Successfully hiring a remote team in Italy requires understanding the local employment laws, payroll rules, and the overall cost of talent. This comprehensive guide explains the steps, salary structures, and legal requirements to hire remote team in Italy, while showing how an Employer of Record (EOR) can simplify the process.
Italy is becoming a preferred destination for global companies looking to hire remote teams in 2025. Its highly educated workforce, multilingual talent pool, and expertise in industries such as technology, design, finance, and engineering make it an attractive market for distributed teams. A combination of EU connectivity, strong labor protections, and modern digital infrastructure enables companies to expand globally without establishing a local entity.
By leveraging an Employer of Record, businesses can hire, pay, and manage employees efficiently, ensuring full compliance with Italian labor laws while focusing on scaling their operations.
Table of Contents
- Overview of Italy for Remote Hiring
- Leading Industries Driving Employment in Italy
- Industry Landscape Snapshot
- Cost of Living for Remote Employees in Italy
- In-Demand Skills in Italy (2025)
- Key Legal Considerations for Hiring in Italy
- Payroll and Tax Compliance in Italy
- Using an EOR for Payroll and Compliance
- Salary Ranges for Remote Roles in Italy
- Steps to Hire a Remote Team in Italy
- Total Cost of Hiring Remote Employees in Italy
- How Can Asanify Simplify Hiring Remote Teams in Italy?
- Conclusion
- FAQs
Overview of Italy for Remote Hiring
When planning to hire a remote team in Italy, it is essential to understand the country’s strategic advantages. Italy is a central hub in Southern Europe, providing easy access to both EU and Mediterranean markets. Its excellent broadband coverage, rising adoption of remote-friendly policies, and growing tech hubs make hiring remote teams in Italy highly practical.
Italian professionals are often multilingual, speaking Italian, English, and sometimes French, German, or Spanish. This multilingual capability is extremely valuable for companies that operate across European markets and need remote team members who can manage international communication.
Additionally, Italy’s social security system (INPS), stable political environment, and strong worker protections create a secure environment for long-term remote hiring strategies. These conditions make hiring a remote team in Italy a smart decision for global companies aiming to scale in Europe.
Leading Industries Driving Employment in Italy
Understanding Italy’s employment landscape helps organizations identify the best sectors for hiring remote teams. Key industries driving remote employment in 2025 include:
- Technology & IT Services: High demand for software developers, cloud engineers, AI/ML specialists, and cybersecurity experts.
- Design & Fashion: Italy leads globally in luxury fashion, design, branding, and creative services.
- Manufacturing & Engineering: Strong in automotive, electronics, and advanced industrial design.
- Finance & Banking: Milan is the country’s financial hub, with growing opportunities in fintech and corporate finance.
- Tourism & Hospitality Tech: Italy’s tourism sector increasingly leverages remote operations for customer support and marketing.
For businesses seeking to hire remote team in Italy, these industries offer abundant opportunities to access top talent without opening physical offices.
Industry Landscape Snapshot
Italy’s economy combines multinational corporations, innovative startups, and thousands of small and medium-sized enterprises (SMEs) that form the backbone of the economy. Key hubs for hiring remote teams include:
- Milan: Leading for finance, fashion, and tech innovation.
- Rome: Strong in creative, government, and tourism-focused roles.
- Turin & Bologna: Engineering and manufacturing centers.
- Florence & Naples: Creative and digital economy hubs.
The Italian government encourages innovation with tax incentives for R&D, startups, and technology-driven businesses. These factors make hiring a remote team in Italy attractive for companies in IT, design, and professional services.
Remote work adoption has increased significantly since 2020, with many industries embracing hybrid and fully remote models. This shift makes it easier than ever to hire remote teams in Italy and manage operations virtually.
Cost of Living for Remote Employees in Italy
Understanding the cost of living is key to offering competitive salaries when hiring remote teams. Costs vary between northern and southern Italy. Milan and Rome are the most expensive cities, while Naples, Palermo, and Bari are more affordable.
| Expense Category | Typical Monthly Cost (€) | Notes |
| Housing | €700 – €1,200 | Milan and Rome highest; Southern cities lower |
| Utilities | €150 – €250 | Electricity, water, and heating |
| Transport | €35 – €65 | Public transport, metro, and scooters |
| Food & Groceries | €300 – €450 | Slightly higher in northern cities |
| Leisure & Miscellaneous | €150 – €300 | Includes gym, entertainment, and personal expenses |
By understanding these costs, businesses can hire remote team in Italy with salary packages that are competitive while still cost-effective compared to other Western European countries.
