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Moving to Italy as an expat: your complete tax guide

Everything you need to know about Italian taxes when relocating to Italy. Residency rules, tax registration, the impatriate regime and how to avoid double taxation.

Relocating to Italy is an exciting decision — but it comes with a set of tax obligations that many expats discover only after they’ve already moved. This guide covers the essentials you need to know before, during and after your move.

When do you become a tax resident in Italy?

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

  • You are registered in the Italian Population Registry (Anagrafe)
  • Your habitual residence (domicile) is in Italy
  • Your main centre of vital interests is in Italy (work, family, social connections)

Once you become a tax resident, Italy taxes your worldwide income — not just income earned in Italy.

Step 1 — Get your Codice Fiscale

Before anything else, you need a Codice Fiscale (Italian tax code, similar to a Social Security Number or NIN). You’ll need it to:

  • Open a bank account
  • Sign a rental contract
  • Register with the healthcare system (SSN)
  • Sign any official document

You can obtain it at any Agenzia delle Entrate office, or at the Italian consulate in your country before moving.

Step 2 — Register your residence (Residenza Anagrafica)

Within 20 days of moving into your home in Italy, you should register at the local municipality (Comune). This confirms your Italian address and activates local services.

The Impatriate Tax Regime (Regime per Impatriati)

Italy offers a significant tax break for individuals who transfer their tax residence to Italy after living abroad for at least 2–3 years. Under the rules effective from 2024:

  • 50% of employment or self-employment income is exempt from Italian income tax
  • The benefit lasts 5 years, extendable to 10 years under certain conditions (children, property purchase)
  • Available to employees, freelancers, and entrepreneurs

Who qualifies?

  • Not been a tax resident in Italy for the required number of years (2 or 3, depending on when you move)
  • Commit to maintaining Italian tax residence for at least 4 years
  • Meet the required qualifications (university degree or equivalent)

Double Tax Treaties

Italy has double tax treaties with over 90 countries, including the UK, US, Brazil, Germany, France, and most EU nations. These treaties determine which country has the right to tax different types of income, preventing you from paying tax twice on the same income.

Common income types and their treatment:

  • Employment income: typically taxed where work is performed (Italy, if you work here)
  • Rental income: taxed where the property is located
  • Dividends: shared between both countries (reduced withholding rates apply)
  • Pensions: rules vary significantly by treaty

Foreign Assets Declaration (Quadro RW)

If you are an Italian tax resident and own assets outside Italy — bank accounts, investments, real estate, crypto — you must declare them annually in the Quadro RW section of your Italian tax return. Penalties for non-compliance are severe.

Filing your Italian tax return

Italian residents file their annual tax return by 30 November of the year following the tax year. The main forms are:

  • Modello 730: for employees and pensioners (simpler form, filed via employer or CAF)
  • Modello Redditi PF: for self-employed, freelancers and those with complex income situations

Moving to Italy and need help navigating the tax system? Contact us — we work with international clients in English, Italian, Portuguese and Spanish.