Working Remotely for a Company Without a Legal Entity in Your Country: What Are Your Options?
Let’s say you’re an Italian professional, and you’ve just landed a full-time remote role with a company based in the US or elsewhere in the EU. The catch? They don’t have a legal entity in Italy. So how do they actually hire you?
Good news: this setup is increasingly common, and there are two main paths that make it possible.
Option 1: Self-Employed with a VAT Number (Partita IVA)
Even though it’s technically “freelancing,” many people go this route for full-time remote positions where the company is your only client. You’ll open a Partita IVA and invoice the company monthly or bi-monthly as a contractor.
Important: this is still a full-time commitment, and the company expects you to work like any other employee, they just can't hire you directly.
Pros:
Flexibility in how you manage your work and income.
Potential tax advantages depending on your regime and deductions.
You're not tied to an employer's payroll system or HR stack.
Cons:
You’re fully responsible for taxes, VAT filings, INPS contributions, healthcare, and pensions.
No built-in employment benefits unless you set them up yourself.
You’ll need a good accountant—and strong nerves.
Time off? Most companies offer you paid vacation days, often even more than their internal policy, to make up for the lack of local public holidays coverage and other employee perks.
Option 2: Be Hired Through an Employer of Record (EoR)
An Employer of Record is a third-party service that hires you on behalf of the company. You’re employed by the EoR in your country (e.g. Italy), but you work full-time for the actual company that brought you in.
This is a great option when you want a “normal” employment contract and don’t want to deal with running your own business.
Well-known EoR providers include:
With an EoR:
You get a local employment contract.
You’re enrolled in Italy’s national pension system (INPS).
Contributions to your Fondo Pensione negoziale and TFR (severance pay) are handled.
You receive standard employment benefits like paid vacation, sick leave, and sometimes extras like private health insurance.
In practice, it’s the same as being hired by an Italian company, but the EoR acts as the local employer, handling all the bureaucracy so your actual company doesn’t have to open a legal entity.
What About Job Security?
In Italy, whether you’re hired directly, through an EoR, or as a self-employed contractor, your job security depends more on the company’s stability and willingness to keep you than on the type of contract.
Yes, if you’re employed via an EoR, you benefit from standard employment protections like “tutele crescenti” and unemployment benefits (NASpI). As a freelancer, you don't get that safety net, but you do gain more control and flexibility, if that’s what you’re after.
TL;DR
🇮🇹 Italian remote worker
💼 Full-time role, one employer
🔁 No local entity? Two solid options:
Self-employed with VAT (Partita IVA) – More responsibility, more flexibility.
Hired via Employer of Record – Less admin, full employment protections.
Most structured companies today will support either route. Just be sure to negotiate with the full picture in mind, especially if you’re self-employed. That great monthly rate? It needs to cover more than just your time.
Already working this way? Thinking about switching? Hit reply, I’d love to hear how it’s working out for you.