Note:While this article focuses on U.S. government pensions, the same treaty logic often applies to UKand other government pensions. Always check the country of origin of your pension \u2014 it makes all the difference in how it\u2019s taxed in Italy. This deep-dive began with a familiar frustration: British, American, and other retirees considering a move to Italy are often badly advised on how their pensions will be taxed. The final spark was a conversation with a U.S. Army doctor who, after a paid consultation with an Italian tax \u201cexpert\u201d, was incorrectly told his federal pension would be fully taxed in Italy. Duly frightened, the good doctor set his sights on a 7% tax town: a decision that would have cost him more, not less, in taxes. We wrote this piece to explain why the 7% regime is often unnecessary – even counterproductive – for foreign retirees receiving government pensions, and why these fortunate individuals can enjoy a tax-light retirement almost anywhere in Italy, not just in the designated towns. ANNUAL MEMBERS GET A ONE-HOUR PRIVATE CONSULTATION, AND A LOT MORE! The 7% Substitute Tax Regime for Retirees in Italy Italy\u2019s 7% substitute tax regime is a special flat-tax program introduced…<\/p>\n