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Italy: Country Fact Sheet

Italy: Country Fact Sheet

General Overview

CapitalRome
Population~59 million
LanguageItalian
CurrencyEuro (€)
Time ZoneGMT

Business & Taxation

Standard VAT Rate24%
GDP~$2.54 trillion (2025 est.)

Public holidays, leave, & benefits

Public holidays (2026)

  • 1 Jan.
    Thursday
    New Year’s Day 1 (Capodanno)
  • 6 Jan.
    Tuesday
    Epiphany 1 (Epifania / La Befana)
  • 5 Apr.
    Sunday
    Easter Sunday 1 (Pasqua)
  • 6 Apr.
    Monday
    Easter Monday 1 (Lunedì dell'Angelo / Pasquetta)
  • 25 Apr.
    Saturday
    Liberation Day 1 (Festa della Liberazione)
  • 1 May.
    Friday
    Labor Day (Festa dei Lavoratori)
  • 2 June
    Tuesday
    Republic Day 1 (Festa della Repubblica)
  • 25 July
    Saturday
    Christmas Day 1 (Natale)
  • 15 Aug.
    Saturday
    Assumption of Mary 2 (Ferragosto / Assunzione)
  • 1 Nov.
    Sunday
    All Saints' Day 1 (Tutti i Santi / Ognissanti)
  • 8 Dec.
    Tuesday
    Immaculate Conception 1 (Immacolata Concezione)
  • 26 Dec.
    Saturday
    St. Stephen's Day 1 (Santo Stefano)
  • 1. Nationwide public holiday.
  • 2. Marks the traditional start of the Italian summer holidays.

Workforce & employment framework

Standard working week

40 hours

Collective bargaining agreements (CBAs)

Collective bargaining agreements (CBAs) heavily influence employment terms and costs.

Employment contracts:
  • Open-ended (preferred)
  • Fixed-term (strictly regulated, max duration generally 36 months)
Termination basics
  • Notice periods vary by role and tenure
  • Strong protections against unfair dismissal
  • Termination disputes can be costly
Hiring considerations
  • Italian-language contracts are required
  • CBAs significantly impact costs and conditions
  • Administrative complexity is common

BRIDGE IN Insight

Italy offers access to specialised talent, but employment structures must be carefully designed from day one.

Payroll & Taxation (indicative)

Income Tax:

Progressive (23–43% brackets)

Social Security Contributions:
  • Employer: ~30–33% (varies by sector)
  • Employee: ~9–10%

Payroll calculations depend on sector, CBA, and role.