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Italy 7% flat tax for foreign pensioners: the rules and a town population check

Article 24-ter of Italy's income tax code (Normattiva, read on 31 October 2026) lets a person with a foreign pension pay a flat 7% on all foreign income for ten years after moving to a town of up to 30,000 inhabitants in eight southern regions or on the earthquake lists. The population that counts is ISTAT's figure on 1 January of the year before the move: 1 January 2025 for a move in 2026.

Italy 7% flat taxread on 31 October 2026

Tax on foreign income, each year: 7%

30,000maximum inhabitants (since 7 April 2026; 20,000 before)
10 tax yearsthe year you move and the next nine
5 tax yearsnot tax resident in Italy before the move
2,535towns under the limit on 1 January 2025, in the areas of the law

Sources: Normattiva, Income Tax Code (TUIR, Presidential Decree 917/1986), article 24-ter, text in force; Normattiva, Law no. 34 of 11 March 2026, article 26 (limit raised from 20,000 to 30,000 inhabitants); Agenzia delle Entrate, Regime opzionale per i pensionati esteri: che cos'è (updated 8 May 2026). Read on 31 October 2026.

Not tax or legal advice. This page summarises the law and the guidance of the Agenzia delle Entrate (Italy's tax agency) on the date we read them. Whether you can use the 7% regime depends on your pension, the country you move from and your own tax position, and the Agenzia delle Entrate decides. Check with an Italian tax adviser (commercialista) or the Agenzia delle Entrate before you choose a town or move.

Town population check

    Try: Ostuni · Grottaglie · Fabriano · Cefalù · Lecce

    ISTAT resident population on 1 January 2025 (for a move in 2026) and 1 January 2026 (ISTAT estimate, for a move in 2027), for all 7,896 Italian towns, downloaded on 31 October 2026. The check runs in your browser.

    Who can use it

    The conditions in article 24-ter and in the Agency's guidance:

    If you meet them, the 7% replaces Italian income tax on all your foreign income, not only the pension, for the year you move and the next nine tax years. You choose it in your Italian tax return for the year you move, and pay the tax in one instalment by the deadline for the income tax balance. You can leave out the income from one or more countries (that income is then taxed normally, with the foreign tax credit). You can revoke the option, but after a revocation, or if the conditions stop being met, you cannot choose it again.

    Sources: Normattiva, Income Tax Code (TUIR, Presidential Decree 917/1986), article 24-ter, text in force; Agenzia delle Entrate, Circular 21/E of 17 July 2020. Read on 31 October 2026.

    Which population year counts

    The Agenzia delle Entrate looks at ISTAT's resident population on 1 January of the year before the first year of the option. That figure counts for all ten years, even if the town grows later. If you move to another eligible town, the new town's figure on 1 January of the year before that move counts.

    You move inISTAT figure that countsStatus of the figure
    20261 January 2025ISTAT figure
    20271 January 2026ISTAT estimate ("stima"): the final figure can differ

    The Agency refers to ISTAT's annual municipal population count; the town check uses ISTAT's resident population on 1 January from demo.istat.it. If ISTAT or the Agency gives a different number for your town, theirs counts.

    Sources: Agenzia delle Entrate, Regime opzionale per i pensionati esteri: che cos'è (updated 8 May 2026); Agenzia delle Entrate, Circular 21/E of 17 July 2020; ISTAT, Resident population by municipality on 1 January 2025; ISTAT, Resident population by municipality on 1 January 2026 (estimate). Read on 31 October 2026.

    Towns under the limit by region

    Our count from ISTAT's figures. The eight regions count all their towns; Lazio, Marche and Umbria count only the towns on the 2016-2017 earthquake lists (111 under the limit). The earthquake towns in Abruzzo and the 57 towns of the 2009 earthquake list are all in Abruzzo, so they are already in the Abruzzo row.

    Towns under the 30,000 limit by region
    RegionTownsUnder, move in 2026Under, move in 2027Over, move in 2026
    Sicily39135935932
    Calabria4043963968
    Sardinia3773703717
    Campania55050850842
    Basilicata1311291292
    Abruzzo3052972978
    Molise1361341342
    Puglia (Apulia)25723123226
    Lazio (earthquake lists)1514141
    Marche (earthquake lists)8583832
    Umbria (earthquake lists)1514141
    Total2,6662,5352,537131

    "Under": towns with up to 30,000 inhabitants on 1 January 2025 (for a move in 2026) or on 1 January 2026, ISTAT estimate (for a move in 2027). "Towns": all the towns of the region, or for Lazio, Marche and Umbria only those on the 2016-2017 earthquake lists.

    Sources: ISTAT, Resident population by municipality on 1 January 2025; ISTAT, Resident population by municipality on 1 January 2026 (estimate); Normattiva, Decree-Law 189/2016, Annex 1 (towns hit by the earthquake of 24 August 2016); Normattiva, Decree-Law 189/2016, Annex 2 (earthquakes of 26 and 30 October 2016); Normattiva, Decree-Law 189/2016, Annex 2-bis (earthquake of 18 January 2017); Regione Abruzzo (BURA), Annex B1: towns in the crater of the 6 April 2009 earthquake. Read on 31 October 2026.

