The Substantial Presence Test, Closer Connection Exception, and treaty tie-breaker — the three lines an Italian must understand before increasing US presence.
Published: 2026-04-15 · Last verified: 2026-04-15 · 6 min
The Substantial Presence Test US tax residence is determined under IRC §7701(b). The Substantial Presence Test counts days physically present in the US: - Full days in the current year × 1 - Full days in the prior year × 1/3 - Full days two years ago × 1/6 If the total ≥ 183 days and current-year days ≥ 31, you are a US tax resident for the current year. Practical zones | Days/year (averaged) | Status | |---|---| | 0-120 | Generally safe non-resident | | 121-180 | Year-by-year analysis required | | 181-220 | Likely US tax resident under SPT | | 221+ | US tax resident | A practical safe limit is approximately 120 days per year, averaged across three years. Closer Connection Exception Even if you cross the SPT, you can claim the Closer Connection Exception (Form 8840) if: - Days in current year are fewer than 183 - You maintain a tax home in a foreign country - You have a closer connection to that foreign country (home, family, banking, doctors) This is the most common exit ramp for Italian high-net-worth travelers who spend extended winters in Florida. Treaty tie-breaker Under art. 4 of the Italy-USA Treaty, even when both countries claim residence, an ordered tie-breaker selects one: 1. Permanent home 2. Center of vital interests 3. Habitual abode 4. Citizenship 5. Mutual agreement The treaty tie-breaker requires Form 8833 disclosure, has consequences for treaty benefits, and is best deployed when SPT cannot be avoided. Green Card overrides Note: holding a US Green Card makes you a US tax resident regardless of physical presence. The day count rules don't help. [LAST VERIFIED: 2026]
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IIILEX International Consulting LLC is the Florida-based practice of Avv. Dott. Massimo Leonardi — Italian Attorney (Avvocato), Certified Public Accountant (Dottore Commercialista) and Statutory Auditor (Revisore Legale) with 30+ years of Italian practice. We work exclusively on cross-border matters between Italy and the United States.
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