Flat rate
7.0%
Duration
10 years
Prior non-residency
5 years
required before applying
Standard top income tax
43.0%
Italy, without the regime
Overview
- Regime
- Southern Italy 7% flat tax (retirees)
- Country
- Italy
- Type
- Flat rate
- Status
- Active
- Effective from
- Jan 1, 2019
- Expires on
- —
Details
- Summary
- 7% substitute tax on foreign-source pensions and certain other foreign income for new residents in designated small southern municipalities.
- Eligibility
- Foreign pension holder; not Italian tax resident for 5 prior years; tax residence in listed southern comuni under 20,000 inhabitants; transfer from a country with administrative cooperation with Italy.
- Benefits
- 7% flat rate on covered foreign-source income for up to 10 years.
- Requirements
- Option in the annual Italian income tax return when residence is transferred.
- Limitations
- Geographic and pension-income conditions; not cumulative with lump-sum HNWI regime on the same income.
- Income types covered
- Foreign pensions and other qualifying foreign-source categories per statute
- Duration details
- 10 years
Other regimes in Italy
| Name | Type | Rate |
|---|---|---|
| Impatriate Regime | Percentage exemption | — |
| Lump-Sum Tax Regime (HNWIs) | Lump sum | — |
View source PwC Worldwide Tax Summaries