Italy: New Eldorado for Pensioners from all Around the World?

| February 12, 2019

What’s the best place to retire abroad? Italy, of course! Or even better, the South of Italy. Especially since when the country has introduced the Flat Tax for pensioners, which consists in very favourable tax conditions to encourage Italian and non-Italian retirees to move to the peninsula, as Portugal did in 2009.

As part of the 2019 Annual Budget, the Italian government approved a law that caps taxation on pensions and other foreign income at 7% for 9 years. The scheme is to remain in place for 5 years. After this period, income will be taxed according to the progressive tax rate.

Requirements to benefit from the Flat Tax for retirees in Italy

1. You must have a pension or income from overseas
2. You have to take up residency in a town in Southern Italy with no more than 30,000 inhabitants according to ISTAT, National Institute of Statistics Italy. But also in those towns hit by the earthquakes on 24 August and on 26 and 30 October 2016 click here and then on ‘Allegato’ the see the complete list and on 18 January 2017 with no more than 3,000 inhabitants.
3. You have not been Italian tax residents in the last 5 years preceding your relocation to Italy.

Eight southern regions are eligible: Sicily, Calabria, Campania, Sardinia, Puglia, Molise, Basilicata and Abruzzo.

Advantages of moving to Southern Italy

If you’ve already visited Southern Italy you will have fallen in love with its breathtaking landscapes and the friendliness of the people.

The area is rich in historic towns and villages and offers many areas of natural beauty and archaeological sites.

Especially outside the areas biggest cities you find the real Italian way of life that values life’s simple pleasures: a long coffee break with a friend or that feeling of sand between your toes while walking along the beach.

What’s more, the area boasts a mild climate all year round. So even in winter it is never too cold to take an evening stroll around the town.
Life is not only simpler but also more affordable! Property prices are much lower than in northern and central Italy. There is a good chance you’ll find your dream home at a surprisingly affordable price!

That’s the perfect destination to live a slow-paced life in your retirement years.

Interested in other similar schemes? There are many towns in Italy offering houses for sale at € 1 and Molise pay you € 24,000 if you move there and set up a business.

11 thoughts on “Italy: New Eldorado for Pensioners from all Around the World?

  1. Tucker Mansager

    The Portuguese dropped all income tax on expat retirees I thought. Italy dropped it to 7%. What was it before and do we know what it will revert to?


      Hi Tucker,

      Standard Italian income tax ranges from 23% on income up to €15,000 to 43% on income over €75,000.

      All the best,

      the team

  2. John mcmanus

    This is an interesting development. Can you please advise where I can find more data regarding definitions of residency and the details of ‘progressive taxation rates’?

  3. Gene Cuglietta

    I am intetested in the Calabria region …Amantea, and Campora or Corseca..along the the Meditearean sea.

  4. Steve Jones

    Looking at retiring in Abruzzo, from US. Would be potentially interested in one story bungalows with garden and main drains, in a nice town in reach of mountain walks, fishing/golf and also beaches and sea, Would welcome some suggestions, preferably less than $100k. Some renovation work is ok.

  5. Frank

    Will US pensioners be eligible for health care and to live in southern Italy all year round?

  6. Steve Weston

    Hi there Gate-Away
    Is there any more info, links or articles I can access giving me more specific depth to the Italian incentive scheme for retirees in the South?
    Many thanks
    Steve Weston

  7. Bernita Gross

    I was so happy to see this article, because I have already decided to buy in Italy. I was wondering how do you define “residency”? I guess I want to know how many months in the year woudl I have to live in Italy for it to be considered residency? Before reading this article, I wanted to buy a place and use it as a vacation home for me and my family as well as rent it out to people on holiday. Is there a way I can do that and still meet the requirements for this scheme? Thank you!

  8. carmen vanden bossche

    Concerning your article about new law : tax rate 7%
    Dear sir, madam
    is this law voted , approved and published ? ( I have heard that it is only a law-proposal at the moment.
    If this law is applied already I most probably will move to South-Italy
    Can you send me the link of publication of this approved law in the Gazetta Uffiziale ?
    many thanks


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