Italy has updated its tax residency framework in 2024, now allowing residency to be triggered not only by physical presence but also by family or habitual ties.
This article explains the Italy tax residency rules in detail, the conditions that determine residency, and the implications for worldwide taxation.
It also covers how to obtain a tax residency certificate, the difference between residency and domicile under Italian law, and the special regimes available for high-net-worth individuals moving to Italy.
I miei dati di contatto sono hello@adamfayed.com e WhatsApp +44-7393-450-837 se avete domande.
Le informazioni contenute in questo articolo hanno un valore puramente indicativo. Non costituiscono consulenza finanziaria, legale o fiscale e non rappresentano una raccomandazione o una sollecitazione a investire. Alcuni fatti potrebbero essere cambiati dal momento della stesura.
What are Italy’s New Tax Residency Rules?
As of January 1, 2024, Italy has overhauled its rules on tax residency under Legislative Decree No. 209/2023. The reform replaces the older, more rigid framework with four alternative tests.
Meeting any one of them for more than 183 days in a calendar year (184 in leap years) is enough to be treated as an Italian tax resident and liable for worldwide income taxation.
The new criteria are:
- Physical Presence: Spending more than half the year in Italy, even on short or scattered visits. Both arrival and departure days count.
- Domicile: Now defined almost entirely by family and personal ties, rather than economic or professional connections.
- Habitual Residence (Residenza): Where the individual normally lives, regardless of formal registration.
- Anagrafe Registration: Being on Italy’s population register creates a presumption of residency, but this can now be rebutted with evidence of actual life abroad.
These changes broaden the scope of who may fall into the Italian tax net. Frequent travelers, digital nomads, and Italians abroad who maintain close family ties may find themselves unexpectedly classed as residents.
At the same time, the reform weakens automatic reliance on Anagrafe registration, giving individuals a path to prove non-residency though Italian tax authorities are tightening enforcement through international data exchanges and domestic registries.
The update also has knock-on effects for special regimes such as the €200,000 flat tax for new residents or the impatriate incentive for returning professionals, both of which require clear evidence of non-residency in prior years.
Who is considered a tax resident in Italy?
An individual is treated as a tax resident in Italy if any one of the residency requirements is met. This includes foreigners who establish their life in Italy, as well as Italian citizens who fail to properly deregister when moving abroad. The most common cases are:
- Foreign nationals staying more than 183 days in Italy during a calendar year.
- Individuals with close family ties (spouse, children) residing in Italy, even if the person spends significant time abroad.
- Anyone registered with the Anagrafe, unless they can prove their primary residence or domicile is elsewhere.
The Italian tax authorities place strong emphasis on personal and family connections. Even if a person is physically present outside of Italy for much of the year, they can still be considered resident if their family remains in Italy or if they retain a domicile there.
How many days should you stay in Italy to be a tax resident?
As mentioned, Italy follows the 183-day rule. If an individual spends more than 183 days in the country during a calendar year (184 in a leap year), they are automatically considered tax resident for the entire year.
Importantly, Italy counts even partial days as full days. This means that business trips, weekends, or brief stays all contribute to the total.
Once the limit is reached, the person is deemed resident for the whole tax year and is subject to taxation on worldwide income.
Is registration in the Italian Civil Registry (Anagrafe) required for tax residency?
Registration in the Anagrafe, the municipal civil registry, is not strictly required to be considered tax resident, but it carries legal significance.
Being listed creates a presumption of residency, which means the tax authorities will treat the individual as resident unless they can prove otherwise.
For Italian citizens moving abroad, failing to cancel Anagrafe registration and register with AIRE (the registry of Italians abroad) often results in being treated as tax resident in Italy, even if they live full-time overseas.
Foreigners who register with the Anagrafe likewise strengthen the case that they are residents, but absence of registration does not prevent residency if other conditions such as physical presence or domicile are met.
How to Get a Tax Residency Certificate in Italy
Individuals who qualify as tax residents can request a Certificato di Residenza Fiscale (tax residency certificate) from the Italian Revenue Agency. This document is often required to claim treaty benefits or to prove residency status abroad.
To obtain it:
- Ensure registration with the Anagrafe or otherwise demonstrate residency under Italian law.
- File Italian tax returns as a resident.
- Submit a formal request to the local Revenue Agency office.
The certificate is generally issued for use with foreign tax authorities to confirm that Italy has primary taxing rights under a double tax treaty.
