Disadvantages of Italian Dual Citizenship

The real drawbacks of Italian dual citizenship: AIRE registration requirements and fines, tax residency rules, consulate wait times, and security clearance considerations.

You have found out you might qualify for Italian citizenship and you are trying to decide whether to pursue it. The short answer is that for most people, the downsides are modest and mostly procedural. But there are a few genuine obligations that catch people off guard, and a couple of widely circulated concerns that turn out to be either overstated or simply wrong. This guide goes through both.

Nothing on this page is legal or tax advice. For questions about your specific situation, consult a licensed attorney (for citizenship) or a commercialista (for Italian tax matters).

The real disadvantages

AIRE registration (and the new fines)

Once you are recognized as an Italian citizen, you have a legal obligation that most new citizens are not told about: AIRE registration. AIRE (Anagrafe degli Italiani Residenti all'Estero) is the registry of Italian citizens living abroad. Under L. 470/1988, any Italian citizen who moves abroad for more than 12 months must register with the competent consulate within 90 days of arriving.1

Until recently this obligation was widely ignored without consequence. That changed in January 2024. L. 213/2023 (the 2024 budget law) introduced administrative fines for non-registration: €200 to €1,000 per year of omitted registration, up to a maximum of five years (€5,000 total).2 3 The fine is reduced to one-tenth of the minimum (€20) if you register before a formal audit begins.

Fines are enforced by the Italian comune where you were last registered, not by the consulate. Beyond the fine, non-registration creates complications for passport renewal, consular services, and voting in Italian elections from abroad.4

Tax residency if you spend significant time in Italy

Related to where you live, not just to citizenship: Italy taxes based on fiscal residency, not on citizenship. For most people who obtain Italian citizenship to hold a passport and visit Italy occasionally, this does not change anything about their tax situation. But it is worth understanding the threshold.

Fiscal residency in Italy is triggered if, in a calendar year, you are physically present in Italy for more than 183 days (184 in a leap year), registered in the Italian population registry, or have your center of vital interests (domicile) in Italy. Any one of these conditions is sufficient.5 6 This matters if you plan to live in Italy for extended periods.

One obligation does apply regardless of residency: if you own property in Italy, IMU (municipal property tax) applies to you as a non-resident owner. Owners calculate and pay it independently, twice a year. Italian municipalities do not send bills.

The consulate process is slow

Getting citizenship recognized through the consular path involves two waits in sequence. First, an appointment: Italian consulates in many countries have significant backlogs, and no official statistics exist on current wait times. The Consulate General of Italy in San Francisco added extra appointment slots in March 2024 specifically because of the volume of citizenship requests.7 Second, the processing window: once an application is submitted, the consulate has up to 24 months by law to process it.

The total timeline from starting the document collection process to receiving citizenship can span several years. This is a practical obstacle, not a legal one, but for many applicants it is the most significant one.

Security clearances (U.S.-specific)

If you work in U.S. national security or are pursuing a career that requires a U.S. government clearance, dual citizenship is a factor. It is evaluated under SEAD 4, Adjudicative Guideline C (Foreign Preference) and is not an automatic disqualifier.8

The evaluation focuses on behavior, not just status. Actions that can be disqualifying under Guideline C include using a foreign passport, voting in foreign elections, and serving in a foreign military. Holding an Italian passport may require surrendering it or obtaining specific authorization to retain it.9 Italy is a close U.S. ally and NATO member, which presents a lower risk profile than adversarial states, but cases are adjudicated individually.

Passport logistics

Dual nationals traveling between the U.S. and Italy face a practical requirement on both ends. U.S. law (8 U.S.C. § 1185) requires U.S. citizens, including dual nationals, to enter and exit the United States on a U.S. passport.10 Italy requires Italian citizens to identify themselves at Italian and Schengen borders using an Italian passport or EU identity card.11 Airlines may also require the passport granting entry to the destination country at the time of boarding.

In practice this means carrying both passports when you travel.

What is often called a disadvantage but isn't

Military service

Italy suspended compulsory military service effective January 1, 2005, under L. 226/2004.12 The statute uses the word “suspension” rather than “abolition”deliberately. The Military Code (D.Lgs. 66/2010), Article 1929, retains the legal framework for reintroduction of conscription in wartime or national emergency.13

Under current law, no registration or service obligation exists for dual nationals living abroad. Conscription has not been in force for over 20 years and there are no current proposals to reinstate it.

Italian taxes on foreign income

A common concern: that Italy will tax your U.S. income once you become an Italian citizen. Italian tax law does not work that way. Italy taxes fiscal residents, not citizens. Non-residents are taxed only on income with an Italian source.5 IVIE (wealth tax on foreign real estate) and IVAFE (wealth tax on foreign financial assets) apply only to Italian tax residents.6

The confusion often comes from conflating Italian and U.S. tax law. The United States taxes citizens on worldwide income regardless of where they live. Italy does not.

What to do next

If you are evaluating whether to pursue Italian citizenship, the first step is determining whether your family line qualifies under jure sanguinis rules, and whether the 2025 reform affects your eligibility.

Sources

  1. Legge 27 ottobre 1988, n. 470 (AIRE enabling law). Full text: Normattiva.
  2. Legge 30 dicembre 2023, n. 213 (Legge di Bilancio 2024), Art. 1, commi 242–243. Published Gazzetta Ufficiale n. 18, 1 January 2024, Suppl. Ordinario n. 40. Text: Gazzetta Ufficiale.
  3. Consulate General of Italy, Chicago, announcement on new AIRE fines, January 2024: conschicago.esteri.it.
  4. MAECI, official AIRE information page: esteri.it.
  5. D.P.R. 22 dicembre 1986, n. 917 (TUIR), Art. 2, as amended by D.Lgs. 209/2023. Consolidated text: Normattiva.
  6. Agenzia delle Entrate, fiscal residency guidance (English): agenziaentrate.gov.it. See also Circolare 20/E del 4 novembre 2024, operative instructions on updated residence rules under D.Lgs. 209/2023: PDF.
  7. Consulate General of Italy, San Francisco, notice on additional citizenship appointment slots, March 2024: conssanfrancisco.esteri.it.
  8. Security Executive Agent Directive 4 (SEAD 4), Adjudicative Guideline C (Foreign Preference). Office of the Director of National Intelligence: PDF.
  9. U.S. Department of State, dual citizenship and security clearances: PDF.
  10. 8 U.S.C. § 1185. Office of the Law Revision Counsel: uscode.house.gov. See also U.S. Department of State, dual nationality: travel.state.gov.
  11. MAECI, Italian passport and travel documents: esteri.it.
  12. Legge 23 agosto 2004, n. 226 (suspension of compulsory military service). Full text: parlamento.it.
  13. D.Lgs. 15 marzo 2010, n. 66 (Military Code), including Art. 1929. Consolidated text: Normattiva.