Tax Return 2027 for FY 2026 Landing Post

You will be considered tax resident under Italian rules if you met any of the 183 days residence tests in the Italian Tax Code. We will be pleased to advise in cases of doubt.

The definition of Italian source income is a technical one.  See this article for more information, In particular income from employment or self employment is generally considered to be Italian source if the services are provided from Italian soil, regardless of where the employer or clients are based. 

You can also/alternatively upload a recent visura catastale (land registry extract)

You have indicated in section 1 that you were not Italian Tax Resident for the year or you had no foreign source income in the year, so we are not asking for any information on foreign source income.

You have indicated in section 1 that you were either not Italian Tax Resident for the year or, did not have any foreign source income, so we are not asking for any information on foreign tax credits.

Under Italian tax rules it is possible to claim credit for foreign tax paid on income reported on the tax return. In other words the foreign tax can, in some cases, be used to reduce the Italian tax due, subject to a number of rules.

A tax credit is not available for income subject to substitute or flat rate tax. For example, Italian substitute tax on foreign source dividends or investment distributions cannot be offset by any foreign taxes paid on the same income, in the view of the Italian tax authorities.  

The tax credit cannot exceed the tax due on the particular source of income – that means that if the foreign rate of tax is higher than the Italian rate, the excess cannot be used to reduce tax on other income.

You need to be able to demonstrate that no right of refund of the foreign tax exists – i.e. that you have not overpaid tax abroad or where a double tax treaty provides exemption in the foreign country for the particular income source.

We are experiencing almost routine audits from the Tax Agency  where a foreign  tax credit has been claimed,  checking the above rules have been complied with and requesting evidence of the tax paid. Supporting documents need to be in place at the time of filing the return, and your are advised not to claim any foreign tax as a credit against your Italian tax due, unless you have sufficient supporting documentation.

Documents supporting a claim for a foreign tax credit are:

• A copy of the foreign tax return for the relevant period;
• A copy of the foreign income tax calculation and tax due, if this is separate from the tax return will be required. Certification issued by a foreign tax or accounting professional may be sufficient. 

You can see a list of the most usual expenditure that qualifies for a personal tax deduction or a standard tax credit by clicking on the links in the text.

You have indicated in section 1 that you were either not Italian Tax Resident for the year or, did not have any foreign source income, so we are not asking for any information on foreign real estate, investments and bank accounts.

The supporting documentation you upload is essential for us to establish if and how a foreign asset is to be reported and if wealth tax applies so as to set up an audit trail in case of enquiry by the Tax Agency. If this is your first year with us, we will need evidence of the values (purchase price) of assets  at 1 January 2025. Otherwise we just need evidence of values at 31 December 2025, and maximum and average balances over the year on foreign bank accounts.  

Supporting documentation means statements issued by your bank, financial institution, assets managers etc. showing the value of your assets at year end (31 December) and 31 January if this is your first year with us.  For real estate, if we do not already have a copy, we need a copy of a document showing the price you originally paid when you purchased the real estate.