Italian tax residency and domicile regulations

Italian regulations regarding tax residency and domicile focus on the distinction between physical presence, habitual residence, and personal ties. Under current laws, married couples are permitted to maintain separate permanent residences for work or personal reasons, provided the arrangement is not a scheme to evade taxes. Following a 2022 Constitutional Court ruling, each spouse may be entitled to property tax (IMU) exemptions on their primary residence if they are the owner and reside there habitually.

Authorities may audit these arrangements by checking utility consumption to ensure residences are not fictitious. Misuse of residency status to reduce tax burdens can result in the recovery of unpaid taxes, penalties, and potential criminal charges.

For professionals and entrepreneurs moving abroad, Italian tax authorities may contest claims of foreign residency. An individual is classified as an Italian tax resident if they meet criteria such as being registered in the resident population registry, having a domicile in Italy—defined as the center of business and interests—or maintaining habitual residence. Physical presence in the country for more than 183 days during a tax year also triggers tax residency status.