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Italy’s 7% Pensioner Tax Regime Expands: 80 New Eligible Towns

Good news: Italy’s 7% Pensioner Tax Regime Expands – 80 More Eligible Towns. Discover which ones here.

Italy’s 7% pensioner tax regime has gotten a lot of publicity and is very sought after by retirees looking at moving to the Mediterranean. However, a common complaint is that many of the qualifying towns are small and remote.

As of April 2026, the scheme has just become more practical for everyday life: Art. 26 of Law 11 March 2026, n. 34 raises the eligible municipality population ceiling from 20,000 to 30,000 residents, widening the choice set to include more liveable, better‑served mid‑sized towns. 

This article spotlights seven newly eligible towns (from seaside Abruzzo to baroque Sicily) and includes a complete table of all 80 municipalities newly eligible in the 20k-30k band, with region and province.

7% pensioner tax regime, 7% flat tax
New 7% Tax Towns in Italy (2026)

This article is general information, not tax advice. Eligibility depends on meeting the legal conditions we have covered elsewhere (including tax‑residence rules, the foreign pension requirement, and moving to a qualifying municipality), and readers should confirm their position with a qualified professional before relying on any regime. As it often happens with Italian law, changes can happen quickly and unexpectedly.

The 2026 update (Law 11 March 2026, n. 34 — Art. 26) 

  • Population cap increased: the eligible‑town limit in art. 24‑ter is raised from 20,000 to 30,000 inhabitants
  • The law entered into force on 7 April 2026
  • Geography still matters: the regime remains tied to specific territories (municipalities in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Puglia, plus certain earthquake‑affected municipalities). 
  • What the 7% applies to: qualifying foreign‑pension holders may opt for a 7% substitute tax on foreign‑produced income (per legal definition) for each year the option is valid. 
  • Core eligibility reminders: the option is limited to individuals who were not Italian tax‑resident in the previous five tax periods, lasts nine tax periods, and is exercised in the tax return for the year of the move (among other conditions). 

New 7% Tax Towns in 2026

With the population ceiling now lifted to 30,000 residents, Italy’s 7% foreign‑pension regime suddenly covers a new “sweet spot” of towns: places that still feel unmistakably local, yet often offer better rail links, more year‑round services, and a wider housing market than the tiniest villages. For all the new 80 qualifying towns, Magic Towns Italy offers within the Town Explorer a full expat profile including quality of life ratings, distance from beaches, airports and rail, climate, and much more.

Below are seven standouts from the 80 newly eligible municipalities in our 2026 update list.

Francavilla al Mare

If your Italian daydream includes a walkable seaside routine, Francavilla al Mare is a particularly strong new entrant. It sits on Abruzzo’s Adriatic coast, immediately south of Pescara—close enough to tap into a larger city’s cafés, services and shopping while still feeling like a town with its own rhythm. 

Practically, it’s the sort of place where “car‑optional” is plausible: train connections to nearby Pescara are frequent and fast, and Abruzzo’s main airport is in Pescara too, helpful for visiting family and straightforward getaways. The fact that Francavilla is newly eligible matters because it offers that rare combination of beach‑town atmosphere and everyday infrastructure, without pushing you into a very small municipality purely for tax reasons. 

7% pensioner tax regime, 7% flat tax
Francavilla al Mare, Abruzzo

Sulmona

Sulmona is one of Abruzzo’s best‑known inland towns: mountain‑framed, handsome, and famously associated with Ovid and the town’s long tradition of confetti (sugared almonds). It’s the kind of place where historic streets and local food culture are not “attractions” so much as daily context. It is already an expat magnet, with several retirees and expats having picked it as a first or second home in the past years.

For retirees, Sulmona’s practicality comes from connectivity. It sits on the Rome–Sulmona–Pescara rail corridor, linking the town to both the capital and the Adriatic side. Sulmona is large enough to feel properly lived‑in year‑round, yet still delivers the slower pace many people want when they move. 