    Region by region: the towns over the limit and the full earthquake lists

    Towns near the limit

    Towns in the areas of the law whose population was within 1,000 of 30,000 on either date. For these, the year of your move decides which figure counts, and a small change in the ISTAT figure matters: check it with ISTAT and the Agency.

    Towns near the 30,000 limit
    Town1 January 2025 (move in 2026)1 January 2026, estimate (move in 2027)
    Vibo Valentia (VV)
    Calabria    		30,906 Over30,753 Over
    Castel Volturno (CE)
    Campania    		30,731 Over31,230 Over
    Marigliano (NA)
    Campania    		29,351 Under29,496 Under
    San Giuseppe Vesuviano (NA)
    Campania    		30,498 Over30,550 Over
    Sarno (SA)
    Campania    		30,859 Over30,937 Over
    Grottaglie (TA)
    Puglia (Apulia)    		30,198 Over29,976 Under
    Lucera (FG)
    Puglia (Apulia)    		30,591 Over30,335 Over
    Manduria (TA)
    Puglia (Apulia)    		29,665 Under29,528 Under
    Nardò (LE)
    Puglia (Apulia)    		30,752 Over30,784 Over
    Ostuni (BR)
    Puglia (Apulia)    		29,943 Under29,803 Under
    Oristano (OR)
    Sardinia    		30,067 Over29,888 Under
    Avola (SR)
    Sicily    		30,710 Over30,683 Over
    Castelvetrano (TP)
    Sicily    		29,297 Under29,357 Under
    Comiso (RG)
    Sicily    		30,214 Over30,437 Over
    Milazzo (ME)
    Sicily    		29,830 Under29,779 Under
    Misilmeri (PA)
    Sicily    		29,095 Under29,197 Under
    Partinico (PA)
    Sicily    		30,708 Over30,929 Over

    Sources: ISTAT, Resident population by municipality on 1 January 2025; ISTAT, Resident population by municipality on 1 January 2026 (estimate). Read on 31 October 2026.

    What changed in 2026 and what changes in 2027

    Sources: Normattiva, Law no. 34 of 11 March 2026, article 26 (limit raised from 20,000 to 30,000 inhabitants); Agenzia delle Entrate, Regime opzionale per i pensionati esteri: che cos'è (updated 8 May 2026); Normattiva, Legislative Decree no. 117 of 19 June 2026 (new income tax code), article 247; Normattiva, Legislative Decree no. 117 of 19 June 2026, article 377 (in force from 1 January 2027); Normattiva, TUIR article 24-ter, text at 1 January 2027 (repealed by Legislative Decree 117/2026). Read on 31 October 2026.

    Questions people ask

    Who can use Italy's 7% flat tax?

    A person who receives a pension paid from abroad, was not tax resident in Italy in the five tax years before, moves from a country that has an administrative cooperation (tax information exchange) agreement with Italy, and moves their tax residence to an eligible town. The Agenzia delle Entrate decides whether you meet the conditions.

    Which towns count for the 7% tax?

    Towns of up to 30,000 inhabitants in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Puglia, and towns of up to 30,000 on the lists of the 2009 (L'Aquila) and 2016-2017 (central Italy) earthquakes, which add towns in Lazio, Marche and Umbria. The limit was 20,000 until 6 April 2026.

    Which population figure counts?

    ISTAT's resident population on 1 January of the year before your move, according to the Agenzia delle Entrate: 1 January 2025 for a move in 2026. The same figure counts for all ten years, unless you move to another town.

    Is it 9 or 10 years?

    Ten tax years in all: the law covers the year you move and the next nine, and the Agency's Circular 21/E says the maximum is ten years (a move in 2019 runs to 2028). The Agency's summary page talks of "nine tax periods": that follows the law's wording ("the first nine tax periods after" the year the option takes effect), and the year of the move comes on top, which is why the circular counts ten.

    Does the 7% apply only to the pension?

    No. The law applies the 7% to foreign income of any kind (pensions, investment income, rent from property abroad), but you must receive a foreign pension to use it. You can leave out the income from one or more countries; that income is then taxed normally.

    Does the 7% tax change in 2027?

    The rule moves to article 247 of the new income tax code (Legislative Decree 117/2026), which applies from 1 January 2027. The text is the same, with the same 30,000 limit.

    Is my town eligible?

    Use the town check above: it tells you whether the town is in one of the areas named in the law and whether ISTAT's figure for the right year is within 30,000. Being under the limit does not mean you qualify: the Agenzia delle Entrate decides, and the conditions on your pension, your previous residence and the country you move from also apply.

    Some guides say earthquake towns must have under 3,000 inhabitants. Is that right?

    Not any more. The text in force says "in any case" up to 30,000 for the eight regions and both earthquake lists, and the Agency's page says the same. The 3,000 cap for earthquake towns applied from December 2019 to March 2022; from 29 March 2022 the limit was 20,000 for all the areas.

    Sources

    To live in Italy as a pensioner from outside the EU you also need the right visa and residence permit (usually the elective residence visa). We do not show an income amount for that visa because the official rules set no fixed figure.

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