7% Flat Tax Sicily Comuni

About this guide. Costruzioni De Masi is a building contractor based in Siracusa, operating in south-eastern Sicily since 1966, with more than 500 completed projects across Siracusa, Ortigia, Noto, Avola and Augusta. Costruzioni De Masi publishes this guide from direct experience with foreign retirees relocating under the 7% flat tax regime. Works are carried out under the supervision of chartered surveyor Fabio De Masi, with fixed-price contracts, contractual penalties for delay and a ten-year structural warranty backed by an AXA policy.

Italy’s 7% flat tax for foreign retirees (art. 24-ter TUIR) is one of the most attractive expatriate tax regimes in Europe. The threshold was raised to 30,000 inhabitants from 7 April 2026, opening 18 new Sicilian comuni. This guide explains qualification, savings vs standard IRPEF, the eligible comuni in Costruzioni De Masi service area, and the residency-vs-asset strategy hack for HNW buyers wanting Ortigia or Ragusa Ibla.

What Is Italy’s 7% Flat Tax for Foreign Retirees

Art. 24-ter TUIR: 7% substitute flat tax on ALL foreign-source income (pension, dividends, capital gains, foreign rental) for foreign retirees moving residency to qualifying small Italian comuni. Replaces ordinary IRPEF progressive rates (23-43%).

2026 Update: Threshold Raised to 30,000 Inhabitants

Law 34/2026 (April 2026) raised eligibility threshold from 20,000 to 30,000 inhabitants, opening 18 new Sicilian comuni. Scicli (27k) is the most prominent addition for South-East Sicily.

Qualification Criteria

• Pension or income from abroad (private or state)
• Foreign residency for 5+ years before relocation
• Move tax residency to eligible comune (under 30k inhabitants in Southern Italy)
• Genuine residency — must be your main residence, not nominal

Duration: 10 Years

Substitute tax of 7% on ALL foreign-source income for 10 years from relocation. After 10 years: ordinary IRPEF applies. Cannot be renewed.

Tax Savings: Real Examples

UK Pensioner — £45,000/year pension

Standard Italian IRPEF: ~£45k × 38% effective = ~£17,100/year tax. With 7% flat tax: ~£3,150/year. Saving: £14,000/year × 10 years = £140,000 lifetime saving.

German HNW Retiree — €60,000/year investment income

Standard IRPEF: ~€60k × 41% effective = ~€24,600/year tax. With 7% flat tax: €4,200/year. Saving: €20,400/year × 10 years = €204,000 lifetime saving.

US Retiree — $80,000/year IRA distributions

Standard IRPEF: ~$80k × 43% effective = ~$34,400/year tax. With 7% flat tax: $5,600/year. Saving: $28,800/year × 10 years = $288,000 lifetime saving.

(Figures illustrative — actual saving depends on personal situation, verify with commercialista.)

Eligible Comuni in Costruzioni De Masi Service Area 2026

Comune	Population	Character
Noto	24,000	UNESCO baroque town, premium location
Scicli	27,000	UNESCO baroque, novità 2026
Pachino/Marzamemi	21,000	Seaside, vacation rental hotspot
Floridia	21,000	Central plain, 15 min commute Ortigia
Rosolini	20,000	Quiet inland
Pozzallo	19,000	Coastal town, harbor
Ispica	16,000	Archaeology + sea
Palazzolo Acreide	9,000	Highland UNESCO baroque
Chiaramonte Gulfi	7,000	Highland olive oil region

NOT Eligible Comuni (>30,000 Inhabitants)

For transparency: Modica (54k), Comiso (30k borderline NO), Avola (31k), Augusta (33k), Vittoria (64k), Ragusa city (73k), Syracuse city (117k) are NOT eligible for 7% flat tax residency.

Strategy Hack: Residency in Eligible Comune + Asset Elsewhere

HNW retirees wanting palazzo Ortigia, Ragusa Ibla, Modica (NOT eligible): the law binds residency anagrafica to eligible comune, NOT asset location. Strategy: residency in Floridia (15 min from Ortigia) + asset palazzo Ortigia. Or residency in Palazzolo Acreide + asset Ragusa Ibla. Genuine residency required (not nominal — must be your actual main residence).

Relocation Process Step-by-Step

1. Codice fiscale via Italian Consulate in your country (UK/USA/DE/CH/CA/AU) — 5-15 working days
2. Elective Residence Visa (ERV) for non-EU citizens — €32k/year passive income required, UK consulate 4-8 weeks
3. EU citizens (DE/FR/NL/AT/IE): no visa needed, register at Comune within 90 days arrival
4. Comune residency registration — present at Anagrafe with codice fiscale, passport, lease/property deed
5. Cancel residency abroad + register AIRE if Italian descendant returning
6. Apply for 7% flat tax in first Italian tax return after relocation

Healthcare Access After Relocation

Italian SSN (Servizio Sanitario Nazionale) enrollment after residency. Free public healthcare access. Private insurance optional (~€800-2,500/year supplementary).

Renovation of Your Sicilian Property

Once you’ve secured residency and 7% flat tax status, the renovation of your acquired property is where Costruzioni De Masi adds value. We deliver turnkey contracts with locked price, AXA 10-year structural insurance, weekly photo updates, English-language project management.

Free first site inspection with thermal camera, moisture meter, structural checklist + written feasibility note within 5 working days.

Common Mistakes and Pitfalls

• Nominal residency: cannot register Floridia residency while actually living in London. Italian tax authorities verify genuineness — utilities, schools, GP, social ties
• Income source verification: must be FOREIGN-source. Italian rental income from Sicilian property does NOT qualify
• Pre-existing Italian tax residency: if you were Italian tax resident in any of the 5 previous years, you don’t qualify
• Timing of relocation: relocate by 31 December for full year applicability; mid-year relocation requires pro-rata calculation

Working with Costruzioni De Masi

Third-generation Sicilian construction firm based in Syracuse, since 1966, 500+ projects, 4.6/5 Google reviews. We deliver bilingual project management, AXA 10-year insurance, locked price, contractual penalties for delay, under direct supervision of chartered surveyor Fabio De Masi.

Further reads: Italian tax incentives 2026 | Historic palace restoration Sicily | Buying property Sicily from Malta.

Official sources: Agenzia delle Entrate English portal.

Buying from abroad? See how Costruzioni De Masi works with international clients — English-speaking project management, fixed-price contracts and photo updates at every stage.