Permanent residence
Art. 43 paragraph 2 of the Italian Civil Code defines the permanent residence as the "place in which a person habitually resides". A person's permanent residence is in the municipality in which they are listed in the resident population register.
Usually, the residence and abode of a natural person coincide.
Domicile, according to art. 43 paragraph 1 of the Italian Civil Code, is the place in which the main centre of a person's affairs and interests is established.
Tax residence
Employees are considered as resident for tax purposes in Italy (art. 2 DPR 917/86) if for more than 183 days of a calendar year, or 184 in a leap year, not necessarily consecutive, they find themselves in any of the following circumstances:
- they are listed in the resident population register of an Italian municipality;
- their domicile is in Italy pursuant to art. 43 paragraph 1 of the Italian Civil Code (it is the main centre of their vital affairs and interests - they are married or have children in Italy - they have economic ties in Italy);
- they are resident in Italy pursuant to art. 43 paragraph 2 of the Italian Civil Code (habitual place of residence, represented by their physical permanence in a specific place and the desire to make their home there).
It should be underlined that in order to be considered physically resident in Italy, it is sufficient that only one of the above circumstances applies.
If the circumstances in points 2) or 3) apply in Italy and in the country of origin, the person in question is deemed resident in the country in which they have citizenship.
Unless proven otherwise, Italian citizens who have been removed from the register of Italians resident abroad (AIRE) and transferred to countries or territories with a preferential tax regime, as identified with the Decree of the Ministry of Finance - art. 2 paragraph 2 bis DPR 917/86, are deemed resident for tax purposes in Italy.