Working in Parma?
Working in Parma
Situated in the industrial Italian north, Parma has a strong economy based around production and export. Its primary and most famous export product is food, particularly those products native to the city like Parmigiano Reggiano cheese and Prosciutto di Parma. Both can legally only be produced in the city and the surrounding areas and are even protected under the Common Agricultural Policy of the European Union.
These famous exports also bring lots of food tourism to the city, mainly operated by Parma Golosa and Food Valley, which is integral to the local economy. Additionally, Parma also has two major food processing plants owned and operated by multinational corporations Barilla and Parmalat.
Many expatriates that move to Parma do so to teach English, work in the food industry, or work for the prestigious University of Parma.
Work Permits for Parma
As an expatriate relocating to work in Parma, you will not need to apply for a work permit. Instead, the Italian system requires that you apply for a residency permit, which — once granted — will then allow you to work in the city as well.
Italy is a full member of the European Union, so if you are working in Parma and your country of origin is also a member of the EU, all you need to do is arrive in the city and register your presence with the Anagrafe.
However, if you are considering working in Parma and moving there from outside of the EU, you should apply for a work permit before you arrive. This is typically done by your prospective employer in Parma, so you need to have work secured before trying. Once your employer receives clearance for you to work in Parma, you can then apply for an entry visa and, once arrived, apply for a residence permit.
Income Taxation in Parma
As an expatriate working Parma, you will be required to pay income tax. This is dealt with in Italy by the Italian Agency of Revenue (Agenzia della Entrate), who will issue you a tax code on arrival.
Like many countries, Italy has a progressive income tax system, which means that the amount of income tax you pay depends on your earnings, as per the following:
- 0 EUR to 15,000 EUR — 23%
- 15,000 EUR to 28,000 EUR— 27%
- 28,000 EUR to 55,000 EUR — 38%
- 55,000 EUR to 75,000 EUR — 41%
- In excess of 75,000 EUR — 43%
As an expatriate living and working in Parma at least 183 days in a twelve month period, you are required to pay tax on your worldwide income, based on the above tax rates. However, if you work in Parma for less than 183 days, you are typically taxed on your Italian income only.