Italian flat tax 7%

Italy 7% flat tax for pensioners

Since 2019 has introduced a new tax treatment for pensioners, adopting art. 24-ter in our Italian income tax code. Basically, a pensioner who has not been resident of Italy in the 5 years prior moving here can claim a flat 7% taxation on ALL of the foreign income sources, not just the foreign pension received. The 7% flat tax applies to all your foreign income sources including:

  1. Pension income
  2. Interest income
  3. dividends
  4. rental income
  5. Royalties
  6. Capital gains
  7. severance payments
  8. miscellaneous income

There is no income cap on the income attracted to the 7% flat tax, making it very attractive to new pensioners wishing to move to Italy without spending a fortune on taxes.
This regime lasts up to 10 years, and you can drop off at any time prior the end of the period.

Our webpage here provides more details about this tax regime, however let’s recap them in this post.

7% Flat tax requirements

In order to qualify for the 7% flat tax regime for pensioners you must receive a private or public pension, it doesn’t matter whether you are a citizen of Italy or not, but you must receive a Foreign sourced pension.

You should not have been a resident of Italy in the last 5 tax years prior moving to Italy. This means that you may have been a tax resident of Italy 5 years ago or more and still qualify.

Finally, you must settle into a qualifying municipality. Note that you cannot benefit of this favourable tax treatment if you move to Italy in a non qualifying municipality, and then move into a qualifying one!
Which are the qualifying municipalities for the 7% flat tax for pensioners in Italy?

7% Flat tax qualifying municipalities

In order to qualify for the 7% flat tax for pensioners you must relocate to a qualifying municipality as per the paragraph 1 of the art. 24-ter. According to it, any municipality with 20,000 inhabitants or less located in any of the following regions qualify:

  • Abruzzo
  • Apulia
  • Basilicata
  • Calabria
  • Campania
  • Molise
  • Sardinia
  • Sicily

On top of that, any municipality with 3,000 inhabitants or less as per the annexes 1, 2 e 2-bis of D.L. 17 ottobre 2016, n. 189. Such municipalities are located in Umbria, Lazio, and Le Marche and were struck by major earthquakes during 2016, and the legislator attempted to boost repopulation of such areas by providing tax incentives to new residents.

Note that the number of inhabitants is set at January 1st of any given year, therefore if you move into a qualifying municipality which then increases its inhabitants, you are not disqualified from the 7% tax regime.

Which are the new qualifying municipalities for the 7% flat tax?

The art. 6-ter Law 28 marzo 2022, n. 25 has amended the qualifying municipalities in Umbria, Lazio, and Le Marche lifting the 3,000 inhabitants constraint, allowing then ANY of the municipalities included in the above mentioned annexes to be a qualifying municipality for the 7% flat tax pensioners regime. Here below I attached a Table showing all the qualifying municipalities.

[wpdatatable id=1]

Any help with your application and tax strategy? Get in touch.

135 thoughts on “Italy 7% flat tax for pensioners”

  1. Bryony Bethell

    Hello i had been looking at moving to Spoleto under the flat tax scheme but I understand from the tax office there that despite the decree of March 2022 you mention, lifting the population limit on the communes in the previous annex ( including Spoleto) it no longer qualifies. What is your interpretation please?

  2. The qualifying municipalities in Umbria, Lazio, and Le Marche are not listed. Can you tell me how to get them or attach a list for me by return email?

    Thank You

    Terry Iverson

          1. We are pensioners who have UK pensions and became Italian residents in October 2018. Do we qualify for the 7% Italian tax rate

      1. Hello Nicolo Bolla,
        Could you please send me the list of properties in the 7% tax Regime for the following towns for 2024. I’ve been looking for properties, but want to stay with the 7% tax regime. In the future, I will book an appointment with you to discuss my tax situation as I have applied for Italian citizenship, but my will not be a citizen.
        The areas I am interested in are listed below:
        Umbria, Lazio, and Le Marche, and Abruzzo (or any near Spoleto?)


