{"id":3463,"date":"2025-09-09T07:38:33","date_gmt":"2025-09-09T07:38:33","guid":{"rendered":"https:\/\/www.italyvisainvestments.com\/?page_id=3463"},"modified":"2026-04-23T08:20:18","modified_gmt":"2026-04-23T08:20:18","slug":"application-for-tax-benefits-for-foreign-retirees","status":"publish","type":"page","link":"https:\/\/www.italyvisainvestments.com\/en\/relocation-and-life-in-italy\/application-for-tax-benefits-for-foreign-retirees\/","title":{"rendered":"Application for tax benefits for foreign retirees"},"content":{"rendered":"
Relocation and Life in Italy<\/div>\n

Application for tax benefits for foreign retirees in Italy<\/h1>\n
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The application for tax benefits for foreign retirees in Italy today represents one of the most interesting opportunities for those who receive a pension from abroad and intend to transfer their tax residence to Italy. It is an optional regime introduced by art. 24 ter of the TUIR, which allows a 7 percent flat tax for ten years on all income produced abroad, including pensions.<\/p>\n

This tax regime was created to encourage the return to Italy of retirees registered with AIRE and to attract new residents in specific areas of Southern Italy or in municipalities affected by seismic events. The opportunity translates not only into a significant economic advantage for the retiree, but also into a benefit for local economies, thanks to the repopulation of small towns and the consequent development of the territories.<\/p>\n

The procedure, although advantageous, is very technical, precise requirements must be met, the M form of the 2025 tax return, section II B, must be correctly completed, and the causes of revocation and forfeiture must be understood. There is also the possibility to voluntarily exclude some countries from the option, with the consequent application of ordinary taxation.<\/p>\n

The Boschetti International Law Firm, with its team of consultants specialized in tax matters, offers its expertise in tax law and immigration law to guide retirees step by step, from verifying requirements to submitting the application, ensuring complete and safe assistance.<\/p>\n<\/div>\n

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What is the optional regime for foreign retirees<\/h2>\n
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The optional regime for foreign retirees is reserved for those who receive a pension paid by foreign entities and decide to settle permanently in Italy. The option, exercised through the tax return, allows payment of a substitute tax equal to 7 percent on all foreign income, including pensions.<\/p>\n<\/div>\n

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To access it, it is necessary to:<\/p>\n

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  • not have been tax residents in Italy in the five years prior to the transfer<\/li>\n
  • transfer residence to one of the southern municipalities (Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, and Puglia) with fewer than 20,000 inhabitants, or to one of the municipalities affected by the 2009 or 2016 earthquakes<\/li>\n
  • prove actual residence through registration in the municipal registry<\/li>\n<\/ul>\n

    Excluded from the regime are income from life insurance policies, supplementary pension funds, or foreign private pension instruments that do not constitute a recognized pension treatment (Circular Revenue Agency no. 21 E 2020).<\/p>\n

    The tax benefit is accompanied by further advantages, such as exemption from the obligation to complete the RW form for foreign financial and property assets and exemption from wealth taxes IVIE and IVAFE.<\/p>\n<\/div>\n

    [sign-in]<\/p>\n

    Tax relief for retirees residing abroad<\/h2>\n
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    The regime under art. 24 ter TUIR does not translate into a simple deduction, but into a real replacement of ordinary IRPEF with a fixed tax of 7 percent on foreign income. In this way, the retiree benefits from a significant saving compared to the application of progressive rates which, in the ordinary system, range from 23 percent to 43 percent plus local surcharges.<\/p>\n

    The duration of the benefit is set at 10 years, the year of transfer plus the following nine tax periods. The option is exercised in the 2025 tax return, M form, section II B, indicating the data of the foreign country of origin and the amount of pension income that will be subject to the substitute tax.<\/p>\n

    It is important to know that income voluntarily excluded from the option (a choice that cannot be revoked) will continue to be taxed according to ordinary rules. In addition, failure or late payment of the substitute tax results in forfeiture from the regime and the application of penalties for omitted payment.<\/p>\n

    Thanks to this regime, retirees residing abroad who choose to move to Italy have the opportunity to drastically simplify tax management and to benefit from stable and advantageous flat taxation.<\/p>\n<\/div>\n

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    Flat tax for retirees and transfer of tax residence in Italy<\/h2>\n
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    The 7 percent flat tax for foreign retirees represents a great opportunity for retirees abroad and tax residence in Italy. With it, not only is the tax burden reduced, but a clear and straightforward regulatory framework is also obtained. The transfer of residence must take place in one of the municipalities indicated by the legislator. The choice of territory is not irrelevant, as the benefit was designed to support regions and areas affected by demographic crises or natural disasters.<\/p>\n

    The total duration of the benefit is ten years and, during this period, the retiree also enjoys exemption from the RW form and from IVIE and IVAFE. In case of loss of requirements, the effects cease immediately from the year in which the irregularity occurs, without affecting the benefits accrued in previous years.<\/p>\n

    Another technical aspect concerns revocability, the retiree can renounce the option, but it cannot be reactivated afterwards. For this reason, it is essential to carefully evaluate, before submitting the tax return, whether the 7 percent flat tax is the most convenient solution compared to other fiscal alternatives.<\/p>\n<\/div>\n

    How the Boschetti law firm can help you apply for foreign retirees benefits in Italy<\/h2>\n

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    The application for tax benefits for foreign retirees requires specific expertise in tax matters and knowledge of the most up to date regulations. The Boschetti International Law Firm, thanks to its team of experts in tax consultancy, offers complete assistance to:<\/p>\n

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    • verify eligibility requirements for the optional regime<\/li>\n
    • manage the municipal registration and the transfer of tax residence<\/li>\n
    • prepare and correctly complete the M form of the 2025 tax return<\/li>\n
    • provide advice on the possibility of excluding certain countries from the option and assessing the consequences<\/li>\n
    • assist in cases of revocation, forfeiture, or audits by the Revenue Agency<\/li>\n<\/ul>\n

      Our goal is to accompany every client through all stages of the procedure, ensuring maximum security and reducing risks related to formal or substantial errors. Thanks to long standing experience in immigration law and international taxation, the Boschetti Law Firm is the ideal partner to turn the transfer to Italy into a conscious and advantageous choice.<\/p>\n<\/div>\n


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      Relocation and Life in Italy Application for tax benefits for foreign retirees in Italy The application for tax benefits for foreign retirees in Italy today represents one of the most interesting opportunities for those who receive a pension from abroad and intend to transfer their tax residence to Italy. It is an optional regime introduced […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":3520,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-3463","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/3463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/comments?post=3463"}],"version-history":[{"count":7,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/3463\/revisions"}],"predecessor-version":[{"id":5335,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/3463\/revisions\/5335"}],"up":[{"embeddable":true,"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/pages\/3520"}],"wp:attachment":[{"href":"https:\/\/www.italyvisainvestments.com\/en\/wp-json\/wp\/v2\/media?parent=3463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}