Retiring in Thailand with an Italian pension: INPS, tax and what to plan

When you become tax resident in Thailand

You're tax resident in Thailand if you spend 180 days or more there in a calendar year. From then on, the Thai Revenue Department can tax not only income arising in Thailand but also foreign income you bring in.

The rule that changed in 2024: what matters is when you bring money in

Under Thai Revenue Department instructions in force since 1 January 2024 (Por.161/2566 and Por.162/2566), foreign income remitted to Thailand by a tax resident is taxable in the year you bring it in, even if you earned it in an earlier year.

• Income earned before 2024 remains exempt, even if remitted later.
• Holders of an LTR visa (Long-Term Resident, for example the wealthy pensioner category) are exempt on remitted foreign income.
• Bringing in capital you already own is different from income: keep track of where funds come from, account by account.

The INPS pension and the Italy-Thailand treaty

Italy and Thailand have a double taxation treaty from 1977 (ratified by Italian law 202 of 1980). Pensions are dealt with in Article 18, and the treatment depends on the type of pension: public-sector pensions, for example for former civil servants, follow different rules from private-sector ones.

To have the treaty applied to a pension paid abroad, INPS has a procedure using a form certified by the tax authority of your country of residence. It's a technical point: before moving, have a professional confirm how your specific pension will be taxed, in Italy and in Thailand.

Remember too that Thailand has no social security agreement with Italy: any contributions paid in Thailand don't add up with your Italian ones. See the guide on the Italian pension with contributions abroad.

The other choices to make before you leave

• Visa: the main routes for over-50s are the retirement visa, with bank deposit or monthly income requirements, and the LTR visa, more expensive but with tax advantages. Requirements change often: check them on official Thai sources.
• Italian residency: to stop being tax resident in Italy, AIRE alone isn't enough; domicile and days of presence count too. See moving your tax residency out of Italy.
• Healthcare: moving ends your routine cover under Italy's national health service. Private health insurance in Thailand is essential, and gets more expensive with age: better to take it out early.
• Currency: if your income is in euros and your spending in baht, the exchange rate becomes a risk. A few years of spending already converted, or part of your savings in the currency you spend, reduces surprises.
• The bridge to your pension: if you move before old-age pension age, the years until your first payment have to be funded from savings. The FIRE simulator with state pension helps you size it.

Thailand can be a great choice for living well on an Italian pension, provided you arrive with the numbers done: tax in both countries, money flows, healthcare and currency.