Moving to Italy from the US: Tax Checklist for Americans

Moving to Italy is exciting, but the tax implications start before you leave. Italy's worldwide income taxation and the impatriate tax regime create unique pre-move planning needs. This checklist covers the key tax steps before, during, and after your move.

Before You Move (3-6 months before)

State Tax Exit

• If you live in California, New York, or another aggressive state, plan your exit carefully
• Surrender your driver's license and obtain a new one
• Cancel voter registration
• Sell or rent out property
• Close or minimize bank accounts in your former state
• Consider establishing residency in a no-tax state before moving abroad

FEIE Planning

• Understand the physical presence test (330 days outside the US in a 12-month period)
• Plan your move date to maximize your first-year FEIE
• Keep detailed travel records from day one

Impatriate Regime Planning

• Research whether you qualify for the impatriate tax regime (regime degli impatriati)
• Requires that you were not an Italian tax resident for the 2 years prior
• Provides a 70% exemption on Italian-source income for 5 years

Visa Planning

• Research visa options: elective residence visa, work visa, digital nomad visa
• Elective residence visa requires proof of sufficient income (~€31,000/year)
• None determine your US tax treatment

Banking

• Plan for Italian bank account opening (requires codice fiscale)
• Keep at least one US bank account open
• Understand FBAR reporting requirements

First Year Filing

Partial-Year FEIE

In your first year abroad, you may qualify for partial-year FEIE.

Italian Tax Residency

You become an Italian tax resident if you are registered in the Italian population registry (Anagrafe), if you have your habitual abode in Italy, or if your center of vital interests is in Italy.

FBAR

File FBAR for all foreign accounts, including Italian accounts, if the aggregate value exceeds $10,000.

Establishing Italy Tax Residency

• Obtain codice fiscale
• Open an Italian bank account
• Register with Italian social security (if self-employed)
• Obtain residence permit (permesso di soggiorno)

Common Pre-Move Mistakes

1. Not planning state tax exit — California and New York can follow you abroad for years.
2. Not tracking travel days — You need 330 days outside the US for the physical presence test.
3. Assuming impatriate regime is automatic — You must apply and qualify.
4. Not reporting Italian bank accounts on FBAR — All foreign accounts are reportable.
5. Not understanding Italian social charges — INPS contributions are significant.

Timeline Checklist

3 months before:

• Research impatriate regime eligibility
• Research visa options
• Plan state tax exit strategy
• Set up travel tracking system

1 month before:

• Surrender state driver's license (if needed)
• Cancel state voter registration
• Document your move

First month in Italy:

• Obtain codice fiscale
• Open Italian bank account
• Register with Italian social security (if self-employed)
• Obtain permesso di soggiorno

First tax season:

• File US tax return with FEIE/FTC
• File FBAR
• File Italian tax return (if resident)
• Make quarterly estimated tax payments (if self-employed)

When to Get Professional Help

You should consider professional help before you move, especially if you live in a high-tax state, have complex income, or are considering the impatriate regime.

FileAbroad reviews each engagement personally.

Tell me about your situation → /intake

FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner