“Flat Tax at 7%” measure

IT | EN

The “Flat Tax at 7%” measure covers pensioners living abroad who move to central Italy. This measure targets people who have been resident abroad for at least five years and receive pension income from a foreign entity.

People who receive a pension from abroad and move to Italy, to a municipality with a population of less than 20,000 and located in the areas affected by the 2009/2016 earthquakes, can opt to have all income subject to the Flat Tax option. This tax is calculated at a flat rate of 7 percent on foreign income over nine years, starting from the first year in which this choice is made.

Note: Receipt of any pension income is enough to be subject to the 7% tax on any other income received by a foreign subject.

Flat Tax is a tool that can help revitalize the local economy and tackle the depopulation to which the small towns of the Central Apennines are subject.

Regulated by article 24-ter of "Testo Unico delle Imposte sui Redditi (TUIR)"

For more information please contact flattax-cratere2016@governo.it

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Benefits
  • Pensioners residing abroad may transfer their tax residence to a Central Apennine municipality and benefit from the 7% substitute tax (Flat Tax) for 10 years on all income generated, of any category, including non-pension income.
Requirements to be satisfied
  • Be a holder of pension income provided by a foreign entity.
  • Have resided abroad for at least 5 years (foreign nationals or Italians who have resided abroad for at least 5 years, also registered with AIRE).
What should be done to benefit from the 7 percent flat tax?
  • Transfer the residential home (place of residence) in one of the Central Apennine municipalities with a population of less than 20,000. (List of municipalities)
  • Apply to the Internal Revenue Service (Agenzia delle Entrate) for a tax code (codice fiscale) assignment. (Link to the service)
  • Apply for registration at the Registry Office (Anagrafe del Comune) of the chosen municipality of residence.
  • After at least 6 months from registration, by filing your tax return, you can choose the Flat Tax regime at 7 percent for all income earned (Art. 24-ter TUIR) for the relevant tax year and the following nine.