Practice Area
US–Italy Tax Compliance
Specialist compliance and advisory for Americans living in Italy, Italians in the US, and dual-status taxpayers navigating the obligations of both tax systems simultaneously.
Who We Help
Are you in one of these situations?
American in Italy
US citizen or Green Card holder living in Italy — still required to file US taxes worldwide plus Italian taxes on Italian income.
Italian Entrepreneur in the US
Italian national operating a business or holding investments in the US — managing Italian and US tax obligations simultaneously.
Dual Citizen / Dual Filer
Holding both US and Italian citizenship, or filing tax returns in both countries — requiring full coordination to avoid double taxation.
01
US Federal Tax Return Filing (Form 1040)
US citizens and permanent residents are taxed on worldwide income regardless of where they live. We prepare and file IRS Form 1040 for Americans residing in Italy, applying all available exclusions, credits and treaty benefits to legally minimise double taxation.
- Form 1040 preparation for US expats in Italy
- Foreign Earned Income Exclusion (FEIE — Form 2555)
- Foreign Tax Credit (FTC — Form 1116) to offset Italian taxes paid
- Self-employment income and Schedule C for freelancers
- Passive income, rental income and investment reporting
02
FBAR & FATCA Foreign Account Reporting
US persons with foreign financial accounts and assets face strict reporting obligations. Failure to file carries severe civil and criminal penalties. We handle all foreign account and asset disclosures accurately and on time.
- FBAR (FinCEN Form 114) — foreign bank account reporting
- FATCA (Form 8938) — foreign financial asset statement
- Italian bank accounts, brokerage accounts and pension funds
- Foreign trust reporting (Forms 3520 / 3520-A)
- Late filing and penalty relief through Streamlined Procedures
03
Italy–US Tax Treaty Planning
The 1999 Italy–US Tax Treaty contains provisions for income, dividends, interest, royalties, pensions and capital gains. We apply the treaty strategically to reduce withholding taxes and prevent double taxation on cross-border income flows.
- Treaty-reduced withholding on dividends (5% / 15%) and interest (10%)
- Treaty exemption for pensions and social security (INPS)
- Tie-breaker rules for dual residency conflicts
- Business profits and permanent establishment analysis
- Certificate of Residency and treaty claim documentation
04
Italian Tax Filing for US-Connected Individuals
Italian tax residents must declare their worldwide income on the Italian Modello 730 or Redditi PF return. We prepare Italian returns for US citizens, Italian nationals returning from the US and individuals with both Italian and US-source income.
- Italian Modello 730 and Redditi PF preparation
- IVAFE (foreign financial assets tax) and IVIE (foreign property tax)
- Quadro RW — foreign asset and account disclosure
- US-source income reporting in Italy (dividends, capital gains, salary)
- Foreign tax credit in Italy for US taxes paid
05
Renunciation of US Citizenship & Expatriation Tax
Americans considering renouncing US citizenship face the expatriation tax regime (Section 877A — the “Exit Tax”). We advise on the tax cost of renunciation, pre-renunciation planning to reduce exposure and all required filings.
- Section 877A Exit Tax analysis and calculation
- Covered expatriate status determination
- Form 8854 (Initial and Annual Expatriation Statement)
- Pre-renunciation planning to minimise exit tax
- Deferred compensation and pension planning before exit
Filing in two countries?
Our US-Italy compliance specialists will review your situation, identify every available exclusion and credit, and ensure you are fully compliant on both sides of the Atlantic.
