Italian and Spanish taxation with AIRE registration
Registration with AIRE Italian and Spanish taxation Italians abroad, tax consequences of not registering with AIRE.
Attention: because the taxpayer registered for most of the year in the register of residents in Italy (even if he has moved abroad) is considered as a taxable person.
"If a person is not registered in the AIRE, the fact that he has moved abroad does not affect his relationship with the Italian tax authorities. This consolidated jurisprudential orientation has recently been confirmed by the Court of Cassation in its order no. 1355/2022, which has clarified that a taxpayer who is registered for most of the year in the register of residents in Italy, even if he has moved abroad, is considered a taxable person".
After a series of settlement notices, appeals and counter-appeals, the Court ruled on the tax situation of an Italian citizen who had moved to Brazil in 2007, but who had not registered in Aire until 2011, and who in that period had carried out financial activities in that country that had not been declared in Italy". In its judgment, the Court of Cassation recalls that Article 2 (paragraph 2) of the Consolidated Text of the Law on Personal Income Tax (Tuir) provides that, for income tax purposes, persons who for most of the tax period are registered in the registers of the resident population or have their domicile or residence in Italy in accordance with the Civil Code are considered to be resident in Italy".
Therefore, the current law identifies three alternative conditions for tax residence in the Italian State: the first is formal, represented by the registration in the residents' registers, and the other two are de facto residence or domicile in the Italian State according to the Civil Code,". Therefore, according to the case law of the Court of Justice, persons entered in the registers of the resident population are in any case considered residents, and therefore taxable persons, in Italy; with the consequence that, since the registration prevents any subsequent assessment, the transfer of residence abroad is not relevant until there is no cancellation in the register of an Italian municipality.
Once the tax residence has been transferred back to Italy on the basis of the absolute presumption provided for in Article 2(2) of the TUIR, the taxpayer is consequently subject to the tax control obligations provided for in Article 4(1) of Decree Law 167/1990 in case of direct or indirect holding of financial assets or investments abroad". "In fact, the situation is aggravated when the taxpayer does not declare the income obtained abroad: in fact, regardless of the provisions of the double taxation conventions, the taxpayer resident in Italy who does not declare the income obtained abroad pursuant to Article 165(8) of the Tuir, even if taxed abroad, is not entitled to the deduction in case of non-declaration (or failure to indicate the income produced abroad in the declaration, if any, submitted)".