Moving to Italy from Germany, France, or the Netherlands? How your pension follows you, EU coordination rules, totalisation, PEPP, and the tax treatment under Italy flat tax and 7% retiree regime.
Every year, thousands of European professionals and retirees relocate to Italy. They bring pension entitlements accumulated across multiple EU countries. Unlike the UK or US, EU pension coordination is governed by Regulation 883/2004 — a comprehensive framework that, in theory, makes portability seamless.
Related: Italy flat tax guide · 7% retiree regime · UK pensions guide
Regulation 883/2004 establishes three principles: totalisation (contributions in any EU country count toward your entitlement), pro-rata calculation (each country pays its portion), and export of benefits (your pension follows you). You do NOT transfer your pension — each country pays you directly.
| Component | What Happens | Italian Tax |
|---|---|---|
| State pension (DRV) | Paid by Germany to your Italian bank. | Taxed in Italy under treaty. Covered by flat tax or 7%. |
| Company pension (Betriebsrente) | Paid by German employer/insurer. | Foreign income — covered by flat tax or 7%. |
| Riester-Rente | No further subsidies as non-resident. | Withdrawals taxed in Italy. |
| Ruerup-Rente | Paid at retirement age. | Taxed in Italy under treaty. |
| Component | What Happens | Italian Tax |
|---|---|---|
| State pension (CNAV) | Paid by France. | Taxed in Italy under treaty. |
| AGIRC-ARRCO | Points preserved. Paid by scheme. | Foreign income — covered by flat tax or 7%. |
| Assurance vie | Not a pension. Can be maintained. | Gains taxed in Italy. Consider Luxembourg wrapper. |
| PER | Remains in France. | Taxed in Italy under treaty. |
| Component | What Happens | Italian Tax |
|---|---|---|
| AOW (state) | Paid by SVB. Reduced 2% per missing year. | Taxed in Italy under treaty. |
| Occupational pension | Paid by Dutch fund. Best-funded in Europe. | Foreign income — covered by flat tax or 7%. |
| Lijfrente | Remains in NL. | Withdrawals taxed in Italy. |
A Dutch occupational pension of EUR 40,000/year under the 7% regime costs just EUR 2,800/year in Italian tax — over 10 years, EUR 80,000+ in savings versus ordinary Italian rates.
| Country | Notes |
|---|---|
| Belgium | SFP/SFPD. Totalisation applies. Taxed in Italy. |
| Spain | Seguridad Social. Taxed in Italy. |
| Sweden | Pensionsmyndigheten. Sweden may retain limited tax rights. |
| Austria | PVA. Taxed in Italy. |
| Switzerland | Bilateral agreements mirror EU rules. Pillar 2 lump-sum timing critical. |
The PEPP (Regulation 2019/1238) was supposed to create a single portable pension across all EU countries. Reality: only 2 providers have launched PEPP products across ALL of Europe, in 8 countries. The strict 1% cost cap and sub-account requirements made it commercially unviable. The European Commission proposed reforms in November 2025. For now, use existing coordination frameworks.
| Regime | Rate | Best For | Duration |
|---|---|---|---|
| Ordinary IRPEF | 23-43% | Low pensions or no special regime | Permanent |
| EUR 300K Flat Tax | EUR 300K fixed | HNWI with large foreign income | 15 years |
| 7% Retiree Flat Tax | 7% on all foreign income | Retirees under ~EUR 4.3M/year | 10 years |
For most EU retirees, the 7% regime is optimal. EUR 60,000/year pension = EUR 4,200 Italian tax. Since April 2026, qualifying municipalities include towns up to 30,000 inhabitants — 74 new options including Cosenza, Marsala, and Olbia.
EU pensioners can request an S1 form from their home country, entitling them to full SSN coverage in Italy (WHO #2), with costs reimbursed by the home country.
No. EU pensions are coordinated, not transferred. Each country pays you directly from its own system.
No. Regulation 883/2004 preserves all accumulated rights regardless of where you live.
Apply through the authority where you last worked. It coordinates with all other countries through EESSI.
Yes. Any nationality qualifies if you meet the criteria: not Italian tax resident for 5 of prior 6 years, register in qualifying Southern Italian municipality under 30,000 inhabitants.
Disclaimer: EU pension coordination varies by country. Always consult qualified advisors. The Italian Gateway coordinates this advisory for EU nationals relocating to Italy.