US remote worker relocating to Italy

giannonimarcello65 New member

Member since Yesterday 17:44:36

giannonimarcello65New memberYesterday 17:50:45

Hi everyone,

I鈥檓 a dual US/Italian citizen planning to move to Italy long-term while continuing to work remotely for a US employer (W-2). Immigration-wise I know this is straightforward, but I鈥檓 trying to understand the real-life tax and residency implications from people who have actually done this.

1) Taxes: can I continue paying only in the US?

Since I鈥檓 a dual citizen but will be physically living in Italy most of the year, is it realistic (or even possible) to continue paying taxes only in the US and not in Italy?

I understand that Italy may consider me tax resident based on physical presence and/or registration, regardless of where the employer is located.

If I become tax resident in Italy, do I still file US taxes as usual and then rely on the US鈥揑taly tax treaty and foreign tax credits to avoid double taxation?

Has anyone here managed to remain US-taxed only while living in Italy, and if so, what factors made that possible (days in Italy, residency status, AIRE, etc.)?

2) Italian tax implications for US-source employment

For other dual citizens or expats in a similar situation:

Does Italy treat salary from a US employer as Italy-taxable income because the work is performed in Italy?

Any unexpected obligations (INPS, healthcare contributions, reporting foreign accounts, RW, etc.)?

Did registering residency with the Comune and/or enrolling in AIRE materially change your tax situation in practice?

3) Maintaining a usable US address and 鈥減aper trail鈥�

Separately from taxes, I鈥檓 trying to keep US logistics functioning smoothly:

A reliable US mailing address for banks, credit/debit cards, IRS/state mail, DMV, etc.

Driver license renewal, vehicle registration, and Real ID considerations

Receiving replacement cards and avoiding bank account freezes

What has worked for you long-term?

Virtual mailbox services (mail scanning + forwarding)

Using a family/friend鈥檚 address

Other setups that banks and state agencies actually accept

4) US state residency

For those who previously lived in a US state:

Did you keep state residency while living in Italy?

Were you still required to file state taxes?

If you intentionally broke state residency, what steps mattered most (address change, license, voter registration, etc.)?

I鈥檓 not looking for formal legal advice, just real expat experiences: what worked, what didn鈥檛, and what you wish you had known before moving.

Thanks in advance!

Marcello

SimCityAT Expert

Member since 08 April 2014

SimCityATExpertYesterday 21:51:44

13266

Italian Tax Residency: Spending more than 183 days (roughly half the year) in Italy makes you an Italian tax resident, requiring you to report your global income to Italy.

U.S. Citizenship-Based Taxation: The U.S. requires you to file a tax return every year, regardless of where you live.

giannonimarcello65 New member

Member since Yesterday 17:44:36

giannonimarcello65New memberToday 00:57:36

Thanks, I'm going to reframe my questions:

I鈥檓 a dual US/Italian citizen planning a long-term move to Italy while continuing to work remotely as a W-2 employee for a US employer. Immigration isn鈥檛 an issue; I鈥檓 specifically looking for first-hand experience from people who have actually done this.

I鈥檓 familiar with the general framework:

Italy鈥檚 tax-residency rules (183 days, 鈥渃enter of life鈥�)

US citizenship-based tax filing

The existence of the US鈥揑taly tax treaty and its role in avoiding double taxation

What I鈥檓 trying to understand is how the treaty and the rules actually played out in practice, especially after the first year.

1) Where did you actually end up paying income tax?

For those who lived in Italy most of the year while remaining W-2:

Did Italy become your primary taxing country, with the US side handled mainly via Foreign Tax Credits under the US鈥揑taly tax treaty?

Did anyone succeed in remaining US-taxed only, and if so:

How many days were you physically in Italy?

Were you registered with the Comune?

Were you enrolled in AIRE?

2) INPS & employment classification (big concern)

From real experience:

Did Italy treat your US W-2 salary as Italy-source income because the work was performed in Italy, despite the employer being US-based?

Were INPS or other social contributions required?

If not, what actually prevented that:

application of the US鈥揑taly Totalization Agreement

employer structure

legal advice vs enforcement reality?

3) AIRE vs Comune residency: theory vs reality

Based on what actually happened to you:

Did Comune residency trigger immediate tax consequences?

Did AIRE registration alone materially change anything?

Did Italy ever assert tax residency based on 鈥渃enter of vital interests鈥�, even without formal registration?

4) Treaty mechanics & surprises

Things I鈥檓 especially interested in:

How the US鈥揑taly tax treaty was applied in practice (FTC vs FEIE)

RW / foreign account reporting

Healthcare contributions

Any unexpected assessments or 鈥測ear-two surprises鈥�

5) US state residency (if applicable)

For those who previously lived in a US state:

Did you formally break state residency before moving?

Which steps actually mattered in practice (address, driver license, voter registration, banking)?

Any states that proved especially aggressive?

I鈥檓 not looking for legal advice or summaries of tax law.

I鈥檓 specifically hoping to hear from people who lived this exact scenario and can share what actually happened: what worked, what didn鈥檛, and what you wish you had known before moving.

Thanks in advance,

Marcello