Tax Credit for New Residents Relocating to Sicily: How It Works and Who Can Benefit

The Sicilian Region has introduced a financial support measure designed for those who decide to transfer their residence from abroad to Sicily while, at the same time, investing in the Island's real estate. With Decree of the Director General No. 1017 of 5 August 2026, the Regional Department for the Economy has completed the implementing framework for the benefit, setting out deadlines, operational procedures and the application forms. Let's look at what the benefit consists of and how to apply for it in practice.

The regulatory framework

The measure originates from Article 25 of Regional Law No. 1 of 5 January 2026 (the "Regional Stability Law for the 2026-2028 three-year period"), which established a non-repayable grant — or, alternatively, a tax credit — for individuals who transfer their residence to Sicily from abroad.

Article 25 was subsequently implemented through Departmental Decree No. 30 of 19 May 2026, which set out in detail the procedures for accessing the measure, and finally through the decree discussed here, which sets the deadlines for submitting the application for each annual instalment and approves the application form (Form ICNRS – Application for the Sicily New Residents Tax Credit).

The purpose of the measure

The regional legislator's stated objective is twofold: on one hand, countering depopulation in many Sicilian territories, and on the other, stimulating the real estate market by attracting human capital and new family units. This is therefore not a generic incentive to relocate, but a measure conditional on a genuine investment in the territory: the purchase of a property or its renovation.

Who can apply for the tax credit

Individuals may access the benefit if they cumulatively meet the following requirements:

1. Transfer of residence from abroad to Italy, with the simultaneous establishment of tax domicile in a municipality of the Sicilian Region, between 1 January 2026 and 31 December 2028;

2. Purchase of a property located in a Sicilian municipality within twelve months of the transfer of tax domicile, or, alternatively, carrying out — within the same timeframe — building works (recovery, restoration, conservative renovation or refurbishment, excluding ordinary maintenance) on a property already owned in Sicily;

3. Receipt, after the transfer, of employment income, income treated as employment income, or pensions taxable in Italy under Article 49 of the Italian Income Tax Code (Presidential Decree 917/1986);

4. Maintenance of residence, tax domicile and ownership of the property until 31 December of the second year following the transfer, on pain of revocation of the benefit and repayment of the sums received.

The benefit is also compatible with the receipt of business or self-employment income, but in that case the limits set by EU "de minimis" aid rules apply — a cap of €300,000 over a three-year period per single undertaking, pursuant to Article 3(2) of EU Regulation 2023/2831 — and further eligibility requirements must be met (absence of exclusion grounds under Legislative Decree 184/2025, and no activity carried out in sectors excluded from the de minimis regime).

How much is the tax credit worth

The amount of the benefit is calculated on the regional share of personal income tax (IRPEF), due and fully paid by the beneficiary based on their tax return:

• 50% of the IRPEF paid, as a general rule;

• 60% of the IRPEF paid, if the purchase of the property (or the building works) and the transfer of tax domicile take place in a municipality with a population of under 5,000 inhabitants (ISTAT data as of 31 December of the year preceding the transfer).

Some important operational features:

• the tax credit is granted for three consecutive years, starting from the year in which the conditions are met;

• an annual cap of €100,000 applies;

• it cannot be combined with other state or regional tax incentives aimed at attracting new residents;

• it can be paid out via direct bank transfer or as a tax credit, usable in offset through Form F24 (exclusively through the Italian Revenue Agency's online channels).

  
  

How and when to apply

The application must be submitted exclusively through the dedicated ICNRS form, attached to the decree, using the online management platform that will be made available by the Regional Department. The application must be accompanied by, among other things:

• a copy of the applicant's identity document;

• a copy of the notarial deed of purchase of the property (with the notary's certification of registration), or, in the case of renovation works, the relevant building permits and the certificate of completion of works;

• a copy of the tax return for the relevant tax year, together with proof of submission;

• proof of payment of the tax due (Form F24, or payslip/CU in the case of a Form 730 filed with a withholding agent);

• a certification issued by a chartered accountant, bookkeeper, business consultant or auditor, confirming that the IRPEF has been correctly recorded in the tax return.

Submission deadlines vary depending on the year in which the transfer of residence took place. For example, for those who relocated during 2026:

• 1st instalment: application from 1 September to 31 December 2027 (year in which the 2026 tax return is filed);

• 2nd instalment: application from 1 September to 31 December 2028;

• 3rd instalment: application from 1 September to 31 December 2029.

Similar windows, shifted by one year, apply to transfers taking place in 2027 and 2028. It is important to note that an application must be submitted for each instalment for which the benefit is claimed: failure to submit it within the deadline results in forfeiture of the right for that year.

The review process and response times

Once the application has been received, the Regional Department for the Economy has 60 working days to notify the outcome — approval with payment, or rejection — by certified email (PEC). A procedural assistance mechanism is provided for: if the documentation is incomplete, the Administration may request additional information, allowing a maximum of 10 days for submission, with the review period suspended in the meantime. However, omissions that leave the applicant's identity uncertain, or missing essential documentation whose submission is required on pain of inadmissibility, cannot be remedied.

Watch out for controls and abusive practices

The decree pays particular attention to the issue of controls: a sample of no less than 10% of beneficiaries will be checked, with verifications carried out in cooperation with the relevant municipalities and the Italian Revenue Agency (including, where relevant, through the DURC certificate of contribution compliance and anti-mafia clearance).

One point worth highlighting concerns the double transfer of residence (from Sicily abroad and back again), carried out within a short period of time for the sole purpose of artificially reconstituting the requirements to access the benefit: this conduct is expressly identified by the decree as a symptomatic element of abuse of rights, resulting in revocation of the benefit, recovery of the sums paid plus statutory interest and — in more serious cases — possible penalties.

Some practical considerations

Anyone considering a move to Sicily from abroad, perhaps with a view to purchasing a property to renovate, would do well to:

• plan the timing carefully, since the purchase of the property (or the start of the building works) must take place within twelve months of establishing tax domicile;

• keep careful records of all documentation relating to the transfer of residence, the purchase or renovation, and the tax returns, as all of it will be required when submitting the application;

• check compatibility with any other tax incentives one intends to benefit from, given the non-cumulation clause;

• avoid any arrangement that could be read as abusive, in particular "convenience" transfers of residence carried out within a short timeframe.