Around 3,000 Italian pensioners living in Albania are worried about the fate of their pensions. Until now, their income was exempt from taxes, but the new fiscal law of 2024 has removed the exemption that provided income to pensioners with a residence permit in the country. In practice, this could mean that Italian pensioners could be forced to pay 15% tax on their pensions.
The old 2019 law guaranteed total tax exemption for European Union citizens who lived at least 183 days a year in Albania and had transferred their activities, even non-profit ones, to the country. The new law, however, limits the exemption only to income protected by international agreements ratified by the Albanian Parliament.
Panic has gripped many pensioners, who have started seeking information from CAF and the Albanian Revenue Agency. But the information is unclear and often contradictory. Some of them have even written open letters to Prime Minister Edi Rama, seeking clarity on the situation.
The average pension received by Italians in Albania is around 3,500 euros per month, but some receive less and are more concerned about the potential tax. If Albania decides to tax pensions, informal surveys show that many will seek refuge in other more “fiscally friendly” countries, such as Slovakia, Hungary or Croatia.
The departure of Italians would be a huge loss for Albania. Currently, Italian pensions bring over 136 million euros a year into the economy, money that is spent on rent, housing, supermarkets, restaurants, cars, telephones and various goods. A new tax could significantly affect this flow of money and the life of the Italian community in the country./La Repubblica
