Italian 2026 Finance Bill – Key Tax Measures: Support for Middle and Low Incomes | Revision of IRPEF tax brackets | Baby bonus | Enhanced parental leave and nursery bonus | Social security exemption for working mothers | Increased deductions for private school expenses | Family endowment fund | First home mortgage guarantee fund | Support for food purchases | Energy-efficient appliance bonus | Cap on deductions for incomes over €75,000 | Exceptions for healthcare, mortgages, and startup investments | End of deductions for children over 30 (except disabled children) | “Hire more, pay less” tax deduction for new permanent hires | Reduced tax on productivity bonuses | Fringe benefit exemptions | Relocation support for new hires | Raised flat tax threshold for employees and pensioners | Reduced corporate tax (IRES) for reinvested profits | Tax credits for southern Italy investments | Enhanced “Nuova Sabatini” machinery financing | Support for SME stock market listings | Increased public investment in defense, infrastructure, and healthcare | Banking and Insurance | Deferred deductions for financial sector losses | Annual stamp duty on life insurance contracts

Italian Tax Residence – Interaction between Tax Rules and Registration with your Local Authority (Comune)

What Is the Anagrafe?

The Anagrafe is Italy’s civil registry of the individuals  who have established  their residence (centre of vital interests and habitual abode(Anagrafe della popolazione residente), withing the jurisdiction of an Italian Comune (local municipality). It records:

  • All residents (Italian citizens and foreign nationals)

  • Their official address

  • Family composition

  • Vital statistics (birth, marriage, death)

It is the backbone of Italy’s administrative system — used for everything from healthcare access to providing statistical information and voting rights. Being registered as resident is also a pre-requisite of purchasing motor vehicle in Italy as well as a number of other matters.

When Is Registration Required?

You must register with the Anagrafe if:

  • You move to Italy and intend to stay more than 90 days or establish your residence in Italy

  • You obtain a stay permit (permesso di soggiorno, with the exception of the investor visa (non-EU citizens)

  • You are an EU citizen staying more than 3 months

When is Updating the Registry Required

  • You change residential address within Italy

  • You leave Italy permanently 

  • You wish to set up your “domicile” (domicilio) – for practical effects that, even if your habitual abode remains at the original address you wish to appoint another address as centre of vital interests e.g to receive correspondence, health services etc.  
  • You have a child born in Italy (they must be registered too)

  • A change in family circumstances,  due to e.g. death, divorce or legal separation, adoption etc.

How Do I Get Myself Registered as Resident

You need to make an application, usually on a standard from provided by the Comune at the Anagrafe Office of your Comune. Many of Italy’s bigger cities have moved to the provision of online portals for purposes of registration. Registration through the portal is usually followed by an appointment at the offices of the Comune in order to produce original paperwork.

The Comune form, or online portal, will set out the supporting documentation to  be produced, which can vary according to your circumstances. Typically this will comprise:

  • up to date Identity document for you and members of your family
  • your Stay Permit (Permesso di soggiorno)  issued by the Police Immigration Service *
  • proof of residence and right to occupy the property – e.g. copy  purchase deed, registered rent contract, or licence to occupy
  • for those moving from outside Italy evidence of sufficient financial means so as not to become a burden on the State and of adequate health insurance, although these items may already have been disclosed when applying for the Stay Permit (Permesso di Soggiorno).

* the issue of a Stay Permit is usually a pre-requisite of being to able to register as resident. an exception to this rule applies for Stay Permits issued on family reunion grounds, where registration as resident can often be effected ahead of the issue of the Stay Permit. 

After making the application, the Comune  have, typically 45 days, to run their background checks and arrange for a verification visit, usually conducted  by the local police service to check that you are indeed residing at the premises you have indicated in your application.  You generally need to be in attendance when the Police officers visit the property, although they will generally leave a note asking for a call to arrange a follow up visit. Practice here varies widely around the country and some Comuni no longer make verification visits or do so on a random basis. 

After the Comune run their checks and verifications you will be deemed to be  registered as resident from the date of application, or the following day. That date is fundamental for tax purposes (see below), the correspondence from the Comune will confirm the date  – keep it. 

After confirmation you can apply for a national ID Card. This for non Italian citizens will be expressed to be “not valid” for foreign travel, meaning that the ID card cannot be used for travel, even within the Schengen area.  

