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PENSIONS

Can you transfer your Italian pension if you move abroad?

If you work in Italy and then move to another country, will you be entitled to an Italian pension - and can you take it with you? The Local asks financial experts how the system works.

Published: 29 May 2024 10:09 CEST
Can you transfer your Italian pension if you move abroad?
If you contribute to an Italian pension, will you be able to take it with you if you leave? Photo by Markus Spiske on Unsplash

For those living in another country long-term, future planning around pensions is often a high priority on the list.

Unlike Switzerland, for example, where working for at least one year makes you eligible for a Swiss pension, or the United Kingdom where the minimum contribution period is 10 years, Italian law stipulates 20 years of contributions in Italy to get the minimum pension amount. This rule applies to all workers, regardless of their nationality.

EXPLAINED: How your Italian pension works

So if you’ve worked in Italy and contributed to a pension, what happens to it if you then move back to your home country, or elsewhere?

The Local asked Emilio Martinotti, tax and business consultant at international advisory firm Ecovis, whether or not it is possible to transfer an Italian pension overseas.

Q: Can a foreign national who is eligible for an Italian pension receive it if they leave Italy?

A: “Yes, it’s possible for a foreigner who is eligible for an Italian pension to receive their pension even if they leave Italy. Italy has bilateral agreements with many countries to ensure that individuals can receive their pensions abroad.

“This includes all 27 EU countries, Norway, Iceland, Liechtenstein, Switzerland, Argentina, Australia, Brazil, Canada and Quebec, Israel, the Channel Islands and the Isle of Man, Mexico, Countries of former Yugoslavia, Principality of Monaco, Republic of Cape Verde, Republic of Korea (posting only), Republic of San Marino, the Holy See, Tunisia, Turkey, USA (United States of America), Uruguay and Venezuela.”

Are there any countries where this is not possible? Do some countries not allow people to transfer foreign pensions?

“While many countries have agreements in place to allow for the transfer of pensions, there are exceptions.

READ ALSO: Pensions in the EU: What you need to know if you’re moving country

“Some countries may not allow pensions from other states, or there may be limitations or restrictions on how pensions are transferred. It’s essential to research the specific regulations of both Italy and the destination country.”

What is the procedure the foreign national has to go through to transfer their Italian pension? What documents must they show?

“To receive their Italian pension, individuals typically need to apply through the appropriate Italian government agency, such as the National Social Security Institute (INPS).

“Foreigners may need to provide documents such as identification, proof of residency or work history, and any relevant information about contributions made to the Italian social security system.”

Is it the same for employees as it is for freelancers?

“The procedure may vary slightly depending on whether someone is an employee, or in the gestione separata (‘separate management’, the INPS scheme used by most partita IVA holders), but the overall process of applying for and receiving the pension is generally similar.”

Is there a cost at all?

“There may be administrative fees associated with processing the pension application, but these costs are typically minimal compared to the benefits received.”

What can people do to make the procedure easier?

“Having all necessary documentation in order and being familiar with the application process can make the procedure easier. Additionally, seeking assistance from knowledgeable professionals or organisations specialising in pension matters can streamline the process.”

When is the foreigner eligible for an Italian pension allowed to draw it? Do they get in when they leave Italy even if they are not at the retirement age? Do they get it for the retirement age of their new country? Or do they get it for the Italian retirement age?

“The eligibility and timing of receiving an Italian pension abroad can depend on various factors, including the individual’s age, contributions, and the regulations of both Italy and the destination country.

“Generally, individuals can start receiving their Italian pension when they meet the eligibility criteria, regardless of their location. However, the amount may be adjusted based on factors such as the cost of living in the new country.”

Have you noticed any problems foreign nationals have when they try to get their Italian pension? Is it difficult?

“Some foreigners may encounter challenges when applying for their Italian pension, such as language barriers, unfamiliarity with the Italian bureaucratic system, or difficulty in gathering the necessary documentation.

“While the process can be complex, seeking guidance from experts or organisations experienced in pension matters can help navigate any issues that arise.”

