Previously, we published a post about two Italian towns offering to pay people to live and work there as part of an effort to rejuvenate the community and fight the falling population. These towns were Santa Fiora in Tuscany and Rieti in Lazaro.
Last year another Italian town, Presicce-Acquarica, launched a similar campaign and is offering people up to EUR 30,000 to relocate there.
What’s the Offer?
According to news reports, the municipality of Presicce-Acquarica at the southern tip of Italy’s Puglia region is offering to pay up to EUR 30,000 for people to buy a home and relocate to the area. The program is officially called Welcome to Presicce-Acquarica, and Of course, there are several terms and conditions.
First, you and your family must be willing to move your official residency to the town and must commit to staying resident there for at least 10 years.
If you are willing to make that commitment, the grant is available to help you buy and renovate a local home. The conditions are that the home must have been built before 1991, which includes about 30% of properties in the area, and the EUR 30,000 can’t make up more than 50% of your investment in the property.
While press releases have gone out, the opportunity does not yet seem to be available, but you can watch the municipality website for details.
Looking at properties on the market, you can expect to pay between EUR 50,000-150,000 for a home in the area, with costs estimated at around EUR 500 per square meter. But there are lots of houses with potential, and Puglia is a beautiful region of Italy.
Paying Taxes in Italy
If you choose to become a resident in Presicce-Acquarica, you will become liable to pay income tax in Italy on your international income. This includes salary, capital income, land income, and all other sources of income. Italy does have a range of double taxation agreements, including with the United States, to avoid duplicate taxation.
Tax is paid on everything you earn. There is a 25% income tax on earnings up to EUR 15,000. It then rises to 25%, and 35% at EUR 28,000. From EUR 50,000 you pay 43%.
In addition to this federal income tax, you will need to pay a regional income tax, which is between 1.23-3.33% depending on your region, and a municipal tax of up to 0.9%.
You will also need to pay social security contributions. Italian employees pay about 10%, but if you are self-employed, you pay a higher rate of 26%.
What is Presicce-Acquarica Like?
But, while the Italian countryside may be beautiful, what can you expect from Presicce-Acquarica?
First, Pressice and Acquarica are two separate towns that merged their administration in 2019 in response to dwindling populations and to maximize resources. The combined municipality has a population of a little under 10,000 people, with a density of 217 per square kilometer. The population is aging, and the town also pays a dividend of ERU 1,000 for every baby born in the area.
While the ancient history of Presicce is unclear, it seems originally to have been settled by locals due to fresh water following a period of drought. Nearby caves were also inhabited by Basilian monks. From the 17th century, it became a major producer and exporter of olive oil. The current city is built on top of a maze of tunnels and work rooms constructed in that era for production. The architecture is mostly Baroque.
Acquarica seems to have been settled in the 9th century by refugees whose homes were destroyed by Saracens. The village is built around Acquarica Castle and a palatine chapel dedicated to St Francis of Assisi.
The town is set in a countryside of soft rolling hills carpeted with olive groves and vineyards. The relative flatness of the area makes it excellent for agriculture, and tomatoes, artichokes, aubergines, and wheat are widely grown. Sheep farming is also common.
In Presicce-Acquarica, you aren’t far from some beautiful Ionian and Adriatic beaches. Among the most popular nearby beaches are Torre San Giovanni, Lido Marini, Torre Pali, and the Maldives of Salento. Fresh seafood forms a major part of the local diet.
Italy Digital Nomad Visa
Interested in moving to Italy but not ready to invest in a property? Don’t forget that Italy is also one of the European Union nations that has announced a digital nomad visa. While the visa has not yet had its official launch, we have been informed that the visa will be for one year in the first instance and is likely to have a minimum income requirement of around EUR 2,500 per month.
For those thinking of moving to Presicce-Acquarica, the one-year DNV could be a great way to get to know the area and decide whether you are ready for the 10-year residency commitment.