Italy 7% income tax for pensioners
A little known scheme exists in Italy that came about in the 2019 budget. For individuals and families looking to move to Italy it is possible to pay the very favourable rate of 7% pa flat on pension income for the first 10 years of residency.
This scheme is part of the Italian government’s drive to encourage people to move to parts of the country that have suffered severe depopulation in recent years.
So to qualify for this generous scheme you need to move to a town or village with a population less than 20,000 people in one of the following regions: Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily.
It is also possible to qualify for the scheme by moving to a town in these regions that have suffered earthquake damage and have fewer than 3,000 residents :
Lazio, Le Marche and Umbria.
Further rules for you to qualify are that you have an overseas public or private pension and have been resident in a foreign country in the five years prior to moving to Italy.
Another attractive aspect of this scheme is the 7% flat rate is applicable to any foreign sourced income that includes pension, property/rental income, capital gains, interest, dividends and miscellaneous sources of income.
We can introduce you to immigration specialists, lawyers and accountants that can assist you with your move to Italy.
Please contact us for further details.