According to recent statistics, Italy has one of the highest income tax rates in Europe, with the top bracket taxed at 43%. However, for those who are deterred by the high tax rates, there is an option to consider. Italy has implemented a 7% tax regime for select towns in Southern Italy, specifically municipalities with populations under 20,000 in regions such as Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, and Puglia.In particular, Carovigno, in Puglia, has been highlighted by Mary and Tom Hanson for its affordability and welcoming community, in Episode 126 of Retire There with Gil & Gene.Check out Mary Hanson’s Facebook page.Mary’s hairless dog is on Facebook as #TravelsWithANakedDog.Mary engaged 2 Italian real estate agents, Donna Mignon and Alex Norton; and Nick Matta, an attorney.Information about 7% towns in Puglia can be found in Samantha Wilson’s book, Discovering Puglia’s Best 7% Towns.