INPS pension payments abroad in 2025

El INPS, the entity responsible for managing pensions in Italy, allows pensioners who reside outside the country to receive their monthly payments at their place of residence. Thanks to international agreements and tax agreements, it is now possible to access the payment of Italian pension abroad securely, even in a currency other than the euro.

To facilitate this process, the INPS works together with intermediary banks and international payment networks, such as Citibank, which are responsible for managing the international pension transfer. This allows your pension to arrive directly to your registered bank account every month, provided that it meets certain key requirements depending on the country where you live.

Where can you receive your pension if you are abroad?

Depending on your residence, the INPS pension can be paid:

• In the same currency as the destination country (for example, dollars in Panama)
• In euros, if you prefer and your bank allows it
• Through an international bank account duly declared to INPS

For Italians residing in Panama, it is generally possible to receive payment in U.S. dollars, which is the country's official currency. Of course, it is crucial to correctly declare the tax residence outside Italy to avoid undue detentions.

How is the change of residence managed?

To receive the INPS pension abroad, you must notify the INPS that you are no longer a tax resident in Italy. This is done through the change of address form and through registration with AIRE (Anagrafe degli Italiani Residenti all'Estero). Once this is done:

• The INPS recognizes that you are a resident abroad
• Automatic Italian taxes do not apply if there is a tax treaty with your new country
• You can send the payment to an account in the country of residence, in your local currency

In short, the INPS pension payments abroad are totally possible and are regulated. The secret lies in having a well-documented situation with the INPS, having an adequate bank account and complying with fiscal rules between the two countries involved.

Many Italians moving to Panama want to receive their Italian pension in dollars to avoid currency conversions and simplify your local finances. This is possible, but it requires following certain steps and meeting specific criteria of the INPS and the Receiving bank.

The first essential requirement is to have a valid bank account in Panama that accepts international payments. This account must be in your name and you must be able to receive funds in American dollars, since the INPS will make the transfer in the country's local currency, if allowed.

Requirements to receive the Italian pension in Panama

To avoid delays or problems with payments, make sure you comply with the following:

• AIRE registration: You must be registered as an Italian citizen living abroad.
• Declaration of tax residence in Panama: To avoid the double taxation, the INPS needs to know that you no longer pay taxes in Italy.
• Active bank account: The bank must allow transfers from abroad and have an international infrastructure (Swift, equivalent IBAN code, etc.).
• Validation of life (proval of life): The INPS usually requires an annual electronic confirmation that the beneficiary is alive. Without it, payments may be suspended.

Can the payment be automatically converted to dollars?

Yes If you live in Panama, the INPS (through Citibank or another intermediary) can convert your monthly payment from euros to American dollars before transferring it to your Panamanian bank. However, it is important to consider that the exchange rate may vary and may be subject to fees.

If you prefer to keep your payment in euros, it's also possible, as long as your bank account accepts that type of currency, although this is not common in Panamanian banks. For this reason, most prefer that the INPS pay directly in dollars.

Practical suggestion

Before choosing your bank, check that they have driving experience international pensions. Some banks may require additional documentation or apply certain withholding if they don't recognize the origin of the payment. In this case, having the right legal support can make all the difference in avoiding setbacks.

In conclusion, receive the INPS pension in Panama in dollars it is totally feasible if the formal requirements are met and the process is well managed before the INPS. Make sure you correctly declare your tax situation, provide all updated bank details and confirm your presence periodically as requested by the Italian system.

One of the most important aspects of receiving an Italian pension abroad is to understand how avoid double taxation. Double taxation occurs when two countries (in this case Italy and Panama) tax the same income with taxes. Nobody wants to pay taxes twice for the same pension, and luckily, there are legal ways to avoid that.

The key is to correctly determine your tax residence. If you live in Panama permanently, spend more than 183 days a year in the country and have complied with immigration procedures, it is most likely that you tax residence I'm in Panama. This means that, in principle, you should not pay taxes in Italy for your INPS pension.

But it's not enough just to live in Panama. To prevent Italy from withholding taxes on your pension, you need to send a series of official documents to the INPS and the Italian Tax Agency (Agenzia delle Entrate). The most important is the certificate of tax residence issued by the General Directorate of Revenue of Panama. This document shows that you are a tax resident in Panama and, therefore, you can take advantage of the benefits of the current tax treaty.

Once the certificate is submitted, it can be requested through the INPS channels that the pension be paid exempt from taxes in Italy. From that moment on, any applicable taxation (if any) will correspond only to the Panamanian tax authority, although in many cases Panama does not tax this type of income.

