Can you transfer your Italian pension if you move abroad?

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.

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.

"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.