Abruzzo is one of the 5 southern Italian regions that make up the ‘Mezzogiorno’ and actively encourages foreign retirees to become a resident and pay 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.  From 2022, municipalities in Lazio, Umbria and Le March affected by the earthquakes in 2009, 2016-2017 are also included on the eligible ‘list’.

Estimated Decrease of Abruzzo’s Population

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 can’t have 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. Check your country has a tax agreement with Italy that is another pre-requisite!  Jump to the list!

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.

Abruzzese Municipality Eligible for Italy’s 7% Flat Tax Rate for Foreign Retirees with 5,000 + Residents

Province Code: TE=Teramo, CH=Chieti, PE=Pescara, AQ=L’Aquila

Foothills and Mountains…

Abruzzese Municipality Eligible for Italy’s 7% Flat Tax Rate for Foreign Retirees with Less than 5,000 Residents

Author: Sam Dunham

Sam is a very lucky midlife 'mamma' to A who is 13 and juggles working as a freelance SEO copywriter & teaches IGCSEs at Istituo Cristo Re in Rome. She is the founder of the Life In Abruzzo Cultural Association, co-founder of Let's Blog Abruzzo and 'English in the Woods' initiative.