Following the enactment of Law 145/2018, Italy set-about attracting retirees from other countries by applying a new, lower flat tax on pension and other foreign incomes to those who relocate their tax residence to Italy.
A flat rate of 7% is applied on such incomes for a period of 5 years.
The special tax rate is restricted to those who take-up residency in towns with less than 20,000 inhabitants in the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily.