Which Towns Qualify for Italy's 7% Regime in 2026: The 30,000 Rule Explained
Since April 2026 towns up to 30,000 inhabitants qualify. The eligible regions, the central Italy earthquake towns, how ISTAT population is measured, and how to check a specific town.
“Which towns qualify?” sounds like a simple question with a list for an answer. It is not quite. The answer depends on two separate tests, the region and the population, it changed in 2026, and the most common mistake we see is a retiree who has already chosen a house in a town that is just over the limit, or in a region that does not qualify at all.
This guide explains exactly which towns qualify after the 2026 reform, how the population test works, and how to check a specific town. For the rules of the regime itself, see our page on the 7% regime for foreign pensioners.
What Changed in 2026
Law 34 of 11 March 2026, in force from 7 April 2026, raised the population limit in article 24-ter of the Income Tax Code from 20,000 to 30,000 inhabitants. As our founder, Avv. Marco Mesina, explained in his analysis for IMI Daily, the change added 74 municipalities in the southern regions, mostly in Campania (23), Sicily (18) and Puglia (18), with a smaller number in Sardinia, Abruzzo, Calabria and Molise. The law does not state from which year the new limit applies; practitioners generally read it as applying to moves from 2026 onwards. If you moved before 2026 to a town between 20,000 and 30,000 inhabitants, the position should be checked.
Some official pages have not yet been updated: the English page of the Revenue Agency still refers to the old 20,000 limit. The law is what counts.
The Two Tests: Region and Population
A town qualifies if it meets both tests. First, it must be in one of the eligible areas: the regions of Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Puglia, or one of the municipalities of Lazio, Marche, Umbria and Abruzzo hit by the 2009 and 2016–2017 earthquakes and listed in the reconstruction legislation. Second, its population must not exceed 30,000 inhabitants.
The population is the one recorded by ISTAT, the national statistics institute, at 1 January of the year before the year in which the option first applies. A town that grows above the limit later does not affect a regime already started; a town just below the line today may be just above it next year. For the earthquake municipalities, the government's reconstruction commissioner publishes an official English page listing them and explaining the regime.
Southern Italy: Where Most Retirees Go
Across the eight southern regions, every town up to 30,000 inhabitants qualifies, which covers the vast majority of municipalities. Sicily, Sardinia and Puglia attract most foreign retirees; our comparison of Sicily, Sardinia or Puglia explains the differences in transport, property prices and lifestyle. Calabria, Basilicata and Molise are less known but offer the lowest prices in Italy and some remarkable landscapes, from the Tyrrhenian coast of Calabria to the hill towns around Matera. Campania offers towns within reach of Naples and the Amalfi Coast, though the famous Amalfi towns themselves are expensive and small. Abruzzo combines mountains and the Adriatic within an hour of Rome.
Central Italy: The Overlooked Option
The second category is often ignored, yet it can be the most interesting. After the earthquakes of 2009 and 2016–2017, the regime was extended to the listed municipalities in Lazio, Marche, Umbria and Abruzzo. These include mountain and hill towns such as Amatrice and Accumoli in Lazio, Norcia, Cascia and Preci in Umbria, and Camerino, Visso and Ussita in the Marche.
They offer a different life from the southern coast: apennine landscapes, cooler summers and, for some, the proximity of Rome and of good hospitals. Many are still rebuilding, which can mean both opportunities and practical difficulties: check the condition of the building, the reconstruction status and the services available before committing.
How to Check a Specific Town
We recommend four steps. First, confirm that the town is in an eligible region or on the earthquake list. Second, check its ISTAT population at 1 January of the year before your move. Third, confirm that you will actually live there: the regime requires you to register as a resident and to make the town your real home, and tax residence follows facts, not addresses. Fourth, look at life in winter: services, healthcare, transport and community.
To make the first two steps easier, our team maintains our interactive map of the 7% towns on italy7percenttax.com, our site dedicated to retiring in Italy. It shows about 2,500 qualifying towns, with population filters and the earthquake areas marked, based on ISTAT data at 1 January 2025. Before signing anything, have the specific town confirmed and work with someone who knows the area.
The Population Test in Practice
Three situations come up again and again. The first is the town just over the line: a popular coastal town with 30,400 inhabitants does not qualify, however small it feels. Several well-known towns in Puglia and Sicily sit within a few hundred people of the limit, so a figure found online a few years ago is not enough. The second is the town that crossed the old 20,000 limit: places that were excluded until 2025 may now qualify, which opens up mid-sized towns with hospitals, schools and train stations that were previously out of reach. The third is the hamlet: a frazione belongs to its municipality, and it is the population of the whole municipality that counts, not of the village where you live.
The timing matters too. Because the figure used is the ISTAT population at 1 January of the year before the option, a move in, say, 2027 is tested on the population at 1 January 2026. It is worth checking the figure for the right year, and keeping a copy of it with your tax file.
Choosing Strategically
The right town is not just one that qualifies. It is one you will still enjoy in your fifth winter, from which you can reach a hospital and an airport, and where you can find help with the paperwork. Many retirees start with a famous coastal town and end up happier a few kilometres inland, in a quieter place that costs half as much. A small Italian town is a different way of life, and renting first is almost always wise. American retirees should also read our guide on how the regime interacts with US taxation.
Our View
The 2026 reform made the regime more flexible, but it did not make the choice simpler. Pick the life first, then the region, then check the town against the law and the ISTAT data, before you sign anything. Non-EU retirees should plan the elective residence visa in parallel, as the visa application already requires an address.
Frequently Asked Questions
What is the population limit for the 7% regime?
30,000 inhabitants since April 2026, under Law 34/2026. It was previously 20,000.
Which regions qualify for the 7% regime?
Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Puglia, plus the listed municipalities of Lazio, Marche, Umbria and Abruzzo affected by the 2009 and 2016 to 2017 earthquakes.
How is the population of a town measured?
On ISTAT data at 1 January of the year before the year in which the option first applies.
How many towns qualify?
About 2,500 after the 2026 reform, including the earthquake municipalities in central Italy.
Do any towns in Tuscany or northern Italy qualify?
No. Only the southern regions and the listed earthquake municipalities of central Italy qualify.
What happens if my town grows above 30,000 inhabitants later?
The test is applied when the option first applies; later changes in population do not affect a regime already started.
Where can I check whether a town qualifies?
Check the region and the ISTAT population. Our interactive map on italy7percenttax.com shows the qualifying towns, and the reconstruction commissioner lists the earthquake municipalities.
Avv. Marco Mesina
Founder, Move to Dolce Vita · Avvocato, Milan Bar (Ordine degli Avvocati di Milano)
Marco is an Italian tax lawyer who advises individuals and families relocating to Italy on tax regimes, residency, citizenship, real estate and succession planning. Before founding Move to Dolce Vita he worked at Watson Farley & Williams, Withers and Deloitte in Milan.
- Milan Bar
- Citywealth Top 50 Italian Advisors 2025 & 2026
- Profiled by Forbes (2024)
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