Two Perspectives on 7% Towns In Umbria and Abruzzo

** Because formatting photos to upload here can get time-consuming and complicated, the written portion of our posts will appear here, while the accompanying photos will be on our Trying on Italy Facebook page.

First Edition: Umbria 

Curiosity is a powerful motivator, as is paying as few taxes as one can legally manage. Both inspired us to explore the 7% towns nearby Spoleto while spending these almost three months in Umbria, as well as venture into Abruzzo, an awakening region gaining attention for its beauty and low cost of living. At this writing, we have been to fifteen 7% towns total; whoa…that number even surprises me! 

Some were drive-by’s, somewhat like those dating apps where you take a look, then keep swiping. A few others we visited more than once. One in Abruzzo that read with the most appeal – and was actually the star of a Forbes article a handful of years back as a favored place to retire – was our base camp for two nights. 

So what did we learn; what did our hearts tell us; what were initial impressions? The caveat, of course, is that you just really have to spend dedicated time somewhere to get the full “feel”, but first impressions and the vibe should never be things taken lightly.  

This “first edition” post will focus on Umbria.

1. Scheginno (skeh-geno) – oh what a lovely little village! With a population of about 500, this town is a stone’s throw from Spoleto. The idealistic looking Italian borgo, it’s blessed with a crystal-clear small river that passes though lending its storybook beauty to the town. A couple of exquisite community spaces on the banks make the perfect place for family picnics, naps in the sun, and room for children to run. It also seems that rafting is a popular sport on the river. Several restaurants, a couple of bars, a small alimentaria, and a newer piazza round out a quaint collection of well-maintained ancient homes. There’s even a fancy spa/hotel place spread thought the upper parts of the village. We could probably be happy purchasing here, especially with its proximity to Spoleto and its sheer beauty. The bar owner (we’ve been in a few times) is quite friendly, as well…usually a good indicator of a town’s spirit. 

• Norcia – pop. around 5,000: This town brought an instantaneous motherly response of “Bless her heart!” to my soul. Hit hard by the 2016 earthquake (we were there 3 years after and saw much of the devastation), the town is still trying to find its way back. Much has been done, yet much is left to do. Famous for the meats and cheese produced here, many shops on the main Corso seem to almost beg for business. Tour groups come through, as well as a decent number of individual tourists, it seems, but the feel I pick up on is of continuing struggle. It brings quiet compassion to wander her streets. Norcia is beautiful in so many ways – the people are lovely, the medieval wall is impressive and was practically fully intact before the quake, the food is stellar. We did find a favorite trattoria here…Osteria Sienti’ n Puo’…run by vivacious Stefania. Our second time back, they recognized us, greeted us warmly, and even showed us to the table we had the first day with welcoming smiles. Norcia has a lot to offer, but for purchase or living, our hearts weren’t called. 

• Cascia – pop. just under 3,000: Up through a fabulous valley outside of Norcia lies Cascia. Like all the Umbrian towns in this area, the scenery is elegantly spectacular. Tall mountains covered in wild forests, transparent streams, dreamy meadows, and tiny towers or villages scattered across slopes that seem to grip them like a mother holding her toddler’s hand. Cascia has found her fame and draw by being the birth town and repository for the remains of St. Rita who lived in the 1300 and 1400’s. A magnificent modern basilica built in the 1940’s houses her body which can be viewed behind a closed gate in a side sanctuary. The cobalt blue and gold décor, along with walls covered in richly colored frescos makes for an impressive interior. The old center of town seems to have become a gauntlet of souvenir shops of all-things-Rita, along with a small number of eateries and a bar or two. The newer part of town appears to support active living, and at least 3 new apartment buildings rising 6 or so stories were under construction. For us, it was not a fit. 

• Ferentillo – pop. around 1,800: Tracing the stunningly beautiful Nera River valley, we saw a couple of ancient towers appear perched on hilltops. My first thought – “I hope that’s Ferentillo!” – and it was! The town is actually two separate boroughs divided by the highway and river. Entering from Spoleto, on the west side of the road is Mattarella…a collection of a small stretch of medieval looking buildings which quickly give way to newer looking structures. We turned off here, unaware of the division, and drove the few streets on the plateau of the town, then snaked through neighborhoods leading up the mountain. It’s a town with life in it. The newer homes were really beautiful and well-maintained, the old men’s club was situated outside the bar as is proper, and there were children playing. We thought about trying for a meal there but saw nothing really available. Crossing the road, we found parking in the other borough known as Precetto. There was still a lot of reconstruction going on here as the result of the ‘16 earthquake, but the town appeared to have more life and character to offer. There was one panino shop open on the small piazza. We paused but decided to try and visit the Museo delle Mummie before it closed for the traditional 2 or 3 hour lunch break. Housed in the crypt of the ancient St. Stefano church, this is a collection of, well, just what it implies…mummies! They varied in age, many still bearing all the characteristics of the person who’d inhabited this flesh. Some even had clothing intact. Another section in the back was a collection of bones and skulls – the ossuary. Due to the soil conditions and climate combination, this particular area readily mummifies the deceased. I have a pretty high creep-out tolerance, but these were almost too much – housed in the dimly lit, humid, cave-like structure of this crypt! But I diverge. We climbed upwards on foot along tiny pathways continuing our exploration. Gorgeous views, a fun conversation with a woman tending her garden, and a climb to an ancient tower closed out our experience. A nice town, quiet, located on the edge of the popular Nera River Park, Ferentillo would be a good fit for those wanting truly small-town life in a beautiful setting, especially if you’re into rock climbing and extreme mountain biking. However, it was not for us. 

