In the current context, where international mobility is growing, as are the tax burdens in some European jurisdictions, more and more high-net-worth individuals are considering a change of tax residence. But doing so without understanding the rules can lead to disputes and double taxation. We discussed this with Fabio Oneglia, co-managing partner of the Fivers Law and Tax Firm, who helps us navigate the vast sea of \u200b\u200bregulations and their new developments.<\/p>\n\n\n\n
The criteria for defining the tax residence of individuals have recently been subject to changes in Italy, thanks to a legislative intervention that revised the provisions contained in Article 2 of the TUIR. Starting in 2024, the relevant parameters will be more closely aligned with international standards: civil residence (or habitual abode), domicile, and physical presence in Italy for the majority of the tax period will be considered. Furthermore, unless proven otherwise, registration in the population registry determines tax residency.<\/p>\n\n\n\n
In particular, the concept of domicile has evolved from a civil definition tied to the principal place of business and interests to a tax definition based on the place where personal and family relationships primarily develop.<\/p>\n\n\n\n
First of all, it should be emphasized that determining tax residency requires a substantive assessment, not just a formal one. A transfer must be genuine and demonstrable with factual evidence, starting with personal and family relationships.<\/p>\n\n\n\n
Italian law also provides that when the transfer occurs to countries included in the so-called “black list,” tax residency is presumed to still be in Italy, unless proven otherwise by the taxpayer.<\/p>\n\n\n\n
Furthermore, when transferring residence abroad, it is appropriate to consider whether the destination country has signed double taxation treaties, particularly with Italy.<\/p>\n\n\n\n