The “7% flat tax” (the imposta sostitutiva for retirees) is one of the most searched fiscal topics among US/UK retirees considering Italy. The promise is simple: a predictable, low tax rate on foreign income—but only if you move to the right municipality and meet the eligibility criteria.
Why Catania city is usually excluded (and why Etna towns may qualify)
The regime is designed for smaller municipalities. That means large urban centers typically do not qualify, while many towns in the Etna area can. In real life, the first step is not “buy the villa”—it’s verifying the exact municipality you intend to register as your residence.
What we check before you commit
- Municipality eligibility: confirmation of the town’s status for the regime and your residency plan.
- Property feasibility: whether the home is legally compliant (urban planning, permits, titles) and can be renovated as intended.
- Budget realism: transaction costs + renovation cost ranges (especially for older rural assets).
The overlooked risk: buying a “beautiful problem”
Foreign buyers often discover too late that a charming property has unresolved compliance issues—illegal extensions, missing authorizations, or constraints in protected areas. A tax benefit is irrelevant if the asset can’t be lawfully refurbished or insured.
Action plan (simple, but rigorous)
- Choose a target town and verify eligibility.
- Run technical due diligence before signing anything binding.
- Build a renovation strategy that respects local constraints (Etna Park, seismic classification, heritage rules).
If you want, we can review a specific listing and tell you in plain English: what’s easy, what’s risky, and what it will cost.