  3. Vincent Gardina

    I will have Dual US/Italian citizenship by December. I want to move to Italy and establish residency in Abbruzzo. I’m retired and receive a US local government pension, social security and have an IRA. Am I eligible for the 7% flat tax on all three pensions. If a dual citizen do I pay US taxes?

      1. Stefanie Cesaritti

        Hello – which towns in Lazio offer the 7% tax and how goes this apply if you are a resident in Italy for only part of the year? Would you file in the country where you reside the most?

          1. Le pensioni pagate delle Organizzazioni Internazionali di cui l’Italia è un paese membro, possono beneficiare di questo schema? La mia pensione è pagata in Sterline da un’organizzazione Internazionale basata in UK e io sto valutando la possibilità di rientrare in Italia dopo 25 anni di residenza all’estero.

          2. Hi there my husband and I are retiring next year and would love to retire in Bolsena Italy, however it’s not listed as one of the 7 percent tax break area for expats. I’m British but have an American social security check each month, my husband is American. Can you please advise if we qualify to live in the Lazio region.

          3. If I move to 7% town where do I go to get approved for the flat rate? If I have my pension all in 401k and only withdraw what I need does this qualify?

      2. My understanding is Italy does not have a double tax, so if as a dual US/Italian citizen I pay taxes on my US pension and Social Security in the US I do not pay an additional income tax in Italy. Am I mistaken?

    1. I’m in the same situation and have the same question. I always heard that you have to give up US citizenship to be released from federal US taxes. Please post if you find out differently. Thanks!

  4. I am interested in finding a 7% income tax-qualifying town/municipio’s in Le Marche as a place to retire. Can you send me a list?
    Best regards
    Dr P Ciancanelli

  5. I am thinking to take advantage of the 7% tax rate by moving to a small town in Campania and becoming a tax resident of Italy. I have a US government pension that qualifies me for this — which I understand is not taxed by Italy (but will continue to be taxed by the US.)
    I also will have 36,000/year rental income from a home I own in US– will be taxed by Italy and US. Also some capital gains from US-held IRA disbursements — will be taxed by Italy and US.
    But my question is: since I assume I cannot be taxed twice for this income because of the bilateral tax treaty, and I can apply the foreign tax credit, is the increase in my tax burden by moving to Italy effectively 0? And if that’s true, wouldn’t it also be true for higher tax brackets? So what is the benefit/incentive to a US citizen like me of the 7% scheme? I presume I am missing something here. Is it wealth taxes? Thanks!

    1. Basically you can claim the 7% tax paid to Italy in your US form 1116 thus reducing any tax due in the US. As an American you will not be worse off on your tax bill

  6. Hello.
    I’m a US citizen who is considering moving to Italy for retirement. Am I entitled to claim 7% on my US social security and IRA income if I settle in Puglia in a large town like Bari, Brindisi or Lecce? Or does the 7% is applicable to retired residents in only certain small towns specially designated?

    1. Bari, Brindisi or Lecce do not qualify because the municipality must have a population of 20,000 inhabitants or less

  7. Hi, my computer does not show the list of qualifying municipalities in Le Marche. Can you send me the list? Grazie!!

      1. Hello,
        Would like to see the list of qualifying municipalities please. Thanks very much.

        Maria Tulipani

          1. Hi !! Can you please send me an email with the list of 7% tax for retirees. We are looking in Umbria , in the region of Perugia, in the town of Castiglione Del Lago.
            Thank you !

  8. Hi there, my husband will have a US pension and we’d love to see the spreadsheet of Umbria/Le Marche/Lazio towns as well. I have cousins in Lazio south of Rome. Thank you so much for your helpful information shared here!

