Tax residence in Italy for U.S. citizens and green card holders

Since 2024 Italy treats you as a tax resident if, for most of the year, you have your residence, your domicile (center of personal and family relations) or your physical presence in Italy — part of a day counts as a full day. U.S. citizens remain taxable in the United States; the U.S.–Italy treaty settles dual residence.

Check your status: United States and Italy

Free, no sign-up, about 3 minutes. Conclusion under U.S. law, compared with the law of Italy and the tax treaty.

When Italy treats you as a tax resident

Since 2024 Italy treats you as resident if any one criterion is met for most of the year: physical presence (a part of a day counts as a full day), domicilio (main personal and family relationships in Italy), residenza (habitual abode), or registration in the anagrafe.

You were in Italy for 183 days or more (counting parts of days) — you are an Italian resident, including if you worked remotely from there.
Your main personal and family relationships are in Italy: that is domicilio, and since 2024 it makes you an Italian resident even without days of presence.
You are registered in the anagrafe — Italian residence is presumed. You can rebut the presumption only by showing that none of the criteria (presence, domicilio, residenza) is met.

When you are a nonresident

Fewer than 183 days, no family and no registration in Italy — you are not an Italian resident. Pay for work done in Italy is still taxable there.

Where the rules of Italy clash with U.S. tax rules

Collision: U.S. citizens stay taxable in the United States even as Italian residents. Italy taxes you on worldwide income as a resident; the United States taxes its citizens on worldwide income wherever they live. Even if the treaty tie-breaker makes you a resident of Italy, the saving clause (Art. 1(2)) lets the United States tax you under its own law. Double tax is relieved under Art. 23, which the saving clause keeps (Art. 1(3)): for U.S. citizens resident in Italy Art. 23(4) applies — Italy credits U.S. tax only up to what a non-citizen would pay, and the United States credits the Italian tax with re-sourcing.
Collision: 183 days in Italy while your home is in the United States. Italy treats you as resident because you were present for most of the year; the United States treats you as resident (citizenship, green card or substantial presence). The Convention's tie-breaker decides (Art. 4(2)): a permanent home only in the United States — U.S. resident; a home in both — closer personal and economic relations. For U.S. citizens this does not remove U.S. tax (Art. 1(2)).
Collision: family in Italy — resident without a single day there. Since 2024 Italy treats as resident anyone whose main personal and family relationships are in Italy, even without being there. Under the Convention, with a permanent home in both countries the centre of vital interests is judged on personal and economic ties together; if it cannot be determined — habitual abode, then nationality. Before 2024 the Court of Cassation gave priority to economic interests and counted family only with other criteria; the new rules are not retroactive (Cass. 19843/2024).
Collision: registration in the anagrafe. Registration in the Italian population register for most of the year creates a presumption of Italian residence; U.S. law ignores it. The conflict is resolved by Art. 4(2) of the Convention — the Agenzia delle Entrate expressly accepts that treaty rules apply even where Italian residence follows only from anagrafe registration.

What else to know

Treaty residence test for U.S. citizens and green-card holders. Italy regards a U.S. citizen or green-card holder as a U.S. resident for the Convention only if he or she has a substantial presence, a permanent home or an habitual abode in the United States (Protocol, Art. 1(5)(c)). If you live in Italy without such a link to the United States, Italy treats you as a resident of Italy only. The tie-breaker itself is Art. 4(2).
Italy counts a part of a day as a full day. The days you arrive in and leave Italy count as days in Italy. The same travel days may also count as days of presence in the United States, so you can end up with a high day count in both countries.
Remote work from Italy. Days of remote work from Italy are days of presence in Italy, and pay for that work is Italian-source income. If you are a U.S. resident under the Convention, Italy may tax that pay unless all conditions of Art. 15(2) are met: no more than 183 days in Italy in the fiscal year, an employer that is not an Italian resident, and pay not borne by an Italian permanent establishment.
Italian flat tax for new residents (art. 24-bis TUIR). If you were not an Italian resident for at least nine of the ten previous tax years, you can opt to pay a fixed substitute tax on all foreign income: EUR 300,000 a year for people moving to Italy from the entry into force of Law 199/2025 (earlier movers keep the amount applicable when they moved), EUR 50,000 per family member, for up to 15 years. You can exclude income from specific countries — e.g. the United States — and have it taxed ordinarily with a foreign tax credit. For a U.S. citizen the regime does not affect U.S. tax; whether the IRS accepts the substitute tax as a creditable foreign tax was not verified.
Italian impatriate regime (art. 5 D.Lgs. 209/2023). Workers moving to Italy who were not Italian residents in the three previous tax years (six or seven if they worked for the same employer or group before), work mostly in Italy, meet high-qualification requirements and stay resident for five tax years pay Italian tax on only 50% of their employment or self-employment income (60% exempt with a minor child), within EUR 600,000 a year. From 2027 the regime is art. 225 of the new Testo unico. For a U.S. citizen the exemption lowers Italian tax only — U.S. tax is computed under U.S. law, and lower Italian tax means a smaller foreign tax credit.
Social security: U.S.–Italy totalization agreement. The U.S.–Italy Social Security Agreement has been in force since 1 Nov 1978. As a rule you are covered only in the country where you work; U.S. agreements generally let employees temporarily sent abroad stay in their home system (check the Italy-specific rule and obtain a certificate of coverage).
New Italian tax code from 2027. From 1 Jan 2027 the TUIR is replaced by a new code (D.Lgs. 117/2026). The residence rules are unchanged; other articles are renumbered.

