Where do you pay your taxes?

As an international lawyer, I am often asked for my advice by Italians and Europeans, but also by non-European citizens or people with several nationalities, on where they should pay income tax.Usually, they all try to avoid taxation in Italy, which is known to be rather high, although in reality it does not differ much from the income taxation in the countries closest to us, such as Austria, Germany and France.The same question also applies to companies, but today I will speak instead about the taxation of individuals. There are in fact recent laws, Legislative Decree 209/2023, but above all the Circular of the Italian Tax Agency of 4.11.2024, which have changed the pre-existing regulatory situation. If a person is present in Italy for more than 183 days a year, he/she will be required to pay taxes in Italy.This is one of the main cornerstones, which applies and, this is what is new, regardless of whether or not the person in question is registered with AIRE ( Registry of Italians Resident Abroad).

 Much greater emphasis is now placed on the individual's centre of interest, without the economic aspect necessarily being predominant.Of course the reality is much more complicated. Cases are known of people who actually live not in two but in three or even four countries.

 In the latter case, careful consideration will have to be given as to the modalities of life to be adopted, in order to avoid finding oneself with very large and perhaps unexpected bills with the Italian tax authorities. If this happens, the essential point, is to have a good legal advisor to handle the matter appropriately.

last update January 2025