Slovakia attracts Italian retirees with zero pension tax

Slovakia is emerging as a preferred destination for Italian pensioners after the country’s tax treaty with Italy guarantees a 0 % rate on foreign‑paid private pensions. The agreement, signed in the early 1980s, stipulates that pension income is taxable only in the resident state, allowing the INPS to pay the full amount without Italian IRPEF deductions that range from 23 % to 43 %.

The exemption applies to former private‑sector employees, artisans, traders and contributors to autonomous professional schemes. Public‑sector retirees are excluded unless they renounce Italian citizenship and acquire Slovak nationality, which then enables the same tax benefit. To qualify, retirees must obtain an INPS certification classifying the pension as private, reside in Slovakia at least 183 days per year, register with the AIRE system and submit the required paperwork to Slovak authorities.

The shift follows Portugal’s decision not to renew its Non‑Habitual Resident regime, prompting some Italians to look for a permanent, treaty‑based solution. Slovak officials promote the stability of the arrangement, noting that it has no expiration date unlike other temporary fiscal incentives.