country.

Totalization enables workers who have paid contributions into multiple funds, social security schemes or pension funds to be entitled to a unified old-age pension/various social security benefits by using the periods completed in different countries.

Totalization requires a contribution period in each of the two contracting states to operate. For EU countries, this period is 12 months.

The totalization of insurance periods is a theoretical concept, as the relevant contributions remain invested in the insurance of the country where they were originally paid. The amount of the old-age pension is determined “pro-quota” by each pension scheme concerned, in relation to the accrued registration periods.

Generally, pension shares paid by public social security institutes are calculated using the contributory system rules. However, if the worker registered before 1996 has already completed the minimum requirements for the right to an autonomous pension in one of these schemes, a wage-based scheme/mixed calculation is carried out.

To request totalization, submit the request to the appropriate office of the institution in the country where the pension is sought shortly before retirement. Be sure to attach documentation on the contribution period in the other country.

The Z visa is a work visa issued by the Chinese government to foreign nationals for paid employment. Applicants must meet qualitative (educational qualification/past work experience) and quantitative (salary) requirements, which are scored to determine visa issuance.

An employment contract with a Chinese employer is also required to apply for the Z visa.

To work legally in China, you must file your Z visa application with the Chinese Embassy or Consulate in your jurisdiction. Within 30 days of entering China, Z visa holders must apply for a residence permit with the local authorities in charge of foreigners (Public Security Bureau PSB). This will allow you to work legally in China.

The Z visa is a work visa issued by the Chinese government to foreign nationals for paid employment. Applicants must meet qualitative (educational qualification/past work experience) and quantitative (salary) requirements, which are scored to determine visa issuance.

An employment contract with a Chinese employer is also required to apply for the Z visa.

To work legally in China, you must file your Z visa application with the Chinese Embassy or Consulate in your jurisdiction. Within 30 days of entering China, Z visa holders must apply for a residence permit with the local authorities in charge of foreigners (Public Security Bureau PSB). This will allow you to work legally in China.