The Regional Government of Sicily has approved a decree that reimburses up to 50 % of the personal-income tax (IRPEF) paid by anyone who transfers their tax domicile to the island and remains resident for at least one full calendar year. The measure, announced on 19 July 2026 by regional economy minister Alessandro Dagnino, builds on a provision contained in Sicily’s 2026 Budget Law and aims squarely at countering long-running depopulation trends. Qualifying beneficiaries include salaried workers, self-employed professionals, entrepreneurs, retirees and—crucially—highly-skilled “digital nomads” who earn their income remotely from abroad. To obtain the rebate, newcomers must either purchase an immediately habitable property in Sicily or undertake renovation works on a property they already own. The rebate rises to 60 % (capped at €100,000 per year for three years) for those who settle in municipalities with fewer than 5,000 inhabitants, creating a strong financial pull toward the island’s many under-populated hill towns. Sicily’s president Renato Schifani framed the incentive as both a talent-attraction and repatriation tool. The region hopes to lure back younger Sicilians who emigrated for work as well as foreigners seeking lifestyle destinations under Italy’s new Digital Nomad Visa (operational since April 2024). By tying the rebate to actual tax paid, the government argues the scheme is revenue-neutral and could even boost regional coffers once newcomers’ spending and property investments are factored in. For global-mobility managers and HR teams, the decree creates a significant new lever when advising employees on location-flexible work arrangements in Italy. Companies with remote-first policies can direct staff toward Sicily to benefit from lower effective taxation, while still leveraging the island’s growing co-working infrastructure and transport links to mainland hubs. Immigration counsel should verify that assignees hold, or qualify for, the appropriate visa or EU-wide work permission and remind employees that they must maintain Sicilian residency until at least 31 December of the year following relocation to retain eligibility. Local mayors and real-estate agents are already preparing information desks for prospective incomers, and the regional government plans an English-language campaign in key source markets such as the United States, Canada and India. Observers will watch whether other Italian regions—particularly those facing steep demographic decline—will replicate Sicily’s playbook, turning competitive personal-tax rebates into the next frontier of intra-EU talent attraction.
Source: La Sicilia
