Flat Tax 7% for foreign retirees: living in Italy with light taxation and high quality of life

Who can benefit

To qualify for the scheme, one must:

• Be a recipient of pension income (or equivalent allowances) from foreign entities. An Italian pension is also permissible, as long as you also receive pension income from abroad.
• Not having been a tax resident in Italy in the 5 years prior to the transfer.
• Transfer residence from a country with which Italy has administrative cooperation agreements (for the exchange of tax information).
• Establish residence in a municipality in central or southern Italy with fewer than 20,000 inhabitants, or in specific municipalities affected by earthquakes.

Key benefits

1. Single, reduced tax rate
   Payment of a 7% substitute tax on foreign-source income, replacing IRPEF and regional and municipal surtaxes.
2. Valid for multiple types of income
   Not just pensions: foreign rental income, dividends, employment or self-employment, business activities, capital gains and other income generated abroad are also covered.
3. Exemption from tax monitoring

• No obligation to complete the RW panel.
• Exemption from paying IVIE (tax on real estate abroad) and IVAFE (tax on financial assets abroad).

1. Duration up to 10 years
   The benefit applies in the year of transfer and the following 9 years.
2. Tax simplification.
   Streamlined procedures and reduced bureaucratic and tax burden.

Revocation or loss of benefit

The scheme ceases in the event of:

• Failure to meet initial requirements.
• Relocation to an ineligible municipality or abroad.
• Failure or partial payment of the tax.
  In case of revocation or forfeiture, it is not possible to reapply for the scheme.

Why choose this opportunity

Moving to a small town in southern Italy means living in charming places with a lower cost of living, renowned cuisine and a mild climate.
For non-EU citizens, the National Health Service is accessible with an annual contribution of about 2,000 euros, which is much less than the cost of private insurance in countries such as the United States.

In summary: The Flat Tax at 7 percent is an opportunity to combine the pleasure of living in Italy with an advantageous and simple tax regime designed for those who want to enjoy retirement in peace, with more resources at their disposal and less bureaucracy.