Relocation Country Guide:

September 2017 Relocation and International Assignment Trends and Practices

Located in the heart of the Mediterranean Sea, Italy shares open land borders with France, Switzerland, Austria, Slovenia, San Marino and Vatican City. The country is renowned for its arts and cultural treasures, as well as beautiful landscapes and world-leading cuisine.

It is becoming a more frequent destination for assignees and the high quality of life there, means it is a popular destination for expatriates.

Input from Cartus Global Supply Chain and our Destination Services Providers on the ground in Italy points to several key areas of importance to the expat community. Of primary importance is looking for a rental , finding a school, transportation, language, cultural issues and climate. These areas are all addressed, with best practice recommendations, to help guide relocation managers as they consider policies for their assignees. September 2017 Relocation Country Guide: ITALY

RENTAL MARKET As rental are not typically viewed as investments, tend not to devote time to maintaining them. Assignees should be made aware of this before a home search trip begins, as the standard of expatriate properties in Italy may be lower than elsewhere in Europe.

The types of properties available – in terms of quality, size and price – depend considerably on the area in which the assignee is relocating. In more rural areas, prices may be lower, but so is availability. Whereas, there is more choice in major cities like and , but prices are higher. Although, in general, properties in Rome are of a lower quality than they are in other cities and there are also less fully furnished options in the capital.

Property-types available include , and villas, although the latter can be scarce in central areas of cities. Parking places, garages and gardens are also typically only available with luxury properties and very scarce in the current rental market.

Rental Rates and Charges The cost of accommodation varies greatly by location. In general, properties in the north are more expensive. Below is an outline of the average rental rates in Milan (north) and Rome (south) in Euros, per month:

APARTMENTS Accommodation size 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Rome €1,000 €2,000 €2,500 €3,500 Milan €1,500 € 2,500 €3,200 €4,500 HOUSES Accommodation size 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Rome N/A N/A €5,000 €7,000 Milan N/A N/A €6,000 €8,000

Note: Rental cost estimates are based on partially furnished properties, excluding condo charges and utility bills. Rents shown are for personal . A rental increase of up to 40% may be applied for corporate leases.

Negotiating with Landlords/ Agents The Italian rental market is -driven and there is little room for negotiation. Most properties will be leased as viewed, with landlords often unwilling to meet tenant requests, especially in areas where demand is high. Corporate leases are not favoured by landlords either, as they are subject to higher tax rates.

Verbal agreements are not binding in Italy, which needs to be remembered when discussing terms with landlords or real estate agents. The only way to secure a property is by submitting a written and binding proposal to the landlord. In some cases, assignees will also be required to make a down payment of one month’s rent, which is lost if the assignee changes their mind, so it is not advisable to conduct multiple property negotiations.

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Leases TOP TIPS FOR SUCCESS The two most popular property leases are: • When scheduling home search trips, • ‘4+4’ - four years with the option to renew for another four assignees and organisations should be • ‘3+2’ - three years with the option to renew for an mindful that many businesses, including additional two real estate agents close during lunch hours and stay open later, often at Signing a may take up to a month and in some cases, approximately 7pm. even longer. In some cities, local laws prevent landlords from • As signing a lease can take up to a month offering short-term leases, so organisations scheduling short-term or longer, be sure to build this possible assignments should check whether this impacts the host location. delay into your relocation schedules. This will help to avoid missing assignment Searching for a Home start dates. Assignees should avoid searching for a property online, as real • Organisations should be aware that estate websites are not updated regularly and when they are, they landlords prefer personal leases and may include inaccurate or misleading information. Instead assignees as such may opt to give the property should work with Cartus’ local destination services provider to source to someone else if a corporate lease becomes too complex. This is especially suitable accommodation. It can also be extremely challenging to the case in areas where demand is high. organise viewings of rental properties, as real estate agents and If a corporate lease is used, then rental landlords are not always willing to open up properties for this rates may be higher, as landlords try to purpose. With this in mind, assignees will need to have patience off-set the cost of paying higher tax rates. when conducting a home search trip. • To ensure assignees secure the property that they want in a timely manner, they Learn the Language should have funds available to pay Property terms and phrases in Italy can have slightly different the security deposit and supporting documentation to hand immediately after definitions to other countries: the viewing. • Unfurnished (non arredato) means that there will be nothing • Organisations should be mindful of in the property, with walls, ceilings and floors completely bare, extra costs associated with unfurnished including the kitchen. options and need to decide (before the • Semi-furnished or partially furnished (parzialmente home search) whether the assignee or arredato) properties will typically have an installed kitchen the organisation is responsible for the and wardrobe closets, although the rest of the property will cost of household goods shipments or be empty. furniture for the property. Italy’s high cost of amenities (particularly gas • Fully furnished ( ) properties will include all furniture arredato and electricity) should also be considered and electrical appliances. Although this does not include bed when setting housing allowances. linens, towels, plates, cutlery and kitchen utensils. • Where local laws prevent landlords Assignees should be aware of these terms before a home search trip from offering short-term leases, begins, as it can be quite surprising to walk into a completely empty we recommend that organisations property, where not even light bulbs are included. consider serviced accommodation for short-term moves.

