RETIRE IN ALBANIA AND GAIN ZERO TAXATION
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Retire in Albania and gain zero taxation. No taxes for European pensioners in Albania, by Att. Daniele Bertaggia, Ferrara
On January 23, 2020, the Parliamentary Commission for the Economy and Finance in Albania approved the de-taxation of pensions for all Albanian citizens residing abroad and for all citizens of the European Union who move with the aim to reside in Albania.
RETIRE IN ALBANIA AND GAIN ZERO TAXATION
Parallel to this, Portugal, which in a few years became a paradise for foreign pensioners thanks to its tax-friendly legislation lost its status as a favourite destination. The government of Prime Minister Antonio Costa has in fact approved the 2020 financial manoeuvre, and in particular the proposal put forward by Catarina Mendes, leader of the socialist group in Parliament, which eliminated the privilege that grants non-regular residents zero taxes on pensions for a period of ten years.
In recent years, foreigners in their droves moved to Portugal to take advantage of this zero-tax facility, adopting the status of non-regular residents (i.e. living 6 months and one day in the state of the Iberian Peninsula). However, if this amendment passes, the flow could stop.
Up to date, those in possession of an annuity legitimately earned after decades of work moved to the Lusitanian country and enjoyed total tax exemption for ten years. In a nutshell, a check for 5 thousand euros, on which in Italy you pay up to 40 percent of taxes by delivering a sum of up to 2 thousand euros to the treasury, remained intact in the pockets of the pensioner who was settling in Portugal. The benefit, ensured by the Lisbon government, created a flow of Italians who found a brighter destination in the west of Europe. Facilitation has now been abolished.
To take advantage of this with a far-sighted vision and a claw worthy of the eagle that represents the country was the parliamentary commission for the economy and finance of the Republic of Albania, chaired by Minister Elton Haxhi, on the proposal of the Minister of State for diaspora Mr. Pandeli Majko with a regulatory act that modifies law no. 8438, of 28.12.1998, “on income tax”.
THE MAIN OBJECTIVE OF THE LEGISLATIVE AMENDMENT IS THE TAX EXEMPTION FOR ALL FOREIGN CITIZENS BELONGING TO THE EUROPEAN UNION AND FOR FOREIGNERS WITH ALBANIAN ORIGIN (ESPECIALLY ARBËRESHË) PENSIONERS, WHO WILL MOVE TO THE TERRITORY OF THE ALBANIAN REPUBLIC.
To benefit from the income tax exemption, retirees must comply with the following conditions:
1. a) Be beneficiaries of pensions in accordance with the legislation in force in the countries of origin;
2. b) Apply for a residence permit in the territory of the Republic of Albania;
3. c) Never have been sentenced in their country or in their The Republic of Albania or any other country for crimes, for which the law provides for sentences of more than 3 (three) years;
4. d) Having received a positive response from the structure responsible for the exemption on the income tax of pension individuals;
5. e) Produce a copy of the passport issued by the state in which they have their permanent residence.
IN THE LIGHT OF THIS LEGISLATIVE NEWS, ALBANIA IS ONE OF THE COUNTRIES THAT OFFERS THE GREATEST NUMBER OF FISCAL, ECONOMIC AND ENVIRONMENTAL BENEFITS FOR PENSIONERS WHO WISH TO MOVE ABROAD.
In our previous article we had already talked about the considerable advantages that pensioners have from transferring their residence (and pension) to foreign countries compared to Italy. Now Albania, which is geo-graphically close to Italy, with a cost of living below 50%, becomes a truly interesting reality for all retirees who wish to obtain a complete tax relief on their pension.
We are proud to have a special section in the studio that deals with the legal, administrative and fiscal formalities in order to facilitate the regular transfer abroad of individuals, through which we can facilitate the transfer of those pensioners who wish to obtain complete tax relief in their pension.