The Mezzogiorno of Italia includes most of the regions South of Rome; inclusive of Sicily and Sardegna and historically has attracted fewer expat relocations than the more popular regions of Toscana, Umbria and Le Marche
The Mezzogiorno of Italia includes thousands of miles of coastline, lovely beaches and has well over 200 days of sunshine annually. While it attracts large numbers of tourists to well-known towns along the Amalfi Coast and to the islands of Sicily and Sardegna, the Mezzogiorno is less often the first choice of expats when purchasing property in Italy.
This may be due in part to the fact that, in modern history, the Southern Italian economy has not generally performed as well as those of wealthier Northern towns like Bologna, Florence, Milan or Venice – leading to higher unemployment levels and other socio economic problems. Admittedly, until recent times big cities in the South, like Napoli had unsavory reputations for criminality and poor municipal governance (think garbage in the streets). But, in the last decade, tourism to the South has greatly increased, with regional airlines like Ryan Air and EasyJet bringing in high volumes of tourists and with the increased tourism came increased socio-economic development. Happily, those cities formerly overlooked by expats such as Napoli are experiencing a renaissance.
It is also important to note that the poorer economic situation of the Mezzogiorno is a relatively recent phenomenon.
In fact, the bulk of the territory that makes up the Mezzogiorno was formerly known as the Kingdom of the Two Sicilies (Regno delle Due Sicilie) which was actually one of the wealthiest areas of Italy, if not all of Europe from the 15th to mid 19th Century. This era saw the construction of an array of architectural wonders, including the Reggio di Caserta of the Bourbon King Charles VII of Napoli for example, which is a royal castle and gardens modelled on Versailles (which King Louis XIV had built just outside of Paris). Many of these beautiful structures remain the crown jewels of the Italian South and continue to attract tourists to the areas.
Italy offers significant tax benefits; both for expat retirees as well as those who are employed or self-employed
Tax Incentive$ for workers
Italy has passed a tax incentive for employed and self-employed individuals who have lived outside of Italy previously for a 2 year period and who are now returning to reside in the Mezzogiorno (decreto impatriati). These persons can qualify to pay income tax on only 10% of their annual revenue for up to a period of 5 years. Following which, the applicable income tax rate would be assessed on 50% of earnings for another 5 years if the taxpayer has minor dependent children or purchases property in Italy following his or her return.
Tax Incentives for Retirees
In 2019, the Italian government passed a new tax law which allows for foreign or Italian pensioners to be eligible for a 7% flat-rate tax on all foreign income, including the foreign pension if residing in the Mezzogiorno. This tax benefit is provided for the first six years of residency in Sicily, Sardegna, Campania, Basilicata, Abruzzo, Molise or Puglia.
You should consult with an Italian tax planner to ensure you qualify and to file the appropriate documentation.
If you are interested to know more about available property in the Mezzogiorno please contact 1LoveItalia for a free consultation.
