A niche but popular incentive that lures foreign retirees to Italy’s south has just become available in dozens of larger towns. An amendment in the SME Law (Law 34/2026) raises the population cap for the so-called ‘7 percent regime’ from 20,000 to 30,000 inhabitants, Taxing.it reported on 13 April. Since 2019, qualifying pensioners who move their tax residence to designated municipalities in eight southern regions (and certain earthquake-hit areas of central Italy) can elect to pay a flat 7 % tax on all foreign-sourced income for up to ten years. By enlarging the pool of eligible comuni, the government hopes to channel spending power into medium-sized coastal centres with better infrastructure and transport links, not just remote villages. The change applies from 7 April 2026, although the tax agency must still clarify whether individuals already resident in Italy can opt in retroactively. Real-estate agents in Puglia and Sicily say interest from British, US and Scandinavian retirees spiked within hours of the announcement. For mobility managers the measure adds a new talking point for end-of-career transfers and early retirement packages. However, advisers warn clients to confirm population data and double-check enrolment deadlines before committing to property purchases. The 7 % regime sits alongside Italy’s €100,000 flat tax for high-net-worth ‘new residents’, creating a spectrum of incentive options that together underpin Italy’s appeal as a lifestyle relocation hub.
Source: Taxing.it
