Italy is increasingly paying pensions outside its borders, with a projected rise in international INPS allowances to 675,000 by 2025, signaling a shift in trends as a new tax bill is discussed to encourage pensioners to return to small municipalities in Italy.
Italy has seen a consistent rise in pension payouts to expatriates, with the number of international INPS pensions projected to reach 675,000 by 2025, marking a 1.3% increase from the previous year. This growth is seen as a significant shift from a downward trend in previous years. The report by Gianfranco Santoro, director of Studies and Research at INPS, highlights the changing landscape of pension destinations, revealing that many retirees are drawn to specific countries where the purchasing power of their pensions is relatively higher.
In the backdrop of these statistics, the Italian Senate is currently discussing a legislative proposal aimed at incentivizing retired individuals living abroad, particularly those in non-EU countries, to relocate back to Italy's smaller municipalities. The proposal includes targeted tax incentives, recognizing the economic potential of repopulating these areas as well as the fiscal balance that could be achieved by repatriating pensioners to their homeland.
This legislative measure not only addresses demographic concerns faced by rural regions in Italy but also reflects broader trends in how the Italian government is adapting its policies to retain and attract its citizens. As the conversation about pensions and migration evolves, it raises questions about the long-term implications for both expatriates and the Italian economy, particularly regarding the sustainability of pension systems and the social integration of returning retirees.
