From Greece to Spain, passing through Cyprus, Croatia, Malta and Tunisia. Portugal closes its doors to pensioners but, for those who intend to move abroad to take advantage of the tax discounts offered by various countries, there is plenty of choice. According to INPS data Italian pensioners who are scattered across 165 countries exceed 350,000 (equal to 2.6% of the total 17.7 million) for an amount of almost 1.5 billion euros (equal to 2% of the total disbursed by the Institute).
Obviously many of the people who choose to go abroad do so for reasons not related to tax discounts, in fact the main countries where they are found are: Canada, Germany, Switzerland, Australia and France (where they range from over 50,000 to over 40,000). Very different numbers from those found in Portugal (around 3,500), which in the coming years could be scattered across new countries ready to welcome new sources of income.
Greece
There is a 7% tax rate for 15 years on the income of foreign pensioners who have worked in the private sector and transfer their residence. The measure was introduced in 2013.
Croatia
There is a rate of 12% for checks up to 2,300 euros and 18% for those exceeding the threshold. Also in this country a minimum ‘permanence’ of 183 days a year is required and those who move must not have residence or domicile in Italy.
Tunisia
There are approximately 1,600 pensioners who have chosen the African country, for an average allowance of 3,805 euros, and are taxed on 20% of the pension with a maximum rate of 7%. The requirements include not having been taxed as a tax resident in the five years prior to the request. The minimum stay is 183 days or, alternatively, you must be the owner of a home and there are conditions for maintenance and residence.
Malta
There is a preferential tax rate of 15% for income coming from abroad, including pensions, which respects certain rules: coming from a European country, not working, receiving a pension equal to or greater than 75% of the total taxable income. Furthermore, it is necessary to purchase a property (starting from 250,000 euros) or stipulate a rental contract of at least one year for a minimum annual amount approaching 9,000 euros.
Cyprus
Pensions up to 3,420 euros are tax-free, while for higher amounts a rate of 5% applies. Furthermore, a reduced VAT is applied for the purchase or reconstruction of a house (5%).
Canaries
There is a discount of 6,500 euros for those over 65 years of age, which reaches 7,000 for pensioners over 75 years of age.
Romania
A rate of 10% is applied for those who move to the country but it is not an ad hoc discount for those who move. In fact, in the country a flat tax of 10% is applied on the income of natural persons.
Eastern European countries
Countries such as Bulgaria, Slovakia and Albania do not apply any tax to foreigners who choose to move to the territory.
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