04/05/2026
Houses for 1 euro and flat tax
It is important to remember that if you take a ‘forfeit’ scheme – such as the 7% flat tax on pensions choosing to live in a comune of less than 30.000 inhabitants, or you opt for an income tax preferential rate of 5 or 15%, depending on your circumstances, you cannot take advantage of any other incentives.
When paying normal tax rates in Italy you are eligible to claim back a huge array of expenses, from specs to medicines, to a fridge, some furniture, books, school costs, etc etc. That can come to thousands of euros a year – especially if doing up a house you opt for 50% energy incentives, 50% white good incentives, 55% foto voltaics incentives and so on. However, if you are in a preferential scheme you can claim back nothing. Zero. Nought. It’s worth doing your calculations very carefully before opting into a flat tax scheme.
There are instagrammers who tell you how much money you can save on your restoration – but you only save if you are a tax payer in Italy, as the incentives are deductions on your tax bill – nobody is going to thrust an envelope full of cash into your sweaty palm because you are opting for a class A fridge.
So, you may buy a house for 1 euro, and be a 7% pensioner in a village in central Sicily, but your restoration will not be eligible for tax breaks. Using a uninhabitable ruin for 1 euro as an address to get your visa is also a no-no – as the property must be your residence, and if it has no roof or water it’s unlikely you’ll get away with it.