Presumption of Tax Residence
Article 2, paragraph 2-bis of the Italian Income Tax Code (TUIR – Presidential Decree No. 917/1986) contains a anti-tax avoidance provision concerning the tax residency of Italian citizens.
Brief Overview of the Provision:
This provision establishes a rebuttable presumption that an Italian citizen who transfers their residence to a country or territory identified as a “tax haven” or “blacklisted country” remains, notwithstanding the transfer, a tax resident of Italy. This means that even if they formally deregister from the Italian resident population registers (Anagrafe), they are still considered Italian tax residents (and hence liable to Italian tax on worldwide income) for income tax purposes, unless they can provide compelling evidence to the contrary.
Paragraph 2-bis introduces, through the introduction of a legal presumption, a switch of the burden of proof between the taxpayer and tax authorities. Instead of the tax authorities having to prove that a transfer of residence is not a valid transfer for tax purposes, such the the taxpayer remains liable to Italian tax on worldwide income, it is up to the taxpayer to prove, by reference to adequate supporting doumentary evidence, that there has been has a substantial and effective transfer of tax resdience abroad.
The rule is designed to discourage Italian citizens from transferring their tax residence to low-tax jurisdictions in order to avoid Italian taxation, without genuinely severing their ties with Italy. The burden of proof lies with the taxpayer to demonstrate that their move is genuine and that their center of vital interests (personal, family, and economic) and habitual abode is truly located in the foreign country.
The “blacklisted countries” are specifically identified by a Ministerial Decree. The main decree for individuals in this context is Ministerial Decree of 4 May 1999. It is important to note that this list has been subject to amendments over time, with countries being added or removed based on agreements, cooperation, and changes in their tax regimes. For example, Switzerland was recently removed from this specific blacklist for individuals, effective from fiscal year 2024.
Different Blacklists
Italy has various “blacklists” for different tax purposes (e.g., for Controlled Foreign Companies, deductibility of costs, or specific financial transactions) including a concept of non-white list countries. The “white list” contains a list of countries with which Italy has entered into tax exchange of information agreements. The list relevant for the personal tax residency presumption under Article 2, paragraph 2-bis is specifically the one from the Ministerial Decree of 4 May 1999, but sits uneasily with the white list rules, and sometimes the terms of the relevant double tax treaty (DTA).
EU Blacklist: There is also a separate EU list of non-cooperative jurisdictions for tax purposes, which is regularly updated. While this EU list is influential, it’s not directly the same as the Italian blacklist for individual tax residency purposes under Article 2, paragraph 2-bis, although there can be overlaps. The latest EU list (as of February 18, 2025) includes: American Samoa, Anguilla, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad & Tobago, US Virgin Islands, and Vanuatu.
Updates and Treaties: Taxpayers should always verify the most current list published by the Italian tax authorities and consider the impact of any DTA’s between Italy and the country of relocation, as treaties can override domestic law in certain situations.
For the most precise and up-to-date information and consdiration for your specific cirumstances , consulting with a qualified Italian tax advisor or referring to the official website of the Italian Tax Agency (Agenzia delle Entrate) is recommended.
Interpello
It is possible to make a request for an interpello (advance ruling) to the Italian tax Agency. however this procedure only allows the Tax Agency to advise on a point of law or itnerpetation of the law. They cannot (and typcially specifically do not) answer the question of facts – e.g. whether the taxpayer has effectivey their tax resdience (centre of vital interests /habitual abode)
Risposta n. 63, 1 Feb 2020 Clarifies that Italian citizens registered abroad but maintaining significant ties (e.g. family, property) in Italy may still be considered Italian tax resident under Art. 2, para 2-bis. Agenzia delle Entrate
Risposta n. 25, 21 Jan 2019 Addresses the case of an Italian citizen who moved to the UAE. Despite deregistration from Italian residency, the Agency presumed continued tax residency due to lack of sufficient proof of relocation.
Risposta n. 123, 23 January 2023 Evaluates whether employment income earned in Switzerland by a taxpayer registered with AIRE was taxable in Italy. Despite formal deregistration, the Agency presumed continued tax residency due to strong personal and economic ties, and concluded the income was subject to Italian tax.
| List of Countries from the Ministerial Decree of 4 May 1999 (G.U. n. 107 of 10/5/1999) and subsequent amendments – Countries with Preferential Tax Regimes for the Application of Article 2, Paragraph 2-bis TUIR | ||
|---|---|---|
| Alderney | Djibouti (Gibuti) | Montserrat |
| Andorra | Dominica | Nauru |
| Anguilla | Ecuador (Ecuador) | Netherlands Antilles (Antille Olandesi) |
| Antigua and Barbuda (Antigua e Barbuda) | French Polynesia (Polinesia Francese) | Niue |
| Aruba | Gibraltar (Gibilterra) | Oman |
| Bahamas (Bahama) | Grenada | Panama |
| Bahrain (Bahrein) | Guernsey | Philippines (Filippine) |
| Barbados | Hong Kong | Saint Kitts and Nevis (Saint Kitts e Nevis) |
| Belize | Isle of Man (Isola di Man) | Saint Lucia |
| Bermuda | Jersey | Saint Vincent and the Grenadines (Saint Vincent e Grenadine) |
| British Virgin Islands (Isole Vergini Britanniche) | Lebanon (Libano) | Samoa |
| Brunei | Liberia | Sark |
| Cayman Islands (Isole Cayman) | Liechtenstein | Seychelles (Seicelle) |
| Cook Islands (Isole Cook) | Macau (Macao) | Singapore |
| Costa Rica | Malaysia | Taiwan |
| Marshall Islands (Isole Marshall) | Maldives (Maldive) | Tonga |
| Mauritius | Monaco | Turks and Caicos (Turks e Caicos) |
| Tuvalu | United Arab Emirates (Emirati Arabi Uniti) | Uruguay |
| Vanuatu | ||
| Source: Instructions for compilation of annual tax return Modello Unico 2025 | ||
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