Key documents to avoid double taxation

• Valid certificate of tax residence in Panama
• Double Taxation Treaty Application Form
• Official translation (if required) and The Hague Apostille
• Evidence from the receiving bank where the pension is credited

Ensure a clear and duplicity-free taxation not only does it protect your personal finances, it also helps to avoid future legal problems or payment blocks by the INPS. It is recommended to review your tax situation annually to keep this condition current and up to date.

El tax agreement between Italy and Panama is a bilateral agreement aimed at avoiding double taxation between the two countries. This legal document defines principles and mechanisms so that an income —such as INPS pension— is taxed only in one of the two countries, depending on the tax residence of the beneficiary.

Signed to promote economic relations and protect taxpayers, this agreement establishes clear rules about where and how public pensions should be taxed. For the most part, the pensions paid by the Italian State (such as those of the INPS) are subject to taxes only in the country of residence if the beneficiary is not a public official.

This means that if you live in Panama and have an INPS pension, you can request that Italy does not withhold taxes on your pension, transferring the obligation (if any) to Panama. Not only does this prevent the tax from being applied in two countries, it also simplifies your tax return as a retiree.

In addition, the agreement contains clauses for the exchange of tax information between Italian and Panamanian authorities, making it possible to easily confirm the taxpayer's situation. These tools are especially useful for those who want to keep everything in order with their pension without legal complications.

Key benefits of the tax agreement

• Avoid tax withholding by Italy if you live in Panama
• Facilitates the transfer of Italian pensions to Panamanian banks
• Formally recognize your status as a tax resident in another country
• Protect your rights as a retiree against duplicate taxation

For these benefits to be applied correctly, it is essential to submit appropriate documentation each fiscal year. The agreement does not act automatically: it depends on compliance with legal and administrative processes in both Italy and Panama.

In short, this treaty represents a fundamental tool for Italian expatriates who want to receive their INPS pension in international bank accounts and converted to dollars, safely, legally and without paying duplicate taxes. In the next section we will see what key legal steps Italian residents living in Panama must follow to take advantage of all these benefits properly.

Once you understand how to receive your INPS pension in Panama and how to avoid double taxation, it's essential to ensure that your legal and fiscal status is in order. The correct management of your tax residence, bank accounts and official documents are key to ensuring that your payments are not delayed, blocked or unnecessarily held.

1. Secure your legal residence in Panama

The first step is to have your immigration status regularized. If you are an Italian citizen living in Panama, you must have some type of visa or permit to support your legal stay, such as Permanent Residence under the Treaty of Friendship between Italy and Panama.

Once obtained, you can request the certificate of tax residence Panamanian, necessary to submit to the INPS and avoid double taxation.

2. Get the tax residence certificate

The INPS may require proof that you are a tax resident in another country to apply the Italy-Panama agreement. In Panama, this certification is requested from the General Directorate of Revenue (DGI) and generally requires:

• Panamanian identity document or residence card
• Copy of the notice of operations or certification of not having economic activity, if applicable
• Proof of address (utility bill or lease agreement)

This document is key to proving that you are taxed in Panama and preventing the Italian State from withholding unnecessary taxes on your pension.

3. Inform the Italian tax authority

Once you have your Panamanian tax certificate, you must notify the INPS to correct or avoid any direct taxation in Italy. This is done through the form EP-I/1, where you declare your change of tax residence under agreement.

This process must be renewed periodically or updated in case of changes. Failure to do so may mean that the INPS applies withholding taxes by default.

4. Choose a suitable receiving bank

Select the Receiving bank correct where will your be credited Pension in dollars has practical and fiscal implications. The main financial institutions in Panama accept international pension transfers (INPS), but it's important to confirm that:

• Your account is registered in your name as a natural person
• The bank accepts payments in euros and converts them to dollars correctly
• It will issue the necessary reports to demonstrate the legal source of income

Ideally, your bank can issue annual certificates that support that the money received comes from a pension abroad.

5. Keep your personal information up to date

Remember to report any change of address, marital status, bank account or tax situation to both the INPS and your Panamanian bank. This avoids errors in the international pension transfer or blockades due to suspected irregular status.

In addition, the INPS can often request a “faith of life” certification issued from Panama. This must be delivered on time so as not to risk suspension of payments.

Legal Recommendation

Finally, it is advisable to seek the advice of a local lawyer with experience in international tax law and legal residence in Panama. This can save you complications when interacting with both authorities: INPS and Panamanian institutions.

Having legal guidance helps you meet all the requirements for receive your Italian pension in Panama without paying double taxes, ensuring financial peace during your retirement.