How dual residence is resolved

If both countries treat you as a resident, Art. 4(2) of the treaty applies: Convention between the Government of the United States of America and the Government of the Italian Republic for the avoidance of double taxation with respect to taxes on income and the prevention of fraud or fiscal evasion, with Protocol (signed 25 August 1999). The tests are applied in order — permanent home, center of vital interests, habitual abode, nationality, and finally mutual agreement between the tax authorities. U.S. citizens remain taxable in the United States under the saving clause.

Terms you will come across in Italy

residenza fiscale: tax residence
domicilio: center of personal and family relations (from 2024)
anagrafe: municipal population register — registration is a rebuttable presumption of residence
smart working: remote work — days count as days of presence
regime dei neo-residenti: flat tax regime for new residents on foreign income
Agenzia delle Entrate: Italian Revenue Agency

Questions

I am a U.S. citizen — do I still pay U.S. tax if I live in Italy?

Yes. The United States taxes its citizens on worldwide income wherever they live, and the treaty keeps that right through the saving clause (Art. 1(2)). You file Form 1040 every year; double taxation is relieved mainly by the foreign tax credit (Form 1116) or the foreign earned income exclusion (Form 2555), plus the treaty's relief article (Art. 23).

Which treaty applies between the U.S. and Italy?

The Convention signed on 25 August 1999 with a Protocol, in force since 16 December 2009. The tie-breaker is in Art. 4(2); under Art. 15(2) the 183 days are counted in the fiscal year.

Can an American use Italy's flat tax for new residents?

The art. 24-bis TUIR regime replaces Italian tax on foreign income with a fixed annual amount (EUR 300,000 for people moving after the 2026 Budget Law, EUR 50,000 per family member) for people who were not Italian residents for at least nine of the previous ten years. It does not reduce U.S. tax for U.S. citizens, and whether the IRS credits the fixed amount has not been confirmed.

