NewsCase StudiesEvents

Are US Pensions Taxed In Italy?

Also in the news...

Confined establishments approved to export ungulates to the EU

Lists of confined establishments in Great Britain, Jersey and the Isle of Man approved to export or move ungulates to the EU and Northern Ireland.

Import VAT and Customs Duty on gifts

Find out about Import VAT and Customs Duty when you send gifts into the UK.

Overseas Business Risk: Belarus

Information on security and political risks which UK businesses may face when operating in Belarus.

Notice to exporters 2022/23: General Trade Licence Russia Sanctions - Vessels

This notice advises of revisions to the General Trade Licence Russia Sanctions - Vessels.

Notices to exporters published by the Export Control Joint Unit (ECJU).

Notices to exporters contain important information about:

Are US Pensions Taxed In Italy?

Back to News

Do you live in the US and you are planning to retire in Italy?

Are you a retired person from the US and you start to live in Italy? Are you an American retired and you spend some months of the year in Italy?

Read this article and figure out if your US pension is taxable in Italy.

​In case you are not an official resident

As you might already know, Italian tax residents are required to pay tax on their worldwide income.

Therefore, if you are residing in Italy for 3 months or less, you are not deemed as a tax resident, thus you do not have to worry about paying taxes on your American pension in Italy.

Be aware that, according to the US state department, American citizens staying in Italy for more than 3 months per year, are considered tax resident overseas. From a legal point of view, if you do not hold a EU passport and you plan to stay in Italy longer than 90 days, you are required to obtain a VISA to enter the country and then apply for a residence permit (or “permesso di soggiorno” in Italian). This procedure is administered by various entities, such as the immigration office, the Italian foreign embassy and, at some point, your local post office.

If you are a pensioner and you want to move to Italy quickly, we advise to opt for the Elective Residence VISA. You can get more information in regards to our VISA program in our Immigration section. They will give you an application kit to fill. After giving it back to your local post office, they will address you to a local police station to present your official demand which is scrutinized and, hopefully, approved.

​Upon being granted your residence permit and owning or leasing a residential property, as an American citizen, you can finally apply for residency at your local Comune. You will then obtain your certificate of residency (“certificato di residenza”) from the local Vital Statistics Bureau (or Anagrafe) and you can enroll under the Universal Health Care system of Italy.

In case you are a resident in Italy

As a general rule, American pensions are taxed in Italy. However, there are few exemptions as explained by the double taxation treaty with US.

We can divide foreign pensions in two categories:

  • Pensions for public functions paid by a foreign country (or by one of its political or administrative subdivisions), for services and work carried out on behalf of these entities;
  • Private pensions paid by entities, institutions or insurance organizations of foreign countries appointed to handle the pension payments related to the termination of employment in the private sector

The first ones are normally ONLY taxable in the US, therefore no disclosure is required in the Italian tax return, whereas the second ones are taxable in Italy.

We recommend for more information, to check the double treaty agreements between the US and Italy.


You are not logged in!

Please login or register to ask our experts a question.

Login now or register.