Are you considering retiring in Italy? Sicily is one of the most attractive destinations for UK pensioners in 2026. With its stunning landscapes, mild climate, rich culture, and lower cost of living, the island offers a high quality of life. On top of that, there are specific tax incentives, financial bonuses, and relocation benefits designed to make retiring in Sicily even more appealing.
Pensioner benefits in Sicily
Italy has long provided targeted support for pensioners, including tax breaks, economic bonuses, and social benefits. In Sicily, these measures are particularly attractive for retirees, combining financial advantages with the lifestyle benefits of island living.
Some of the main measures include:
- National pension measures: including increases, deductions, and social bonuses for electricity and gas.
- Flat tax incentive: Introduced in 2019, the 7% flat tax applies to pensioners transferring their residence to Italy, including Sicily. This incentive is available for ten years and applies to those who have not been Italian tax residents for the five years prior to relocation. Eligible municipalities include those in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, Puglia, and small towns affected by earthquakes in Umbria, Lazio, Marche, and Abruzzo.
Bonuses for pensioners relocating to Sicily in 2026
Sicily offers additional incentives for new residents, not limited to pensioners:
- IRPEF refund: Retirees moving from abroad to Sicily can claim a 50% refund on personal income tax (IRPEF), provided they buy or renovate a property within 12 months and maintain ownership for at least two years.
- €1 homes: Many Sicilian towns allow buyers to purchase old or abandoned houses for just €1, on condition they renovate them within one year.
- Flight discount bonus: Until 28 February 2026, Sicilian residents benefit from a 25% discount on all domestic flights to and from Sicily. This rises to 50% for certain groups, including residents with low income, students, and people with disabilities.
Why retire in Sicily? Key advantages
Sicily has long been a dream destination for retirees, combining lifestyle and financial benefits:
- Mild climate: Winters are generally warm, summers are long and sunny, reducing heating costs and promoting wellbeing for older adults.
- Lower cost of living: Compared to northern Italy, Sicily offers more affordable housing, daily expenses, and dining, allowing pensioners to stretch their savings further.
- Rich culture and community: Sicily offers museums, historic sites, beaches, and local traditions. Many towns have social centres for older adults, community activities, and a strong sense of social connection.
Final thoughts
Retiring in Sicily in 2026 is not only about the stunning scenery and relaxed lifestyle—it’s also about financial incentives, tax breaks, and government schemes that make the island particularly appealing for UK pensioners. With lower costs, a mild climate, and a vibrant cultural life, Sicily is a top choice for those looking to enjoy their retirement in comfort and style.
Top 1-euro house schemes in Sicily right now
Sicily sits at the centre of Italy’s 1‑euro house movement. No other region has experimented with symbolic‑price homes on the same scale, largely because so many inland towns have spent decades losing residents to bigger cities and the coast.
Living in Sicily: guide to costs, towns and real life
The thought of living in Sicily is about more than just moving to an island in Italy. It’s about stepping into a place that has been a crossroads of the Mediterranean for thousands of years. The layers of its past are everywhere, from ancient Greek ruins to Norman cathedrals and Baroque towns. For anyone looking to make a home here, getting to grips with what daily life is truly like, with its distinct local culture and rhythm, is the first step.
Map of 1-euro houses in Sicily
If you’re dreaming of a fixer‑upper in the sun, looking at the 1 euro houses in Sicily in 2026 is a great place to start, as the island now has the highest concentration of €1 house schemes in Italy. Below, you’ll find an interactive map showing Sicilian villages listed on the €1 house website, including places that have launched, or previously hosted, these schemes.
Best places to retire in Italy in 2026
Thinking about spending your retirement in Italy? You’re not the only one. Interest from UK, US and German retirees has climbed steadily in recent years, as more people look for a mix of sunshine, slower living and good healthcare. The best places to retire in Italy offer tempting advantages like surprisingly affordable housing, an incredible quality of life, and weather to fully soak up.