Slovakia is emerging as the new preferred destination for Italian retirees They are seeking to reduce the tax burden and threaten to take away Portugal's leadership in this market. The country offers a real tax rate of 0% on pensions paid abroad and attracts a growing number of Italians each year.
The change gained momentum after Portugal stopped renewing the tax regime known as NHR (Non-Habitual Resident)which eliminated or reduced to 10% the tax on foreign pensions for at least ten years. Without this benefit, some pensioners began to look for alternatives.
The appeal of Slovakia stems from an agreement signed in 1981 between the then Czechoslovakia and Italy. According to the agreement, private pensions can only be taxed in the country of residence. In practice, the INPS (National Social Security Institute) pays the benefit without deductions, Slovakia does not charge tax, and the retiree receives the full amount.
Unlike incentives with an expiration date, this benefit has no end date because it is based on a treaty between the two countries. This stability appears as one of the main arguments in favor of the change.
The Supreme Court reaffirmed: citizenship is born with the person.
- New legal front opened
- Processes can still be filed.
- Individual assessment before any decision.
Who is entitled to the exemption?
Total exemption does not apply to everyone. Those entitled to 0% include former employees of private companies, former artisans and merchants, and those who contributed through [unclear - possibly "social security" or similar]. separate management or by independent professional firms. Former civil servants are excluded from this rule.
There is a loophole for this group. Former civil servants can obtain the same benefit. in case you renounce your Italian citizenship and adopt Slovak nationality. Changing nationality is a condition for accessing the benefit.
The steps to join
Anyone wishing to change their pension must request certification from INPS classifying it as private. The next step is the physical transfer to Slovakia, with a minimum residence period of 183 days per year in the country.
The process also requires a certificate and a letter of soggiorno of the European Union. It also requires registration with AREA (Anagraphe degli Italiani Residenti all'Estero) and the delivery of the EP-I/IT form, which guarantees exemption from Italian taxes. The Slovak authorities validate the document, which is then sent to the INPS (National Social Security Institute).
