Understanding Italy’s 7% tax regime for foreign
Why Puglia appeals to today’s expat buyers
Key considerations before relocating or buying in Puglia
FAQ — Italy 7% flat tax for foreign
Ready to start your Puglia journey?
Puglia has evolved into one of the most attractive destinations in Italy for foreigners seeking a new lifestyle, an investment property, or a place to retire under Italy’s favorable tax regime. Known for its whitewashed coastal towns, Mediterranean climate, accessible real estate, and increasing international communities, Puglia offers a compelling balance of authenticity and modern comfort.
This guide has been created specifically to help expats, retirees, digital nomads, and international families understand why Puglia is becoming a top destination — and what they should consider when relocating or purchasing property here.
Understanding Italy’s 7% tax regime for foreign
One of the reasons Southern Italy — including Puglia — has gained significant international attention is the 7% flat tax regime for eligible foreign pensioners. This special tax incentive allows qualifying individuals to pay a flat 7% on all foreign-sourced income for ten years.
Who is eligible?
- Foreign pensioners receiving a non-Italian pension
- Individuals not tax-resident in Italy for at least five years before moving
- Italian citizen registered with AIRE (Italian Registry of Residents Abroad) receiving a non-Italian pension
- Residents who relocate to qualifying municipalities in Southern Italy with populations under 20,000 inhabitants
Important Updates for 2025
The Italian government periodically updates the list of qualifying municipalities and eligibility criteria. As of 2025, the regime remains active but with refined requirements:
- Population threshold: Towns must have fewer than 20,000 residents (you can verify this through ISTAT data)
- Income declaration: All foreign income must be declared to the Agenzia delle Entrate
- Duration: The benefit lasts for 10 consecutive years from the first year of tax residency
- Regional restrictions: Must be in regions specified under the “Mezzogiorno” development area
Official verification: Always check the current list of qualifying municipalities on the Agenzia delle Entrate official portal or consult with professionals who specialize in international tax law.
Key considerations before applying
Tax residency requirements: You become an Italian tax resident if you spend more than 183 days per year in Italy or establish your primary residence (domicilio) here.
Healthcare enrollment: Foreign residents can access Italy’s national healthcare system (SSN) after obtaining tax residency and registering with the local ASL (Azienda Sanitaria Locale).
Declaration process: Application for the 7% regime must be filed with your first Italian tax return (Modello Redditi PF) after establishing residency.
Professional guidance is essential: Tax laws change regularly. We strongly recommend consulting with:
- A commercialista specializing in expat taxation
- An immigration lawyer for visa and residency permits
- A notaio (notary) for property transactions
While aimed specifically at pensioners, the existence of this incentive has brought global visibility to Puglia and attracted a wider audience — including remote workers, investors, and families seeking a better quality of life.
Why Puglia appeals to today’s expat buyers
1. Authentic lifestyle and seaside living
Puglia’s charm lies in its balance between tradition and vibrancy. Coastal towns such as Polignano a Mare, Alberobello, Carovigno, and the Salento coastline offer a relaxed Mediterranean rhythm combined with modern amenities.
2. Real estate opportunities across the region
Puglia’s property market is diverse and still more accessible than other well-known Italian regions.
Available options include:
- Beautifully restored apartments in medieval towns
- Masserie (traditional stone farmhouses)
- Villas with sea views
- Countryside estates with olive groves
- Modern homes near beaches
- Properties suitable for rental income
Areas like Alberobello, and the coast tend to attract higher-end buyers, while Carovigno, Ceglie Messapica, Locorotondo, and Valle d’Itria’s small towns offer excellent value for space and privacy.
3. Strong infrastructure for remote work
Digital nomads and remote professionals choose Puglia because it offers: access to two international airports (Bari and Brindisi), growing coworking spaces, safe neighborhoods, and an inspiring seaside environment.
The small and suggestive towns in Valle d’Itria, Alberobello, Locorotondo, and Polignano a Mare are particularly suited for remote work, combining connectivity with lifestyle.
4. A comfortable region for retirees
Northern Europeans and North Americans find Puglia appealing: mild winters, low cost of living compared to home, accessible healthcare system, a relaxed pace, easy access to nature and cultural events.
For pensioners who qualify for the 7% tax, Puglia becomes one of the most financially advantageous regions in Southern Europe.
If you’re an Italian citizen registered with AIRE (Italian Registry of Residents Abroad) who has worked abroad and receives a foreign pension, you can also access the 7% flat tax regime under the same conditions. For a detailed guide, see our article: Rientro in Italia con Flat Tax 7%: come trasferirsi in Puglia da pensionato.
Key considerations before relocating or buying in Puglia
Legal & tax advice
Always consult certified professionals for:
- Tax residency and 7% flat tax for foreign eligibility
- Property documentation and due diligence (visura catastale, certificato di agibilità)
- Inheritance rules under Italian law
- Visa requirements (especially for US/UK/Canadian/Australian citizens)
To get started, you can book an appointment with the legal team at Trulli & Dimore Immobiliare.
Understanding the property types
Historic properties may require specific restoration guidelines and permits from the Soprintendenza (cultural heritage authority), while modern villas offer turnkey comfort. Always verify building permits (concessione edilizia) and zoning regulations before purchasing.
Budget and market trends
Prices vary significantly between coastal hotspots and rural areas. Understanding local demand helps identify opportunities and future value. Current market trends show continued interest from international buyers, particularly from Northern Europe and North America.
Long-Term vs Investment Use
Some towns perform exceptionally well for rental income during summer months, especially near the coast. Short-term rental regulations (Legge 178/2020) require registration with local authorities and tourist tax collection. Consult local regulations before purchasing for investment purposes.
FAQ — Italy 7% flat tax for foreign
Yes. Buyers from the EU, USA, UK, Canada, Australia and many other countries can purchase without restrictions. A codice fiscale (Italian tax ID) is required and can be obtained at any Italian consulate or local Agenzia delle Entrate office. Ask Trulli & Dimore Consultant for help.
Eligibility changes based on population thresholds and government updates. Many small towns in the Valle d’Itria, inland Puglia, and Salento may qualify. Always verify current eligibility on the official Agenzia delle Entrate website or consult with a Trulli & Dimore Consultant.
Absolutely. The region offers a welcoming culture, accessible cost of living, high-quality healthcare, and strong lifestyle appeal. Many towns have established English-speaking communities and services catering to international residents.
Yes. Puglia is known for its safe, community-oriented towns with low crime rates. The region consistently ranks among Italy’s safest for both residents and tourists.
Working with a local real estate agency that specializes in international clients ensures access to verified listings, legal guidance, and language support throughout the buying process. Schedule a consultation with our English-speaking team
While knowing Italian greatly enhances the experience, many expats successfully integrate with basic Italian skills. English is increasingly spoken in tourist areas and by service providers catering to international residents. Language courses are widely available locally.
Italy follows forced heirship rules, which may differ from those in your home country. If you own property in Italy, Italian succession laws may apply to that asset. We recommend consulting our international estate planning attorney for personalized advice.
Ready to start your Puglia journey?
Puglia stands out as one of Italy’s most appealing regions for international buyers, offering authentic culture, coastal beauty, strong value in real estate, and increasing expat communities. Whether you’re considering relocation under the 7% tax for foreign regime, searching for a retirement destination, or exploring investment opportunities, Puglia provides a balanced and inspiring environment to build a new life.
Next steps:
Our team specializes in assisting international clients throughout the entire buying process, from property search to final deed signing and beyond.
