Imagine paying only 7% tax on your foreign pension for 10 years. In Western Sicily, this is not a dream—it's the law.
This is the single biggest incentive for high-net-worth individuals moving to Italy. But there is a catch: it only applies to municipalities with fewer than 20,000 inhabitants. Trapani and Marsala are too big, but their beautiful satellite towns qualify.
Where should you buy to get the Tax Break?
We guide our clients to the best "under 20k" towns that offer luxury living:
- Favignana (The Egadi Islands): Yes, the island qualifies. Absolute paradise.
- San Vito Lo Capo: Famous for its beach, but also a quiet winter retreat.
- Castellammare del Golfo / Scopello: Stunning sea views and high-end villas.
- Valderice / Custonaci: Hilltop views over the sea, close to Trapani city services.
How We Help
Buying the house is the first step to residency. We ensure the property is fully legal (a requirement for residency application) and help you renovate it to luxury standards using the tax savings.
Frequently Asked Questions
What is the 7% flat tax for retirees in Sicily?
Italy offers a 7% flat tax on all foreign-source income (including pensions) for retirees who transfer their tax residence to qualifying Italian municipalities with fewer than 20,000 inhabitants. In the Trapani area, cities like Trapani and Marsala are too large, but many beautiful satellite towns qualify. The benefit lasts up to 10 years.
Which towns near Trapani qualify for the 7% flat tax?
Towns near Trapani qualifying for the retiree flat tax include: Favignana (Egadi Islands), San Vito Lo Capo, Castellammare del Golfo, Scopello, Valderice, and Custonaci. All have populations under 20,000 and offer high-quality coastal living.
Do I need to be a European citizen to benefit from the 7% flat tax in Italy?
No. The 7% flat tax is available to all foreign retirees regardless of nationality — including citizens from the UK, US, Canada, and Australia. The key requirement is transferring your official tax residence to a qualifying Italian municipality and having foreign-source pension or investment income.