10 Key Cultural and Practical Adjustments for Foreign Executives in Italy

Italy’s business hubs, rich cultural history, and natural beauty create an ideal environment for executives looking to relocate. However, its unique norms and legal framework can pose several challenges and adjustments for foreign executives. Here are 10 cultural adjustments and practical challenges to expect during your move:

 

Part I: Cultural Adjustments for Foreign Executives in Italy 

Understanding cultural influences is essential to workplace performance. Several factors shape culture, including geography. The following list encompasses several trends in Italian work culture, subject to variation based on individual companies and their other influences.

1. Relationship-Based Work Culture

First, compared to task-based cultures like the United States and Australia, Italy places heavier emphasis on relationships in the workplace. For example, business relations may begin with personal questions, building trust off of a personal foundation. This time is commonly built into the work day in the form of coffee breaks or group lunches. During these meals, business matters are often set aside to provide time for socialization. Networking and personal-rapport are considered part of doing business, rather than separate from it.

 

2. Communication Style

Another potential culture shock for expat executives working in Italy is the communication style. While places like Germany and Nordic countries prioritize efficiency, communication in Italy is less direct. Rather than hitting major discussion points at the start of a meeting, Italians emphasize context, leaving key points for the end. 

Italy also adopts a combination of formal and informal conventions. Formal titles are often used during introductions, referring to superiors or professionals with titles like signore/signora, dottore/dottoressa (doctorates), or avvocato/avvocata (attorneys). Outside of these interactions, informal communication is typical in Italy. Meetings may begin with small talk, and relationships between executives and their employees are relaxed. 

3. Hierarchy

While business relationships are typically casual, hierarchy still plays a substantial role in Italian business structure. Traditionally, most Italian businesses are small to medium size, meaning each firm has few executives. The SME structure allows for centralized decisionmaking, where the leader often makes unitary decisions. However, input from all team members is still valued, and consensus is frequently built informally before decisions are made.

4. Concept of Time

Another distinct feature of Italian business practice is the flexible approach to time. This contrasts with business culture in the United States, where emphasis on efficiency leads to strict schedule adherence. Conversely, Italians prioritize adaptability and connection, prioritizing a smooth, collaborative process.

 

5. Fare una Bella Figura

Lastly, a notable value to prepare for in Italian culture is aesthetic and behavioral presentation, or fare una bella figura. Translating to act in a beautiful manner, this phrase represents the desire to maintain a positive image and always make a favorable impression, both through physical appearance and poise. Whether you are assembling a slideshow presentation, getting dressed for work, or meeting a new business partner for the first time, it is valuable to factor in this ideal when working in Italy.

Despite these patterns, it is important to note that none of these cultural distinctions are universal, and norms vary across regions and business sectors. For example, Southern Italy may have a looser concept of time than the more business-centric North. Similarly, multinational firms may demonstrate more formal business relationships due to influence from their international branches. Ultimately, it is best to be aware of these patterns while observing your surroundings to adapt to cultural differences.

Part II: Practical Challenges for Foreign Executives in Italy

In addition to cultural adaptation, moving countries also presents several practical challenges associated with a new set of laws and regulations. International firms like AdvaLux are well-versed in these logistics and can help you navigate your relocation to Italy.

6. Visas

First, unless you are an EU citizen, moving to Italy for more than 90 days requires you to secure a visa and residence permit (Permesso di Soggiorno). There are several visa options, depending on individual circumstances. Executives will likely seek one of the following:

• Intra-Company Transfer Visa (ICT): for professionals transferred from a company’s international branch to an Italian branch
• Self Employment Visa: for corporate roles, founders, entrepreneurs, and freelancers
• Blue Card: for highly qualified workers with a job offer 
• Digital Nomad Visa: for remote workers who intend to live in Italy while working at a non-Italian company

To apply for a visa, you must complete an application form, obtain an appointment at an Italian consulate or embassy, and present required documentation. Within eight days of your arrival in Italy, you must file an application for an Italian residence permit at a local post office.

In some cases, executives can bypass visa applications through temporary secondment, which allows executives and highly specialized workers to avoid immigration quotas when moving to the Italian branch of an international company. While this status is limited to five years, executives can be hired in Italy and secure permanent residence after the secondment’s duration. 

7. Banking

Opening an Italian bank account is highly recommended when living in Italy for an extended period. This step will facilitate processes like conducting daily transactions, receiving a salary, and paying a lease or mortgage. Depending on your visa type and bank regulations, you may be eligible for either a non-resident or resident bank account. Non-resident bank accounts have limitations and higher fees, while resident bank accounts have full capabilities.

To open an Italian bank account, expats must first obtain an Italian fiscal code (codice fiscale). This can be acquired through the Italian consulate in your home country or at an Italian Revenue Agency (Agenzia delle Entrate) office in Italy. From this step onward, applying for a bank account in Italy follows a relatively standard procedure. Start by choosing a bank, then submit your application online or at a physical branch.

8. Taxation

Expats living in Italy for 183 days or less in a given year only pay Italian taxes on their Italian-sourced income. After hitting the 183 day mark, expats are taxed as Italian residents, paying national, regional, and local taxes. The following table outlines the current tax schedule for Italy’s progressive marginal system:

To encourage foreigners to relocate, Italy provides several tax incentives. For example, the Impatriate Tax Regime provides a five-year, 50% exemption for highly qualified or specialized individuals. Italy also offers a flat tax of €200,000 on external income for high-net-worth individuals moving to Italy, which can be applied to family members for an extra €25,000 each year. 

9. Housing

Finding housing in Italy can differ vastly from other countries due to an extensive bureaucratic process, including several fees, registrations, inspections, and contracts. Here is a brief overview of the process:

1. Obtain an Italian tax code/codice fiscale
2. Find a real estate agent experienced with international buyers
3. Submit an offer
4. Sign a preliminary contract and pay the corresponding deposit
5. Hire professionals for due diligence, such as a notary for legal aspects and an architect for the energy performance certificate (architect is usually hired by the seller)
6. Sign the final deed
7. Pay registration and mortgage taxes
8. Register the deed with the land registry, tax office, and municipal authorities

Since lenders and landlords are typically cautious in Italy, it is also beneficial to request a letter of guarantee from your employer or company, signifying that you will fulfill your financial obligation. 

10. Executive Rights

Finally, executives working in Italy, known as dirigente, have different rights and protections than standard employees in Italy. Some major differences include:

• Higher minimum salaries
• No overtime pay/excluded from work hour limits
• Easier termination
• Better fringe benefits
• Higher severance compensation

Most dirigente rights are determined by collective bargaining agreements between trade unions and employer associations. AdvaLux’s robust employment law department can provide further insight into your legal rights as an executive working in Italy. 

Conclusion

Foreign executives moving to Italy must face an adjustment period as they adapt to a new culture and navigate a different legal system. Consulting with an international law firm whose practice areas span several of these challenges will help make your relocation as smooth as possible. From employment law to real estate, AdvaLux’s knowledgeable team can assist you in this transition, freeing you to focus on the opportunities ahead.

October 15, 2025