Please note that The Local cannot advise on individual cases. For more information about how Italy’s pension rules may apply in your circumstances, see the INPS website or consult a qualified tax professional.

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For members

TOURISM

Flights, hotels, beaches: How the cost of travel to Italy is rising this summer

Inflation may now be falling but the price of a summer holiday in Italy has risen again - by up to 20 percent compared to last year.

Published: 24 June 2024 10:53 CEST
Flights, hotels, beaches: How the cost of travel to Italy is rising this summer

Italian consumer rights groups said last year that the summer of 2023 would be remembered as “the most expensive ever” for travel. But 2024 has already smashed that record, according to the latest price surveys.

The rising cost of air fares, ferry tickets, hotels, restaurants and beach clubs add up to mean a holiday in Italy will be 15-20 percent more expensive this summer compared to last year, according to a survey conducted by the Assoutenti consumer research centre in June.

While price rises in recent years have been attributed to Covid and rising inflation, which is no longer thought to be a factor, this year Assoutenti said high demand was pushing up prices amid the post-pandemic tourism boom.

Prices in Italy were “out of control as a consequence of the resumption of tourism, after the stop imposed by Covid, and the record number of foreign visitors recorded in the last year,” the survey’s authors wrote, calling on the government to take measures to contain price increases.

READ ALSO: ltaly set for summer tourism boom as bookings increase again

They warned that more Italian families were likely to “give up the summer holidays this year, not being able to face an expense that increases from year to year,” and that those who do travel may book shorter trips to keep costs down.

Some 6.5 million Italians say they won’t be going on holiday this summer at all, with half citing economic difficulties, according to a separate survey commissioned by price comparison website Facile.it.

Meanwhile, there had been a nine percent increase this year in applications for personal loans for travel purposes, the survey found.

Flight prices

One of the biggest factors was the cost of air fares, as both domestic and international flights to and from Italy were found to be more expensive again this year.

While the cost of flights between European countries had fallen slightly following inflation-driven price hikes in 2023, Italy was bucking the trend.

Italy’s flight costs had risen instead, according to recent analysis in Italian newspaper Corriere della Sera, with the average price of a summer flight between Italy and the rest of Europe up by seven percent and domestic flights by 21 percent.

READ ALSO: Why are flight prices higher in Italy than the rest of Europe this summer?

Industry sources suggest the price increase is again down to unprecedented demand, while consumer groups say the main culprit is a lack of competition on the Italian market.

Transport costs

There were price hikes too for those using other modes of transport, with the rising cost of fuel and motorway tolls in Italy named as another contributing factor in the Assoutenti survey.

Ferry tickets were also more expensive, it found, with the average increase this August at +6.3 percent compared to 2023.

Hotels and B&Bs

For a family of four, the Assoutenti survey found the most expensive place to stay in Italy this summer was Porto Cervo, Sardinia, where the average price of a week’s three-star accommodation in August came to 3,500 euros.

The cheapest options were found to be Bibione, outside Venice (872 euros) and Rapallo in Liguria (909).

READ ALSO: Tourist tax: How much is it increasing in Italy’s cities this year?

The cost of accommodation at coastal destinations had risen by 23 percent on average overall, a separate survey by consumer group Altroconsumo found.

Hotels in cities were found to be a less expensive option, with most Italian families heading for the beach or mountains to escape the heat.

Restaurants

Adding to the overall cost, prices also continued to rise this year at restaurants in holiday resorts and at beach clubs: Assoutenti recorded an average increase for the catering sector of +3.5 percent on 2023.

Beaches

Renting sunbeds and umbrellas at Italy’s beach clubs is seen as a necessity by many Italian families – and often by international visitors too, given the lack of free options in many areas.

This too was becoming more expensive in 2024, with the average daily rate for a slot at one of Italy’s private beach clubs up by more than five percent on last year. Prices had also risen by as much as 11 percent between 2022 and 2023.

Beachgoers can now expect to pay around €30-35 for two sun loungers and a beach umbrella for the day on average, though prices can rise as high as €90 in Salento and €120 in parts of Sardinia.

Both private and free-access beaches in Italy also increasingly require advance booking due to higher demand.

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