Italian pensioners abroad: what do they risk if they omit a communication to the Revenue Agency? Here’s what the fine is.
Many retirees or many workers close to retirement decide to leave Italy to go and live abroad. There are several factors that push more and more Italians to emigrate abroad: lower taxation, higher wages, lower cost of living and better climate.
Emigrating abroad implies the need to fulfill a number of requirements considered indispensable to apply art. 18 of the OECD model. There are certain Italian pensioners who omit an important communication to the Revenue Agency. Such forgetfulness is considered unforgivable: you risk one fine of over € 1,000. That’s what this forgetfulness is about.
Italian pensioners abroad: necessary requirements
The Italian pensioner who moves abroad has the right to receive the gross pension and to benefit from a taxation regime favorable to the occurrence of the following requisites: the Italian pensioner must complete the transfer of residence in the foreign country and must move to a country with which Italy has stipulated an agreement against double taxation.
The possibility of benefiting from a social security allowance taxation regime exclusively in the foreign state of residence does not apply to former employees of the Public Administration. Therefore, former PA workers are obliged to suffer double taxation.
Receiving a foreign pension must always be declared in the event that there is no agreement with the disbursing foreign state and also in the event that there is a double taxation convention. It is important to send a communication to the Revenue Agency.
Italian pensioners abroad: submit the application to INPS
Once Italian retirees want to move abroad it is necessary complete the transfer of residence in the foreign state. Furthermore, the pensioner must move to a country with which Italy has stipulated an agreement against double taxation.
A specific application must be submitted to INPS for the request for accreditation of the gross pension. The Italian pensioner must submit the appropriate form available on the INPS website in the section Modules> International Conventions.
This form represents the necessary request to request the non-execution of the withholding tax of the Italian tax to be applied on the social security check received by subjects residing in foreign countries with which Italy has stipulated agreements to avoid double taxation.
The form must contain the necessary attestation of foreign tax residence by the foreign Authority and must be delivered on paper.
Italian pensioners abroad: when is the fine of over € 1,000 triggered?
Italian pensioners who fail to receive their pension abroad by the Revenue Agency risk being sanctioned. How much is the fine? There sanction it can go up to a amount of 1,330 euros. For income produced in a foreign country, the fines may be subject to an increase of 1/3 compared to what is expected in Italy in the event of tax evasion.
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