Sicily has introduced a major financial incentive designed to encourage people living abroad to make the island their home, combining tax relief with investment in local communities and real estate.
Under a measure approved by the Sicilian Region and now fully operational, individuals who transfer both their residence and tax domicile to Sicily between January 1, 2026 and December 31, 2028 can receive a regional contribution equal to 50% of the personal income tax, or IRPEF, they have paid.
The incentive becomes even more attractive for Sicily’s smaller communities. Those who move their tax domicile to a municipality with fewer than 5,000 residents can receive 60% of their IRPEF back, provided they meet the program’s property requirements.
The benefit can reach €100,000 per year and is available for 3 years – meaning an eligible new resident could potentially receive as much as €300,000.
To qualify, applicants must move to Sicily from abroad and purchase a residential property on the island within 12 months of relocating. Alternatively, they can carry out qualifying restoration or renovation work on a property they already own.
The program is open to both Italian citizens returning from abroad and foreign citizens choosing Sicily as their new home. Eligible income includes employment and employment-equivalent income as well as pensions taxable in Italy.
Unlike a conventional tax deduction, participants first pay their regular Italian income tax. The Sicilian Region subsequently provides the contribution, either by bank transfer or, if selected by the beneficiary, as a tax credit.
For people who relocate during 2026, applications can be submitted between September 1 and December 31, 2027, after filing their 2026 income tax return.
The initiative has a broader goal – attracting people, skills and economic resources while helping repopulate Sicily’s smaller communities and encouraging investment in its residential heritage.
