Remote working has made one situation very common. An Italian taxpayer works abroad for weeks or months, often for a foreign employer, but does not formally move their residence. The obvious question follows: “How long can I work abroad without running into tax problems in Italy?”

There is no magic number of days that applies to everyone. The answer depends on three sets of rules: Italian tax residence, the rules of the country where you work, and the relevant double taxation treaty. This article gives a clear, practical overview based on the residence rules in force since 1 January 2024. It is for anyone who lives in Italy, or is registered there, but works abroad regularly.

The factors that determine the tax consequences

Before you count days, you need to know which factors really matter.

Tax residence in Italy: the rules from 2024

Legislative Decree 209/2023 rewrote Article 2(2) of the Italian Income Tax Code (TUIR). From the 2024 tax year, Italy treats you as tax resident if at least one of these applies for most of the year:

  • residence: your habitual abode, as defined by the Civil Code, is in Italy;
  • domicile: your personal and family relationships are mainly based in Italy, under the new tax definition;
  • physical presence: you are in Italy, a new and objective test.

“Most of the year” means 183 days, or 184 in a leap year. Fractions of a day also count.

Registration with the Italian population register (anagrafe) no longer decides the matter on its own. Since 2024 it creates a rebuttable presumption. If you are registered, Italy presumes you are resident unless you prove otherwise.

What changed in 2024

Meeting just one of these criteria is enough. Three changes stand out:

  • Domicile now looks at personal ties, not business. Family, stable relationships and social connections count most. Economic interests take second place. If your spouse and children live in Italy, you normally keep your Italian domicile, even after many months abroad.
  • Physical presence alone can be enough. If you spend more than 183 days in Italy in a year, you are resident. You do not need a home, family or registration there. Separate stays add up.
  • Fractions of a day count. Circular 20/E/2024 says any part of a day in Italy counts, including the days you arrive and leave.

Why AIRE registration is not enough

Leaving the anagrafe and joining AIRE, the register of Italians resident abroad, does not end Italian residence on its own. Italy still treats you as resident if any of these stay in Italy for most of the year: your habitual abode, the centre of your family life, or more than 183 days of presence.

A further rule applies if you move to a low-tax country. Under Article 2(2-bis) TUIR, Italy still presumes you are resident, and you must prove the move is genuine.

The country where you work and the source of the income

The second factor is where you work and what kind of income you earn. In general:

  • your country of tax residence taxes your worldwide income;
  • the source country taxes the income you earn on its territory, for example from work you physically do there.

So when an Italian resident works abroad, two countries may claim the same income. Italy wants to tax worldwide income. The other country wants to tax the work done on its soil. Tax treaties resolve this conflict.

Double taxation treaties

Double taxation treaties are agreements between two countries. They decide which country can tax each type of income: salaries, self-employment, business profits, pensions, dividends, interest and royalties.

For employment income, most treaties follow the same pattern. As a rule, the country where you do the work can tax your salary. However, many treaties add an exemption if all three of these conditions apply:

  • you spend no more than a set number of days in the other country, typically 183, in a given period;
  • your employer is not resident in that country;
  • no permanent establishment of your employer in that country bears the cost of your salary.

This exemption is the source of the well-known, and often misunderstood, “183-day rule”.

The “183-day rule”

The 183-day threshold appears in two different contexts. It is important not to confuse them.

183 days and Italian tax residence

Italy uses the threshold to decide whether you are tax resident in a given year. Italy treats you as resident if, for more than 183 days in the year:

  • your habitual abode is in Italy; or
  • the centre of your personal and family relationships is in Italy; or
  • you are physically present in Italy; or
  • you appear in the anagrafe and cannot prove otherwise.

This applies even if you work abroad for a large part of the year. As your country of residence, Italy can then tax your worldwide income. In return, it gives you a credit for tax you pay abroad.

Italian tax residence covers the whole tax year. Domestic law does not split the year into a resident period and a non-resident period. Some treaties allow a split year, but only for treaty purposes.