  9. Buongiorno!
    My husband and I are going to be retiring in Italy (we have our visas and will arrive in mid-November) and are desirous of making our permanent home in one of the qualifying regions (in a community of 20,000 or less, of course). My question: In our Visa application, we had to show that we had a lease all set up and pre-paid upon our arrival. For us, that apartment is located in Ostuni, Puglia (which is well over 20K) We were under the impression that we could initially rent anywhere in Italy upon arrival. Then, within a set time frame (?), we can search for our permanent home–which for us would be in a qualifying town in one of the 8 regions that offer the 7% flat tax rate. Am I correct? Or does the community/region that we first temporarily choose to live in upon arrival serve as the “permanent region” we have now inadvertently made? I will look forward to your reply. My thanks to you!

      1. We were told that the first year you are a tax-resident (and this is the case after you have been an official resident for more than 183 days anywhere in Italy) you have to live in a 7% region. Were we ill informed?

          1. Anouk Dresens Beintema

            Hi Nicolo, thank you for your reply. I am very sorry but we are a bit confused. We were told that the first time we are taxed we would have to live in a 7% region. Before your first taxation ( this is after you lived in Italy for more than 183 days) you can live anywhere you want in Italy.
            Kind regards, Anouk

          2. Dear Anouk,

            you need to move your residency directly to a 7% flat tax area to benefit of such scheme

          3. Anouk Dresens Beintema

            Could you please elaborate why both Spoleto and Rieti are on the list while both have more than 20.000 inhabitants.

            Many thanks, Anouk

          4. because they are included in the attachments 1, 2 e 2-bis al decreto-legge 17 ottobre 2016, n. 189

  10. Rob Hubert Dresens

    Since June 25 we are in Massa Martana . Per July 5th. 2022 as resident in the community, To my opinion we are no Fiscal residents in Italy due to the 183 days starting July 5yh.. Is this correct? Than we will move to Rieti and will use the 7% Flat tax over 2023 in 2024 is this correct ?

  11. Anouk Dresens Beintema


    Could you confirm that Selci in Rieti comes under the 7% regime?

    Kind regards,

    Anouk Dresens-Beintema

  12. Hello,
    My wife and I are both recipients of pensions that are paid by the US government, as we were both public employees. We understand that normally because of tax agreements between the two countries, this type of pensions are only taxable at the source and therefore ours are “non imponibili” in Italy. Does the 7% flat tax rate allow the Italian government to tax our pensions? If that is not the case, as I presume, will we not qualify for this tax regime because our pensions are non taxable? Or do we qualify anyways since we do have the foreign pensions (as required) and they can tax our other sources of income (IRAs, interest, stocks).
    Thank you.

    1. If you are not a dual citizen, your civil service pensions are non taxable in Italy regardless of the tax scheme you use (7% or not)

  13. Hi Niccolo` thank you for your reply. one more quick question; since our civil service pensions do not qualify us for the 7% tax scheme, will our annuities be considered foreign sourced pensions? We rolled over our IRA accounts into a fixed annuity with an insurance company that will pay out a fixed monthly payment to us, for life. It seems to me that that would be the same as a foreign sourced pension and therefore qualify. Am I correct?
    Grazie mille.

  14. Apologies if this has been asked before…would you confirm that we could relocate to any village, town or city in Umbria with no specific population and qualify for the 7% flat tax rate. Thank you.

  15. Hi
    I receive a private pension in the UK. I’m a UK citizen and have been a tax resident outside of Italy for the required period. I bought a house with my wife last April in a qualifying comune/region. I have not retired, despite receiving a pension (I’m 56), as I have my own company which I intend to keep running.
    Can I claim the 7% tax rate on employment income as well as the pension income?
    For info, I intend to become non-domiciled in the UK for tax purposes in any event, so double taxation would not apply. My employment involves travel that would keep me outside of the UK for the required period and my only home would be in Italy.
    Thanks in advance.

      1. Thank you Nicola. I too am looking at taking some retirement from the UK as AIRE, but also wish to keep working and my UK Ltd company. So I seem to understand as above this would also be allowed for me? Grazie.

  16. Could you please email me the site where I can check population for municipalities in Abruzzo. I can only find Wikipedia. Looking at Silvi .

  17. Hello Nicolo, I’m considering Giovinazzo (close to Bari). Will that qualify? Also, if you happen to know….when do the Jan 2023 population numbers post? Giovanazzo is seems to be bumping up close to that 20,000 number.

