Tax benefit for foreign retirees


A substitute tax of 7% on all types of foreign income is granted to people who decided to spend their retirement in some of the most suggestive part of South Italy. Instead, Italian income are subject to ordinary taxation.


The retiree who perceives a foreign pension may apply for that tax regime under the following conditions:

  • have not been resident in Italy during the last 5 years prior the transfer;
  • move from a country with which Italy has a cooperation agreement (e.g., double taxation treaty);
  • move their residence in a town with a population of less than 20,000 inhabitants in the regions of Sicily, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia or in a town with a population of less than 3,000 inhabitants included in a list established by law.


The benefit is due from the year in which the residence for tax purposes is acquired and for the following 8 years (9 years in total).