183 days in double taxation treaties

In treaties, the threshold decides something else: when the other country can tax the salary of a non-resident. Under many treaties, only your country of residence can tax your salary if:

  • you spend no more than 183 days in the other country in the relevant period;
  • your employer is not resident in that country;
  • no permanent establishment there bears the cost of your salary.

If any condition fails, the other country can tax your salary. If you are still an Italian resident, Italy must then give you a tax credit, within the limits of the treaty and Italian law.

Working abroad while remaining tax resident in Italy

Italian employee with a foreign employer

Here is a very common case. An Italian resident takes a job in another country but keeps their Italian residence. They stay in the anagrafe, their family stays in Italy, and they return often.

Under the 2024 rules, family in Italy is decisive. Your domicile is the centre of your personal and family life. So it normally stays in Italy, even if you spend most of the year abroad.

There are usually two scenarios:

  • Short assignment. You spend a few months a year abroad, under 183 days, and your foreign employer has no permanent establishment in that country. Depending on the treaty, Italy often keeps the sole right to tax your salary.
  • Long or continuous assignment. You spend more than 183 days abroad, or a local company bears your salary. Here the other country normally gains the right to tax your salary. If you remain an Italian resident, Italy also taxes it, and gives you a credit for the foreign tax.

Remote worker for a foreign employer

Another growing case is a worker who lives in Italy and works remotely for a foreign employer, often a tech company. Two situations are possible:

  • You spend more than 183 days a year in Italy. Physical presence alone makes you an Italian tax resident. If you work from Italy, the other country may have no right to tax your salary, while Italy does.
  • You remain resident in Italy, for example because of your family, but often work from abroad. The other country may gain the right to tax part of your salary. Italy may then give you a tax credit.

In both cases, “fewer than 183 days” is not a full answer. You also need to check the specific treaty, your contract, where you actually work and whether a permanent establishment exists.

Working abroad and moving your tax residence

When to consider changing residence

Sometimes the move abroad stops being temporary. Your family relocates, you rent or buy a home abroad and you rarely return. At that point, you should consider moving your tax residence out of Italy.

This means:

  • meeting the formal and practical rules of your new country, so that it treats you as resident;
  • checking every Italian test. AIRE registration is not enough. Your habitual abode, your personal and family life and your physical presence must not stay in Italy for most of the year;
  • applying the treaty’s tie-breaker rules, where a treaty exists. These decide which country counts as your residence for treaty purposes.

A well-planned move often shifts the main tax on your salary and investments to your new country. Italy then taxes only certain Italian-source income.

Risk of the Italian tax authorities challenging your residence

If you handle the move badly, Italy may argue that you are still resident. The consequences can be serious:

  • Italy taxes your worldwide income, including foreign income already taxed abroad;
  • you may not obtain a full tax credit;
  • you risk assessments for Italian wealth taxes on foreign assets (IVIE and IVAFE) and for missed foreign asset reporting.

Because physical presence and fractions of a day now count, proof of the days you spend abroad is essential. Keep boarding passes, rental agreements, utility bills, card statements and travel records.

Plan early if you have significant assets or a complex situation, such as several countries, your own companies or trusts. It is also worth checking special regimes, such as the flat tax for new residents, the impatriate regime or regimes for pensioners, depending on the country.

How long you can work abroad without tax problems in Italy

No single answer fits everyone. Still, a few practical guidelines help:

  • Fewer than 183 days abroad, clear Italian residence, Italian employer, no local structure abroad. In many cases, only Italy taxes your salary.
  • More than 183 days abroad on a foreign contract. The other country gains an important role. Italy keeps your residence if your habitual abode or your main family ties stay in Italy. You lose Italian residence only if none of the tests applies for most of the year.
  • Remote work for a foreign employer while living in Italy. With more than 183 days in Italy, you are resident. Italy normally remains the main country taxing your salary. Exceptions depend on the treaty and on time spent in other countries.
  • Work in several countries in the same year. The only safe approach is a tailored review, country by country and treaty by treaty. It should rebuild your calendar of days and map your personal and family ties.

