Moving from Canada to Italy in 2026: RRSP, TFSA, Remote Employment and Starting an Italian Business in 2027

Updated September 14, 2026

Moving from Canada to Italy can create tax issues well before the first Italian tax return is due.

For Canadians and other international professionals arriving in Italy with an RRSP, TFSA, Canadian investments, real estate and an existing employment relationship, the timing of the move matters.

A transaction completed before Italian tax residence begins can have a very different result from the same transaction completed afterwards.

Moving to Italy in November 2026: when does Italian tax residence start?

Under the Italian tax residence rules currently in force, an individual is generally considered Italian tax resident when, for most of the tax year, one of the relevant Italian residence, domicile or physical-presence tests is met.

Someone genuinely moving from Montréal to Italy in mid-November 2026 will normally not have spent most of the 2026 tax year in Italy.

If there were no earlier Italian residence or domicile factors, 2027 may therefore be the first Italian tax-resident year.

This conclusion should always be checked against the actual facts.

The distinction matters because an Italian tax resident is generally subject to Italian taxation on worldwide income and Italian foreign-asset reporting requirements.

Can you continue working remotely for a Canadian employer after moving to Italy?

Suppose you move to Italy in mid-November but remain employed by your Canadian employer until December 31, 2026.

The Italy-Canada Tax Convention contains a specific rule for employment income.

Where the relevant conditions are satisfied, salary may remain taxable only in Canada if:

• you remain Canadian tax resident;
• your presence in Italy does not exceed the treaty's 183-day threshold;
• your salary is paid by a non-Italian employer;
• the remuneration is not borne by an Italian permanent establishment or fixed base of that employer.

Article 15 of the Italy-Canada Convention contains these rules.

Tax and social security, however, should not be confused.

Italy and Canada also have a bilateral social security agreement. In qualifying temporary assignment cases, a worker may remain covered by Canadian social security for a period of up to 24 months.

The arrangement should be reviewed before working from Italy rather than after contributions have already been paid in the wrong country.

Selling your Canadian apartment before becoming Italian tax resident

Selling Canadian real estate before acquiring Italian tax residence can significantly simplify the position.

If the property is sold after Italian tax residence begins, both countries' tax rules may need to be considered together, including:

• Canadian taxation;
• possible Italian taxation;
• foreign tax credits;
• the Italian method for calculating any taxable gain.

The Italy-Canada Convention also contains a rule designed to coordinate Canadian departure taxation and the subsequent tax basis in the new country of residence.

This is a good example of why international tax planning is often about timing, not aggressive tax planning.

What happens to an RRSP after moving to Italy?

A Registered Retirement Savings Plan is familiar to Canadian taxpayers, but its Italian treatment must be considered separately.

Once Italian tax residence begins, the following should be reviewed:

• the legal and tax nature of the plan;
• future withdrawals;
• Canadian withholding taxes;
• Italian taxation;
• foreign tax credits;
• Italian foreign-asset reporting.

Large RRSP withdrawals should therefore be reviewed before deciding whether they should take place before or after the change of tax residence.

A Canadian TFSA is not necessarily tax-free in Italy

This is one of the most important points for Canadians moving to Italy.

Canada grants the Tax-Free Savings Account its domestic tax treatment.

Italy is not required to reproduce that Canadian exemption.

Once you become an Italian tax resident, the investments held through your TFSA may therefore need to be analysed under the ordinary Italian rules applicable to foreign financial assets.

Potential issues include:

• Italian foreign-asset reporting;
• IVAFE where applicable;
• taxation of interest;
• taxation of dividends;
• taxation of capital gains.

Calling an account “tax-free” does not make it tax-free in every country.

Becoming self-employed in Italy from January 2027

A highly qualified professional who becomes Italian tax resident in 2027 and starts working under an Italian VAT number may be able to access Italy's new inbound workers regime.

Article 5 of Legislative Decree 209/2023 provides, subject to all statutory conditions, that qualifying employment and professional self-employment income up to EUR 600,000 per year is generally included in taxable income at only 50% of its amount.

Requirements include:

• the required previous period of foreign tax residence;
• working mainly from Italy;
• remaining Italian tax resident for the required period;
• high professional qualification or specialisation.

A recognised French engineering degree may be relevant to the high-qualification requirement, although the actual degree and professional activity should be reviewed.

Ordinary VAT regime or Italian flat-rate regime?

Italy also has a simplified flat-rate VAT and income-tax regime for eligible individual professionals and entrepreneurs.

For someone expecting professional revenues structurally above the flat-rate threshold, however, the ordinary VAT regime combined with the inbound workers regime is normally the structure worth analysing.

The two regimes should not be treated as two tax discounts that can simply be stacked.

The Italian flat-rate regime applies a substitute tax to its own calculated taxable income. The inbound workers regime instead reduces qualifying income entering the ordinary Italian personal income-tax system.

For high-income international professionals, the correct comparison therefore requires actual numbers.

A good Italian tax adviser should not merely open a VAT number. The real job is deciding how to structure the move before the tax position becomes fixed.

Before moving to Italy: practical checklist

Consider reviewing:

• exact date of arrival;
• tax residence for 2026;
• employment agreement with the Canadian company;
• social security position;
• RRSP;
• TFSA;
• brokerage and bank accounts;
• Canadian real estate;
• Canadian departure-tax exposure;
• expected Italian professional income;
• eligibility for the new inbound workers regime.

Frequently Asked Questions

If I arrive in Italy in November, do I immediately become Italian tax resident?

Not necessarily. Italian tax residence is assessed over the relevant tax year and depends on the statutory residence, domicile and presence tests.

Can I work from Italy for my Canadian employer for November and December?

Potentially yes. Article 15 of the Italy-Canada treaty may protect the salary from Italian taxation where all of the treaty conditions are satisfied.

Is my TFSA still tax-free after I move to Italy?

You should not assume so. Canada's domestic TFSA exemption is not automatically recognised under Italian tax law.

Can a self-employed professional use the Italian inbound workers regime?

Yes. The current regime expressly covers qualifying professional self-employment income where all statutory requirements are satisfied.

Can a French engineering degree satisfy the highly qualified worker requirement?

Potentially yes, subject to verification of the qualification and the activity actually performed in Italy.

Official sources

Italy-Canada Income Tax Convention

Italian Legislative Decree 209/2023, Article 5

INPS, Italy-Canada Social Security Agreement

Planning a move to Italy?

International moves are much easier to manage before tax residence changes.

We assist foreign professionals and entrepreneurs with Italian tax residence, foreign investments, Italian VAT registrations and ongoing Italian tax compliance.

Dr. Massimo Cavallari
Italian Chartered Accountant with more than 25 years of experience, registered under no. 932/A Padova and Expert Contributor to Il Sole 24 Ore.

Tel. +39 049 613584
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