In Italy, “trasferta” refers to an employee’s temporary assignment at a location other than their usual place of work or the one specified in their employment contract. Field work may take place either within the country or abroad. Typical examples include business trips, client visits, or service or installation assignments.
During off-site work, the employee remains employed by their employer, insured, and properly registered.
The difference from a secondment is that, in the case of a business trip, the employee continues to perform their work under the direction and on behalf of their own company. In the case of a secondment, however, the employee is integrated into the host company’s organization and must follow its instructions.
In the case of a business trip abroad, the term “secondment” is often (and, in fact, incorrectly) used in practice. Consequently, the guidelines on secondment apply, for example, regarding the A1 certificate, any declarations required in the country where the work is performed, or the 183-day rule. Here you will find more details on posting to Italy.
If, on the other hand, an employee already resides in the country where they will be working, this is generally not considered a secondment but rather a so-called “local employee.” In this case, the person must be registered and insured through a local employer or an Italian company. Further details on this topic are available under “Registration as an Employer” in Italy and setting up a subsidiary in in Italy.
Various forms of expense reimbursement are provided for the duration of field service. For the duration of the business trip, the employee receives a so-called travel allowance. The travel allowance is exempt from taxes and social security contributions within the established limits if it covers expenses incurred outside the municipal area.
Especially when business travel is scheduled on a regular basis, it is advisable to address this in the employment contract or in a separate written agreement. In this regard, it is recommended to specify in which cases field work may be required, what the employee’s usual place of work is, which expenses are reimbursable, and what method of expense reimbursement applies. Clear contractual provisions ensure legal certainty, prevent future disputes, and facilitate proper handling for payroll tax and social security purposes.
1. Is a business trip the same as a secondment?
Not always. In common parlance, the two concepts are often confused. In the case of a business trip, the employee continues to work for their employer. In the case of a business trip abroad (which is commonly referred to as a “secondment”), registration requirements, the A1 certificate, and the minimum conditions stipulated by labor law in the country where the work is performed may also become relevant.
2. When is a business trip allowance tax-exempt?
In the case of a business trip outside the municipality where the employee’s usual place of work is located, a lump-sum amount of up to 46.48 euros per day in Italy or 77.47 euros abroad may remain tax-exempt. If expenses for lodging or meals are also reimbursed, these limits are reduced.
3. Do expenses always have to be documented with receipts?
If you submit a detailed expense report, yes. Expenses related to hotels, restaurants, trains, flights, taxis, or similar services must be supported by invoices, receipts, and proof of payment. Without adequate documentation, the reimbursement may become taxable.
4. What should companies regulate internally?
Companies should establish who authorizes business travel, which expenses are reimbursed, what supporting documents are required, which payment methods are permitted, and by when expense reports must be submitted.