How is an Italian pension taxed if you move to Albania?
It depends on the pension. Under the Italy-Albania tax treaty (in force since 21 December 1999), a private-sector INPS pension of an Albanian tax resident is taxed only in Albania, while a public-sector pension (ex-INPDAP) stays taxed in Italy unless you are also an Albanian citizen. Albania's income tax law 29/2023 does not list pensions as taxable income; an explicit exemption for foreign pensions was approved as a draft in April 2026 but was not confirmed as law on 23 October 2026.
Data compiled by Fedir AlpatovUpdated
Which country taxes which pension
| Pension | Taxed in | Treaty article |
|---|---|---|
| INPS, private-sector employment | Albania only, if you are an Albanian tax resident | Art. 18 |
| Public-sector (State, regions, municipalities; ex-INPDAP) | Italy only; Albania only if you are resident there and an Albanian citizen | Art. 19(2) |
Sources · 3
- DATA-TAX-IT-0001Convention for the avoidance of double taxation on income and capital, with protocol, signed in Tirana on 12 December 1994 and in force since 21 December 1999. An investment protection agreement (Rome, 12 September 1991) has been in force since 29 January 1996.Italy–Albania double taxation convention: signed 12.12.1994, in force since 21.12.1999
- DATA-TAX-IT-0002Private pensions for past employment (e.g. INPS private sector): taxable only in the state of residenceItaly-Albania treaty Art. 18: a private pension is taxed only in the country where the pensioner livesConfidence: MEDIUMPeriod: 1999 onwardsverified 2026-10-19Italy-Albania double taxation convention, text of Articles 18 and 19 (transcription)
- DATA-TAX-IT-0003Pensions paid by the State for services to the State (e.g. ex-INPDAP): taxable only in Italy, except for residents of Albania with Albanian citizenshipItaly-Albania treaty Art. 19: a public-sector pension stays taxable in Italy unless the pensioner is an Albanian national resident in AlbaniaConfidence: MEDIUMPeriod: 1999 onwardsverified 2026-10-19Italy-Albania double taxation convention, text of Articles 18 and 19 (transcription)
What Albania does with your pension
You become an Albanian tax resident if you have a permanent home there, spend 183 days or more in the tax year, or have your centre of vital interests there. Residents are taxed on worldwide income, but the 2023 income tax law lists only employment, business and investment income as taxable and excludes income from the compulsory social insurance scheme. It does not mention foreign pensions explicitly, and tax advisers read this differently.
The old explicit exemption for pensions of EU citizens (2019) belonged to the previous tax law and was not carried over. In April 2026 the government approved a draft that would exempt foreign pensions of Albanian residents; until it is passed, ask a tax adviser before you rely on a zero rate.
| Rule | What it says |
|---|---|
| Tax residence | 183 days, a permanent home or the centre of vital interests in Albania |
| Pensions in the income tax law | Not listed as taxable; no express rule for foreign pensions |
| Exemption for foreign pensions | Draft approved in April 2026, not yet confirmed as law |
| Pensioner residence permit | Pension of at least 1,200,000 ALL a year; 1 year, renewable |
Sources · 4
- DATA-TAX-0030183 daysAlbanian tax residence: a permanent home, 183 days in the tax year or the centre of vital interestsConfidence: HIGHPeriod: 2024 onwardsverified 2026-10-19Law 29/2023 "Për tatimin mbi të ardhurat" (On income tax), consolidated text
- DATA-TAX-0031Taxable categories: employment, business, investment (Art. 10); compulsory social insurance income excluded (Art. 11(a)); no express rule for foreign pensionsAlbanian income tax law 29/2023 does not list pensions among taxable income; foreign pensions are not expressly exemptConfidence: MEDIUMPeriod: 2024 onwardsverified 2026-10-19Law 29/2023 "Për tatimin mbi të ardhurat" (On income tax), consolidated text
- DATA-TAX-0032Draft approved by the Council of Ministers on 10.04.2026; not confirmed as passed by Parliament on 23.10.2026April 2026: the government approved a draft law exempting foreign pensions of Albanian residents; adoption not confirmedConfidence: MEDIUMPeriod: 2026verified 2026-10-19RTSH: the government approves the draft amendment to the income tax law, including exemption of foreign pensions (10 April 2026)
- DATA-LEGAL-001513040.64 EUR per year (income floor)Residence permit for pensioners: pension income of at least 1,200,000 ALL a yearConfidence: MEDIUMPeriod: 2024–2026verified 2026-10-19Law No. 79/2021 "Për të huajt" (On foreigners), consolidated text as amended by Law 43/2025
What to do in Italy
Register with AIRE at the consulate within 90 days of moving; since 2024 missing it costs EUR 200-1,000 a year. AIRE alone does not end Italian tax residence: what counts is where you actually live and where your family and interests are.
To stop INPS withholding Italian tax on a private pension, send form EP-I in original, with a tax-residence certificate from the Albanian tax administration, to the INPS office that pays you. Tax already withheld can be reclaimed from the Agenzia delle Entrate within 48 months.
The Italian 7% flat tax for foreign pensions is an Italian regime for people who move to small towns in southern Italy; it has nothing to do with Albania.
Questions and answers
Sources
- Legge 21 maggio 1998 n. 175, ratification of the Italy-Albania double taxation convention (Normattiva). Normattiva (Istituto Poligrafico e Zecca dello Stato), 1998-06-06 (accessed 2026-10-23)
- Law 29/2023 "Për tatimin mbi të ardhurat" (On income tax), consolidated text. Aksesdrejtesi (official legal texts) (accessed 2026-10-23)
- INPS, tax rules for pensioners resident abroad (updated 1 August 2025) and form EP-I. INPS, 2025-08-01 (accessed 2026-10-23)
- ALTAX: are pensions of foreigners living in Albania taxed? (2 February 2026). ALTAX, 2026-02-02 (accessed 2026-10-23)
- Albania: accordi in vigore (scheda reciprocità). Ministero degli Affari Esteri e della Cooperazione Internazionale, 2026-01-23 (accessed 2026-10-19)
- Italy-Albania double taxation convention, text of Articles 18 and 19 (transcription). MisterFisco (accessed 2026-10-23)
- RTSH: the government approves the draft amendment to the income tax law, including exemption of foreign pensions (10 April 2026). Radio Televizioni Shqiptar (RTSH), 2026-04-10 (accessed 2026-10-23)
- Law No. 79/2021 "Për të huajt" (On foreigners), consolidated text as amended by Law 43/2025. Albanian State Police (ASP), 2025-11-01 (accessed 2026-10-19)
What is missing
Gaps we know about: questions we have no reliable data for yet.
- Whether the April 2026 draft exempting foreign pensions has been passed by Parliament.
- How Art. 18 applies to INPS pensions of the self-employed (artigiani, commercianti, gestione separata) and to mixed public/private careers.
- Treaty articles quoted from a secondary transcription; the official text on Normattiva or MEF not yet opened.
- Procedure and fee for the Albanian tax-residence certificate (DPT) not verified.