Transfer of Tax Residence from France to Italy: Understanding the Rules and Securing Your Status

Introduction

The term “expatriation”—from Latin ex patria, meaning “away from the homeland”—has become commonplace in media and professional discourse to describe relocating one’s personal and professional life abroad. Yet this intuitive concept remains legally imprecise, especially under tax law.

French law does not define “expatriation” generally. It is only addressed within social security law, distinguishing an “expatriated” employee from one on temporary assignment. However, when applied to taxation, this broad terminology quickly proves inadequate.

A more rigorous approach is needed: the concept of transfer of tax residence, which implies a change in personal, professional, and asset-related circumstances, resulting in no longer meeting France’s residency criteria—while meeting those of another country.

This transfer may also involve applying an international tax treaty, which could confer residency status even if some domestic criteria remain satisfied.

Purpose of this article: clarify the legal framework governing the transfer of tax residence from France to Italy, based on domestic laws and the bilateral convention. While focused on Italy, this methodology applies to other countries as well.

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I. Tax Residence: A Concept Stronger Than “Expatriation”

A. From Traditional Mobility to Today's Reality

The rise of flexible professional mobility, the free movement framework in Europe, and remote work have challenged traditional tax residence rules. University mobility programs, digital nomads, and individuals managing assets across borders no longer fit a sedentary model.

Today’s realities include:

• Partial residency in multiple countries,
• Remote professional activities,
• Asset holdings spread internationally.

Tax law must reconcile these lifestyles through coherent criteria based on domestic legislation and cross-border tax treaties.

B. The Role of the Tax Treaty

When a person qualifies as a tax resident in two countries, a double residence conflict may arise. The France–Italy Tax Treaty (Article 4) imposes tie-breaker rules to resolve this.

These include:

• Permanent home,
• Centre of vital interests,
• Habitual abode,
• Nationality.

These treaty rules supplement, not replace, domestic criteria: e.g., Anagrafe registration in Italy alone does not suffice.

II. How to Become a Tax Resident in Italy

A. Legal Criteria under Italian Law

According to Article 2, paragraphs 2 and 2-bis of the Italian Income Tax Code (TUIR), a person is a tax resident if, during most of the year (over 183 days, including parts of days), they meet at least one of the following:

1. Residence under Article 43.2 of the Civil Code (habitual dwelling).
2. Domicile, defined as the location of main personal and family relations (per Legislative Decree no. 209/2023).
3. Physical presence in Italy for more than 183 days per calendar year.

These criteria are alternative; satisfying any one suffices.

B. The Anagrafe Presumption

Tax residency is presumed if:

• The individual remains registered in the Anagrafe for more than 183 days, unless they can prove otherwise.
• Italian citizens removed from the Anagrafe and residing outside designated safe-list countries are presumed Italian tax residents, unless proven otherwise.

These provisions aim to guard against convenience-driven expatriations.

C. Residence under Civil Law

“Civil residence” refers to habitual dwelling, assessed by:

• Objective presence,
• Intent to establish one's life there.

The focus is on substance over mere duration.

D. Domicile According to Relations

Since decree no. 209/2023, “domicile” emphasizes where personal and family relationships primarily exist—over economic ties.

Indices include:

• Family life,
• Children’s schooling,
• Club membership,
• Social integration.

This highlights substance rather than form.

E. Physical Presence Over 183 Days

Being physically present for more than 183 days in a year—counting even partial days—qualifies one as a resident.
Example: Arriving on July 1 at 23:00 and leaving on December 31 at 01:00 counts as 184 days.

Even repeated short stays can change one’s fiscal status.

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III. Essential Formalities for Relocating to Italy

A tax residence transfer must be supported by verified, documented actions. Two key steps:

A. Registering with the Anagrafe

The Anagrafe della popolazione residente legally recognizes your residence.
Process:

• Visit the local comune,
• Submit a dichiarazione di residenza,
• Provide ID, proof of address, and evidence of income or activity.

‍A municipal official will verify the address. Once done, your registration is confirmed and provides strong proof of residency.

B. Obtaining a Codice Fiscale

This Italian tax identification number is required for most official acts: housing, banking, healthcare, etc.
Apply by submitting:

• Form AA4/8,
• Valid ID,
• Via PEC to the provincial Agenzia delle Entrate.

Available on the official website of the tax authority.

C. Maintaining Coherence

Ensure that:

• Work or activity contracts, bank accounts, utilities, and daily life reflect your Italian residence.
• Terminate ties with France (close bank accounts, cancel subscriptions, deregister from social benefits, etc.).

All these documents support the authenticity of your transfer if reviewed by French authorities.

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IV. Resolving Double Residency: France vs. Italy

A. When Domestic Law Leads to Dual Residencies

A taxpayer may:

• Be a French fiscal resident under Article 4B of the CGI (e.g., major revenues from France),
• And an Italian resident under Article 2 of the TUIR (residing and registered in Italy).

Without a treaty, this leads to double worldwide taxation.

The France–Italy Tax Treaty addresses this using tie-breaker criteria.

B. Tie‑Breaker Criteria (Article 4 § 2 of the Treaty)

1. Permanent home – where you maintain a durable residence.
2. Centre of vital interests – based on personal and economic links.
3. Habitual abode – qualitative assessment, not merely day counting.
4. Nationality – when previous criteria are inconclusive.
5. Mutual agreement – authorities cooperate to resolve cases of dual nationality or insufficient criteria.

C. Meeting Treaty Residency Criteria

Residence under the treaty requires tax liability in Italy on worldwide income—not just local income.
Example: A retired person living in France but only paying tax on an Italian pension is not considered an Italian resident under the treaty (CE, 24 May 2006, no. 280942).

D. Anticipating Administrative Disputes

French authorities may contest the treaty application:

• claiming the French tie remains too strong,
• refusing recognition of Italian residency.

Proper documentation is critical: lease agreements, invoices, records of family ties, and Italian tax filings strengthen your position.

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V. Testing the Robustness of Your Transfer

A. Active Scrutiny from French Authorities

With global data access, France increasingly reviews:

• Spending patterns,
• Utility and real estate records,
• Mobile location data,
• Travel history,
• Cooperative disclosure with foreign authorities.

Taxpayers must substantiate their departure.

B. Conference Case Illustration

At the IBA London conference on 3 March 2025, a British taxpayer spent four months annually in France while otherwise living in multiple jurisdictions and on a boat.
Failing to prove residency elsewhere, she was deemed a French tax resident under Article 4B CGI. The case was resolved by amicable settlement, without prosecution.

Key takeaway: affirmative proof is essential.

C. Practical Safeguards to Strengthen Your Case

Pre-departure:

• Audit your situation versus Article 4B CGI,
• End French ties (banking, utilities, contracts),
• Commence Italian residency steps.

During relocation:

• Centralize daily life in Italy,
• Acquire a codice fiscale, open Italian bank accounts, secure health insurance, declare taxes locally,
• Keep lease contracts, registration certificates, and local invoices.

If audited:

• Prepare objective proof: consumption records, flights, tax statements, and evidence for foreign tax credits.

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Conclusion: Legal Certainty Through Anticipation

There is no one-size-fits-all solution. Each transfer must be assessed based on domestic laws (CGI, TUIR), treaty provisions, and personal and financial circumstances.

My mission: assist you in anticipating, validating, and documenting your transfer, ensuring your tax position is secure and compliant. Contact me confidentially at sandro.assogna@avocat.fr to evaluate your specific situation.

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