Italy - Residence

Article 4. Resident

Tax residence

1. For the purposes of this Convention, the term "resident of one of the States" means any person
who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place
of management or any other criterion of a similar nature. But this term does not include any person
who is liable to tax in that State in respect only of income from sources in that State or capital
situated therein.

Tie breaker – dual residence individuals (lid 2)

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both States, then
his status shall be determined as follows:

(a) he shall be deemed to be a resident of the State in which he has a permanent home available
to him; if he has a permanent home available to him in both States, he shall be deemed to be a
resident of the State with which his personal and economic relations are closer (centre of vital
interests);
(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not
a permanent home available to him in either State, he shall be deemed to be a resident of the
State in which he has an habitual abode;
(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a
resident of the State of which he is a national;
(d) if he is a national of both States or of neither of them, the competent authorities of the States
shall settle the question by mutual agreement.

Tie breaker – dual residence corporations (lid 3)

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident
of both States, then it shall be deemed to be a resident of the State in which its place of effective
management is situated.