The Definitive 2026 List Of Italy’s 7% Tax Towns

Certain foreign retirees and returning Italians can now pay a flat 7% tax on all non-Italian income – pensions, dividends, rental yields, even consulting fees – simply by relocating to one of roughly 2,000 small towns in Italy’s south (plus a handful of earthquake-affected communes in central Italy). It sounds almost too good to be true, but the break is written into law and already being used by savvy expats. In this article we cover the basics, and provide you access with the only hand-curated list of qualifying towns in Italy.

For more info, you can also sign up for our FREE, six-part guide into the 7% tax towns.

This guide explains:

Who qualifies
What income is covered
Rules on Italian-source earnings
How to keep (or lose) the break
Sample towns that illustrate the range
How to access the full list of 7 % towns

Subscriber bonus: the complete, searchable list of every qualifying comune is unlocked for Magic Towns members. Details at the end.

1. Who can opt for the 7% regime?

Requirement	Detail
Not tax-resident in Italy in the last 5 years	If you’re Italian, that means you were registered with AIRE abroad.
Receive a foreign pension	State or private; UK State Pension, US Social Security or IRA withdrawals all qualify.
Move to an eligible town	Population ≤ 20,000 in Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, Sicily, as well as a few dozen towns in parts of Lazio, Marche and Umbria which were hit by the 2009 quakes.

Elect the regime on your first Italian tax return; it then applies (optionally) for up to 10 consecutive tax years.

2. Income taxed at 7% tax

Foreign pensions (public and private)
Foreign employment or freelance income
Overseas rental yields, dividends, interest, royalties
Other foreign-sourced gains (e.g. UN/NATO pensions)

No personal deductions or foreign-tax credits apply; it’s a straight 7 % on gross.

3. What about Italian income?

Italian-source earnings (job in Milan, rent from a flat in Rome, interest from an Italian bank) are not covered. They’re taxed normally—progressive IRPEF or another special regime such as forfettario or impatriati. Think of two buckets:

Bucket A: Foreign income → flat 7 %
Bucket B: Italian income → normal Italian rules

You can’t “double-dip” the 7 % with any other foreign-income flat tax (e.g. the €200k HNWI regime).

4. Moving, opting out, and other fine print

Rule	Impact
Move to another 7 % town	Permitted; clock keeps ticking.
Move to a non-qualifying town (or abroad)	7 % regime ends immediately.
Length	Max 10 tax years; you can opt out early.
Deadlines	Must elect in first tax return; miss that and the door shuts.
Reporting relief	No RW, IVIE or IVAFE on foreign assets while under 7%.

5. 7% tax towns list (free taster)

Town	Region	Pop.	Walkability (score out of 100)	Internet (↓ Mbps)	Vibe
Scalea	Calabria	11k	77	105	Seaside, low prices, rail link to Naples.
Venosa	Basilicata	11k	89	97	Roman-medieval hill town, famous wines.
Tricase	Puglia	17k	80	99	Salento culture, 5 min to crystal coves.
Tempio Pausania	Sardinia	13k	88	55	Granitic scenery, cool summers, jazz festival.
Cefalù	Sicily	13k	93	70	UNESCO cathedral, beach & tourism buzz.

All five qualify for the 7 % regime today (pop ≤ 20 k in eligible regions). Sign up for a premium account for the list of 2000+ qualifying towns. (That’s less than the cost of one scouting lunch in a town that might not suit you.)

6. Unlock the full list (2,000 + towns)

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For more info, you can also sign up for our FREE, six-part guide into the 7% tax towns.

Final Thoughts

A 7 % tax rate is eye-catching, but the real win is living somewhere that feels right for you. Data plus a quick scouting trip beats guesswork every time. Buona fortuna—see you in your new piazza.

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