Money in Italy works differently from what most foreigners expect. Tax residency has specific triggers that can catch you before you realise it. Property ownership creates obligations whether you live in the country or not. And the gap between what people assume and what actually happens is where the expensive mistakes live. These guides explain how the Italian financial system works so you can plan properly before committing.
Disclaimer
The information on this page and throughout the Taxes & Finances section is published for general educational purposes only. It does not constitute tax, legal, or financial advice and should not be relied upon as such.
Cross-border taxation is complex and fact-specific. Italian tax law, treaty provisions, and administrative practices change frequently, and the information presented here may not reflect the most current legal position. Your personal circumstances, nationality, income sources, and residency status all affect your obligations in ways that general guidance cannot address.
Moving To Abruzzo, its owner Elliott Nedas (P.IVA 02164130672), and any contributors accept no liability for decisions made or actions taken based on the content of these guides. You are solely responsible for obtaining qualified professional advice from a commercialista, tax advisor, or lawyer who understands both Italian law and the tax regime of your home country before making any financial decisions related to your move.
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Italian Tax Residency
The 183-day rule, domicile triggers, and why counting days is not as straightforward as it sounds. What actually makes you tax resident.
Read guideThe Codice Fiscale
Italy's tax identification number. You need it to open a bank account, sign a rental contract, buy property, or connect utilities. How to get one, and when to get it.
Read guideAll Finance Guides
Tax Residency
Italy looks at multiple factors,domicile, centre of interests, registration,and any one of them can make you tax resident.
Read guideNon-Resident Taxes
Property tax, waste tax, and possibly rental income tax. Here's what non-resident owners actually owe.
Read guidePensions
Some pensions get taxed only in Italy. Some at home. Some twice if you don't file correctly.
Read guideBank Accounts
Straightforward in theory and maddening in practice. Here's how to get an account and handle the obstacles.
Read guideCodice Fiscale
Italy's tax identification number. You'll need it for almost everything. Here's how to get yours.
Read guideKey Concepts
Tax Residency vs Residenza
Registering your address at the comune (iscrizione anagrafica) is an administrative act. Tax residency is a legal status determined by where you spend the majority of the tax year or where your principal interests lie. Registering at the comune is one of the tests Italian authorities use, but you can trigger tax residency without it, and you can be registered without being tax resident. They overlap, but they are not the same thing.
Worldwide Income
Once you are Italian tax resident, Italy taxes your worldwide income: not just what you earn in Italy, but pensions, rental income, investments, and savings interest from any country. This is standard practice in most countries, but it catches people off guard when they realise a UK pension or US Social Security payment creates an Italian tax filing obligation.
Double Taxation Treaties
Italy has bilateral tax treaties with over 90 countries, including the UK, US, Canada, Australia, and most EU members. These treaties determine which country has taxing rights over specific income types: pensions, property income, employment, dividends. The rules vary by treaty and by income category, which is why generic advice is unreliable. A commercialista who understands your specific treaty is not optional.
Property Taxes
Owning property in Italy creates annual tax obligations regardless of where you live. IMU (Imposta Municipale Unica) is the main property tax, paid in two instalments (June and December). TARI covers waste collection and varies by comune and property size. If the property is your primary residence (prima casa) and you are resident there, IMU is waived on most property categories. Non-residents always pay.
Getting Financially Set Up
Get Your Codice Fiscale
Required before you can open a bank account, sign contracts, or buy property. Can be obtained at an Italian consulate before you travel, or at the Agenzia delle Entrate after arrival.
Open a Bank Account
Some banks require residency, others will open a non-resident account with your codice fiscale and passport. Essential for property purchases, as the notary will require an Italian bank account for the transaction.
Understand Your Tax Position
Before registering as resident, understand how the 183-day rule, domicile test, and your income sources interact. Becoming tax resident without preparation can create obligations you did not anticipate.
Set Up Property Tax Payments
IMU is due in two instalments: mid-June and mid-December. TARI schedules vary by comune but are typically quarterly. Missing deadlines incurs penalties and interest. Your commercialista or the comune can set up payment schedules.
Related Topics
Your tax position connects directly to your residency status, property costs, and the admin deadlines you need to meet. These guides cover the overlaps.