Tax benefits for those who move to Sicily

Sicily, up to 60% of the personal income tax for those who move from abroad

Sicily tries to turn taxation into a tool to attract new residents, investments and skills. With D.D.G. no. 1017 of 5 August 2026, the Region has defined methods and procedures to make the contribution provided for by regional law no. 1 of 5 January 2026 operational, intended for those who transfer their residence from abroad to Sicily. The measure provides for a contribution equal to 50% of the personal income tax due and regularly paid, for three years. The percentage can rise to 60% when the transfer and purchase of the property take place in a Sicilian municipality with less than 5,000 inhabitants. The contribution can reach up to 100,000 euros per year. It is not enough to transfer residence

The concession is not a simple bonus for those who change their residence. The transfer of residence from abroad and tax domicile in Sicily must take place between 1 January 2026 and 31 December 2028. Within twelve months of the transfer, the beneficiary must also purchase a property in Sicily or carry out certain building interventions on a property already owned. Simple routine maintenance operations are excluded. It is also necessary to maintain the residence, tax domicile and ownership of the property for the period provided for by law. In case of non-compliance with the requirements, the contribution may be revoked. The philosophy of the measure is therefore clear: not to encourage a purely formal residence, but to attract people who really live in Sicily and invest in the territory. How much is the incentive worth? The impact can be significant especially for taxpayers with medium-high incomes. With an income tax paid of 40,000 euros, the ordinary contribution could reach about 20,000 euros per year. With 80,000 euros of personal income tax, it would reach about 40,000 euros. With 100,000 euros, the benefit would be 50,000 euros a year. The ceiling of 100,000 euros per year makes the measure particularly attractive for entrepreneurs, professionals, managers and highly qualified workers who decide to transfer their tax residence to Sicily. The link with the real estate market

One of the most interesting aspects is the direct connection between tax incentive and real estate investment. The new resident must in fact buy a property or invest in the redevelopment of an already owned one. The measure can therefore generate new demand for homes, properties in historic centres, second homes to be transformed into main residences and properties to be renovated. The increase to 60% for municipalities under 5,000 inhabitants also introduces a specific territorial function: to direct part of the investments towards small towns and territories most exposed to depopulation. A new opportunity for developers

The rule could also have interesting effects for the real estate development sector. A Sicilian developer could directly address Italian citizens residing abroad and foreigners interested in moving to the island, building an offer based not only on the property, but on the entire life project:

purchase of the house + transfer to Sicily + possible refund of part of the personal income tax for three years. The advantage can become particularly interesting for prestigious properties, sea view residences, historic villages and urban regeneration interventions. Contribution comes after taxes are paid

It is important to note that this is not an immediate reduction in personal income tax. The taxpayer must first produce the income, file the return and pay the tax. Subsequently, it can request the contribution to the Region according to the procedures established by DDG 1017. For those who transfer their residence in 2026, the first application is linked to the tax return for thatyear and must be submitted in the time window provided by the Region. A strategy to attract human capital

The meaning of the measure goes beyond the single incentive. Sicily seeks to use taxation to turn one of its main problems — emigration and depopulation — into an opportunity. A new resident does not only bring their own income: it generates consumption, housing demand, investments and, in some cases, new economic activities. The measure can therefore be read as an incentive to attract human and financial capital to the Island. Success will naturally also depend on other factors: connections, services, infrastructure, schools, health, urban quality and professional opportunities. But D.D.G. 1017 introduces a new and concrete element: the possibility of making it economically more convenient to move to Sicily and at the same time buy, renovate and live in a property on the island. A new category of demand could therefore arise for the Sicilian real estate market: that of new international residents with tax incentives. https://www.regione.sicilia.it/istituzioni/servizi-informativi/decreti-e-direttive/ddg-n-1017-05082026