Pensioners living abroad in countries that ensure an adequate exchange of information can claim deductions for dependent family members.
This service is aimed at pensioners who live abroad in countries that ensure an adequate exchange of information, who meet the requirements prescribed by current tax legislation.
In order to claim deductions for dependent family members as per Article 12 of the Consolidated Act on Income Tax (decree of the President of the Republic n. 917 of 22th December 1986) pensioners who live abroad in countries that ensure an adequate exchange of information must confirm the following, by means of a substitute declaration of sworn affidavit that is issued pursuant to Article 47 of the decree of the President of the Republic n. 445 of 28th December 2000:
- Their country of tax residence;
- That they have generated at least 75% of their total income for the tax period in Italy, gross of deductible expenses and including income produced outside of their country of residence;
- That they are not profiting from similar tax benefits to those claimed from Italy in their country of residence or in any other country;
- Their relationship to and the personal data of the family member for whom the deduction is intended to be used, as provided for in Article 12 of the TUIR, indicating the months in which the required conditions start and end;
- That the family member for whom the deduction is claimed has a total income, for the entire tax period, that does not exceed €2,840.51, gross of deductible expenses and including income generated outside their country of residence. The 2018 Budget Law established that, starting from 1st January 2019, the total income limit for children aged 24 and under is raised to €4,000 (article 1, paragraph 252, law 205/2017).
The confirmation of the conditions is an integral part of the declaration of entitlement (Article 23, paragraph 2, letter a, decree of the President of the Republic No. 600 of 29th September 1973).
The claim for the application of deductions for dependent family members by pensioners residing abroad, who meet the requirements prescribed by current legislation, must be submitted annually to the INPS using the dedicated on-line service. Message n. 4161 of 9th November 2018 provides further operational guidance on this subject.