How to Officially Register or Deregister as a Tax Resident in Italy
- Registering as a Resident: Foreigners moving to Italy must register with the Anagrafe at their local town hall, providing proof of residence such as a lease or property ownership. This also allows them to obtain Italian identification documents.
- Deregistering as a Resident: Italian citizens moving abroad must cancel their Anagrafe registration and register with AIRE (Anagrafe degli Italiani Residenti all’Estero). Failure to do so often results in continued treatment as a tax resident, regardless of physical absence.
Proper registration and deregistration are important since Italian tax authorities presume residency based on the registries unless convincing evidence is provided to the contrary.
Does Italy tax worldwide income?
Yes. Italy taxes all individuals who qualify as tax residents on their worldwide income. This includes salaries, investment income, rental income, and capital gains earned both in Italy and abroad. Non-residents, on the other hand, are only taxed on income sourced within Italy.
For residents, foreign income must be declared to the Italian Revenue Agency, and in many cases foreign assets also have to be reported under Italy’s disclosure obligations. To avoid double taxation, Italy relies on its network of double tax treaties with other countries, which allow for foreign tax credits or exemptions depending on the agreement.
This distinction between residents and non-residents is critical. A person who unintentionally meets the residency requirements such as by staying in Italy longer than 183 days or by maintaining family ties there may find themselves liable for worldwide taxation, even if most of their income is earned abroad.
What’s the difference between residency and domicile under Italian law?
Italian law distinguishes between residenza (residency) and domicilio (domicile), and both can establish tax residency independently.
- Residency is defined as a person’s habitual abode—the place where they normally live and spend their daily life. It is based on actual living arrangements, such as where someone keeps their home.
- Domicile is defined as the place where a person has the center of their personal and family life. Even if someone spends long periods abroad, they may be considered domiciled in Italy if their spouse, children, or other primary personal ties remain there.
Economic activity can contribute to domicile but, after the 2024 reforms, family and personal ties carry the most weight. This makes it possible for someone who spends less than 183 days in Italy to still be considered a tax resident if their domicile is there.
Exemptions and Incentives for High-Net-Worth Individuals
Italy offers special regimes designed to attract wealthy individuals and skilled professionals. These regimes act as exemptions from the standard worldwide taxation rules:
- Italy Flat Tax Regime for New Residents
- High-net-worth individuals moving their tax residency to Italy may opt for a flat tax of €200,000 per year on their foreign income.
- This replaces taxation on worldwide income, regardless of the actual amount earned abroad.
- The regime applies only to new applicants after August 2024; earlier participants continue under the €100,000 annual flat tax.
- Impatriate Regime for Skilled Professionals
- Designed for individuals who relocate to Italy for work.
- Provides a 50% exemption on employment or self-employment income, increasing to 60% if the person has or adopts a minor child.
- Applies for five years, with a cap of €600,000 in income per year.
These programs are intended to make Italy more competitive in attracting both wealthy individuals and internationally mobile professionals while still preserving the general principle of taxing residents on worldwide income.
Domande frequenti
What are the penalties for failing to declare Italian tax residency?
Failure to report worldwide income as a resident can result in heavy fines, back taxes, and interest charges. Penalties range from 90% to 180% of unpaid taxes for unreported foreign income, along with potential criminal liability in cases of significant tax evasion.
Can I avoid double taxation if I’m a resident in Italy and another country?
Yes, in most cases. Italy has an extensive network of double tax treaties that prevent the same income from being taxed twice. Relief is provided through tax credits, exemptions, or rules assigning taxing rights to one country. However, without a treaty, relief options are limited.
How do I prove non-residency if I live part-time in Italy?
To prove non-residency, you must show stronger ties elsewhere. This can include evidence of permanent residence in another country, family domicile outside Italy, registration with a foreign tax authority, or enrollment in AIRE if you are an Italian citizen.
Are foreign bank accounts and assets taxed in Italy?
Yes. Italian tax residents must declare all foreign financial assets, including bank accounts, securities, and real estate, through the annual RW form. A wealth tax applies: 0.2% on foreign financial assets and 0.76% on foreign real estate.
Do Italian tax residents pay inheritance and wealth taxes?
Yes. Italian inheritance and gift taxes apply to worldwide assets of residents. Rates vary between 4% and 8% depending on the relationship between donor and beneficiary. In addition, residents pay wealth taxes on foreign assets each year.
Siete afflitti dall'indecisione finanziaria?
Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.
