DoubleTaxationUnited States – Italy tax treaty: residence, 183 days, rates
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)
- Signed: 1999-08-25
- In force since: 2009-12-16
- Official text
If both countries treat you as resident
- 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)(a) of the Convention
- 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. Protocol to the U.S.–Italy Convention, Art. 1(5)(c)
- 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)(b) 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. 4(2)(c), (d) of the Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country only taxes profits of a permanent establishment (fixed base) there. | Art. 7, Art. 14 |
| Pension | Only the country of residence. | Art. 18(1) |
| State pension (social security) | Only the country of residence. | Art. 18(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 19(1)-(2) |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 19(1)-(2) |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. | Art. 10(2)(b) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2) |
| Royalties (copyright, licences) | Source country: at most 8%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 12(2)(b) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property, including shares: only the country of residence. | Art. 13; Protocol Art. 1(12) |
| Other income | Only the country of residence. | Art. 22(1) |
How double taxation is relieved
- Italy: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(3)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(2), (4)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.