We are delighted to launch a new editorial series in partnership with ItalianTaxes – a trusted digital platform dedicated to helping international buyers, expats and new residents understand and manage their tax obligations in Italy with clarity and confidence.

Over the coming weeks, this series will guide you through the essential financial and tax considerations every property owner should understand, from filing your Italian tax return to navigating property and rental taxation.

Whether you are relocating to Italy, investing in real estate, or already living there, our aim is simple: to make the Italian tax system clearer, more approachable and far less daunting – so you can focus on enjoying life in Italy with peace of mind.

Let’s begin with the first article in the series.

What property buyers need to know about tax residency in Italy

Buying property in Italy is often the first tangible step towards a new life in Europe. Whether you are planning a permanent relocation, a second home in the sun, or a long-term investment, understanding how Italy defines tax residency is essential before you sign contracts or pack your bags.

At Europe Properties, our mission is to give future homeowners and investors the insight they need to make informed, confident decisions. One area that frequently causes confusion and can lead to costly mistakes – is the distinction between legal residence and tax residence in Italy.

Many newcomers assume that once they register as residents, their tax position is automatically resolved. In reality, Italian law draws a clear line between administrative residence and tax residence.

Legal residence is an administrative status. It refers to registering your address with your local municipality (Comune) and being entered into the Anagrafe. This step is typically required to access healthcare, utilities and local services.

Tax residence, however, is determined by the Italian tax authority (Agenzia delle Entrate) and follows a separate set of rules — rules that apply regardless of where you own property or where you emotionally consider “home”.

When are you considered a tax resident in Italy?

Under Italian tax law, you are deemed a tax resident if, for more than 183 days in a calendar year, you meet at least one of the following conditions:

• You are registered in the municipal population register (Anagrafe della Popolazione Residente);
• Your domicile is in Italy – meaning the country where your main personal and economic interests are based;
• Your habitual abode – the place where you normally live day to day, is in Italy.

Crucially, meeting just one of these criteria is enough to establish tax residency, even if you maintain strong ties abroad.

The 183-day rule and your “centre of vital interests”

While the 183-day threshold is widely used internationally, Italy places significant emphasis on the concept of your centre of vital interests. This considers factors such as:

• Where your family lives
• Where you work or run a business
• Where your primary income is generated

As a result, it is possible to be treated as an Italian tax resident even if you spend fewer than 183 days in the country, provided your personal or economic life is primarily based there.

For property buyers planning a gradual relocation or dividing their time between countries, this point is especially important.

Properly closing your previous tax residence

Another common oversight is assuming that moving to Italy automatically ends your tax obligations elsewhere. In most cases, this is not true.

Many countries require formal de-registration or notification to their tax authority when you leave. Without it, you may still be treated as a tax resident abroad, potentially creating a situation of dual tax residency.

Although double taxation treaties can help resolve conflicts, thoughtful planning before your move is the best way to avoid complications. Professional cross-border tax advice is strongly recommended, particularly if you hold assets in more than one country.

A note for U.S. citizens buying property in Italy

For U.S. citizens, the situation requires particular care. The United States taxes based on citizenship, not only residence. This means that even after relocating to Italy, U.S. citizens must continue filing annual tax returns with the IRS and reporting worldwide income.

Mechanisms such as the Foreign Earned Income Exclusion and the Foreign Tax Credit can help prevent double taxation. However, U.S. buyers must also remain compliant with foreign bank account reporting rules (FBAR/FATCA) and ensure that any state-level tax ties are properly severed.

Guidance from a tax advisor experienced in U.S. – Italy matters is essential for long-term compliance and peace of mind.

Why tax planning matters before you buy or move

Understanding your future tax status before purchasing property or relocating to Italy allows you to:

• Plan the timing of your move strategically within the tax year
• Assess eligibility for favourable regimes, such as Italy’s flat-tax options and incentives for new residents
• Avoid triggering worldwide taxation earlier than necessary

Tax residency forms the foundation of your financial life in Italy. Addressing it early can save significant time, money and stress once you settle in.

Looking ahead

Clarifying your tax residency is only the beginning. Once established, the next key question becomes how your income, assets and property will be taxed in Italy.

In upcoming articles on Europe Properties, we will explore:

• How expats should file their Italian tax return
• Italy’s tax regimes for new residents, retirees, investors and entrepreneurs
• Property and rental taxation in Italy

Each guide is designed to help you align your property purchase with a long-term financial strategy in Europe.

About ItalianTaxes.com

ItalianTaxes is a digital platform created to simplify Italian tax compliance for expats, non-residents and returning Italians. By combining advanced technology with personalised support from licensed professionals, it enables users to file correctly, optimise their tax position and remain compliant with confidence.

For anyone planning a move or property purchase in Italy, expert tax guidance is a vital part of a successful transition.

You can begin using the platform today via our dedicated link here. Looking for property in Italy – see listings from Europe Properties – Your Gateway to Property & Lifestyle