Sources

Legislation and official guidance

art. 2(2) TUIR (DPR 917/1986, as amended from 2024) — Resident is anyone who for most of the tax year (counting parts of days) has in Italy his or her residenza (habitual abode), domicilio (main personal and family relationships) or is physically present there; registration in the anagrafe (population register) is a rebuttable presumption. The criteria are alternative.
Agenzia delle Entrate, circolare no. 20/E of 4 Nov 2024 — Criteria are alternative; threshold 183 days (184 in a leap year); any part of a day counts as a day; domicilio means primarily personal and family relationships, not economic ones; 183 days of remote work from Italy alone make you resident; anagrafe registration is a rebuttable presumption; rules apply from 1 Jan 2024; tax treaties prevail, including where Italian residence follows only from anagrafe registration.
D.Lgs. 19 June 2026, no. 117 (new Testo unico, from 1 Jan 2027) — From 2027 the TUIR is replaced by a new code: the residence article 2 is carried over word for word; non-residents' income — art. 25; foreign tax credit — art. 185.
art. 23(1)(c) TUIR — For a non-resident, pay for work performed in Italy is taxable in Italy.
Art. 1(2)–(3) U.S.–Italy Convention (saving clause) — Treasury Technical Explanation — Each State may tax its residents and citizens under its internal law notwithstanding the Convention; para. 3(a) keeps for everyone, among others, Art. 23 (relief), Art. 24 (non-discrimination) and Art. 25 (mutual agreement).
Art. 23(4) U.S.–Italy Convention — U.S. citizen resident in Italy: (a) Italy credits U.S. tax on income the U.S. would exempt or tax at a reduced rate for a non-citizen only up to the U.S. tax that would apply if you were not a U.S. citizen; (b) the United States credits the Italian tax paid after (a), without reducing the U.S. tax creditable in Italy; (c) for this purpose only, the income is treated as Italian-source to the extent necessary to avoid double taxation.
Protocol to the U.S.–Italy Convention, Art. 1(5)(c) — Italy regards a U.S. citizen or green-card holder as a U.S. resident only if he or she is actually present (substantial presence), has a permanent home or habitually stays in the United States.
Art. 4(2) U.S.–Italy Convention — Dual-resident individual: (a) permanent home; if in both States — State of closer personal and economic relations; (b) if that cannot be determined or there is no permanent home in either State — habitual abode; (c) then nationality; (d) otherwise mutual agreement of the competent authorities.
Art. 15(2) U.S.–Italy Convention — Salary of a resident of one State for work in the other State is taxable only in the residence State if presence there does not exceed 183 days in total in the fiscal year concerned, the employer is not a resident of the work State, and the pay is not borne by the employer's permanent establishment or fixed base there.
art. 24-bis TUIR (current text, Brocardi mirror) — Optional substitute tax on foreign income for people who become Italian residents and were not resident for at least nine of the ten previous tax years: EUR 300,000 per year, EUR 50,000 per extended family member; ends after 15 years; specific foreign States can be excluded (comma 5), their income then being taxed ordinarily with foreign tax credit.
Law 30 Dec 2025, no. 199, art. 1(25)–(26) (GU no. 301 of 30 Dec 2025, S.O. 42/L; copy on finanzaefisco.com) — Raises the art. 24-bis substitute tax from EUR 200,000 to EUR 300,000 and the family-member amount from EUR 25,000 to EUR 50,000, for people who transfer their residence to Italy from the entry into force of the law.
art. 5 D.Lgs. 27 Dec 2023, no. 209 — as restated in Agenzia delle Entrate ruling (risposta) no. 2/2026 (copy on fiscoetasse.com) — Employment and self-employment income of workers moving to Italy counts at 50% within EUR 600,000 a year, if they were not Italian residents in the three previous tax years, work mostly in Italy, meet high-qualification requirements and stay resident for the year of transfer and the four following years.
art. 225 of the new Testo unico (D.Lgs. 19 June 2026, no. 117), derived from art. 5 D.Lgs. 209/2023 (miolegale.it mirror) — Same regime in the new code: 50% within EUR 600,000; prior non-residence of 3 tax years (6 or 7 if you worked for the same employer or group before); 60% exempt if you move with a minor child or a child is born or adopted during the regime.
SSA — «U.S. International Social Security Agreements» — Agreements with France in force from 1 Jul 1988 and with Italy from 1 Nov 1978; basic territoriality rule — an employee is covered only where he or she works; detached-worker rule generally for assignments expected to last 5 years or less.
art. 165 TUIR — Foreign tax is credited up to the share of Italian tax attributable to the foreign income.
Agenzia delle Entrate, circolare no. 9/E of 5 Mar 2015 (art. 165 TUIR) — Creditable are foreign taxes on income or of a similar nature, paid definitively; taxes covered by a tax treaty need no further check; in case of doubt a ruling request (interpello) can be filed.
Art. 23(3) U.S.–Italy Convention — Italy credits U.S. tax on income the United States may tax under the treaty, within Italian limits; no credit is given where the item of income is subject in Italy to a final withholding tax at the recipient's request.
Art. 4(2)(a) of the Convention — A dual-resident individual is deemed a resident of the State in which he or she has a permanent home (abitazione permanente); if there is a permanent home in both States, of the State with which personal and economic relations are closer.
Art. 4(2)(b) of the Convention — If the State of the centre of vital interests cannot be determined, or there is no permanent home in either State: resident of the State where he or she habitually stays (habitual abode).
Art. 4(2)(c), (d) of the Convention — Habitual abode in both States or in neither: resident of the State of nationality; nationality of both or neither: the competent authorities settle the question by mutual agreement.
Art. 25 U.S.–Italy Convention — Mutual agreement procedure: the case must be presented within three years of the first notification of the action.

Case law

Corte di Cassazione, Sez. 5 (tax), sentenza n. 19843 (Rv. 671648-02), 2024-07-18 — The new residence rules (D.Lgs. 209/2023) are not retroactive — they apply to facts from 1 Jan 2024. For earlier years domicilio means the centre of business and vital interests, and family ties count only together with other criteria. The taxpayer's appeal (tax year 2009) was declared inadmissible.
Corte di Cassazione, Sez. 5 (tax), ordinanza n. 18009, 2022-06-06 — The presumption of Italian residence for citizens who moved to low-tax States (here Switzerland) can be rebutted; the centre of vital interests was found to be in Switzerland although home and work were close to the border. Pre-2024 rules.
Corte di Cassazione, ordinanza n. 18702, 2021-07-01 — Registration in AIRE (Monaco) did not exclude Italian residence: the centre of business and vital interests — family and a directorship of an Italian company — was decisive. Pre-2024 rules.
Corte di Cassazione, ordinanza n. 8286, 2022-03-15 — A citizen whose domicilio (main place of business and economic interests) is in Italy is an Italian resident regardless of AIRE registration; case remanded. Pre-2024 rules.

Updated 2026-11-04. The result is for information only and is not tax or legal advice. Tax authorities and courts may interpret the rules differently, including because of circumstances not covered here, and the law changes. Consult a qualified adviser before making decisions.

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