How to collect your pension in Italy

Retirees in Italy
Retirees in Italy
18 September 2018, Redaction

Everybody has their own retirement dream. Some think about picking up an old, forgotten hobby, some want to travel the world or learn something new, and some simply plan to relax. Then there are the ones who dream big, like, let’s say, moving to Italy.

Italy has everything to offer retirees: amazing food, wine, scenery, history, art, culture and some of the friendliest locals you’ll ever meet. Why not buy yourself a nice little home and enjoy life when you finally have the time? But before packing all your stuff, make sure you know how you to collect your state pension abroad.

To claim a state pension from your home country, you have to apply to the Italian National Social Security Institute (Istituto Nazionale Previdenza Sociale or INPS), which will help you to automatically transfer the funds to Italy.

The tax due on state pension funds in Italy depend on whether you are an Italian resident or citizen, or not. UK nationals, for example, pay tax on the pensions in Britain, even if they live in Italy, but for Italian residents the taxable amount and beneficiary changes. On the other hand, private pensions, generally speaking, are subject to high rates of Italian tax.

Pension rules in the EU

If you have worked in numerous different EU countries, you may have gained pension rights in each of them. This means you’ll have to apply to the pension authority in the country where you live or where you last worked. In this case, if you’ve never worked in Italy, they will forward your claim to the one you last worked in. This country will be responsible for dealing with your claim and collecting records from all the countries you have ever worked in.

Be aware that you will receive a pension from each country depending on whether you've reached their legal retirement age. For example, if you worked in France, you'll get your pension when you turn 60 and if you worked in Denmark, you will start to receive it once you reach their legal retirement age of 67.

Each country that grants your pension normally pays it to a bank account in your current location – in this case your Italian bank account. It’s also a good idea to start gathering information about obtaining your pension at least 6 months in advance, since the bureaucratic procedure can take a while.

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