Taxes for expats in Italy: how do they work and how to pay

Your situation can become more complex if you move during the tax year, receive income or hold assets abroad, or have tax obligations in another country. This guide explains tax residence, taxable income, filing requirements, double taxation, and when to seek help from a commercialista or CAF.

Key takeaways

• Tax residence is usually the first decision point, because residents and non-residents are not taxed the same way.
• Italian tax residents are generally taxed on their worldwide income, while non-residents are generally taxed only on income from Italian sources.
• IRPEF, Italy’s personal income tax, is progressive, and local surcharges can sit on top of it depending on where you live.
• Employees and many pensioners often look first at Modello 730, while non-residents, self-employed people, and more complex cases often need Modello Redditi PF.
• Filing and payment are not the same step. Rates, thresholds, deadlines, filing routes, and special-regime notes below were checked against official sources on 17 September 2026, but current rules should always be confirmed before you act.

How tax residence changes what you owe in Italy

In Italy, tax residence is usually the first question to answer. It generally determines whether Italy looks at your worldwide income or only income that comes from Italian sources, so it is worth establishing your position before working through returns, deductions, and foreign-income reporting.

How to tell if you may be a tax resident

Under Italy’s current rules, you are generally considered a tax resident if, for most of the tax year, you meet at least one of the main residence tests. These include having your civil-law residence in Italy, having your domicile there – defined for tax purposes by where your personal and family relationships principally develop – or being physically present in Italy.

Registration in Italy’s resident population register for most of the tax year also creates a presumption that you are resident, although this can be rebutted. For a normal 365-day year, “most of the tax year” generally means at least 183 days, and fractions of days count.

Use this quick self-check:

• You were physically present in Italy for most of the tax year
• Italy was your main place of residence for most of the year
• Your main personal and family relationships were centered in Italy
• You registered in the resident population register for most of the year

If you moved to Turin in March, rented a home, registered there, and your family joined you, several factors could point towards Italian tax residence even if some or all of your income continued to be paid from abroad.

Senior Writer

Gary Buswell

Insider Tip

Do not focus only on counting 183 days. Physical presence is one test, but your residence, personal and family relationships, and registration can also affect whether Italy treats you as a tax resident.

What changes for non-residents and part-year movers

Italian tax residents are generally subject to tax on worldwide income, while non-residents are generally taxed only on income from Italian sources. Arriving in or leaving Italy during the year can make the position more complicated, particularly if you keep a home or family connections in another country or work across borders.

If Italy and another country both treat you as tax resident under their domestic rules, check whether a double-tax treaty applies. Treaty residence rules can then determine which country is treated as your country of residence for the purposes covered by the treaty.

What income and taxes expats usually need to check

Once your residence status is clear, the next task is matching each income stream to the right tax rules. Personal income tax (Imposta sul Reddito delle Persone Fisiche – IRPEF) is progressive, which means the tax rate rises across income bands, while regional and municipal surcharges may apply on top.

Employment, freelance, pension, and rental income

For expats, the main tax questions often go beyond the type of income you receive. You may need to:

• establish your tax residence
• work out which worldwide income you must declare in Italy
• check whether foreign assets create additional reporting obligations
• make sure you follow the correct filing and payment deadlines

Employment income: If you are on payroll, income tax is often withheld by your employer, but withholding does not necessarily mean you have no filing obligations. Keep your annual Certificazione Unica (CU), as it contains important income and withholding information used for your tax return.

Freelance or self-employment income: If you work for yourself, you will usually have more detailed tax and filing requirements and may also need to consider social security contributions, depending on your work and professional status. 

Pension income: Foreign pensions can raise additional questions about their source, treaty treatment, and whether a special tax regime applies. If you are an Italian tax resident, a pension paid from abroad may still need to be declared or considered for Italian tax purposes.

Rental income: Rent from property in Italy or abroad can be subject to different rules. Italian tax residents with foreign rental income may need to consider both income tax and foreign-asset reporting, as well as any double-tax treaty and foreign tax credit that applies.

Regional, municipal, and foreign-asset rules to verify

IRPEF is not always the whole story. You may also need to check the addizionale regionale and addizionale comunale, which are regional and municipal IRPEF surcharges and can vary according to where you live.

Do not assume that your pre-filled tax return contains everything relating to foreign income or assets. Some foreign pensions, employment income, property income, investments, and financial assets may not be pre-populated, so you should check the information carefully and add or correct details where required.

Form 730 now includes Quadro W, which can be used to report qualifying foreign investments and financial or property assets for tax-monitoring purposes and to calculate tax on the value of foreign real estate (IVIE) and tax on certain foreign financial assets (IVAFE) where applicable. Reporting and paying tax are separate issues, however, so a foreign asset may still create a reporting obligation even where little or no additional tax is due.

If you are researching income tax rates in Italy, remember that the national IRPEF rates are only part of the picture. Check the national rules first, then the regional and municipal surcharges that apply to your circumstances.

Special tax regimes and reliefs for newcomers

Italy has several special regimes that can benefit some newcomers, but each has detailed eligibility conditions. Check the current rules against your circumstances before factoring a tax break into your moving budget.

Tax reliefs that expats may want to check

Three regimes worth knowing about are the:

• Regime impatriati for certain incoming workers
• Flat-tax regime for qualifying new residents with foreign income
• 7% regime available to certain foreign pension recipients who move to qualifying Italian municipalities. 

Each targets a different type of newcomer and applies its own residence, income, and timing requirements.

