Tax Residence of Individuals in Italy: the Determination of the Notion of Centre of Vital Interests

This note discusses a recent decision of the Italian Supreme Court, wherein the judges held that, in determining the tax residence of individuals, the criterion of centre of vital interests does not attribute per se priority to personal relations over business ties. This decision is of paramount importance since it directly reverses settled Italian case law attaching primacy to family and social ties over economic and business connections.