One of the new rules that has been introduced with the Italian Budget Law 2019 is a measure that provides tax relief to attract pensioners to southern Italy. Let's take a detailed look at the new tax law for retirees in Italy and who can claim the tax benefit.
In recent years, in fact, many pensioners of different nationalities have decided to retire to Portugal to enjoy their pension. The reason for this is an ad hoc law passed by the Portuguese executive that provides tax privileges for pensioners who decide to move there, so much so that it was informally nicknamed "the pensioners’ paradise".
Now Italy wants to recreate something similar. As of last January, a rule has been in force that applies a substitute tax of 7% on all foreign incomes, not just pensions.
In addition, there is also an exemption from the tax obligations for tax monitoring, as well as for the payment of tax on the value of real estate located abroad (Imposta sul valore degli immobili situati all'estero or IVIE) and the tax on the value of financial assets held abroad (Imposta sulle attività finanziarie detenute all'estero or IVAFE).
In detail, in order to benefit from the tax relief, it is necessary that those who receive income from foreign sources or which is produced abroad transfer their residence to an Italian municipality with no more than 20,000 inhabitants located in one of the following regions: Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia.
In order to move your official residence to the south of Italy and benefit from this tax relief, you must meet two essential requirements:
- The first is not to have been resident in Italy for tax purposes in the five preceding tax years and to have transferred your residence from countries with which there are administrative cooperation agreements.
- Secondly, you must reside in Italy at least for 183 days a year (184 in the case of a leap year).
It should be noted, however, that the 7% substitute tax can only be applied for 5 years, at the end of which this tax regime will no longer apply.
You can find more information about retiring to Italy here, including the best places to buy property in Italy as a pensioner and healthcare for OAPs.
From the original Italian article: Paradisi per pensionati: il Sud Italia sfida il Portogallo (Il sole 24 ore)
Ideas for renovating your home in Italy: tips and inspirations for every need
Buying a home in Italy and renovating it to suit your family's needs is a decision that should never be taken lightly. It’s all too easy to go from feeling overwhelmed to achieving complete satisfaction. This is because navigating the right approach to managing the renovation process without losing your sanity can be challenging. In this guide, we’ll offer simple ideas for renovating your home, breaking down each step you can take to turn your house into the home of your dreams.
How much money do you need to live comfortably in Italy?
Have you ever dreamed of settling down in the picturesque Tuscan countryside? Maybe you’re considering a career change with some of Milan or Rome’s top companies? Or perhaps you just want to spend your days sipping espresso and strolling through the ancient streets of Rome.
The Italian cities with the worst air quality according to Legambiente
The year 2030 is fast approaching, marking a significant shift in environmental sustainability within EU member states. Yet, according to Legambiente, there is still much to be done in Italy. The Mal'Aria 2025 report lists the worst Italian cities for air quality, identifying 25 cities that exceeded the legal limits for PM10 over the past 12 months. Here’s the list.
Flight bonus for Sicily and Sardinia in 2025: who Is eligible?
2025 brings good news for residents of Sicily and Sardinia, who will receive financial support to counter rising flight costs. In both regions, this bonus is becoming a permanent measure and includes a refund that varies depending on the region of origin and specific eligibility criteria. Let’s explore the details of this initiative and all the updates for the new year.
Do solar panels work in winter?
Will solar panels work in winter? This recurring question not only has an answer but is also accompanied by a series of tips to improve the efficiency of photovoltaic technology during the winter months. Experts from ENEA (Italy's National Agency for New Technologies, Energy and Sustainable Economic Development) have released a statement detailing various measures and good practices to adopt during the coldest season to maximise the performance of photovoltaic systems. Let’s find out more.
Tax incentives for foreign buyers in Italy
Italy has long been a dream destination for individuals seeking a blend of culture, cuisine, and scenic beauty. Beyond its lifestyle appeal, Italy offers a range of tax incentives for foreign buyers, making it an increasingly attractive location for international property investors. These incentives are particularly appealing to high-net-worth individuals and expatriates, offering substantial tax benefits and regional advantages.
