Sunday, July 21, 2024

5% taxes and benefits: How Tunisia beat Italian pensioners


Tax haven for retirees is TunisiaAlthough Portugal and Spain, and especially the Canary Islands, are still the preferred destinations for Italians wishing to spend their retirement abroad, in the last two years there has been a significant increase in Transfers And towards Tunisia to reach 2,000 retirees, half of whom are former state employees. In Tunisia, on a total pension of 3,000 euros, you pay only 180 euros in taxes. A real tax haven with favorable social security conditions.


In Tunisia, a law has been introduced to attract European retirees, which consists of an 80% reduction in taxes on the total pensions of citizens of various countries, including Italy, with which the country in question has concluded a tax agreement. This measure came into effect in 2007, but how does it work? A retiree from the Bel Paese region who chooses to move to Tunisia can benefit from a tax system that taxes his pension at no more than 5%, compared to the 30% applied on average in Italy. Those who receive pensions considered medium to high get savings thanks to this tax measure. It is necessary to transfer your residence to obtain a pension taxed 80% at zero and the remaining 20% ​​at 20%. However, the total amount must not exceed 5% of the total.


As for the requirements, to benefit from the social security benefit, it is important that he has not paid tax as a tax resident during the five years preceding the application. The minimum residence is 183 days. In the event that the required permanence is not achieved, it is required that he owns the residence and that the conditions for maintenance and residence are met.

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Most suitable countries

At this point, it is good to know which countries are most suitable for foreign retirees. MaltaThere is a preferential tax rate of 15% on income from abroad, including pensions, which meet certain conditions: the income must come from a European country, the beneficiary must not be working and the pension must be equal to or greater than 75% of the total taxable income. Furthermore, it is necessary to purchase a property with a value of at least 250,000 euros or to stipulate a rental contract for at least one year with an annual minimum of around 9,000 euros.

in GreeceThere is a 7% tax for 15 years on the income of foreign retirees who worked in the private sector and transferred residence. This measure was introduced in 2013. CiproPensions up to €3,420 are tax-free, while a 5% rate applies to higher amounts. Furthermore, a preferential 5% VAT applies to the purchase or reconstruction of a home.

in RomaniaA 10% tax is applied to those moving to the country, but this is not a specific deduction for pensioners. In fact, a flat 10% tax is applied to personal income in the country. In Canary IslandsThere is a discount of 6,500 euros for those over 65, rising to 7,000 euros for pensioners over 75. Finally, in some countriesEastern EuropeLike Bulgaria, Slovakia and Albania, no tax is applied to foreigners who choose to move to the territory.

How to evaluate

Assessing whether the Social Security tax system is beneficial requires a careful examination of various aspects. First, it is important to consider: Tax rates Advance. A lower tax rate system can reduce the tax burden on your retirement income, allowing you to build your retirement savings more quickly.

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However, it is also important to study the tax structure of retirement benefits. Systems that provide preferential taxes or Exemptions When withdrawn, they can provide a significant tax advantage in the long run. Another key aspect is the deductibility of contributions to a retirement fund. Deductible contributions mean that your taxable income is reduced accordingly, resulting in a lower tax payment each year. This can be particularly beneficial for those who want to maximize their retirement savings without increasing their current income tax. In addition to the deductibility, the accessibility and flexibility of the benefits are key.

A scheme that allows flexible payments and offers early withdrawal options or a subsidy if needed may be best for those who want to manage their retirement savings more dynamically. The costs of running a pension fund are another factor to consider carefully.

Plans with lower administrative costs tend to maintain a greater net return for participants, ensuring that contributions are optimized for their retirement future without being eroded by excessive fees and costs.


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