Our Newsletter

Small Italian Towns with 7% Tax Benefits for Retirees

Posted on April 29th, 2024

by Adriana ruiz


For retirees dreaming of a picturesque life in Italy, there are regions offering not only stunning landscapes, warm communities, and a slower pace of life, but also many towns with populations under 20,000 that qualify for Italy’s special 7% tax rate for foreign pensioners. This article will guide you through some charming small towns in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, and Puglia that are perfect for retirement.

Sicily

Sicily is a treasure trove of history, nature, and culture. With affordable living costs and beautiful coastlines, it’s an attractive destination for retirees.

Castelmola: A small town perched above Taormina, known for its breathtaking views of Mount Etna and the Ionian Sea.


Salemi: This charming town in the Trapani province boasts historical sites and easy access to both mountains and beaches.


Savoca: Famous as a filming location for The Godfather, Savoca is a quaint hilltop town with medieval charm and a tight-knit community.


Cefalù: A coastal town known for its stunning beaches and medieval charm.

 

View this post on Instagram

 

A post shared by Europe From Above ™ (@above.europe)


Castellammare del Golfo: Nestled between the mountains and the sea, offering picturesque views.

 

View this post on Instagram

 

A post shared by Amuri Siculo ☀️ (@amurisiculo)

Calabria

With its stunning coastlines, lush mountains, and warm climate, Calabria offers a laid-back lifestyle and plenty of scenic beauty.

Tropea: Overlooking the Tyrrhenian Sea, Tropea is known for its dramatic cliffs, turquoise waters, and historic old town.


Gerace: Nestled in the Aspromonte mountains, Gerace is a medieval village with a fascinating mix of Byzantine and Norman architecture.

 

View this post on Instagram

 

A post shared by BEATRICE✈️TRAVELLER (@bea__trip2)


Stilo: A small town with a rich history, Stilo is home to the famous Cattolica di Stilo, a Byzantine church and one of Calabria’s architectural gems.

 

View this post on Instagram

 

A post shared by PS I Love Italy (@psiloveitaly)


Scilla: A charming town with mythological roots and beautiful beaches.

Sardinia

Sardinia is known for its beaches and rugged landscapes, as well as its distinctive culture and cuisine.

Castelsardo: This medieval fortress town sits on the coast of northern Sardinia, offering stunning views, history, and a tight-knit community.

 

View this post on Instagram

 

A post shared by Jon Benham (@jon_benham_photography)


Bosa: Located along the Temo River, Bosa is famous for its colorful houses and ancient stone streets, along with a mild climate year-round.

 

View this post on Instagram

 

A post shared by Best024 (@romalkhan2009)


Carloforte: Located on the island of San Pietro, known for its unique linguistic heritage.

Campania

Campania, home to Naples, is a region filled with Roman ruins, coastal beauty, and vibrant communities.

 

Agerola: Overlooking the Amalfi Coast, Agerola offers stunning mountain views, access to hiking trails, and a welcoming community.

 

Small Italian Towns with 7% Tax Benefits for Retirees 12
Ravello: Known for its iconic gardens and music festivals, Ravello is a serene town with breathtaking vistas.

 

Small Italian Towns with 7% Tax Benefits for Retirees 13

Photo from ilborghista.it

Castel San Giorgio: Located near Salerno, this town provides access to both coastal and inland landscapes, offering a relaxed lifestyle with cultural depth.

 

Basilicata

Basilicata is a lesser-known region, but its quiet towns, friendly locals, and low cost of living make it attractive to retirees seeking tranquility.

Small Italian Towns with 7% Tax Benefits for Retirees 14

Rotondella: With a view of both the Ionian and Adriatic Seas, Rotondella is a small town perfect for retirees wanting a serene environment.

 

Small Italian Towns with 7% Tax Benefits for Retirees 15
Bernalda: Known for its archaeological sites and charming architecture, Bernalda is close to the beach and filled with Southern Italian warmth.

 

Small Italian Towns with 7% Tax Benefits for Retirees 16

Maratea: A coastal gem with beautiful beaches and a rich cultural heritage.

 

Small Italian Towns with 7% Tax Benefits for Retirees 17

Photo from mappeattive.com

Irsina: A hilltop town with medieval architecture and vibrant traditions.

 

Abruzzo

Abruzzo’s landscapes are a mix of mountains and coastline, with quaint towns and strong traditions.

Small Italian Towns with 7% Tax Benefits for Retirees 18

Scanno: A scenic mountain town famous for its lake and medieval architecture, Scanno provides a quiet, community-focused lifestyle.

 

Small Italian Towns with 7% Tax Benefits for Retirees 19
Pacentro: Nestled in the Apennine mountains, Pacentro is known for its medieval castle and panoramic views.

 

Small Italian Towns with 7% Tax Benefits for Retirees 20
Castel del Monte: Set in a national park, this town is ideal for nature-loving retirees seeking peace and natural beauty.

