Testimony to the Senate’s Finance Committee on 24 February 2026 showed that Italy now disburses 675,000 pensions to residents overseas, a 1.3 % increase over 2024. INPS research director Gianfranco Santoro highlighted a sharp rise in transfers to Portugal (+144 % since 2018) and Tunisia (+255 %), mirroring countries that offer favourable tax regimes to foreign retirees.
Lawmakers are reviewing a bill that would grant returning Italian pensioners a five-year exemption from municipal property taxes and accelerated healthcare registration if they settle in “inner-area” towns of under 15,000 inhabitants. The objective is twofold: repopulate ageing rural communities and recycle pension income into the domestic economy.
Prospective retirees or returning citizens who need help sorting out visas, residency permits, or other travel documents can streamline the paperwork through VisaHQ, whose Italy portal (https://www.visahq.com/italy/) walks users through every consular requirement and offers real-time support—making the transition to these incentive-rich towns markedly easier.
![Italy pays 675,000 pensions abroad; Senate weighs tax breaks to lure retirees home]()
For mobility and tax advisers the measure could spark reverse migration among the estimated 220,000 Italian citizens drawing pensions in non-EU states, 75 % of whom receive annual payments above €25,000. The bill also dovetails with several southern-region incentives—Calabria and Sicily already offer IRPEF rebates to inbound residents renovating local property.
Critics worry that the scheme could privilege relatively affluent retirees without addressing the structural reasons younger Italians leave, such as limited career prospects. Supporters counter that attracting seniors is a realistic first step toward sustaining local services while bigger economic-development plans take shape.
If approved, the incentives would apply from 1 July 2026. Pensioners would need to maintain tax residence in the designated municipality for at least four years or repay the benefits.
Lawmakers are reviewing a bill that would grant returning Italian pensioners a five-year exemption from municipal property taxes and accelerated healthcare registration if they settle in “inner-area” towns of under 15,000 inhabitants. The objective is twofold: repopulate ageing rural communities and recycle pension income into the domestic economy.
Prospective retirees or returning citizens who need help sorting out visas, residency permits, or other travel documents can streamline the paperwork through VisaHQ, whose Italy portal (https://www.visahq.com/italy/) walks users through every consular requirement and offers real-time support—making the transition to these incentive-rich towns markedly easier.
For mobility and tax advisers the measure could spark reverse migration among the estimated 220,000 Italian citizens drawing pensions in non-EU states, 75 % of whom receive annual payments above €25,000. The bill also dovetails with several southern-region incentives—Calabria and Sicily already offer IRPEF rebates to inbound residents renovating local property.
Critics worry that the scheme could privilege relatively affluent retirees without addressing the structural reasons younger Italians leave, such as limited career prospects. Supporters counter that attracting seniors is a realistic first step toward sustaining local services while bigger economic-development plans take shape.
If approved, the incentives would apply from 1 July 2026. Pensioners would need to maintain tax residence in the designated municipality for at least four years or repay the benefits.