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SCHOOLING TOP TIPS FOR SUCCESS The choice of schools for expatriate children in Italy, is not as varied • Due to limited availability, assignees with as other western European countries. Having a small selection school-age children should apply for a to choose from means that availability is often low, with the most school placement as far in advance as popular ones having long waiting lists or, in some cases, being possible. Organisations should also send completely full. Indeed, often locals choose to send their children to authorisation for school assistance to their international schools, which can make it even more challenging for relocation service provider as soon as an assignees to secure a school place. assignment is confirmed. • Organisations should allow plenty of time Popular international schools include: in the relocation schedule for assignees to • Rome: American Overseas School of Rome view schools, as families may not always https://www.aosr.org/ and Marymount International be able to secure a placement in their School Rome http://www.marymountrome.org/ preferred option. • Milan: American School of Milan • As annual international school fees can https://www.asmilan.org/ and International School of Milan be high, assignees relocating without http://www.internationalschoolofeurope.it/it/milan a school allowance, may find it very challenging. Should school fees not • : The International School of Naples be covered in relocation packages, http://www.isnaples.it/ and TAIS Naples organisations could consider this cost http://www.taisnaples.it/ when determining an assignee’s level of compensation or lump sum allowance. School Fees For Rome’s international schools, application/enrollment fees can cost around €800 and a capital assessment fee (per family) will be charged at approximately €5,500, which are both non- refundable. Tuition fees can range from €16,700 per year for primary level and up to and exceeding €21,500 for senior secondary level. School uniforms, school transportation, books and other materials are at an additional cost. When taking school tours, we recommend that assignees bring school reports from previous schools, copies of birth certificates and testimonials/references from teachers.

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TRANSPORTATION

Public Transportation Major cities including Rome, Milan, Naples and have extensive metro and bus services, with smaller metros in and Catania. TOP TIPS FOR SUCCESS The reliability and quality of public transportation varies by location. • To ensure a smoother settling-in process, In Milan for example, it is quite efficient and the network covers the organisations should consider providing majority of the city. Indeed, in many cases it can be quicker to get the assignee with a car and driver for the from one location to another using Milan’s public transport than first week of their assignment. This allows the assignee (and family) to get used to it is to drive. Whilst Rome’s public transport can be less efficient the road and traffic conditions. and overcrowded. • As road congestion is a challenge in The national train network is very popular and reliable, offering good Rome, assignees should source a school value for money. There is also a national bus network, including long first and then find a suitable property distance coaches. However, often national trains and bus routes only located nearby. The destination of the cover cities and will not stop at smaller towns, which are typically workplace should also be factored in to served by regional buses instead. the school and home choice.

Driving The road network in Italy is very well developed, including motorways and toll roads. Many drivers in major cities like Rome and Milan do not necessarily follow road traffic rules and adopt quite an aggressive and sometimes dangerous style of driving. Assignees should be made aware of how chaotic roads can be, before they opt to drive whilst on assignment.

Road congestion in Rome is a major challenge and should be taken into consideration when assignees are choosing schools and a place to live. The length of the commute should be carefully considered, as travel times can be extremely delayed in the capital city, especially at peak times in the mornings and evenings.

Those planning to drive whilst on assignment in Italy, should also be mindful that properties with parking spaces are very low in availability in major cities and gas prices are relatively high, compared to other European countries.

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LANGUAGE TOP TIPS FOR SUCCESS Many locals will have a good command of English, but • Given that all signage will be in Italian, language language can still be one of the biggest challenges that training is strongly recommended for assignees assignees encounter in Italy. All transportation, road and moving to Italy. building signs are in Italian, so a lack of familiarity with the • Language training is imperative for assignees language can make daily tasks such as shopping or paying planning to drive, who are non-European Union bills, quite challenging. citizens and on an assignment lasting more than 12 months. This is because, after a year, expatriates must obtain an Italian driving licence, which includes tests in Italian.

