A tax-friendly retirement needs two things that rarely appear together in one article: a tax regime you can still join, and a visa that lets you live there. This guide covers both, for the countries Transita tracks. It is not tax advice.
1. United Arab Emirates: no income tax
The UAE government states that it does not levy income tax on individuals. Pensions, dividends and interest are all untaxed locally. VAT and corporate tax exist, but they do not touch a retiree's income.
The catch is the visa. There is no passive-income route in our catalogue for the UAE, so most retirees use the Golden Visa, which is investment-based: 10-year residence for a $1,000 fee and 1–3 months processing in our data. Our Golden vs Green Visa guide explains the investor and talent categories.
2. Southern Italy: 7% on foreign income
Italy runs an optional regime for pensioners moving from abroad. According to the Agenzia delle Entrate, you pay a 7% substitute tax on all income produced abroad, for each of the nine tax periods the option is valid, if you move to a town in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia with no more than 30,000 residents. The ceiling was 20,000 until 7 April 2026, so many more towns now qualify.
The visa that pairs with it is the Elective Residence Visa, which asks for EUR 31,000/yr (≈ $35,526/yr) in passive income and forbids work. That income floor is the price of the 7% rate.
The Italy combination in one line
Elective Residence Visa for the right to live there, a small southern town for the 7% option, and Italian-source income taxed normally on top. It is the clearest legal retiree tax break left in the EU among the countries we cover.
3. Portugal: off the list for new retirees
Portugal used to top every one of these lists because of the Non-Habitual Resident regime. A binding ruling from the Portuguese tax authority confirms the 2024 State Budget revoked NHR and introduced IFICI, which applies a special rate only to employment and self-employment income in qualifying research and innovation activities. A pension does not qualify.
Portugal is still one of the easiest places to get a retirement visa: the D7 asks for about $11,000 a year in our catalogue. It is just no longer a tax play. Our Portugal retirement guide covers the visa side.
Check which of these visas you qualify for
Transita matches your income and savings to the Elective Residence, the D7, the UAE Golden Visa and every other route we track. Answer 8 questions and your routes, documents and dates are set up for you. Free.
Build my workspaceThe visas behind the tax regimes
| Visa | Government fee | Processing | Money floor recorded | Published income floor | First permit |
|---|---|---|---|---|---|
| Italy: Elective Residence Visa | $125 | 1–3 months | Not recorded | EUR 31,000/yr (≈ $35,526/yr) | 1 yr |
| United Arab Emirates: Golden Visa | $1,000 | 1–3 months | Not recorded | Not recorded | 10 yr |
| Portugal: D7 Passive Income Visa | $250 | 2–6 months | $11,000 | Not recorded | 2 yr |
What decides your real tax bill
- Where the pension is paid from. Many treaties keep the right to tax government pensions with the paying country, whatever your new home charges.
- Your citizenship. US citizens are taxed on worldwide income wherever they live.
- Real residence. Every regime above assumes you actually move. A visa without the days on the ground does not make you tax resident.
For the broader trade-offs, see our page for people relocating for tax reasons and every country with a retirement visa.
Frequently Asked Questions
Which country is the most tax-friendly for retirees in 2026?
On headline rates, the UAE, which levies no income tax on individuals. For a retiree who wants to stay in the EU, southern Italy's optional 7% flat tax on foreign income is the strongest regime still open to new arrivals.
Does Portugal still offer tax breaks to retirees?
Not to new ones. The 2024 State Budget revoked the Non-Habitual Resident regime. Its replacement, IFICI, applies to employment and self-employment income in research and innovation roles, not to pensions. People already in NHR keep it until their 10 years end.
How does Italy's 7% flat tax for pensioners work?
Pensioners who move their tax residence from abroad to a qualifying town of no more than 30,000 people in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia can opt to pay 7% on all foreign-source income, for each of the nine tax periods the option runs.
Do US citizens escape US tax by retiring abroad?
No. The US taxes its citizens on worldwide income wherever they live, so a low-tax country changes your local bill, not your US filing. Treaty relief and foreign tax credits decide how the two interact.
Is this tax advice?
No. It is a map of which regimes exist and where their official rules are published. Your pension type, your treaty and your home country's exit rules decide the real number, so check with a qualified adviser before moving.
official sources: Residenza Elettiva · consboston.esteri.it·Golden Residence · u.ae·D7 · vistos.mne.gov.pt