    1. On January 1st 2022 the population was 19,485 as per the Italian bureau of statistics link
      I would check with the Comune to have an exact figure

  18. Hello Nicolo’
    My husband and I are both dual US Italian citizens, but have always lived in the US. What documentation would Italy look for to prove we were not resident in Italy for the previous 5 years? We want to have this saved and bring it with us in case we are audited in the future after moving to Italy and claiming the 7% regime. Grazie!

    1. The tax office deems sufficient the following supporting evidence:
      – Tax returns
      – Income statements
      – Real estate property purchase deeds
      – Rental agreements
      – Utilities and bills
      – Bank statements

      1. Buongiorno Nicolò,

        Seeing your reply to the American couple, I wonder if the tax agency would ask for all those proofs of less than 183 days in Italy or are you given a choice to pick one or a few to prove you’ve not lived in Italy over 183 days during the 5 years before becoming resident?
        Looking forward to hearing from you.
        Grazie mille!

        1. the more the better. The burden of proof is yours, hence you must have as many documents to back up your days in/out of Italy

  19. Robert Pellegrini

    Dear Nicolò, would I qualify for the 7% flat tax if my retirement income derives mainly from passive income investment accounts, in addition to a small American social security income? The social security income is only about 10% of my entire retirement income. Thanks.

    1. Yes you qualify. The law requires you to have at least one pension income source; there is no indication on the minimum income amount of such pension

  20. Hello, my husband and I are thinking of moving from overseas to a qualifying municipality in Italy. My husband is already receiving a pension, however I am not yet, as the earliest age I could draw a pension from my pension scheme would be at 55 years of age, and I am currently 52. Could I move to Italy as well and qualify for the same tax treatment as the spouse of a pensioner? It would be my intention to draw a pension in Italy in the future, but possibly not as early as at age 55. Thank you.

    1. Unfortunately you cannot. In Italy taxes are paid individually, and each individual shall qualify for the scheme

      1. Nicolo, following up on your answer to Marta, if I have a joint life retirement annuity that pays me now and then my wife after my death, does that count as pension income for both of us? My wife is also named in the annuity certificate. Thank you.

        1. Hard to tell without checking any papers. If you both receive the payment, then you both qualify as you have a pension income sourced from outside of Italy

  21. Dear Nicolo,
    I am a dual citizen and I plan on moving from the US to Italy into a 7% town in September 2024 and immediately registering as a permanent resident. Therefore, 2025 will be my first tax year in Italy. My first tax filing (for 2025) will be in 2026. For the 7% I need to show proof of a pension. I want to delay starting my pension for as long as possible to bump up the payout. Which year (2024, 2025, or 2026) must I turn my pension on in order to qualify for the 7%? Is it 2024 when I register? Is it 2025 so it’s in place during my tax year? Or is it 2026 indicating it’s in place before my first filing?

  22. Hi Nicolo,
    We have been living permanently in Abruzzo around 8 years. My wife is Italian citizen and we moved from Ireland, I have full residency. She has a small state pension from Ireland.
    Can we apply for this 7% flat rate at this stage?

  23. Salve Nicolo,
    I have a question related to the one from Ken on March 20 at 8:44 pm.

    If a US-ITA dual citizen plans to retire to Italy before claiming US Social Security, can that person qualify for the 7% flat tax if their income is from IRAs only? They plan to start to receive Social Security at age 65 or 67 and they do not have any other kind of pension.

  24. Dear Nicolo,
    I have always been self employed. Thus, I receive tons of dividends from a huge stock portfolio but I have no state pensions or disbursements from private pension funds. How can I prove to be a pensioner? Could I just buy an annuity pension from any life insurance company?

