Italy's 7% flat tax on your foreign income, if you retire to the right town.

It applies a flat 7% substitute tax to all of your foreign-source income, not only your pension but also foreign rental, dividends, interest, and capital gains, replacing ordinary Italian tax on that income. Italian-source income is taxed at normal rates.

You must move to a municipality of up to 30,000 inhabitants (raised from 20,000 on 7 April 2026) in one of eight southern regions, Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sicily, or Sardinia, or to a town of the same size in the 2016 central-Italy or 6 April 2009 earthquake zones. The population that counts is the ISTAT figure at 1 January of the year before the option's first year (Agenzia delle Entrate), so the specific town must be checked.

You must hold a pension paid by a foreign entity, not have been an Italian tax resident in the prior five tax years, and move from a country with which Italy has an administrative-cooperation agreement in force. The law sets no nationality condition, so Italian citizens can qualify if they meet these tests.

The option runs for 10 tax periods: the tax year you move, when it takes effect, plus the following nine (TUIR art. 24-ter(4)-(5)). After that, ordinary Italian tax applies. You can revoke it, and it ends if you stop meeting the conditions or if the tax is not paid in full, unless the missing amount is paid, with penalties and interest, by the income-tax balance deadline of the following tax year (TUIR art. 24-ter(7)); after revocation or forfeiture you cannot elect it again.

While under the regime, you are generally exempt from IVIE and IVAFE on foreign assets and from the quadro RW foreign-asset monitoring. A tax adviser confirms how this applies to you.

Movingto tests eligibility, checks the town, and organizes the evidence. A licensed Italian tax adviser confirms eligibility, advises on the position, and handles the filing.

Movingto's published fee for Italy 7% flat-tax / tax-residence setup is from €1,250 (Movingto pricing page). Your written quote confirms the fee and scope; government fees and third-party costs are billed separately.

Yes, within limits. According to the Agenzia delle Entrate, the option stays valid if, from the second tax year, you move to another qualifying town; that town's population is checked at 1 January of the year before you move there (checked 18 October 2026).

In the Italian tax return for the year you transfer residence. The return states your five years of non-residence, the country of your last tax residence, the country of the pension payer, any foreign states you leave out, and the foreign income taxed at 7%. The tax is paid in one sum by the income-tax balance deadline (TUIR art. 24-ter(5)-(6); Agenzia delle Entrate).

Yes. You can choose not to apply the 7% to income from one or more foreign states, when you elect or later. That income is then taxed under ordinary rules, with a credit for foreign tax (TUIR art. 24-ter(8)).