Joint ventures qualify for intracompany transfer work permits

IMPACT – MEDIUM

What is the change? Italy’s Ministry of Labor has clarified that it will issue intracompany work permits for joint venture arrangements.

What does the change mean? Non-EU workers may obtain work permits for joint-venture agreements executed by a foreign company and an Italian host company.

• Implementation timeframe: Immediate.
• Visas/permits affected: Intracompany transfer (ICT) work permits.
• Who is affected: Non-EU foreign nationals sent to Italy by a company which has entered a joint-venture agreement with a host company.
• Business impact: The inclusion of joint ventures in issuances of work permits gives businesses more flexibility than if the companies were required to be in the same corporate ownership structure.

Background: The Ministry of Labor has confirmed in a private letter issued in response to a query that it will treat joint ventures as corporate affiliates for purposes of issuing intracompany transfer (ICT) work permits. Previously, a sending company that did not have an affiliate in Italy could not apply for an ICT work permit and instead was required to apply for a Service Agreement work permit that involves stricter requirements and longer processing times.

BAL Analysis: The new policy will ease intracompany transfers by allowing foreign companies to enter a joint venture with a host company and apply for ICT permits under procedures that are less onerous than Service Agreement work permits.

This alert has been provided by the BAL Global Practice group and our network provider located in Italy. For additional information, please contact your BAL attorney.

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