  25. Good morning

    Cd you send me a list of municipalities that qualify for the 7% scheme in Umbria?
    Also can you indicate the minimum number of days per year one has to reside in said municipalities to qualify for the 7% regime?
    Finally, if one stays elsewhere part of the time in Italy, does that affect eligibility?
    Thanks – RQ

  26. Ciao! I am coming as soon as my renewed passport arrives in the USA! The home I want too buy is in Lugnano inside of the castle! in UMBRIA not Lugano, lol! I will likely marry an Italian National who will retire in Late August of this year. Does the home quallify for the flat tax, and my husbands pension will come from Germany my pension and $$$$ from USA, will he qualify? I would love the list for Umbria and for the areas around Catania.

    Swannee Welsh (soon to be Damiano!)

  27. Good afternoon,
    We moved to Italy last July 2022 and are residents in Calabria. If we need to change our residency back to the USA for a short time, do we lose our ability to use the 7% tax scheme?

  28. My husband and I are U.S residents and have owned a home in Spoleto for 12 years, but we never moved to Italy. We always kept it as a second home and spent only 2-3 months total every year in Italy. Do we qualify for the 7% flat tax if we retire next year and apply for Italian residency and start paying income tax in Italy? Spoleto is on the list of towns in Umbria
    that qualifies for the7% rate, but I don’t understand this because the population is over 20,000. If it is on the list as a mistake, can we buy another property in another small town in Umbria that is on the list and declare that as our primary residence to qualify for the 7% tax rate even if we do not sell our Spoleto home?

  29. Signor Bolla,

    Grazie per aver condiviso il suo tempo e le sue conoscenze nel recente podcast di Nancy Steele. Di conseguenza, quando io e mio marito torneremo negli Stati Uniti, ordineremo i suoi libri in cima alla nostra lista di cose da fare subito.

  30. Buona Sera Nicolo,
    Grazie Mille per tuo podcast con Nancy Steele. E stato molto utile! Sei molto gentile ad aiutarci! Abbiamo una domanda difficile…

    Regarding our qualification in an approved 7% town – we first understood ONLY individuals that are receiving a pension can qualify (which is myself as I receive a teachers pension), however my husband receives his income from his 401K, dividends from CDs, and Interest Income which we just read that Italy DOES considers these income sources approved to qualify for the 7% towns as they are SEPP (substantial equal periodic payments). If this is true – we DO qualify and our life can be here in Italy. Grazie Mille Nicolo!!!

      1. Daniel Jernigan


        My wife and I are US citizens abd would like to move to a 7 percent community. However our various pensions don’t pay out until we are 65, in about 10 years.
        Can we self purchase an annuity that pays out to us monthly, and use that to qualify?

  31. Dear Nicolo,

    I am a freelancer/self-employed worker resident in Abruzzo since beginning of 2022. Please can I gain clarity on my position when I retire at uk state pension age of 68, in terms of the 7% tax. Am I right in thinking that I will not be eligible for the 7% tax as I will have lived here since 2022?

  32. Hello!

    Please send me the list of qualifying towns in Lazio, Umbria, and Le Marche. Also please send me a list of all other municipalities that fall under the flat 7% tax zones. in qualifying regions of italy.

    Also, I will be 57 when I move to Italy so I will still be 10 years away from collecting larger social security income at age 67. During the 10 years I reside in Italy with a retirement visa, I will continue to derive income (a form of pension) by way of my job in the U.S., paid monthly. Besides that, I will have investment income from my 401K and other investment accounts (payable to me monthly). I will have no other income that can be considered “passive”. So my questions are:

    1. Would the income I derive from my employment in the U.S. be considered as qualifying foreign income to meet retirement visa requirements, although it isn’t “passive” in nature? Does the qualifying income necessarily have to be NON-EMPLOYMENT derived (meaning only passive income received by way of pension, interest, dividends, rental income, royalties, capital gains, severance, or other misc payouts), or can the income I receive from the U.S. from ALL sources qualify, specifically the income I receive from my private sector job in the U.S., together qualify me as SEPP?

