In the ruling (risposta a interpello) No. 202 of 5 November 2026, the Italian Revenue Agency clarified the tax treatment of an Italian public pension received by a non-resident with dual citizenship, Italian and that of the foreign State in which he resides. The issue specifically concerns the application of the Double Tax Treaty between Italy and Lebanon and the role of nationality in determining which State is entitled to tax pension income.
The ruling shows that moving one’s tax residence abroad does not necessarily shift the taxation of the pension to the State of residence, since the nature of the pension and the specific applicable treaty provisions must also be taken into account.
Table of contents
- The case: INPS pension and residence in Lebanon
- The rules on public pensions in the Italy–Lebanon Double Tax Treaty
- The clarification of the Italian Revenue Agency
- Checks to be carried out for pensioners resident abroad
The case: INPS pension and residence in Lebanon
The taxpayer, resident in the Lebanese Republic and registered with AIRE, holds both Italian and Lebanese citizenship. Since 1 September 2026 he has received a pension paid by INPS, deriving from the former INPDAP scheme, following a previous employment relationship with an Italian ministry lasting approximately 35 years.
Given the uncertainties that arose with the social security institution regarding the correct tax treatment, the pensioner asked whether the income should be taxed in Italy or exclusively in Lebanon. In his view, holding Lebanese citizenship and residing in that State would have been sufficient to exclude Italian taxation, despite his retaining Italian citizenship.
The request stems from a doubt that can also arise after a permanent move abroad: tax residence and citizenship are distinct elements and can play different roles in international treaties. Registration with AIRE is a relevant registry datum, but on its own it is not sufficient to identify the State entitled to tax each category of income. Moreover, for pensions it is necessary to examine the origin of the pension and the specific rules laid down in the agreement between the two countries.
The rules on public pensions in the Italy–Lebanon Double Tax Treaty
Under domestic law, Article 3 and Article 23, paragraph 2, letter a), of the TUIR (Italian Income Tax Code) provide, respectively, for the taxation of non-residents on income produced in Italy and the tax relevance of pensions paid by Italian entities. These provisions must, however, be coordinated with international double tax treaties, according to the principles also referred to in Article 169 of the TUIR.
The analysis therefore requires two successive checks. First, it must be established whether, under Italian rules, the pension is Italian-source income; then the Treaty must be applied, as it may modify the allocation of taxing rights between the States. It is therefore not enough to know which entity actually pays the pension: the employment relationship from which the pension derives and the treaty provision governing it are also relevant.
The Italy–Lebanon Double Tax Treaty, ratified by Law No. 87/2011, provides in Article 19, paragraph 2, letter a), that pensions paid in respect of services rendered to the State, its subdivisions or local authorities are, as a general rule, taxable only in the State from which they originate.
Letter b) then introduces an exception: exclusive taxation shifts to the foreign State of residence only when the recipient is a resident and national of that State, without also holding the nationality of the State paying the pension. The citizenship requirement must therefore be assessed in both of its components. The notion of “national” is also defined by Article 3 of the Treaty itself.
The conditions laid down in letter b) must be met simultaneously. It is therefore not sufficient for the pensioner to be merely a resident and citizen of the foreign State: he must also not hold the citizenship of the State from which the pension originates. This distinction is decisive in cases of dual citizenship, because the existence of two nationalities may prevent the exclusive taxing right from shifting to the State of residence, even without calling into question the beneficiary’s foreign tax residence.
The clarification of the Italian Revenue Agency
In the case examined, dual citizenship prevents the application of the exception provided for in Article 19, paragraph 2, letter b). Lebanese citizenship does not eliminate Italian citizenship and, as a result, the public pension remains taxable exclusively in Italy, even though the taxpayer is tax resident in Lebanon.
The Agency specifies, however, that this conclusion presupposes the genuinely public nature of the pension, linked to services rendered to the Italian State, as well as the foreign tax residence declared by the applicant. These are factual circumstances that were not verified in the context of the ruling.
Checks to be carried out for pensioners resident abroad
The clarification does not mean that every pension paid by INPS to a foreign resident is taxable only in Italy. It is necessary to identify the public or private nature of the pension, the former employer, the tax residence and the citizenships held, as well as the wording of the specific applicable treaty.
The Treaty separately governs, in Article 18, pensions relating to employment not falling within public functions, under conditions different from those of Article 19. The characterisation of the pension is therefore essential to identify the applicable rule.
For those who move abroad or already receive an Italian pension, a preliminary assessment of the tax position and of the available documentation can help identify the correct State of taxation and avoid tax treatments inconsistent with the treaty provisions.