Treaty reference
US-Italy Pension and Retirement-Account Treaty Matrix
The 1999 US-Italy Double Taxation Convention divides taxing rights on retirement income between the two countries. This matrix summarizes how the treaty interacts with the 7% flat-tax regime across 401(k) distributions, Traditional IRA, Roth IRA (treatment in Italy is unresolved: do not assume tax-free), Social Security, US government pensions, and private pensions. Because the US taxes its citizens on worldwide income under the treaty saving clause, US tax can still apply even after you become an Italian resident. The 7% regime caps the Italian side. Verify your position with a US cross-border tax advisor and an Italian commercialista.
Sources
Treaty reference: Convention between the United States and Italy for the avoidance of double taxation, signed 25 August 1999, in force from 2010, read together with Art. 24-ter TUIR (the 7% flat-tax regime). This is informational only and is not tax advice. Several points, especially the Italian treatment of Roth IRA distributions and the nationality split on US Social Security, are genuinely unresolved. Verify your position with a US cross-border tax advisor (a US CPA or EA) and an Italian commercialista before relying on any of it.
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This tool is informational only. It does not constitute tax or legal advice. Confirm your specific position with a qualified Italian commercialista AND a US cross-border tax advisor (a US CPA or enrolled agent familiar with the US-Italy treaty) before making any decision.