Expand Your Business into Italy
Italy is the third-largest economy in the Eurozone and one of Europe’s most strategically significant markets. With world-class talent in engineering, manufacturing, design, technology, and professional services, it is a compelling destination for companies looking to build specialist teams or access Southern European and Mediterranean markets.
Italy rewards companies that are well-prepared. Its labour law is among the most detailed in Europe, with strong employee protections and sector-specific rules that require genuine local knowledge to navigate correctly.
With the right partner, market entry is straightforward.
SNAPSHOT
- Capital Rome
- Population ~59 million
- Currency Euro (€)
- EU Member State Yes
- Language Italian
- Time Zone GMT
Why Companies Choose Italy for Expansion
Italy offers a distinctive combination of deep technical expertise, industrial heritage and a large domestic market that is often underserved by international companies. Key reasons companies expand into Italy include:
World-class specialist talent
Large domestic market
Strategic geographic position
Access to EU markets
Strong industrial and professional sectors
Italy offers a real opportunity — but requires genuine local expertise to operate smoothly and compliantly.
How to Expand Into Italy: Understanding Your Options
Italian labour law is complex, with strong employee protections, mandatory collective bargaining agreements (CCNLs) and detailed rules around contracts, termination and benefits. Selecting the right entry model is critical to managing risk and operational efficiency from the outset.
Companies entering Italy typically consider one of the following approaches:
Employer of Record (EOR)
Hire employees in Italy immediately, through BRIDGE IN, without registering a local entity. BRIDGE IN becomes the legal employer on record, managing all employment, payroll and compliance obligations on your behalf. You retain full day-to-day management of your team. Ideal for companies testing the market, hiring a focused team or moving quickly.
Foreign Employer Registration
Register your foreign company directly as an employer in Italy, without incorporating a local entity. Unlike EOR, the employment contract is held directly between your company and the employee — giving you full control over the employment relationship. Employment liability sits with you as the employer. BRIDGE IN manages the registration process and ongoing compliance requirements.
Payroll Services
Fully managed payroll for companies operating in Italy. BRIDGE IN handles monthly payroll calculation, employer INPS contributions (28–32%), IRPEF withholding, mandatory TFR (severance fund) accrual, CCNL sector agreement compliance, statutory filings and employee payslips — whether you have a local entity or not.
Business Incorporation
Incorporate an Italian subsidiary (typically an S.r.l. — Società a Responsabilità Limitata) for long-term, scalable operations. BRIDGE IN guides you through the full incorporation process, reducing bureaucratic complexity and time to operational readiness.
Build-Operate-Transfer (BOT)
BRIDGE IN builds and operates your Italian team or entity on your behalf, then transfers full ownership to you once you are ready to run it independently. This model allows you to establish a permanent, owned presence in Italy without the internal overhead of managing the setup process from scratch.
Salary Cost Calculator
Get an accurate estimate of the real cost of hiring staff in Southern Europe. Our calculator takes into account all mandatory taxes and statutory benefits so you can budget for your expansion with complete transparency.
BRIDGE IN helps you assess which model fits your goals, timeline and team size — and supports you through every stage of the process.
Employer of Record (EOR) in Italy
BRIDGE IN acts as the legal employer of your team in Italy, so you can hire compliantly from day one — without the time, cost or complexity of entity setup. As your Employer of Record in Italy, BRIDGE IN handles:
Italian employment contracts (compliant with the Codice Civile and applicable CCNL)
Monthly payroll processing and statutory filings
Social security contributions (INPS) and income tax (IRPEF) withholding
Mandatory benefits, paid leave, public holidays and TFR (severance accrual)
Collective bargaining agreement (CCNL) identification and compliance
Ongoing HR administration and compliance monitoring
Termination support and offboarding procedures
You focus on managing and growing your team. We handle everything else.
Frequently Asked Questions:
Expanding into Italy
Yes. Through an Employer of Record or Foreign Employer Registration, you can hire in Italy legally and compliantly without registering an Italian entity. BRIDGE IN supports both models depending on your preferred employment structure and liability position.
With an Employer of Record, BRIDGE IN is the legal employer — the employment contract is between your employee and BRIDGE IN. With Foreign Employer Registration, your company is registered directly as the employer in Italy, so the contract is between you and your employee. Foreign Employer Registration gives you more direct control over the employment relationship, but employment liability sits with your company. BRIDGE IN handles registration and compliance in both models
A CCNL (Contratto Collettivo Nazionale di Lavoro) is a national collective bargaining agreement that sets minimum employment conditions — including salary floors, working hours, notice periods and benefits — for employees in a given sector. In Italy, CCNLs are broadly applied and compliance is mandatory for most employment relationships. BRIDGE IN identifies and applies the correct CCNL for your team.
Employer social security contributions in Italy (INPS) are approximately 28–32% on top of gross salary, depending on the sector, employee category and applicable CCNL. Additional mandatory costs include severance fund accrual (TFR) and work accident insurance (INAIL). BRIDGE IN provides a full cost breakdown before you commit.
TFR (Trattamento di Fine Rapporto) is a statutory severance fund that Italian employers are required to accrue on behalf of each employee throughout their employment. It is paid out upon termination or retirement. It represents an additional ongoing employment cost that companies must account for when budgeting for Italian hires.
Italian labour law is considered among the most complex in Europe. It is governed by the Codice Civile, the Workers’ Statute (Statuto dei Lavoratori), sector-specific CCNLs and a significant body of case law. Employee protections are strong, particularly around termination, which requires just cause or justified reason and is subject to reinstatement risk in certain cases. Working with a local specialist like BRIDGE IN from the outset significantly reduces compliance risk.
Yes. BRIDGE IN guides foreign companies through the process of setting up an Italian subsidiary, managing the legal, administrative and operational steps required to become fully operational in Italy.
Why BRIDGE IN for Italy
BRIDGE IN brings the same depth of local expertise to Italy that has made it a trusted partner for companies expanding into Portugal and Spain. We understand the complexity of Italian labour law and the practical realities of operating in the Italian market — and we translate that knowledge into fast, compliant and predictable solutions for our clients.
What sets us apart:
