INPS Pensions and Swiss Residency: The Cassation Court Confirms the Right to Reimbursement

With Ordinance No. 11085 of April 28, 2025, the Italian Supreme Court of Cassation has established an important principle for Italian citizens residing in Switzerland who receive Italian INPS pensions. It has clarified that these social security payments, being private in nature, are not taxable in Italy for Swiss residents, regardless of whether they were actually taxed in Switzerland. For the application of the conventional provisions (and for the recognition of the reimbursement), mere "potential subjection" to unlimited taxation in the state of residence (in this case, Switzerland) is sufficient. Furthermore, the certificate issued by the Cantonal Tax Office is fully valid for requests for reimbursement of deductions made in Italy; "state" certifications or specific formulas referring to the Convention are not required.

However, a significant disparity in treatment emerges: while Italy recognizes and reimburses withholding taxes on pension income to Swiss residents based on a simple cantonal certificate, Switzerland often denies similar reimbursements of withholding tax to Italian residents, requiring more stringent documentation and applying more restrictive interpretative criteria of the bilateral Convention.

This asymmetry penalizes Italian taxpayers in mirrored situations, creating an unjustified disparity in the application of the same conventional principles.

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