That means a favorable foreign tax rate may not deliver the tax savings you expect, depending on the taxes you may still owe the IRS. Greece: A 7% Flat Tax for Foreign PensionersAmong European countries, Greece offers the longest-running tax incentive for retirees. New Golden Visa RulesPortugal’s Golden Visa rules have also changed in recent years. Unless you are genuinely wealthy, a 300,000 euro fee will likely be prohibitive, making Italy a less appealing destination than it once was for many foreign retirees. If you buy property abroad, the Foreign Tax Credit may offset foreign taxes owed on rental income.