7% pensioner tax regime, 7% flat tax
Sulmona, Abruzzo

Pompei

Pompei (the modern town) is a fascinating addition because it is instantly recognisable worldwide thanks to the nearby archaeological site. The UNESCO World Heritage property includes the archaeological areas of Pompeii and Herculaneum (and Torre Annunziata), making this part of Campania one of Europe’s most historically concentrated landscapes. 

Pompei is not a remote village pick. Tourism anchors a strong “services ecosystem” (cafés, transport links, visitor infrastructure), and the official Pompeii sites portal underlines the scale and organisation of the wider archaeological‑park network. For would‑be expats, being able to pair a world‑class cultural setting with a medium‑town footprint is exactly why the 30,000 cap matters. 

7% pensioner tax regime, 7% flat tax
Ruins of Pompeii, Campania

Putignano

Putignano is Puglia at its most characterful: a working town with a cultural calendar that refuses to be seasonal. It is home to the Carnevale di Putignano, promoted by its organisers as a centuries‑deep tradition (the current edition numbering highlights just how long‑running it is). 

From an expat perspective, Putignano’s appeal is that it can feel authentically local while still offering the day‑to‑day substance of a larger community, especially in peak festival periods when the town becomes a focal point for visitors and satire‑driven floats.

7% pensioner tax regime, 7% flat tax
Putignano, Puglia

Castrovillari

Castrovillari, in northern Calabria, is newly eligible, and this is a big deal for anyone who wants “mountain Italy” without being cut off. It is closely linked to Pollino National Park: the park authority explicitly notes an institutional seat in Castrovillari, signalling the town’s role as a practical hub for the area. 

For foreign retirees (and active expats who like the outdoors), that hub status matters: you’re near major protected landscapes, but you still have a true town base rather than a scattered‑services village.

7% pensioner tax regime, 7% flat tax
Castrovillari, Calabria

Noto

We can almost hear the cheer from the home crowd as they discover that expat-favourite Noto now qualifies for the 7% tax scheme. Noto is one of those rare towns whose architecture can change your sense of what “a small Italian city” can feel like. It forms part of the UNESCO‑listed Late Baroque Towns of the Val di Noto, recognised for the reconstruction after the 1693 earthquake and the extraordinary late‑Baroque urban form. 

For expats, Noto’s new eligibility is powerful because it’s already on many people’s “visit list” but, until now, sat outside the under‑20,000 threshold. Today, Noto becomes a viable option for those who want a culturally rich Sicilian base with a stronger amenity profile than the smallest comuni.

7% pensioner tax regime, 7% flat tax
Noto, Sicily

Isernia

Molise is often described as Italy’s “quiet region” (or, the joke goes, it does not exist at all!) and Isernia is now the key newly eligible name to know there. It is the provincial capital and is a commercial centre and transport junction – exactly the sort of functional backbone town many retirees prefer when they’re planning a longer‑term move. 

In practical terms, Isernia’s new eligibility matters because it offers services that can be harder to find in much smaller municipalities, while still providing the lower‑key pace that draws people to Molise in the first place. If your ideal retirement is more “markets and mountains” than “crowds and queues,” Isernia newly joining the eligible set is the sort of change worth paying attention to. 

7% pensioner tax regime, 7% flat tax
Isernia, Molise

Full List of the 80 Newly Eligible 7% Tax Municipalities

Members‑only note: The fastest way to explore these towns is via Town Explorer: each municipality has a full profile (lifestyle snapshot, practicalities, property angle, and what makes it a good base). Use Town Explorer search with the town name, or start from the seven featured profiles above and navigate via “nearby towns” and regional collections. If you are not a member, you can upgrade here.

All 80 newly eligible municipalities (region + province):

Create an account to explore more

This content is for Members only | Already a Member? Sign in

*note: town eligibility for the 7% tax scheme is assessed as per the official population as of January 1. As of pixel time, ISTAT has not yet released the official figures for Jan 1 2026, and therefore 2025 values are used here.

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