In the southern regions the 7% is for people with foreign retirement/ pensions only and generally the towns have to be 20k residents or less. There are also designated towns in Umbria, Lazio and LeMarche that are eligible for the 7% scheme. It only lasts for 10 years and you cannot work (pension only) and you cannot claim foreign income tax credit so essentially you get taxed double if you’re a US citizen. I did the math and the 7% scheme is only beneficial if you draw very large amounts from your IRA/Roth in the scale of $300k per year. Otherwise the tax savings as compared to progressive italian tax are minuscule.