Leaving Italy: how to really stop being tax resident

By Andrea Matera, Dottore Commercialista and Chartered Accountant (ICAEW, ACCA) · Updated 22 October 2026

Art. 2 TUIR: when you stop being tax resident

Since 2024, art. 2 TUIR, rewritten by Legislative Decree 209/2023 and explained in Revenue Agency Circular 20/E/2024, treats as resident anyone who, for the greater part of the tax year, has at least one of the following in Italy:

• residence within the meaning of the Civil Code, i.e. habitual abode;
• domicile, which is now the place where personal and family relationships are mainly conducted;
• physical presence in the country, counting part days as well.

Registration in the register of the resident population is a rebuttable presumption: if you are registered you are presumed resident, but you can prove otherwise. The reverse also holds: deregistration and enrolment with AIRE do not on their own prove that you have moved.

Tax residence presumption for low-tax jurisdictions

For Italian citizens removed from the population register who move to a low-tax state or territory listed in the Ministerial Decree of 4 May 1999 (including the United Arab Emirates and the Principality of Monaco), the law presumes they remain resident in Italy, unless the taxpayer proves otherwise (art. 2, para. 2-bis, TUIR). Switzerland was removed from the list from 2024.

The presumption does not apply to foreign nationals. If you are leaving for Dubai or Monaco, the evidence of a genuine move must therefore be particularly robust.

Tax residence example: leaving on 1 or 2 July changes everything

An engineer from Genoa moves to London with his family in 2026, which is not a leap year: the greater part of the tax year is 183 days.

• If he leaves on 1 July, he has spent 182 days in Italy, including the day of departure: physical presence alone does not reach the greater part of the year.
• If he leaves on 2 July, the count is 183 days: under Italian law he is resident for the whole of 2026.

The rule works only if civil-law residence and domicile also move in time: if his wife and children stay in Genoa until September, his domicile remains in Italy for most of the year. Domestic law does not provide for splitting the year: any split-year treatment depends solely on the applicable treaty.

Dual tax residence: what the treaty says

If two countries both treat you as resident, the double tax treaty applies the tie-breaker tests of art. 4 of the OECD Model in sequence: permanent home, centre of vital interests, habitual abode, nationality and, as a last resort, the mutual agreement procedure between the tax authorities. Italy has treaties with almost all European countries, the United Kingdom, the United States, Canada, Australia, Japan, China, Singapore and the United Arab Emirates.

Risks of remaining tax resident in Italy

• Family, a home or a business left in Italy can keep you resident even if you are registered with AIRE.
• As a resident, you are taxed in Italy on your worldwide income and must file the quadro RW (foreign assets reporting): the assessment arrives years later, with tax, penalties and interest.
• Failure to register with AIRE is punished with a penalty of €200 to €1,000 for each year, for no more than five years (Law 213/2023, art. 1, paras 242–243).

How we help you end Italian tax residency

• We analyse your situation before departure and plan the date, the steps and your family's move.
• We build with you the evidence that proves the move is genuine: home lease, employment, tax registration in the new country, foreign tax residence certificate, children's schooling, utilities and bank accounts.
• We align your Italian position with the treaty with your new country.

Frequently asked questions

General information, current as of 22 October 2026: it is not a substitute for advice on your own case.