Moving to Italy — a guide for Canadian founders
Canadian citizens opening a freelance business or partita IVA in Italy.
Market access & permits
As a non-EU citizen, Canadian founders generally need a residence permit that allows self-employment (lavoro autonomo) before registering a partita IVA — typically via the decreto-flussi quota, or by converting an existing permit (study, family, EU long-term residence). Once legally resident, the forfettario regime is open to you on the same terms as everyone else. If you're staying in Canada and only invoicing Italian clients, you may not need an Italian registration at all — that turns on tax residency, not nationality.1
Tax residency — where you actually owe tax
Italy taxes residents on worldwide income. You become tax-resident if, for most of the year (183+ days), your registered residence, habitual abode or centre of vital interests is in Italy. Many Canadian founders trip on this when they relocate mid-year or keep a home abroad — the day count, not your passport, decides where you owe tax.3
The forfettario regime & impatriati
Once you're an Italian tax resident, the forfettario regime is open to you on the same terms as everyone else — a coefficient on revenue (set by your ATECO code) and a 5%/15% substitute tax, up to €85,000.2 To register the partita IVA you'll file with the Agenzia delle Entrate.5
If you move your tax residence to Italy and meet the conditions (broadly: not resident in the prior years, and a commitment to stay), the impatriati regime can exempt 50% of qualifying income from IRPEF. For higher earners it can beat the forfettario — worth modelling both. Many relocating Canadian professionals qualify.4
Traps for Canadian founders
- •Canada taxes on residency, so a clean break (or careful dual-residency analysis under the Canada–Italy treaty) matters when you move.
- •Many Canadians of Italian descent qualify for citizenship, which removes the permit requirement.
Frequently asked questions
How does a Canadian freelancer set up in Italy?
Obtain a residence permit allowing self-employment (or claim Italian citizenship by descent if eligible), register, and open a partita IVA. The forfettario regime then applies, with the Canada–Italy treaty preventing double taxation.
Do Canadian founders qualify for the forfettario regime in Italy?
Yes. The forfettario regime is open to Italian tax residents regardless of nationality, subject to the €85,000 revenue ceiling and the standard eligibility rules. Your activity's ATECO code sets the profitability coefficient (40–86%).
Is the impatriati regime available to Canadian founders who move to Italy?
Often, yes. If you transfer your tax residence to Italy and meet the conditions, the impatriati regime can exempt 50% of qualifying income from IRPEF — sometimes a better deal than the forfettario for higher earners.
Other countries
Sources
- 1.Normattiva — D.Lgs. 286/1998 (Testo Unico Immigrazione), art. 26 (lavoro autonomo)
- 2.Normattiva — L. 190/2014, art. 1 commi 54–89 e Allegato 4 (regime forfettario, coefficienti di redditività)
- 3.Normattiva — TUIR (DPR 917/1986), art. 2 (residenza fiscale)
- 4.Normattiva — D.Lgs. 209/2023, art. 5 (regime impatriati)
- 5.Normattiva — DPR 633/1972 (IVA), art. 35 (apertura partita IVA)
Every figure on this page is grounded in primary sources — the same standard as the TaxCompass chat. This is sourced orientation, not tax advice.