Understanding Social Security in Italy: What Expats Need to Know

If you're planning to live or work in Italy long-term, social security isn’t something you can afford to ignore — even if you'd rather focus on sipping cappuccinos and practicing your Italian.

Whether you’re an employee, a freelancer, or running your own business, you’ll likely be required to contribute to Italy’s social security system, or to America's. But what exactly does that mean? And how does it affect you as an expat?

Let’s break it down.

What Is INPS?

In Italy, social security is administered by INPS — Istituto Nazionale della Previdenza Sociale — the National Social Security Institute.

INPS collects mandatory contributions and manages benefits like:

• Pensions

• Maternity leave

• Sick leave

• Unemployment benefits

• Disability support

• Family allowances

For most workers, contributing to INPS isn’t optional — it’s built into your employment or self-employment status...with one caveat, which we'll get to shortly.

If You're Employed in Italy

If you work for an Italian company, your employer handles everything:

• They automatically deduct social security contributions from your paycheck

• They match a portion of those contributions on your behalf

• You're registered with INPS and eligible for future benefits (e.g., pension, sick leave)

As an employee, you don’t need to set anything up — but you do want to check your annual contribution statement (estratto conto contributivo) to make sure everything’s being reported correctly.

If You're Self-Employed or Freelancing

If you're a libero professionista (freelancer) or running your own business, you’ll need to:

1. Register for a Partita IVA (VAT number)

2. Enroll with INPS under the appropriate scheme:

   • Gestione Separata (for freelancers without a professional association)

   • Cassa di previdenza (for regulated professionals like lawyers, architects, doctors)

You’ll be responsible for calculating and paying your own social security contributions — typically around 25–27% of your income, depending on your category and tax regime.

However (and here's that caveat I mentioned), if you freelance for an American company, you can continue to pay Social Security in the U.S. rather than paying INPS in Italy. You'll need a Certificate of Coverage from the Social Security Office to present when you file taxes in Italy, showing that you are paying it in the U.S. so you aren't double-charged.

This is what I've done. Although I could have paid INPS instead, I wanted to keep things streamlined, since I'd been contributing to American Social Security for decades.

💡 Tip: Many expats use a commercialista (accountant) to handle these filings. I'm happy to refer a great one to you. Just get in touch.

What Do You Get in Return?

Italy’s social security system is comprehensive — albeit a bit bureaucratic. If you contribute regularly, you may be eligible for:

• Retirement pension (pensione di vecchiaia)

• Invalidity pension (pensione di inabilità)

• Survivor’s pension for your spouse or dependents

• Parental leave, maternity benefits, and sick pay

• Unemployment benefits (if you meet the minimum contribution period)

However, eligibility is based on contribution history, so if you’re only in Italy for a short term or are not consistently contributing, benefits may be limited.

What If You’ve Worked in Other Countries?

Italy has bilateral social security agreements with many countries, including the U.S., Canada, Australia, and EU nations. These agreements may allow you to:

• Combine contribution years between countries to qualify for a pension

• Avoid double contributions if you’re temporarily assigned abroad

• Transfer your pension abroad when you retire

For example, the U.S.-Italy Totalization Agreement allows American expats to count years worked in both countries toward social security eligibility.

Don’t Skip It — Even If You’re Young or Temporarily in Italy

You might be thinking: Do I really need to worry about social security if I’m not retiring here?

Short answer: Yes.

• It’s legally required for most types of work

• Not paying could result in fines or backdated contributions

• If you stay longer than planned, those contributions may become your pension base

• Even temporary expats can access maternity, health, or family-related benefits

Social security in Italy may feel like a tangle of acronyms and obligations — but it’s a system that supports you in the long run. Whether you’re building a life here or just testing the waters, make sure you understand:

• What you owe

• How to contribute

• What benefits you may be eligible for

And when in doubt? Hire a bilingual commercialista who knows the ropes. Trust me — they’re worth their weight in espresso.