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CULTURAL ISSUES TOP TIPS FOR SUCCESS Locals adopt a Mediterranean outlook on life, including in the • Consider offering cross-cultural training business environment. They are very family-orientated, sociable and tor assignees and their families moving to creative. Living life to the full is a priority for many. Italy. The type of programme you choose should take the length of the assignment Relationships. It is important to establish strong, personal into account as well as the scope of relationships with Italian colleagues, as they will expect business relocation experience that the assignee relationships to have a social element and are more comfortable and family has. dealing with people that they like. Hospitality is key to building relationships and assignees should accept invitations (where appropriate) to join business contacts for a coffee or meal. They should also reciprocate where possible. It is not uncommon for business colleagues to go for a coffee during working hours and assignees should note that bars in Italy serve both coffee and alcohol, so do not misunderstand locals when they extend an invitation to ‘go to the bar’. Small talk about personal life is also not regarded as intrusive, with conversation often focusing on families and holidays for example.

Communication. Communication style is often very animated and loud and locals can sometimes find it difficult to say ‘no’ outright, instead choosing a more diplomatic response. With this in mind, assignees need to learn to read between the lines of a conversation, to ascertain what is actually being said. Successful communication also relies heavily on the relationship between the two parties. For example, it is not unusual for emails to go unanswered if a relationship is not sufficiently developed, so with this in mind, assignees should telephone contacts they do not know very well and reserve emails for more established relationships.

Meetings. Reflecting a laid back, Mediterranean attitude, meetings can be chaotic and spontaneous. As many organisations close in August for the summer season, meetings scheduled for this time will not be actioned until September.

Time Keeping. Typically, punctuality is not a major priority for Italians, both in their personal life and at work. Deadlines can also be interpreted as a suggestion, rather than set timescale, with projects often running over the expected timeline. When setting a deadline, assignees should explain why it has been chosen and, more importantly, why it needs to be met. This will mean there is more chance that local colleagues will work towards it.

Decision Making. Many large organisations have long, bureaucratic processes. Due to this, decision making may be slow and confusing and involve many people, so patience is key!

Dress Code. Italians are renowned for their style and fashion and as such, great emphasis is placed on dressing well in the workplace. Emphasis is placed on the quality of clothes however, rather than the formality. In the summer months for example, a polo t-shirt for men and casual blouse for women can still be acceptable, if of high quality. Assignees will be expected to follow such dress codes whilst on assignment.

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CLIMATE TOP TIPS FOR SUCCESS Climate varies considerably between the northern and southern • Southern Italy’s hot summers can make regions. The north has very cold winters and hot, humid summers. it quite uncomfortable being outside Northern cities like Turin and Milan can be especially cold and wet in in the heat of the day, especially when the winter. The south has a more Mediterranean climate, with milder trying to complete tasks such as finding winters than in the north. Rome and Naples sometimes get snow, a home or school. With this in mind, we but rain is more likely. Summers in the south can be very hot, which recommend scheduling any look/see trips is why most organisations close during August to allow locals to visit or permanent moves outside the hottest the coast, lakes or mountains. Central Italy has mild winters and mild months of the year. This is especially so summers, compared to the north and south. for August, as nearly all real estate agents will be closed, so it will be difficult for ITALY: BASIC FACTS assignees to search for homes. Capital: Rome Official Language: Italian Currency: Euro Main Cities: Milan, Naples, Turin, , Venice Climate: Mediterranean climate, with dry, warm summers and moderate, wet winters Government: Republic Population: 60 million Time Zone: GMT +2 hours Dialling Code: +39

Content for this publication was provided by Cartus Supply Chain, Intercultural and Language Solutions; and Vinelli and Scotto.

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Source: Country Navigator powered by TMA World – www.tmaworld.com and AtoZ of the World (Cultural Issues section). AtoZ of the World is an online country guide which is available free of charge to Cartus clients and assignees on CartusOnline®. The information in this publication is provided in good faith based on information currently available and is therefore subject to change. However it is not intended to provide specific advice or guidance or take the place of either written law or regulations. Cartus accepts no liability for the accuracy, completeness or usefulness of the data and information contained herein or for any loss or damage arising in contract, tort or otherwise in reliance of the data contained or omitted from this publication or from any action or decision taken as a result.

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