• Montefalco – pop. around 5,000: From the top of Ferentillo, we could see from across the river valley an elegantly placed hilltop town that ruled its small crest in a regal way, at least from our vantage point. After finding a good lunch midway to Montefalco, we drove the winding road upwards and secured parking. I instantly liked this town, as did Marty. It did indeed feel regal in an uncontentious way, like an elegantly aged duchess who knows she is a class act with no need to tell you about it. We wandered and marveled at the incomprehensible arrangement of well-cared for homes. All Italian hilltop towns and villages are marvels of making good use of limited space, but there was something special here; it was artistic for lack of a better explanation. The views over the valley were incredible, as well. All of these villages can offer break taking mountain views, but some do seem to have optimal placement for making things visually combine to equal OMG gasps.  We wandered, playfully picking our preference of homes and taking photos of a few “for sale” signs.

• Cerreto di Spoleto and Monteleone di Spoleto: I’m combining these two villages located southeasterly from Spoleto. Granted we were there on rainy days, and even if quaint and adorable places, they were too small for what we are looking for. They’d be great places to wander, enjoy the views, and have a Spritz or cup of gelato, but well – just too quiet for us. But maybe not for you! 

I’m going to expound on our Abruzzo journey in a second post as this one is already quite long – ha! Marty is going to piggyback on this and share his views, as well. He’s definitely the analytical one of the two of us, while I tend to tune in more to the touchy-feely aspect of things, so hopefully the two perspectives will be good reading/input for those who are interested. 

To summarize my impressions of 7% towns in Umbria, the top two choices would be Scheginno (beautiful valley surrounded by mountains that would make Colorado jealous, friendly people, easy access to nearby Spoleto and Foligno) and Montefalco (drop dead gorgeous town with views to make you cry, Arrone just below offers more amenities). The others all have something wonderful to offer, of that I am sure, but I’ve learned at this age to listen to what the heart says and “feel the vibes”! 

Stay tuned for the Second Edition on Abruzzo! 

Marty here … adding a little to what Paula as written. 

If we ultimately choose to live in Italy half-time, doing the Schengen shuffle every 3 months, then there would be no need to consider the 7% towns. But if we moved to Italy on a more permanent basis, then there would be a substantial financial impact if we choose to live outside of a qualifying 7% flat tax town. The financial impact might be much less for someone that has the majority of their income from social security (only taxed in the U.S. per the U.S.-Italy tax treaty) or from retirement sources that are not subject to mandatory RMD distributions. However, for us, we really need to take this into consideration.

Most of the 7% flat tax towns are in regions in southern Italy that have a population of 20,000 people or less. There are a handful of towns in other regions, like Umbria, that have been also designated as qualifying for the 7% flat tax status. These towns are mainly in limited geographical areas that have had depopulation due to earthquakes. In Umbria, most of these towns are located east of Spoleto and Terni. 

For us, the ideal Italian town has a population of around 20,000. This size usually provides for a Centro Storico that is large enough to get lost in, cultural events, a large number of ristoranti and bars, etc. When towns get too small, even though they might be great for a vacation destination, we worry that we’d miss what living in a larger town would offer.

So in looking at the dozen or so towns in Umbria that quality for the 7% flat tax, the first thing that stood out to me is that the largest town was Norcia with a population of around 5,000. The other towns had a smaller population, and some had only 500 inhabitants. Due to the smaller sizes and location in a high-risk earthquake area, I had some significant reservations before we went to visit them.

Like Paula, I found Scheginno an amazingly beautiful tiny town. A crystal clear stream flows through the town. It was only 15 minutes from Spoleto. Could we live here and be happy? Ultimately, after living in Spoleto for the past two months, I think we’d miss out on the evening passeggiata where we can choose differing routes for our walk, various piazzas for an aperitivo, and the energy and vibe of a more active town.

Norica, to me, was another spectacular town. It is situated in the basin of a valley that is bordered by tall mountains, reminiscent of a town set in the Swiss Alps. It had amazing food, incredibly warm and friendly people. It was the largest of the Umbrian 7% towns with a population of 5,000, but it didn’t capture our hearts. Possibly due to its size being ¼ of what we’d consider ideal. Possibly because it seemed to still be in the process of recovering from the earthquake that occurred 9 years before. 

Cascia is in a beautiful setting but really is focused on Saint Rita. When I walk through an Italian town, I observe the shops along the streets in the Centro Storico. If every other shop is selling things for tourists, then this tells me that this town might be a nice place to visit on vacation, but it would not be a place where I’d want to live. I like to see an alimentaria (grocery store), a macellaria (butcher), a panetteria (bakery), bars (for coffee, snacks, evening aperitivo), piazze (town squares) that are filled with benches for gathering of people instead of parking spaces for cars, etc. In other words, a town that is alive in the traditional sense. If most of the shops are selling items for tourists, then the town is a hard stop for me.

Ferentillo, Montefalco, and Arrone are all located close to each other. Montefalco is the one, though, that is located up on the crest of a hill. The views are spectacular. The citizens of that town seem so have a high degree of pride. It is always meaningful when most of the inhabitants take the time to have potted flowers outside their homes. It truly looked like a storybook town.

The other towns we visited in Umbria were all special and appealing, but the bottom line is that all of these were smaller towns. What size of town one would choose to live in is a highly personal decision. Many people would find happiness living in a rural or country setting, so the smaller towns would not really impact their decision.