Tax guide

Italian passport.
Doesn't mean Italian taxes.

The most common fear: “will I have to pay Italian taxes?” Short answer: no, unless you live there.

Updated: April 2026 • Sources: TUIR, PwC

The fundamental rule

Italy taxes based on residency, not citizenship.

The opposite of the US, which taxes citizens wherever they live. Italy doesn’t. If you live in the US with no Italian income, the Italian tax system doesn’t concern you.

Source: Art. 2 TUIR, PwC Tax Summaries

When the obligation kicks in

You become Italian tax resident if you meet ANY ONE of these for more than 183 days:

Physical presence

More than 183 days/year.

Habitual abode

Registration at a comune’s anagrafe (not AIRE).

Domicile

Principal centre of social interests in Italy. Reformed 2023: family ties now outweigh economic ones.

Civil registry

Creates a rebuttable presumption of tax residency.

Three concrete scenarios

Zero obligations

Living in the US, Italian passport, nothing in Italy

No return, no tax.

Tax on rental income

Living in the US, rental property in Italy

Cedolare secca at 21% or 26%. Italian return required for that income. Treaty prevents double taxation.

Italian tax resident

You move to Italy for 183+ days

Taxed on worldwide income. Full return required.

The flat tax regime

If you relocate and haven’t been tax resident for 9 of the previous 10 years: €300,000/year flat on all foreign income, up to 15 years.

\u20ac300k

annual flat

15

years max

9/10

years non-residency

Was €100k in 2017, €200k in 2025. Source: Art. 24-bis TUIR.

US vs Italy

Who they tax

USA

Citizens, wherever they live

Italy

Residents, regardless of citizenship

Filing

USA

Always, all citizens

Italy

Only tax residents or Italian income

Treaty

USA

Prevents double taxation

Italy

Credit for taxes paid in the other country

Common questions

Do I owe Italian taxes for having the passport?

No. Italy taxes on residency, not citizenship. If you live in the US with no Italian income, you owe nothing.

What if I buy property in Italy?

Rental income is taxed in Italy. Personal use: IMU (property tax) but no income tax.

Does AIRE protect me?

It helps but isn’t an absolute shield. If your centre of interests remains in Italy, tax authorities can still classify you as resident.

Do I need to file an Italian return?

Only with Italian income or tax residency. No Italian income = no Italian return.

Sources

  • Art. 2 DPR 917/1986 (TUIR)
  • D.Lgs. 209/2023
  • Art. 24-bis TUIR
  • PwC Tax Summaries \u2014 Italy
  • US-Italy Treaty (1999)

Informational guide. Not tax advice. Consult a commercialista.

Italian Tax Obligations for Dual Citizens | Resinaro