FAQ

How many days can I work abroad while remaining tax resident in Italy?

No fixed number applies to everyone. Since 2024, you are resident in Italy if one of these applies for more than 183 days in the year, fractions of a day included: your habitual abode is in Italy, your personal and family life is centred there, or you are physically present there. Registration in the anagrafe also creates a presumption of residence. So you can work abroad for many months and stay an Italian resident, for example if your family lives in Italy. Always look at your personal and family ties as well as your days.

If I work abroad, do I still have to declare my income in Italy?

Yes, if you are an Italian tax resident. In principle, you declare your worldwide income in Italy, including any salary you earn abroad. You can then claim a credit in Italy for tax paid abroad, within set limits. If you are no longer an Italian resident, you declare only Italian-source income, with some special rules for certain cases.

Is registering with AIRE enough to stop being resident in Italy?

No. Since 2024, registration in the anagrafe is only a presumption. Moving to AIRE does not end Italian residence on its own. You remain resident if your habitual abode, your personal and family life or your physical presence stay in Italy for most of the year. If you move to a low-tax country, you must also prove that your foreign residence is genuine.

How do I count my days of presence in Italy?

Add up every day you spend in Italy during the year, even if the stays are not consecutive. Any part of a day counts. According to Circular 20/E/2024, this includes the days you arrive and leave. The threshold is 183 days, or 184 in a leap year. Keep a travel calendar and the supporting documents.

What happens if I exceed 183 days working in the same foreign country?

That country can often tax the salary you earn on its territory, under the treaty. Italy may still treat you as resident, for example if your family stayed in Italy. In that case, you risk double taxation. The treaty and the tax credit help you resolve it. In more complex cases, both countries may treat you as resident. The treaty’s tie-breaker rules then decide.

If I work remotely for a foreign employer while living in Italy, where do I pay tax?

Living in Italy for more than 183 days a year makes you an Italian tax resident. If you also work from Italy, Italy normally taxes your salary, even if your employer is foreign. Depending on the treaty, the other country may have no right to tax it, or only a partial right. If both countries tax you, Italy gives you a credit for the foreign tax, within Italian and treaty limits.

If I move my family and home abroad, can I stop paying tax in Italy?

Under the 2024 rules, moving your family abroad weighs heavily, because your domicile now follows your personal and family life. On its own, however, it is not enough. You also need to check your habitual abode, your days in Italy (fractions included), your anagrafe and AIRE status, and the treaty with your new country. Only an overall review can show that your residence has moved in a solid, defensible way.

Could my employer face problems if I work from abroad for a long time?

Yes, in some situations. Suppose you work for an Italian employer but spend long periods abroad. The other country could argue that your employer has a “permanent establishment” there. It could then tax part of the company’s profits and impose local obligations. The same risk arises in reverse if a foreign employer hires you and you work permanently from Italy. That is why careful employers ask for a tax review before they approve long-term remote work abroad.

When you should speak to a professional

It is worth consulting an international tax professional in these situations:

  • working abroad for more than a few weeks a year;
  • exceeding, or risking exceeding, 183 days in the same foreign country;
  • a planned move of your family and assets abroad;
  • remote work for a foreign employer while you live in Italy;
  • employment in several countries at the same time.

Early advice helps you map your days and ties and check the relevant treaties. It also helps you prevent double taxation and design solutions that are compliant and efficient, for you and for your employer.

Legal references: Article 2(2) and (2-bis) of the Italian Income Tax Code (TUIR, Presidential Decree 917/1986), as amended by Article 1 of Legislative Decree no. 209 of 27 December 2023, in force from the 2024 tax year; Italian Revenue Agency Circular no. 20/E of 4 November 2024; OECD Model Tax Convention, Articles 4 and 15.