Unlock the only list of towns in Italy qualifying for the 7% tax scheme, updated for 2026. Enjoy substantial savings on foreign income by relocating to select southern towns and earthquake-affected communes.
Thanks to the April 2026 reform, the 7% regime now covers eligible towns up to 30,000 residents.
This adds 80 new qualifying towns to the pool, all with between 20 and 30 thousand inhabitants.
The expansion is strongest in Campania, Sicilia and Puglia.
No towns were removed from the list in 2026.
The full list of 2534 qualifying towns is available on Magic Towns Italy.
Italy’s 7% tax regime allows retirees moving to certain small municipalities to pay a flat 7% tax on foreign income for ten years. The scheme currently applies to towns in southern regions such as Calabria, Sicily, Sardinia, Basilicata, Campania, Puglia and Molise, as well as designated earthquake-affected municipalities in central Italy.
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.
Subscriber bonus: Magic Towns members can explore the complete, searchable database of every Italian comune eligible for the 7% tax regime, with links to our town guides and relocation insights.
1. Who can opt for the 7% regime?
2026 update: can you move to a qualifying town with up to 30,000 inhabitants if you moved to Italy when the limit was 20,000 inhabitants? Yes. Larger qualifying towns are part of the scheme every bit as much as any other ones.
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 ≤ 30,000 (up from 20,000 as of April 7, 2026) 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.
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 IRPEFor 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.
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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