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HEALTH

Police to bring elderly Italians their pensions during coronavirus crisis

Carabinieri are offering to collect pension payments for the elderly in Italy's latest strategy to keep people at home during the coronavirus outbreak.

Police to bring elderly Italians their pensions during coronavirus crisis
Pensioners in Italy can seeking help getting their pension payments during the coronavirus outbreak. Photo: Marco Bertorello/AFP

Pensioners aged 75 and over who usually collect their payments from post offices in cash can ask police officers to pick up their money for them and deliver it to their home, Italy's Carabinieri military police force announced on Monday.

READ ALSO: The coronavirus phone numbers and websites you need to know about

Some 23,000 elderly people are eligible for the scheme, which does not apply to pensioners who have already delegated someone else to pick up their payments, who have a bank account with the Italian Post, or who live with or near family members.

The service is designed to save vulnerable older people a trip to their local post offices, which remain open throughout Italy's nationwide lockdown but are often crowded due to shorter opening hours.

It will be provided throughout Italy's coronavirus emergency.

Anyone who would like more more information on the scheme should call the Post Office helpline on 800 55 66 70, or contact their nearest Carabinieri station (find yours here). 

READ ALSO: The coronavirus financial help available in Italy and how to claim it

Delivering pensions is the latest initiative aimed at cutting back on Italian bureaucracy in the time of coronavirus. 

Others include automatically extending the validity of residence permits, ID cards and driver's licences due to expire soon so that people aren't obliged to go in person to renew them, and introducing an 'Electronic Prescription Number' that allows doctors to prescribe medication by email, phone, text or messaging app without the need for a paper prescription.

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RETIREMENT IN ITALY

How many people successfully apply for Italy’s flat tax for pensioners?

Italy's flat tax rate of just seven percent for people who choose to retire in the sunny south of the country has garnered a lot of interest worldwide - but how many people are really able to take advantage of it?

How many people successfully apply for Italy's flat tax for pensioners?

Since 2019, Italy has offered a special seven percent tax rate to those who retire in certain peaceful, sunny, and usually very affordable parts of the country with a foreign pension.

Understandably, this offer has generated a lot of interest from people around the world who are considering a move to Italy for their retirement.

Q&A: What to know about Italy’s flat tax rate for pensioners

While it may sound like the low tax rate would be immensely popular, the scheme has quite a few requirements which mean many would-be applicants find it’s not the right fit for them.

Firstly, you must settle in a qualifying town or municipality with fewer than 20,000 inhabitants. Almost all of these are in the southern regions of Abruzzo, Basilicata. Calabria, Campania, Molise, Puglia, Sardinia, or Sicily.

You must receive a foreign-sourced pension, and you can’t have been a legal resident of Italy at any time in the previous five years.

If you meet all the requirements, you’ll need to be able to prove it when filing your first Italian tax return in order to benefit from the low tax rate.

The scheme is now in its fifth year, but the latest data reveals that fewer than 500 people in Italy are taking advantage of the seven-percent tax rate.

READ ALSO: Retirement in Italy: What you need to know about visas and residency

A total of 474 people declared a foreign pension income under the scheme according to figures from the Department of Finance, published at the end of April, on tax returns filed in 2023.

They declared a total pension income amount of 19 million euros, which works out at 40,210 euros per person on average, according to financial newspaper Il Sole 24 Ore, and a total income from all foreign sources of 28.7 million euros.

This resulted in just under two million euros in tax paid to the Italian state, according to the data.

The flat tax represents a substantial saving, as Italy’s usual Irpef (income tax) rates are between 23 and 43 percent depending on income bracket.

If you’re interested in using the scheme yourself, you can read more about the requirements in a separate article here.

Please note that The Local is unable to advise on individual cases. Find more information about Italy’s flat tax rate for retirees on the Italian revenue agency (Agenzie delle Entrate) website here (in Italian only) or speak to a qualified tax advisor.

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