In order to qualify for the 7% flat tax for pensioners you must relocate to a qualifying municipality as per the paragraph 1 of the art. Which are the qualifying municipalities for the 7% flat tax for pensioners in Italy? 7% Flat tax qualifying municipalities Note that you cannot benefit of this favourable tax treatment if you move to Italy in a non qualifying municipality, and then move into a qualifying one! This means that you may have been a tax resident of Italy 5 years ago or more and still qualify.įinally, you must settle into a qualifying municipality. You should not have been a resident of Italy in the last 5 tax years prior moving to Italy. In order to qualify for the 7% flat tax regime for pensioners you must receive a private or public pension, it doesn’t matter whether you are a citizen of Italy or not, but you must receive a Foreign sourced pension. Our webpage here provides more details about this tax regime, however let’s recap them in this post. This regime lasts up to 10 years, and you can drop off at any time prior the end of the period.

There is no income cap on the income attracted to the 7% flat tax, making it very attractive to new pensioners wishing to move to Italy without spending a fortune on taxes. The 7% flat tax applies to all your foreign income sources including: Basically, a pensioner who has not been resident of Italy in the 5 years prior moving here can claim a flat 7% taxation on ALL of the foreign income sources, not just the foreign pension received. Since 2019 has introduced a new tax treatment for pensioners, adopting art. Derivatives and Complex Financial Calculations.Registered Business and Corporate Secretarial.

Flat tax on income