Fiscal domicile vs residence

liburt New member

Member since 12 August 2016

liburtNew member06 October 2016 15:01:29

I have applied for a permesso di soggiorno for elective residency and am now concerned about taxes on my investment income abroad (I am a retired US citizen but have my current residence in a non-eu country and intend to live 5 months here and 7 months there). I understand that if I stay in Italy more than 5 months a year I would be considered fiscally domiciled here, and that I can not leave the country for more than 6 months at a time or I would loose my permesso, but I am getting different answers of whether I can/should go to anagrafa and become a resident without that triggering Italy as my fiscal domicile , as presumably one can have residence in more than one country, but only one fiscal domicile. I own a house here by the sea, and thus would benefit from resident rates on real estate taxes and utilities, and also own my principal residence in another country. Anyone with experience or know an expert I can consult?

Simpson01 Active member

Member since 12 September 2016

Simpson01Active member17 November 2016 06:29:49

I suggest that you read the information, which discusses just such situations, in the following link very carefully. http://www.euitalianinternationaltax.co … residency/

In general, you can not maintain a permesso di soggiorno if you routinely live outside of Italy for more than 6 months in a given year (exceptions apply, but must be well-documented; an example would be medical reasons). Once you obtain a permesso di soggiorno, you are required to register your residency with the comune office in the town in which you live, as well as obtain a codice fiscale (tax number). As far as Italy is concerned, the point of obtaining a residency permit is to reside in Italy and they are sticklers about the question when it comes to one's tax obligations.

I highly recommend that you contact an attorney in Italy that specializes in such matters (do an internet search if someone can't recommend one to you).

Good luck.