 

Small Italian Towns with 7% Tax Benefits for Retirees 21

Atri: A historic town with ancient ruins and charming streets.

 

Molise

Molise is a small, undiscovered region with an old-world charm and welcoming residents.

Small Italian Towns with 7% Tax Benefits for Retirees 22

Agnone: Known for its artisanal bell-making, Agnone has charming streets, historical sites, and a friendly, supportive community.

 

Small Italian Towns with 7% Tax Benefits for Retirees 23
Sepino: Near ancient Roman ruins, Sepino offers history lovers a quiet spot steeped in heritage.

 

Puglia

Puglia, with its olive groves, whitewashed towns, and stunning beaches, is one of Italy’s most popular regions for retirees.

Small Italian Towns with 7% Tax Benefits for Retirees 24

Locorotondo: This whitewashed town in the Valle d’Itria is known for its conical-roofed trulli houses and a relaxed, picturesque atmosphere.

 

Small Italian Towns with 7% Tax Benefits for Retirees 25

Alberobello: Known for its unique trulli houses and charming streets.

 

These picturesque towns promise a fulfilling lifestyle, unique Italian traditions, and a community-focused environment.

 

Note: The list of towns provided in this article is for informational purposes only and represents suggested locations based on available data. Before deciding to transfer your tax residence to Italy to benefit from the optional 7% tax regime for foreign pensioners, please consult a professional. Eligibility may vary, and it’s essential to verify with current guidelines that a municipality qualifies under this tax benefit according to the most recent population data available from Istat’s “Annual Municipal Survey of Movement and Population Calculation.

Subscribe to our newsletter to access content and updates to help navigate life as an expat in Italy. If you need help with your citizenship process, language courses, or general expat life in Italy, email us at [email protected].


 

Coastal town celebrating Ferragosto during summer in Italy August 2026

What’s On in Italy | August 2026 Events & Festivals

What’s On: Italy August 2026 If you are planning to travel or move to Italy August 2026, prepare for a month that is hot, loud, and unapologetically festive. Cities empty as locals head to the coast, but for those who stay — and for visitors who know where to look — this is one of […]

apostille Italy

Apostille Italy vs Notarized Documents: Complete Guide

If you are applying for Italian citizenship, a visa, or residency, you need to understand how to get an apostille Italy authorities will accept. Documents often need to be “apostilled” or “notarized” — or both. These terms get used interchangeably, but they mean very different things. Getting it wrong is one of the most common […]

How to Become a Self-Employed Worker in Italy 2026 1

How to Become a Self-Employed Worker in Italy 2026

A practical guide for non-EU citizens who want to live in Italy, work independently, open a business, freelance, consult, or build a professional life abroad. Need help with your move to Italy? Becoming self-employed in Italy can be exciting, but the process can also feel confusing, especially if you are trying to understand visas, permits, […]

Get Italian Citizenship

How to Get Italian Citizenship: 2026 Guide to Shifting Laws

⏰ Last Updated: July 8, 2026   Learning how to get Italian citizenship is an incredible milestone. However, massive regulatory shifts changed the legal landscape completely this year. Recent constitutional court rulings, doubled fees, and strict generation limits have rewritten the rules of the game. Here is the updated reality.   Critical Lineage Warning: A […]

How to Move to Italy: A Step-by-Step Guide 2026 4

How to Move to Italy: A Step-by-Step Guide 2026

Comprehensive 2026 Residency Roadmap If you are considering relocating to Italy in 2026, you are likely drawn to the unparalleled lifestyle, the history, and the vibrant culture. However, moving to Italy is more than just booking a flight; it is a legal journey that requires navigating a complex bureaucratic system. There are several distinct pathways […]

SPID & CIE: Italy’s Two Digital Identity Tools — and Why You Need Both

If you’re living in Italy, SPID and CIE aren’t optional extras — they’re how you access nearly every government service, from booking your Questura appointment to filing taxes online. Here’s how to get both.   CIE — Carta d’Identità Elettronica Your Italian electronic ID card, issued by your local Comune. It’s also a digital key […]

Rental Deposit Italy: How to Get Your Money Back 8

Rental Deposit Italy: How to Get Your Money Back

How to Get Your Rental Deposit Back in Italy Protect your caparra before you even unpack — practical, legally sound advice for expats renting in Italy. Securing your rental deposit Italy return is one of the biggest worries for expats. One of the most common questions we hear is, “How can I make sure I […]

What's On in Italy July 2026: Best Festivals & Events 10

What’s On in Italy July 2026: Best Festivals & Events

From legendary bareback horse races to starlit open-air operas, discover the absolute best cultural festivals taking over the peninsula this month. July in Italy is a spectacular explosion of culture, music, and open-air celebrations. As the summer heat settles over the beautiful Mediterranean landscape, the country’s historic piazzas, ancient amphitheaters, and coastal waters transform into […]


Contact info

Roma Italy