The impatriati regime can reduce the taxable amount of qualifying employment and professional income earned in Italy by people who transfer their tax residence there and meet the other conditions. 

Italy’s new-resident flat-tax regime allows qualifying newcomers to pay a fixed annual substitute tax on eligible foreign-source income. 

The 7% pensioner regime is available to certain recipients of foreign pensions who transfer their tax residence to qualifying municipalities and can apply to eligible foreign-source income.

Local warning: small rule changes on timing, family status, salary caps, or municipality lists can change eligibility quickly.

Before relying on any regime, check:

• How long you were previously non-resident
• Which types of income qualify
• How long the relief lasts
• Any work, family, location, or residence requirements that apply. 

Because the financial difference can be substantial, it can be useful to have a commercialista check eligibility before you make the election or file your first return.

How double taxation relief and tax credits fit in

Double taxation relief can arise under a tax treaty or Italy’s domestic rules, including through a foreign tax credit where the relevant conditions are met. Relief does not necessarily remove your reporting obligations or mean that foreign income can simply be left off your Italian tax return.

For example, if you are a tax resident in Italy and receive rental income from property in another country, the country where the property is located may have the right to tax that income. Italy may also take the income into account under its worldwide taxation rules, with relief potentially available for qualifying foreign tax paid so that the same income is not taxed twice in full.

How to register, file, and pay your taxes

Once you understand your likely tax status, the next step is working out which form, documents, deadlines, and payment route apply. The administrative process for filing your taxes in Italy is separate from working out what tax you owe, so it helps to tackle each stage in order.

Which forms, documents, and digital access you may need

In Italy, employees and many pensioners often start by checking whether Modello 730 fits their circumstances. Non-residents, people with certain business or professional self-employment income, and taxpayers in some other situations must use Modello Redditi PF instead. If you qualify, Agenzia delle Entrate may also provide a pre-filled return, but you should still check that the information is complete and correct.

Do not assume that foreign income or assets automatically rule out Modello 730. The form can now accommodate several cross-border items, including foreign investments and financial or property assets through Quadro W, although some circumstances still require Modello Redditi PF.

For many newcomers, an important first administrative step is getting an Italian tax identification number (codice fiscale). To use Agenzia delle Entrate’s online pre-filled tax-return service, you can access it using credentials such as SPID, CIE (electronic identity card), or CNS (national services card).

A practical document checklist includes:

• Your codice fiscale
• Employer or pension statements
• Records of foreign income, if any
• Bank details for any refunds or relevant payments
• Previous tax returns, where applicable
• Evidence of deductions, credits, or foreign tax paid
• Details of any reportable foreign assets

If a tax assistance center (Centro di Assistenza Fiscale – CAF) or commercialista files for you, ask which form they plan to use and why. This is particularly useful if you have foreign income or assets, moved to or from Italy during the tax year, or may have tax obligations in another country.

Deadlines, payment methods, and how to verify them

For the 2026 filing season, Form 730 is generally filed by 30 September, while Modello Redditi PF is generally filed by 31 October. 

Filing and paying are separate steps. Depending on your circumstances and the return you use, tax balances and advance payments (acconti) may follow different deadlines and may be paid or settled through different mechanisms, including Form F24.

A workable order is to confirm the correct return, check the current filing deadline, establish whether you owe a balance or advance payment, and keep records of both the return and any payments. Always check the current Agenzia delle Entrate calendar, as deadlines and payment arrangements can vary by filing year and taxpayer circumstances.

Managing cross-currency transactions

If your income or savings are held outside Italy, you may need to convert money into euros before covering tax bills and other local costs. A Wise account lets you hold and convert supported currencies, with the exchange rate and applicable conversion fee shown before you complete the transaction, which can make it easier to see how much a transfer will cost.

This can be useful if you are paid in another currency, receive income from abroad, or need to move savings to Italy ahead of a tax deadline. However, converting or transferring money through Wise is separate from paying your Italian tax liability, so check the payment method required by Agenzia delle Entrate, such as the appropriate F24 payment route.

Common expat tax mistakes and when to get help

Many tax problems in Italy begin with an incorrect assumption rather than an obscure rule. Checking your position early can help you avoid unnecessary tax, penalties, interest, and administrative problems later. 

Mistakes that lead to overpaying or penalties

Common mistakes include:

• Confusing immigration status or municipal registration with tax residence
• Assuming that employer withholding automatically means no tax return is required
• Failing to report foreign income or check foreign asset-reporting obligations
• Relying on outdated information about special tax regimes
• Overlooking regional and municipal income tax surcharges (addizionale regionale and addizionale comunale)
• Misjudging tax residence or using the wrong return after moving to or from Italy during the year

Before filing, check the current forms and instructions on the Agenzia delle Entrate pre-filled return portal, especially if you moved during the year or have cross-border income.

When to get help from a local tax professional

Professional advice is particularly useful if you have possible dual residence, foreign assets, self-employment income, rental income, foreign pensions, or missed returns. In these situations, an error can affect more than one tax year or create obligations in more than one country.

Local filing tip: A CAF can assist with many standard returns and, depending on its expertise, some foreign reporting. More complicated matters – such as treaty residence, overseas pensions, special tax regimes, or correcting earlier returns – may be better handled by a commercialista experienced in international tax.

When contacting an adviser, ask whether they regularly deal with double-tax treaties, foreign income and assets, and first-year or departure-year filings. If you need to find one, Expatica’s directory of accountants and tax advisors in Italy is a practical place to start.