real estate investment / pensioners / tourism in albania

Why live as a pensioner in Portugal?

But are we sure that Portugal is still a convenient destination for pensioners abroad?

Many people wonder whether living as a pensioner in Portugal is still worthwhile. The choice of where to live as a pensioner depends on several personal factors, such as lifestyle, preferences, climate, language, culture, proximity to family members, infrastructure and costs.

Portugal is a popular destination for European pensioners thanks to its quality of life, mild climate, culture and language, infrastructure, security and tax benefits for non-regular residents.

However, Albania is a country that is emerging as a tourist and expatriate destinationoffering an interesting mix of natural beauty, history, culture, gastronomy, mild climate and affordable costs. In particular, Albania's coastal resorts, such as:

  • Saranda,
  • Vlora,
  • Durres,
  • Himara and Shëngjin,

offer breathtaking landscapes, crystal-clear sea, well-equipped beaches, tourist and residential facilities, as well as a vibrant nightlife and delicious cuisine.

saranda beach in albania
Saranda beach in Albania


In addition, Albania offers tax breaks for foreigners who buy property, such as exemption from paying income tax for the first 10 years and a fixed annual tax for the next 15 years.

So, although Portugal may offer a higher standard of living for some pensioners, Albania could be an interesting option for those seeking a more authentic and adventurous living experience, with lower costs and unspoilt natural beauty. However, it is important to carefully weigh all personal factors and consult a tax professional to make an informed decision and comply with the tax regulations of the respective countries of origin and destination.


From the point of view of pension taxation, there are some significant differences between Albania and Portugal.

In Albania, as we know, foreigners receiving a foreign pension only pay 1% income tax, which makes the country a very affordable option for pensioners. In addition, living costs in Albania are generally lower than in many EU countries, which means that the purchasing power of the pension will be higher.

On the other hand, Portugal also has some attractions for retirees, such as its mild climate, rich culture and natural beauty. However, In Portugal, foreigners receiving a foreign pension must pay the 10% of income tax. Although this tax is lower than in many other EU countries, it still represents a significant cost for pensioners.

In addition, the cost of living in Portugal is generally higher than in Albania, especially in tourist cities such as Lisbon and Porto. However, the Portuguese healthcare system is generally considered to be of high quality, which could be an advantage for pensioners in need of medical care.

In summary, although Albania offers a more favourable tax regime for pensioners, Portugal may be a better choice for those who wish to live in a European country with developed infrastructure and services. However, the final decision will depend on the personal preferences and individual priorities of each pensioner.


And from the health point of view, how does one behave in Albania?

First of all, you should know that registering with Aire also pays off from a health point of view

Registration in the registry office of Italian citizens residing abroad is not only a right for those seeking better opportunities: it is a duty for those who wish to take full advantage of all the opportunities attached to their new country of residence, without losing their rights as citizens of Italy.

Aire registration for those who decide to move to Albania for more than 6 months even non-continuous per year in order to benefit from the tax breaks provided for in bilateral double taxation conventions, does not make you lose your right to treatment in Italy but rather you should know that you will continue to be entitled for 90 DAYS PER YEAR to Italian healthcare.

At the same time, Albanian healthcare, in strategic cities such as Tirana and Durresby virtue of the presence of international diplomatic, financial and tourist offices, has evolved to include services and professionalism that are now competitive with the corresponding Italian centres for many departments. Even unthinkable in Italy, the large public hospital in Tirana, dedicated to Mother Teresa of Calcuttaboasts an in-house specialist dental department that cannot be found in our country's ASLs.

In addition, by taking out insurance cover costing EUR 100 per month, it is possible to access the best private healthcare at rates comparable to our co-payments, i.e. covered by the insured limits depending on the type of policy.


Conclusions And Online Tax Advice

As we have already seen, it is possible to enjoy your pension abroad by being able to take advantage of both Italian and Albanian healthcare without paying taxes in Italy, but only by complying with the specific regulations. If you are planning to move abroad and want to carry out targeted tax planning, I advise you to consult Azeta's experienced accountants in this area.

The risk of making mistakes is high and you may be subject to penalties that could be avoided. The Internal Revenue Service has intensified its controls in recent years, especially to identify those who have not correctly applied the regulations on the transfer of residence abroad or who have made the transfer for the sole purpose of evading taxes. In particular, irregular situations are often linked to maintaining strong ties with Italy, such as owning real estate in Italy, transferring money from abroad to Italy or spending significant periods of the year in Italy.

It is important to know the regulations and to rely on experienced consultants who can direct you towards the right solutions according to your personal situation. In the event of an Agency audit, it is essential to have a personal file containing all the information necessary to prove the goodness of your choices and tax compliance. If you need further information, do not hesitate to contact us via the online tax advice service.




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