Italy Expands 7% Flat Tax: 74 New Towns Added in 2026
Big news for Italian retirement: You no longer have to live in a tiny village to save 93% on taxes.
As of April 7, 2026, the Italian government officially raised the population threshold for the famous 7% tax regime. Previously limited to villages under 20,000 people, the limit has jumped to 30,000 residents.
🏥 Better Infrastructure
Access to larger regional hospitals and specialized medical care that smaller villages lack.
🎭 Lively Culture
UNESCO sites like Noto and Alberobello are now fully eligible for the tax break.
✈️ Global Connectivity
Coastal hubs with easier access to international airports and high-speed rail.
Financial Impact: Standard vs. 7% Regime
| Income Source | Standard Italian Tax | 7% Special Rate |
|---|---|---|
| Foreign Pension | 23% to 43% | 7% Fixed |
| Investment Dividends | 26% | 7% Fixed |
| Rental Income (Abroad) | Progressive Rate | 7% Fixed |
Newly Eligible Towns: 2026 Highlights
Below are the most popular additions to the list, grouped by region. These towns were previously “too big” but now fall under the 30,000 resident cap.
• Noto
• Taormina
• Castelvetrano
• Termini Imerese
• Misilmeri
• Belpasso
• Alberobello
• Manduria
• Canosa di Puglia
• Gioia del Colle
• San Giovanni Rotondo
• Pompei
• Paestum
• Poggiomarino
• San Nicola la Strada
• Porto Torres
• Iglesias
• Ortona (Abruzzo)
• Isernia (Molise)
⚠️ Important: The “Double Check” Rule
Just because a town has 25,000 people doesn’t mean it automatically qualifies. It must be located in the regions of Sicily, Sardinia, Calabria, Campania, Puglia, Basilicata, Abruzzo, or Molise. Towns in Northern or Central Italy (like Tuscany or Lombardy) do not qualify for the 7% rate, regardless of their size.
How to use our “Town Finder” Strategy
Before you buy property, you must verify the official resident count. Here is how to do it accurately:
Visit the ISTAT (Italian National Institute of Statistics) website. Look for the “Resident Population” data as of January 1st of the current year. The town must be under 30,000.
Ensure the town is in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, or Puglia (or specific earthquake zones in Central Italy).
Because population counts change, we recommend a pre-purchase audit. We verify the specific municipality’s status with the Revenue Agency (Agenzia delle Entrate) to ensure your 7% status is 100% secure.
Pro Tip: Population counts change every year. We offer a “Safe-Move Audit” where we get a written confirmation of the town’s status before you sign a lease.
Don’t Guess Your Tax Status
The 7% regime lasts for 10 years—making a mistake on the town choice can cost you thousands. Let our experts verify your eligibility today.
CONSULT WITH A TAX SPECIALIST
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