Small towns

From incentives for new residents to income tax refunds: the strategies being deployed to tackle depopulation

These are the various measures adopted by the regions, as well as by local councils, to tackle the problem of people leaving small towns

by Davide Madeddu

17 August 2026

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3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

From incentives for new residents to baby bonuses, through to support for those setting up new businesses or buying their first home, and finally income tax refunds for those taking up residence in the region from abroad. The fight against depopulation in small towns begins with financial support. These programmes, which in most cases are implemented by the regions, aim to reverse the trend whereby small municipalities – particularly those with fewer than 5,000 inhabitants – are gradually losing their population. It is no coincidence that the Region of Sardinia, as part of its new €2.5 billion economic package, has decided to allocate further funds for this purpose.

56 million on the pitch

Specifically, the new measure allocates 56 million euros to support young people under the age of 40 who move to Sardinia and set up a business there. Among the other measures the Region has been implementing for some years now is a 15,000-euro bonus for those buying a home. There are also monthly bonuses of €600 for the first child and €400 for the second. There are also other incentives, such as the grant for those setting up a business based in small towns. Within this framework, there are further initiatives, such as the scheme launched by the Municipality of Ollolai, which offers houses for €1 to those taking up residence in the village.

Ten million for the building stock

To tackle the phenomenon of so-called ‘ghost villages’, other regions are also taking action. Trentino-Alto Adige has allocated 10 million euros for the regeneration of the building stock in around thirty municipalities at risk of depopulation. The scheme provides a grant for those who buy or renovate a home, provided it is located in an area at risk of depopulation.

The small towns of Lazio

Measures have also been introduced in Lazio, where the Regional Executive has approved the Plan for the regeneration of small municipalities, valid for the three-year period 2025–2027. Measures are planned for families living in municipalities with a population of up to 2,000. In addition to support for families, funding has also been allocated to small municipalities, with up to 5,000 inhabitants, for digitalisation programmes.

Lombardy and its thousand or so small municipalities are also grappling with depopulation. For this reason, the regional government has confirmed, once again this year, incentives for those setting up new retail businesses – specialising in food and essential goods – in hamlets and municipalities with fewer than 3,000 inhabitants.

Mountain communities in need of saving

In Piedmont, the funding is targeted at local authorities and mountain communities with a population of up to 15,000. The funding is intended to support projects aimed at boosting sporting activities. In addition, there are initiatives launched by individual local authorities that provide funding to support those setting up craft and commercial businesses. The Puglia Region is focusing on villages, with a programme involving measures ranging from hospitality and the refurbishment of public buildings to the construction of facilities designed to encourage new businesses; it has allocated 75 million euros for inland areas.

Sicily’s fiscal leverage

To reverse the trend of depopulation, some are looking beyond national borders – such as Sicily, which is focusing on income tax refunds for those who move their residence to the island from abroad. In fact, just a few days ago, the go-ahead was given for the implementing provisions of the measure, which provides for ‘a grant calculated on the basis of the personal income tax due and paid in full by the beneficiary, equal to 50 per cent of the tax due to the Region and payable for three years, up to a maximum of 100,000 euros per year’. ‘The percentage rises to 60 per cent,’ the Region states, ‘for those who purchase a property or carry out the building works provided for by the legislation and transfer their tax residence to a Sicilian municipality with fewer than 5,000 inhabitants. In detail, for every 100,000 euros of IRPEF paid by beneficiaries of the measure, 50,000 euros are returned to the taxpayer in the form of a grant; 29,000 euros go to the State, which thus receives increased revenue, and 21,000 euros remain in the Region’s coffers as new revenue.”