Guidelines to Offices on Residence for Tax Purposes of Natural Persons, Companies and Other Entities By Legislative Decree No. 209

A Ministry Circular is a document of utmost importance, and this Circular has the aim of clarifying some aspects concerning residence of natural person (and the notion of resident person for tax purposes is a concept of utmost importance in international tax law).

The aim of this document is that of providing a first summary (further comments will be provided later):

1. It is confirmed the approach already adopted in the former provision of Italian Income Tax Code (TUIR), according to which the residence for tax purposes of natural persons is deemed to be in Italy at the alternative occurrence, for most of the tax period, of one of the four connecting criteria listed into the provision.
2. For Italian tax residence purposes, connecting criteria provided for by the provision are not required to be verified continuously and uninterruptedly, being sufficient that these criteria are fulfilled for 183 – or 184 in case of leap year – days during a calendar year.
3. The amendment has not modified the connecting criteria consisting in the configuration of the “residence within the meaning of the civil code” in the territory of the State, in relation to which the clarifications already provided by the practice of this Agency (most recently with the above mentioned Circular No. 25/E of 18 August 2023) and by the jurisprudence of the Italian Supreme Court remain valid.
4. The notion of “personal and family relationships” comprises both the typical relationships regulated by the current law (for example conjugal relationships or civil partnerships) and stable personal relationships expressing an attachment to the Italian territory (as for example, a stable couple living together).
5. According to the new rules, the worker’s stay in Italy for 183 (or 184, in case of leap year) days determines, itself, the residence in our Country for tax purposes.
6. Due to the prevalence of international treaty law over domestic law, the formal data of the enrolment in the resident population registry could, however, be overcome by applying the so-called tie-breaker rules dictated by any Double Taxation Convention in force between Italy and the Country concerned.