Abruzzo is one of the five southern Italian regions that make up the ‘Mezzogiorno’ and actively encourages foreign retirees to become residents, paying just 7% tax for up to 9 years.
This tax break is in return for helping repopulate and revitalise its fragile, rural villages, small towns and cities and help counter what could be regarded as a circle of decline in its precious mountainous and national park areas, in 2020 just 60/305 municipalities had the same or more residents than the previous year. Originally, it was an emergency tax break applied to the towns affected by the L’Aquila earthquake, but, in 2022, it was reaching as far north as Lazio, Marche, and Umbria.
7% Flat Tax Rate
These cities are excluded because they all have a population over 20,000: Pescara, L’Aquila, Montesilvano, Teramo, Chieti, Avezzano, Vasto, Lanciano, Sulmona, Roseto degli Abruzzi, Ortona, Giulianova, and Francavilla al Mare.
All others are eligible; however, we seriously advise considering the viability of a small town over the next nine years, including whether the town has received PSNAI grants, how rapidly the town is depopulating, and tracking this information from ISTAT statistics, and how it is managing with climate change: water rationing, flooding, and landslides. You should consider all of these!
Click here for the 2025 List of Abruzzo Municipalities With Under 20k Residents
Eligibility of the 7% Flat Tax Rate
To be eligible for this flat rate tax of 7% in Abruzzo, you, as a ‘new’ resident, must settle in an Abruzzese municipality that has a population of less than 20,000 and have not lived in Italy for 5 years before. You would need to pay your tax in one full payment each year, personal deductions, and for example, restoration projects could not be used for further discounts. Checking that your country has a tax agreement with Italy is another prerequisite!
Estimated Decrease of Abruzzo’s Population
Abruzzo’s Vital Statistics
Italy’s national static board Istat recorded on 1st January 2023, Abruzzo’s population totalled 1,269,860 residents, a drop of 6,090 residents compared to 2022. The decline is less than that recorded between 2020 and 2021 which saw 12,929 residents leave. This is an average of -4.8 per thousand inhabitants compared to Italy’s general rate of -3. This departure rate is split across the provinces as -6.2% in L’Aquila, -4.1 in Teramo, -4.2 in Pescara and lastly in Chieti -4.7 per thousand inhabitants. The number of its foreign residents remains stable at 81,000, a rise of +3.6 compared to the national average of +3.9.
The average age of citizens is 47.2 years (46.4 in Italy). 62.8% of the population is aged between 15 and 64, whilst 25.3% are over 65 and 11.9% are between 0 and 14 years old, just below the Italian average of 13%.
Abruzzo was recently placed 186 out of the 234 regions that make up the EU. The ‘Index’ measures, with a rich set of indicators, the ability of a region to offer an attractive environment for firms and residents to live and work. Naturally, there are different strokes for different folks and needs vary dramatically at different stages of one’s life. For those who are entering their ‘elderhood’, an excellent health indicator is likely most welcome. See the full breakdown by each region.
Author: Sam Dunham
Sam is a freelance SEO content creator and IGCSE Geography and English teacher at Istituto Cristo Re in Rome. She also runs the Life In Abruzzo Cultural Association, sharing stories and insights about this captivating region.
Alongside raising a teenager, Sam hosts guests at her family’s traditional home, the Little House of the Firefly in Abruzzo, offering a warm welcome and insider tips on local culture, food, and hidden gems.
