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506 retirees from abroad move to Southern Italy: Analysis of the 7% Flat Tax Regime

Italia

The undersecretary of the MEF Savino took stock of the optional regime during a recent question time in the Chamber.

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In three years, from 2019 to 2021, the 7% flat tax attracted just over 500 retirees from abroad to southern Italy. And Abruzzo was the first destination region. To snap the snapshot of the optional regime, which provides for the application of a substitute tax of the Irpef for natural persons with pension income paid by foreign subjects who transfer their tax residence to Italy, in one of the municipalities in the South with a population not exceeding 20 thousand inhabitants, was Sandra Savino. The Undersecretary for Finance spoke on May 31 at the question time in the Finance Committee of the Chamber.

In three years, 506 pensioners moved to Italy from abroad

Some data: in the 2021 tax year there were 286 pensioners who transferred their tax residence from abroad to Italy, in the South. A year earlier there were 159; in the 2019 tax year there were instead 61. Therefore, adding up the total of the three years, it appears that the pensioners who took advantage of that possibility in that period were 506.

They mostly come from the UK

As regards the country of origin, if we take into consideration the three tax years (2019, 2020 and 2021) it turns out that the United Kingdom was in first place (115 people), followed by Germany (109) and the USA (56).

Abruzzo is the main destination

As for the southern region of destination, however, in front of all there is Abruzzo (151 people), followed at a distance by Puglia (106) and Sicily (75).

The extension to municipalities affected by seismic events

The 7% flat tax for pensioners from abroad envisaged by the Tuir (article 24-ter), was extended in the scope of application with Legislative Decree 4/2022 (article 6-ter). In addition to the South, these people can move to municipalities affected by earthquakes in 2009, 2016 and 2017.

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2023-06-03 05:53:49
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