Foreigners in Italy are considered Italian residents for tax purposes if they spend at least 183 days out of the year in the country.
Anyone not in this position is considered a visitor – and if you just enjoy coming to Italy on short visits, you’ll probably want to keep things as they are.
But if you own property in Italy and spend a significant amount of time here, you may be wondering whether it’s worth taking the plunge and becoming a resident (for non-EU nationals, this will involve making a successful visa application).
To help with your decision, here’s a breakdown of the major things that you can and can’t do as a non-resident foreigner in Italy.
What can a non-resident in Italy do?
Get a codice fiscale
A codice fiscale is a 16-character personal identification code similar to a Social Security Number in the US or National Insurance Number in the UK.
It’s essential not only for completing bureaucratic tasks like paying taxes and registering for public healthcare, but also for things like buying and selling property in Italy or claiming an inheritance.
Fortunately, it’s relatively easy to get hold of, and shouldn’t cost you anything.
READ ALSO: Codice fiscale: How to get your Italian tax code
As a non-resident, you can apply through your nearest Italian embassy or consulate (some allow you to apply online).
Alternatively, you can delegate an Italian resident to apply on your behalf by going in person to an Italian Revenue Agency office.
Buy property
Non-EU foreign citizens are allowed to purchase property in Italy provided their country offers the same rights to Italian citizens; this applies regardless of residency status.
This system is based on reciprocity, with Italy mirroring restrictions imposed by other countries.
Canadians, for example, may run into more issues than people of other nationalities when buying property in Italy due to Canada’s ‘Prohibition on the Purchase of Residential Property by Non-Canadians Act’.
READ ALSO: Five things non-residents need to know about buying property in Italy
Citizens of EU or European Economic Area countries have the same rights as Italian citizens when it comes to buying Italian property, regardless of their residency status.
Bear in mind that owning property in Italy does not give you the right to stay in the country long term.
Rent property
Non-EU citizens from countries that come under the Schengen Zone’s ‘90 day rule’ can theoretically rent property in Italy for up to 90 days at a time.
In practice, however, you’ll struggle to persuade a landlord to sign a rental agreement if you can’t produce evidence of your right to stay in the country beyond this period, such as a work permit or student visa.
Real Estate expert Francesco Petrelli from property agency Italia Dream told The Local that without such documentation, “landlords will typically be hesitant to sign a rental agreement because they cannot verify that the tenant has the legal right to stay in the country.”
EU nationals can enter into the same rental contracts as Italian citizens without specific restrictions or the need to be an Italian resident, though landlords are likely to want to see proof of income.
Open a bank account
It’s possible to open a bank account in Italy as a non-resident, though you’ll face a number of restrictions that residents don’t have to deal with.
Any foreigner aged 18 or over can open a bank account in Italy, but the full range of account types, from regular bank accounts (conti correnti) to savings and deposit accounts, is generally only available to legal residents.
Non-Italian residents can only open international accounts (known as conti internazionali or conti correnti per residenti stranieri), which often come with a number of limitations regarding the banking services and operations that holders have access to.
READ ALSO: Can you open a bank account in Italy as a non-resident?
Take out a mortgage
Again, there are no rules against non-residents taking out a mortgage in Italy, though getting a mortgage from an Italian bank is likely to be a complicated affair.
Italian banks do not advertise non-resident mortgage products: you’ll almost certainly require the services of a specialist mortgage broker in order to access this information, as well as to apply.
As non-EU nationals without permanent residency are considered a greater risk by lenders, there are also more paperwork requirements and checks in place throughout the process than for residents.
READ ALSO: Can I get a mortgage in Italy as a foreigner?
Pay taxes
For those who own property or generate income in Italy, this is a legal requirement, even if you’re not an Italian tax resident.
Any money generated in Italy, such as rental income from a holiday home, must be reported to Italy’s Revenue Agency (Agenzia delle Entrate).
Even if you don't make any money in Italy, as a property-owning non-resident you’ll still have to pay the IMU property tax (Imposta Municipale Unica), which is owed by all owners of second homes in Italy, and the TARI waste disposal tax.
What can’t a non-resident do?
Stay for more than 90 days at a time as a non-EU citizen
Non-EU citizens without Italian residency can’t stay in the country for longer than 90 days at a time (this could be less, depending on your nationality and visitor visa conditions).
If you come to Italy on a long-term visa, you are required to register as a resident.
EU citizens can stay as long as they want, but are required to register as a resident after three months.
READ ALSO: EXPLAINED: How to register as a resident in Italy
Have the right to work if you’re from outside the EU
Being a non-resident and owning Italian property doesn’t give you any working rights in Italy if you’re from a non-EU country.
According to Italian law firm Mazzeschi Legal Counsels, people in this position can legally perform a very small amount of remote work during a short stay in Italy – but it would have to be a “marginal” amount accounting for “less than 5% of the worker’s regular working time and/or less than 5% of his/her overall remuneration.”
If you’re from the EU or the EEA, you have freedom of movement and aren’t subject to these rules. You can also apply for and be offered a job in Italy, but you’ll then have to register as a resident after three months.
Register with the national health service
As a non-resident foreigner in Italy, you won’t be able to register with the country’s national health service (Servizio Sanitario Nazionale, or SSN).
As a non-EU visitor, you’ll have access to emergency or urgent healthcare treatment in Italy, though any service you use will come at a cost.
If you’re from an EU country you can apply for the European Health Insurance Card (EHIC), which covers the costs of medically necessary, state-provided healthcare during a temporary stay in Italy.
READ ALSO: Second-home owners: What are the options for healthcare in Italy?
If you’re from the UK, you can apply for a UK Global Health Insurance Card (GHIC), which also gives access to emergency healthcare here.
In either case, this doesn't replace a full insurance policy, and travellers with either the EHIC or GHIC are advised to take out comprehensive travel health insurance as well.
Buy a car
If you don’t have residency in Italy – even if you own property in Italy or have business interests in the country – you are not legally allowed to buy a car.
According to the Italian highway code, you need to have registered your residency with an Italian municipality to be able to buy a new or used vehicle in Italy.
While you might find a friendly neighbour willing to sell you their old motor regardless, you would need to register the change of ownership with the Motor Vehicles Office (Ufficio Motorizzazione Civile) and the Public Vehicle Registry (Pubblico Registro Automobilistico or PRA), which requires a residence permit or, for EU citizens, a residency certificate.
Vote
This one may seem obvious, but non-resident foreigners have no voting rights in Italy.
By contrast, EU citizens who are resident in Italy can vote in both municipal and European parliamentary elections (though not national or regional ones, which are reserved for Italian citizens).
EU citizens living in Italy can also stand as candidates in municipal elections under the same conditions as Italian nationals.
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