Relocating to Italy is a dream for many Americans — whether to enjoy retirement under the Tuscan sun, invest in a vacation property, or take advantage of flexible residency options. But before making the leap, it’s essential to understand how Italy’s tax system works and how it may affect you as a U.S. national. Taxes can often be one of the most confusing aspects of international relocation, especially when balancing obligations in both the U.S. and Italy.

Do U.S. Citizens Have to Pay Taxes in Italy?

The short answer: yes. If you are considered a tax resident in Italy, you will generally pay Italian income tax (IRPEF) on your worldwide income. Even if you are not a tax resident, you may still owe Italian taxes on Italian-sourced income such as rental income, property ownership, or capital gains. For a complete overview of the rules around non-resident filing obligations, see Non-Resident Italian Tax Filing.

How Is Tax Residency Determined?

Under Italian law, you are typically considered a tax resident if, for more than 183 days in a calendar year:

• You are registered with the Anagrafe (Italian registry of residents),
• Your primary center of personal and economic interests is in Italy, or
• You maintain your habitual abode in Italy.

Meeting any one of these criteria generally makes you tax resident. For U.S. nationals, this often means filing in both the U.S. and Italy — but the U.S.-Italy tax treaty and foreign tax credits help prevent double taxation.

U.S. Nationals Who Own Property in Italy

Even if you don’t live in Italy full-time, owning a home there can create tax obligations. For example, you may need to pay IMU (municipal property tax) and TARI (waste tax). If you decide to rent out your home on platforms like Airbnb, you’ll also need to report that income and pay Italian tax, often under special regimes such as the Cedolare Secca flat tax.

For property owners who are non-resident, ItalianTaxes.com provides a clear breakdown of annual tax obligations and filing requirements. Explore our detailed guide on Non-Resident Italian Tax Filing to understand what applies to you.

Special Tax Regimes and Incentives

Italy has introduced several special tax regimes that may appeal to U.S. nationals considering a move. These include reduced rates for retirees, highly skilled workers, and returning residents. To see if you may qualify, explore the overview of Special Tax Regimes in Italy.

Staying Compliant as a U.S. Expat in Italy

Filing taxes across two countries can feel daunting, but the right tools and resources make it manageable. ItalianTaxes.com offers bilingual guidance, an Italian tax calculator, and streamlined filing options for both residents and non-residents.

Whether you’re moving permanently, investing in real estate, or just exploring your options, understanding Italy’s tax framework early will save you stress and money down the line.