Non Italian citizens, once registered and in possession of ID Card, you can apply for an Italian Digital ID (SPID), and apply for registration at the local area health authority (ASL or USL) .

Making the Declaration of Residence

When you register as resident you make a declaration, before a public official, that your “residence” i.e.. your centre of vital interests and “habitual abode” are at the address contained in that declaration. The penalties for making a false declaration are steep and include the possibility of criminal sanctions.

Consequences of Being Registered as Resident 

Once you are registered resident, as a non Italian citizen you commence entitlement  generally to Italy’s public services, health care, schooling etc.

Registration as resident may trigger the deadline for e.g. conversion of a foreign driving licence, where permitted. 

If you own the accommodation you indicate as your residence in the application, once you are registered as resident, you can enjoy exemption from local property tax (IMU).  If you register as resident within 18 months of completion of a residential real estate purchase, you may be entitled to a reduction in the purchase tax (imposte di registro or VAT (IVA) under the “prima casa” (first home) rules.

As a registered resident you will be presumed to be tax resident in Italy for any tax year in which your registered as resident for more than 183 days in the year (see following section).   

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Solemn Declaration of Residence

When you register as resident you make a declaration, before a public official, that your “residence” i.e.. your centre of vital interests and “habitual abode” are at the address contained in that declaration. The penalties for making a false declaration are steep and include the possibility of criminal sanctions.

Interaction between Registration with the Anagrafe and Tax Residence

The Italian test of tax residence is contained in art. 2 of the Italian Code.  One of the four sub-tests of tax residence is  whether you are registered with the Anagrafe of the Resident Population for more than 183 days in any tax year.

This means that if you apply to be registered as resident on 15 June of any year and remain so registered until the end of the year you will be presumed to be resident for that tax year.  That in turn means you are, absent an override in a double tax treaty (DTA,) you are liable to Italian tax on worldwide income received after 1 January of that year.

If you apply to be registered as resident, say 15 July of any year, you will not be presumed tax resident under the  relevant sub test and hence will only be liable to tax on Italian source income received in that year.  This providing of course you do not meet any of the other three sub tests of residence. 

By the same token, in your year of departure you should  ensure that you cancel your registration as resident, to avoid the presumption that you remain Italian tax resident even after you are long gone.

Establishing tax residence is a fundamental prerequisite for some of Italy’s special tax regimes to attract people to Italy, and timely registration with the Anagrafe is the easiest and most visible way of establishing tax residence where required. 

The Importance of Applying for Residence in Appropriate Circumstances

There are many reasons that might motivate people to declare that they are resident in premises which may not represent their real “habitual abode” – i.e.. the place where they live on permanent and stable basis.

Examples include:

  • obtaining the benefit of reduced purchase tax when they acquire real estate,
  • exemption or reduction in property ownership taxes,
  • accessing a special tax regime

The saving of the local property and purchase taxes may not outweigh the extra tax due as a tax resident of Italy or the costs of rebutting the presumption that you are not Italian tax resident for any relevant tax year, e.g. by reference to an applicable tax treaty

The Italian Tax Authorities when checking why,  although someone is registered as resident with the Anagrafe,  no tax returns have been filed, will start from the simple concept that having made a formal declaration of residence before the Anagrafe Official, that that is the end of matter and you are hence tax resident in Italy for any relevant tax year.  In order to rebut the presumption you will need to rely on what can be a quite technical  analysis of the DTA, establishing  that you are tax resident in a treaty partner country and meet the rigorous requirements in the particular treaty for access to it, in addition to providing documentation that your “home” is in fact somewhere else outside Italy.

What is the AIRE?

AIRE (Anagrafe degli Italiani Residenti all’Estero) is Italy’s registry of her citizens living abroad. It is managed by the Ministry of the Interior.   

Legislation 

  • Presidential Decree No. 223/1989: Establishes the structure and function of the Anagrafe

  • Legislative Decree No. 286/1998: Immigration law requiring foreign nationals to register if residing long-term

  • Law No. 1228/1954: General law on population registry

  • EU Directive 2004/38/EC: Governs registration of EU citizens residing in other member state

  • Law No. 470/1988: Establishes AIRE and its obligations

  • Presidential Decree No. 223/1989: Implements registry procedures

  • Legislative Decree No. 71/2011: Defines consular roles in AIRE updates

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