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Advisory on corporate tax residence and fictitious foreign residency risks

Advisory on corporate tax residence and fictitious foreign residency risks: prevention and compliance with Italian tax law.

since 1998

Studio A&P offers professional consulting services to businesses and individuals.

Studio A&P supports companies and individuals with their activities in Italy and Worldwide, providing specialized assistance in global mobility of workers, Italian and international taxation.

Insured for over 10 million euros

Language: IT, EN, FR, ES, DE

Quality ISO 27001 Certified

Team +50 Experts

ICE Providers & Lecturers

Posted Workers Alliance

Chartered Tax Advisors

We operate in all Europe

Quality ISO 9001 Certified

We are Relocation Experts

Based in Italy and active Worldwide

years of
experience

clients trusted
A&P in 2024

We are providers for:

How We Can Assist You

Advisory, Management, Planning

Our firm provides specialised assistance to companies requiring an in-depth assessment of their tax position under Italian law, in particular Article 73(3) of the TUIR, and relevant double taxation treaties.

We conduct a thorough analysis of the client’s corporate structure and tax residence, verifying the place of effective management, to ensure compliance with Italian and international regulations and to prevent potential presumptions of effective management in Italy.

We provide written opinions, regularisation plans, and support with all necessary tax filings to ensure full compliance.

Clients can manage all procedures and interactions with our firm without leaving their operational headquarters.

The case-specific analysis and advisory service generally follows these phases:

Assessment of corporate tax residence requirements under Article 73(3) TUIR, i.e., the existence of a registered office, place of effective management, or main ordinary management in Italy, also considering any applicable bilateral tax treaty;

Identification of the applicable tax regime and related documentation and tax assistance;

Preparation of preliminary written opinions (memoranda) with detailed analysis of the situation and guidance on documentation to retain in case of a tax audit;
Analysis of the corporate structure to assess the risk of fictitious foreign residency;
Preparation of written opinions on compliance matters

Arletti & Partners Team

The team at Studio Arletti & Partners is made up of over 50 highly qualified and multilingual professionals, specialized in global mobility and tax consultancy, including worker postings, Italian and international taxation, and immigration procedures both in Italy and abroad.

Our Areas of Expertise include:

Where A&P Provides Its Advisory Services

Service Delivery

A&P’s assistance can be provided remotely or on-site, depending on the client’s needs.

We aim to provide an initial response within 24 hours of receiving your request.

In addition, we offer:

Remote management of all accounting, tax, and administrative obligations;

IT tools ensuring maximum efficiency, without the need to travel from your country or operational headquarters;

Advisory services delivered by our Chartered Accountants and tax experts in English.

Clients can manage all procedures and communications with our firm without leaving their operational headquarters.

When to Request a Tax Residence Analysis

Timing

Advisory services on corporate tax residence are recommended at any stage of a company’s life cycle.

They can be particularly useful during the preliminary phases of incorporation, to correctly identify the registered office, administrative, and place of effective management;

When changes occur in senior management or governance, which may affect the location of the place of effective management;

When the company intends to expand its operations into new countries or territories, to prevent potential risks of double taxation or fictitious foreign residency.

Consultation on fictitious foreign residency is advisable whenever a foreign company could be considered tax resident in Italy.

It is recommended to request advisory services before establishing a foreign company, before a transfer of tax residence, or in case of suspected place of effective management in Italy.

Why Entrust A&P with Your Matters

Why it may be necessary to request a corporate tax residence analysis and a fictitious foreign residency risk assessment

Knowing whether a company is considered tax resident in Italy is essential to determine the applicable tax regime. Italian resident companies are taxed on worldwide income, whereas non-resident companies are taxed only on income generated within Italian territory.

Italian companies engaged in cross-border transactions may require advice on their tax position.

The service is particularly recommended for foreign companies operating in Italy — for example, through assets, directors, or shareholders resident in Italy — which may present a risk of fictitious foreign residency.

It is therefore essential to adopt a prudential and preventive approach to reduce risk and ensure full compliance with Italian and international tax regulations.

Arletti & Partners provides support through:

Specialised advisory services via videoconference by Chartered Accountants and legal experts;

Written opinions on the risk of fictitious foreign residency and the company’s tax position;

Collection of documents necessary for the analysis through dedicated and simple checklists;

Preparation of a supporting documentation dossier for the written opinion, useful in case of an audit by the tax authorities;

Entire process conducted remotely, using videoconferencing and advanced sharing tools;

Monitoring of the practice status by the client through a dedicated portal;

Preparation and submission of rulings (interpelli) to the Italian Revenue Agency, upon client request.

Who the Service Is For

Eligible Clients

The service is addressed to companies operating and incorporated abroad that maintain business relationships with Italy.

It is particularly suitable for businesses seeking to:

assess their corporate tax residence;

plan a transfer of tax residence;

structure international corporate arrangements in compliance with Italian tax law.

The service is also intended for individuals holding corporate positions in foreign companies — such as sole shareholders or directors — who require an assessment of the correct location of the place of effective management and potential connecting factors with the Italian territory, including presumptions of fictitious foreign residency under Italian tax law.

F.A.Q. about the service

Fictitious foreign residency is an abusive tax arrangement whereby a company has its registered office abroad, while the effective management of its activities is carried out in Italy. In such cases, the company is deemed tax resident in Italy despite its formal foreign registered office.

A foreign company may be considered fictitiously resident abroad when its place of effective management is located in Italy, even though its registered office is formally established abroad.
This may occur, for example, where a company has a sole shareholder and sole director who is tax resident in Italy and manages the company and takes decisions from Italian territory.

An assessment of fictitious foreign residency may lead to administrative penalties and, in more serious cases, may give rise to criminal tax offences under Italian tax law.