Starting a business in Italy: a guide for foreigners – part 2

Introduction

The first article in this series (which you can find here) outlines the general differences between EU and non-EU citizens in terms of access to entrepreneurship in Italy, distinguishing between the two main operational models: companies and self-employment. This second article delves into the specifics of social security, analysing the different contribution schemes available to those starting a business in Italy.

Social security is often the aspect that causes the most uncertainty for foreign nationals preparing to start a business in Italy, as there are various institutions operating under very different rules. In general, it can be said that the rules depend, in this case too, on the type of business being carried out.

Traders and Artisans: the INPS IVS Scheme

Those engaged in commercial or artisanal activities are required to register with the INPS Traders’ Scheme or Artisans’ Scheme, respectively, depending on the sector.

In this situation, contributions are payable on an annual basis and are calculated on a minimum income — which for 2026 is approximately €18,500 — regardless of the actual income generated.

This means that even in the absence of revenue, or where revenue falls below this threshold, the taxpayer must pay the minimum contributions, which amount to approximately €4,000–€4,500 per year depending on the scheme. This is particularly important because, especially in the early stages of starting a business, INPS contributions can constitute the most significant financial commitment.

A contribution rate of approximately 25% applies to income exceeding the minimum threshold. However, in some cases a concession is available, specifically a 35% reduction in contributions, reserved for those under the flat-rate scheme (a tax regime we will examine in more detail later).

Members of professional bodies: private pension funds

Professionals registered with a professional association or body (lawyers, engineers, architects, doctors, accountants, etc.) pay their pension contributions not to INPS, but to their respective private professional pension fund. Each fund has its own rules regarding contribution rates, minimum thresholds, calculation methods and reporting obligations. Furthermore, some pension funds offer preferential schemes reserved for younger members or those in the early years of their career, such as exemption from minimum thresholds, reduced rates, etc., aimed at making access to the professions less burdensome.

Foreign nationals — both EU and non-EU — practising a regulated profession in Italy are also required to register with the relevant fund, provided, of course, that they meet the professional qualification requirements laid down by Italian law (equivalence or recognition of foreign qualifications, state examination where required, etc.).

Professionals without a Fund: the INPS Separate Scheme

Those who, on the other hand, carry out self-employed work without belonging to a professional body without a fund and without qualifying as an entrepreneur fall under the residual INPS Separate Scheme, established by Law No. 335/1995. This applies to IT specialists, personal trainers, and many other emerging professions in recent years.

The applicable contribution rate in this case is currently around 26% of net income earned, with no provision for a fixed minimum. In other words, contributions are paid only if and when income is earned. This feature makes the Separate Scheme particularly suitable for those in the early stages of their business or with irregular income.

International Agreements and Aggregation of Contribution Periods

An aspect of great practical importance for foreign nationals concerns the recognition, for pension purposes, of contribution periods accrued abroad. It is therefore possible to pay contributions in Italy under the rules described above and then have other contributions paid outside the country recognised.

Italy has signed numerous bilateral social security agreements with third countries (including the USA, Canada, Australia, and various Latin American and Asian countries), as well as multilateral agreements within the EU (EC Regulation No 883/2004 for EU citizens). Under certain conditions, these agreements allow the accumulation of insurance periods accrued in different countries to meet the minimum requirements for access to pension benefits.

It is therefore essential for foreign professionals or entrepreneurs who begin paying contributions in Italy to check whether there is an applicable agreement with their country of origin and to understand how it works, so as not to lose their previous contributions and to optimise their payments.

Starting a Business in Italy as a Foreigner – Part 1 – The Legal Nook