The taxation of pension income in a cross border can be an exceptionally complex issue. It is not helped by different definitions of the term “pension” in different parts of the world. Some countries permit the deduct of contributions to certain retirement benefit plans, and seek to tax the pension income on receipt. Other countries allow no deduction for contributions and do not seek to tax the pension income. Many countries have a mixed system.
An explanation of how Italy taxes pension income can be read here.
In this post you can read details of Italy’s special regime to attract pensioners to come and live in Italy, with an option for a flat 7% tax regime.
Below we provide links to specific articles detailing the tax treatment for Italian residents of pension income for various countries around the world.
Flat Tax for pensioners coming to live in the South of Italy – 10 years at 7%
What does the special tax relief consist of? A 7% flat tax on all income for all pensioners (regardless of nationality) who: have been tax