The Southern Italy opportunity: 7% tax rate on all income categories
Law No. 34 of 11 March 2026 (published in the Official Gazette No. 68 of 23 March 2026) introduced, pursuant to Article 26, paragraph 1, an amendment to Article 24‑ter, paragraph 1, of the Italian Income Tax Code, raising to 30,000 inhabitants (from 20,000) the maximum population threshold of municipalities to which taxpayers may transfer their tax residence in order to benefit from the preferential tax regime applicable to individuals receiving foreign‑source pension income.
By intervening exclusively on this single requirement and leaving the overall structure of the preferential tax regime unchanged, the legislative amendment aims to broaden the range of options available to so‑called “foreign pensioners”. This measure is intended to enhance the attractiveness of a tax regime in force since 2019 which, although perhaps underestimated to date, offers significant advantages.