In-Demand Skills in Italy (2025)
Companies hiring remote teams in Italy can access professionals with highly valuable skills:
- Technology: Full-stack development, cloud services, DevOps, AI/ML, and cybersecurity
- Engineering & Manufacturing: Automotive design, mechanical engineering, and robotics
- Finance & Accounting: IFRS reporting, corporate finance, and EU taxation compliance
- Design & Creative Services: UX/UI, fashion design, 3D product design, and branding
- Multilingual Customer Support: Italian, English, French, German, and Spanish proficiency
For global employers, these skills make hiring a remote team in Italy a strategic move, especially for operations requiring multilingual or technical expertise.
Key Legal Considerations for Hiring in Italy
Hiring a remote team in Italy involves understanding the country’s strict labor laws. The Italian Labor Code (Codice del Lavoro) and Collective Bargaining Agreements (CBAs) define mandatory employment terms.
Employment Laws
- Employers must comply with wages, leave, health & safety, and anti-discrimination laws.
- CBAs often define industry-specific pay scales and benefits.
- Non-compliance can lead to inspections, fines, or labor disputes.
Work Hours and Overtime
- Standard workweek: 40 hours over 5 days.
- Overtime is allowed only with proper documentation and is paid at higher rates or with compensatory leave.
- Employers hiring remote teams must ensure accurate timesheets even for virtual employees.
Employment Contracts
- Written contracts are mandatory and must define salary, benefits, termination, and probation.
- Contract types:
- Tempo indeterminato (permanent)
- Tempo determinato (fixed-term)
- Temporary or project-based contracts
- Tempo indeterminato (permanent)
- Contracts for remote employees often include clauses about digital communication, working hours, and equipment usage.
Worker Classification
- Employees receive full benefits and are under the employer’s supervision.
- Contractors (Partita IVA) operate independently but carry misclassification risk if treated like employees.
- Misclassification leads to back social contributions, penalties, and audits.
Suggested Read: The Complete 2025 Guide to Labour Laws in Italy
Payroll and Tax Compliance in Italy
Hire remote team in Italy payroll is complex, involving multiple layers of taxation and social contributions. Companies hiring remote teams must ensure accurate payroll and compliance to avoid penalties.
Payroll Taxes and Deductions
- Employers must withhold:
- IRPEF (income tax)
- Regional & municipal surcharges
- INPS (social security) and INAIL (workplace insurance)
- IRPEF (income tax)
- Reports and payments go to Agenzia delle Entrate and INPS.
Employer Contributions
- Employer contributions are approximately 30–32% of gross salary, covering:
- Pensions
- Health & maternity benefits
- Workplace accident insurance
- Unemployment support
- Pensions
Employee Benefits
- Mandatory benefits include paid leave, pensions, and health coverage.
- Most employees receive 13th-month pay (Tredicesima) and sometimes a 14th-month bonus.
- Many employers also offer meal vouchers, transport passes, or remote work allowances.
Using an EOR for Payroll and Compliance
An Employer of Record (EOR) is the fastest way to hire remote team in Italy without setting up a local entity.
With Asanify as your EOR:
- Payroll, tax filings, and social contributions are fully managed.
- Legally compliant employment contracts are issued quickly.
- Statutory benefits like pensions, health insurance, and 13th-month pay are handled.
- Misclassification risks are eliminated, enabling safe hiring of remote teams.
This allows companies to hire and onboard employees in Italy within 1–2 weeks, stay compliant, and scale with confidence.
