June 17, 2025

Fiscal Paradise for Foreign Pensioners

Retire in Italy with Tax Perks!

Italy isn’t just about breathtaking landscapes, world-class cuisine, and rich history—it’s also becoming a fiscal paradise for foreign retirees. Thanks to generous tax incentives, retiring in Italy can be more financially rewarding than ever.

The 7% Flat Tax for Foreign Pensioners

One of the most enticing benefits for retirees moving to Italy is the 7% flat tax regime, which allows foreign retirees to enjoy a significantly reduced tax rate on income earned outside of Italy.

How Does It Work?

  • Pay only 7% flat tax on foreign-sourced income (pensions, rental income, dividends)
  • Valid for up to 10 years after relocating
  • Replaces standard personal income tax, offering predictable financial planning

Who Can Apply?

To qualify, you must:

  • Receive a foreign pension (not Italian state pension)
  • Establish tax residency in a municipality with fewer than 20,000 residents in:
    • Sicily
    • Calabria
    • Sardinia
    • Campania
    • Basilicata
    • Abruzzo
    • Molise
    • Puglia
  • Have not been an Italian tax resident in the last 5 years
  • Move from a country that has a double taxation treaty with Italy

This policy aims to revitalize small towns while attracting international retirees.

Residency and Visa Requirements

For Non-EU Retirees: Elective Residency Visa (ERV)

If you're from outside the EU, you’ll need to apply for an Elective Residency Visa to live in Italy without working.

Requirements:

  • Proof of income: €31,000+ annually (more for couples)
  • Private health insurance coverage in Italy
  • A permanent address in Italy
  • Bank statements showing financial stability

The ERV:

  • Does not permit work
  • Can lead to permanent residency after 5 years
  • Can lead to citizenship after 10 years

For EU/EEA Retirees

The process is simpler:

  • Register at the Anagrafe (civil registry)
  • Obtain a permesso di soggiorno (residence permit)

Healthcare for Foreign Retirees in Italy

Italy offers high-quality public healthcare, and as a legal resident, you’ll have access.

Options:

  • EU citizens: Use the S1 form to transfer healthcare benefits
  • Non-EU citizens:
    • Pay an annual fee to join the public system
    • Or opt for private health insurance

💡 Tip: Many retirees choose private healthcare for faster service while enjoying excellent care.

Why Retire in Italy?

Beyond tax perks, Italy offers a rich and affordable lifestyle that’s hard to beat.

Top Benefits:

  • Affordable luxury – Lower cost of living than many Western countries
  • Mild climate – Choose sunny coastal towns or peaceful countryside
  • High-quality healthcare – Excellent medical care at a fraction of US/UK prices
  • Vibrant lifestyle – Immerse yourself in culture, food, and traditions
  • Tax savings – The 7% flat tax makes retirement income go further

Let Agnoloni Law Handle the Paperwork for You

Retiring abroad doesn’t have to be complicated. Agnoloni Law specializes in helping foreign retirees navigate the Italian system with ease.

Our Services:

  • Personalized tax planning – Maximize your benefits
  • Visa & residency support – From forms to approvals
  • Property & real estate guidance – Whether buying or renting
  • Healthcare & fiscal code registration – We’ll help set it all up

🎯 Ready to Start Your Italian Retirement Adventure?

Contact Agnoloni Law today for a free 20-minute consultation and make your move stress-free.

Italy isn’t just a dream—it’s a fiscal paradise. With generous tax breaks, world-class healthcare, and a stunning lifestyle, your perfect retirement starts now.