    2. As of Jan 2024, what is the minimum monthly foreign income requirement to qualify for a retirement visa? Is it €31K per year for me and only an additional 20% on top of that for my wife, or is it in fact €31K per year for each of us, for a total of €62K per year? This would help me assess if my interest income alone would be enough to meet the requirements, or if I would need to include my active employment income on top of my interest (passive) income to meet the minimum visa/legal requirements..

    Please help!

    1. can you please email us at the box below so we can send you the list?

      In response to your questions:
      1. Employment income doesn’t qualify for the Elective Residence VISA, while all financial, royalties, pension, and rental income sources qualify
      2. no, 38k as a married couple

  33. Hi,

    I am an US citizen considering early retirement in a small town in Abruzzo. I wish to qualify for the 7% flat tax but I am 52 and will not have a pension or social security for at least 10 years. If I were to purchase an annuity or take an early withdrawal plan from my 401k, would either (or both) of those qualify me ?

  34. Pls send me a list of municipalities in Puglia (Apulia) eligible for 7 % tax. Specifically i am interested in Giovinazzo.

    Thank you.

  35. Salve Nicolo

    I received your contact info from Tommy Sikes

    We would also be most interested to receive the list of qualifying municipalities in Umbria, Lazio and Le Marche…It is not displaying on your website

    Regarding the 5 year prior residency rule – We are considering buying a home now to use as our holiday home/airbnb rental for next few years before eventually retiring to it…I assume this would be acceptable since we would only become residents when we registered to pay taxes?


    1. can you please get in touch via email for the list of municipalities.

      Your understanding of the 5 years non resident is correct

  36. Ciao, Nicolo!
    If a 7% location has an increase in inhabitants and becomes disqualified, is there a period of time in that year to relocate to another 7% city to still qualify?
    Also, should both spouses have pension accounts in ordered for the other to still qualify for the 7% in the event of the death of the other?
    Grazie per il suo tempo!

    1. 1. You are grandfathered if the population increases after you acquire residency
      2. Yes, you must BOTH receive a pension income

  37. I’m grateful for the inclusive and supportive community this website fosters. Thank you for creating a space where everyone’s voice is heard.

  38. Hi,
    I would also like to receive the list of qualifying towns in Umbria, Lazio and Le Marche…It is not displaying on your website.
    1. I have a pension but most of my income comes from capital gains from stocks, shares and ETFs held in UK approved tax exempt saving schemes (ISA & SIPP). Will these be taxed under the 7% scheme and if so how will the capital gain be assessed? For example is it only when the gain is realised or is it on the annual growth in value even if it is not realised?
    2. Under the 7% scheme, is there any tax on remitting money to Italy for example to buy a house.


    1. feel free to write us so we can provide such a list

      1. all included in the 7%
      2. no remittance tax in Italy
      3. on all your worldwide income

      1. Thanks for the response.

        Can I clarify; when is the capital gain assessed:
        is it when I sell my shares or is it assessed on the growth in value each year?

        I would also like to receive the list of qualifying towns in Umbria, Lazio and Le Marche…It is not displaying on your website.


  39. Hi,
    I would also like to receive the list of qualifying towns in Umbria, Lazio and Le Marche…It is not displaying on your website.
    1. I have a pension but most of my income comes from capital gains from stocks, shares and ETFs held in UK approved tax exempt saving schemes (ISA & SIPP). Will these be taxed under the 7% scheme and if so how will the capital gain be assessed? For example is it only when the gain is realised or is it on the annual growth in value even if it is not realised?
    2. Under the 7% scheme, is there any tax on remitting money to Italy for example to buy a house.
    3. I should have added; under the 7% scheme are you taxed on world wide income, gains, etc or just on that remitted to Italy?


    1. feel free to write us so we can provide such a list

      1. all included in the 7%
      2. no remittance tax in Italy
      3. on all your worldwide income

  40. Hi,
    I would also like to receive the list of qualifying towns in Umbria, Lazio and Le Marche. I cannot find your email address, will you please provide it. Thanks.

  41. Hi,
    I cannot find your email address to request the list of qualifying towns in Umbria, Lazio and Le Marche, will you please provide it. Thanks.

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