Payroll guide

EOR, an Italian company, or freelancers?

The choice depends on three things: how many people, for how long, and whether they sell in Italy on your behalf.

Employer of RecordOwn Italian srl or branchFreelancers
FitsFirst hires, market tests, small remote teamsStable teams, local sales, long-term presenceShort, clearly defined projects
Lead timeDaysMonths: incorporation, bank, registrationsDays
Legal employerWe areYour Italian companyNone: a service contract
Your obligations in ItalyNonePayroll, filings, year end, statutory accountsKeeping the relationship genuinely independent
Main riskLowFixed costs if plans changeReclassification as employment, with back contributions and tax
Monthly costEmployment cost + €250Employment cost + local accounting and payrollThe freelancer's invoice

The freelancer trap

Many Nordic companies start with an Italian on a VAT number (partita IVA) because it looks like a consultant agreement at home. If that person works only for you, on your schedule and with your tools, Italian authorities can treat the contract as employment. You then owe the contributions and tax that should have been paid, with penalties. Moving the person onto an Italian contract through our EOR service closes that exposure.

When to set up your own company

Usually when the team is large and stable, or when Italian staff conclude sales for you and you need a legal presence. We help with the set-up and move the employees across without a break in their service.

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