Salary Ranges for Remote Roles in Italy
| Role | Average Annual Salary (EUR) | Average Annual Salary (USD) | Notes |
| Software Developer | €45,000 – €60,000 | $49,000 – $66,000 | Higher for AI & cloud expertise |
| Data Analyst | €40,000 – €55,000 | $44,000 – $60,000 | BI & data analytics roles rising |
| Project Manager | €50,000 – €65,000 | $55,000 – $71,000 | IT & manufacturing pay more |
| Digital Marketing Specialist | €35,000 – €48,000 | $38,000 – $52,000 | Multilingual specialists earn higher |
| HR & Payroll Specialist | €38,000 – €50,000 | $41,000 – $55,000 | Payroll compliance experience valued |
| Customer Support Executive | €28,000 – €36,000 | $30,000 – $39,000 | Bilingual and remote roles in demand |
| Finance & Accounting Analyst | €42,000 – €58,000 | $46,000 – $63,000 | IFRS and EU reporting required |
Steps to Hire a Remote Team in Italy
- Define Your Hiring Needs
Identify roles, skills, and team size to optimize your remote workforce. - Choose a Hiring Model
- Direct hiring requires a legal entity and full compliance.
- Contractors (Partita IVA) are flexible but carry misclassification risk.
- EOR services are the fastest and most compliant approach.
- Direct hiring requires a legal entity and full compliance.
- Source and Interview Candidates
- Use Italian job boards, LinkedIn, and local recruitment agencies.
- Conduct remote interviews with a focus on technical and language skills.
- Use Italian job boards, LinkedIn, and local recruitment agencies.
- Offer Letters and Contracts
- Must comply with Italian labor law and ideally be bilingual.
- Include salary, benefits, working hours, and termination terms.
- Must comply with Italian labor law and ideally be bilingual.
- Onboard and Manage Remote Employees
- Register employees for payroll and social contributions.
- Provide digital onboarding, HR systems, and collaboration tools.
- Register employees for payroll and social contributions.
Total Cost of Hiring Remote Employees in Italy
| Role | Avg Gross Salary (EUR) | Employer Contributions (31%) | Estimated Benefits | Total Employer Cost (EUR) |
| Software Developer | €52,500 | €16,275 | €3,000 | €71,775 |
| Data Analyst | €47,500 | €14,725 | €2,500 | €64,725 |
| Project Manager | €57,500 | €17,825 | €3,500 | €78,825 |
| Digital Marketing Specialist | €41,500 | €12,865 | €2,200 | €56,565 |
| HR & Payroll Specialist | €44,000 | €13,640 | €2,500 | €60,140 |
| Customer Support Executive | €32,000 | €9,920 | €1,800 | €43,720 |
| Finance & Accounting Analyst | €50,000 | €15,500 | €2,800 | €68,300 |
How Can Asanify Simplify Hiring Remote Teams in Italy?
Asanify’s Employer of Record services simplify the process of hiring a remote team in Italy by managing payroll, tax filings, benefits, and compliance. The platform issues legally manage contracts, registers employees for social security, and ensures correct benefit administration.
By eliminating the need to open a local entity, companies can hire remote teams in Italy in as little as 1–2 weeks, avoid misclassification risks, and focus on growing their global operations efficiently.
Suggested Read: Remote Employees Onboarding Checklist with EOR in Italy
Conclusion
Italy offers an exceptional combination of skilled talent, competitive labor costs, and strategic access to European markets, making it highly attractive for global companies. By partnering with an Employer of Record like Asanify, businesses can hire remote team in Italy quickly and efficiently, ensuring full compliance with local labor laws without the complexity of setting up a legal entity. This approach streamlines payroll, tax, and benefit management while reducing administrative burdens, allowing companies to focus on scaling operations internationally and minimizing risk as they expand into the Italian and broader EU market.
FAQs
By creating a local entity or using an Employer of Record (EOR) to hire remote teams compliantly.
Italy does not have a single minimum wage; most CBAs set minimums around €1,250–€1,400 per month.
Employers deduct IRPEF, INPS, INAIL, and local taxes, submitting reports to the Agenzia delle Entrate.
Yes, including pensions, paid leave, health coverage, and 13th-month pay.
Yes, via Partita IVA, but misclassification risk applies if treated like employees.
Total cost = gross salary + ~30–32% employer contributions + benefits.
By managing onboarding, payroll, tax compliance, and benefits, enabling fast and risk-free hiring of remote teams.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
