British retirees thinking of moving to the sun-soaked south of Italy could soon be able to take advantage of a massive tax break that is being mooted by the country’s new government.

The populist administration hopes to reverse the chronic population decline of Italy’s southern regions by luring people to settle there with the promise of paying no taxes for 10 years.

The scheme will be open not only to Italians but to foreigners too, it is envisaged.

The idea has been proposed by The League, the hard-Right party which makes up one half of the coalition which came to power in June.

It will initially focus on three struggling regions – Sardinia, Sicily and Calabria.

“We think it could appeal to foreigners – Italy is a beautiful country,” said Alberto Brambilla, economic adviser to Matteo Salvini, the interior minister and head of The League.

“We’re trying to provide an incentive for the transfer of older people (towards the south),” Mr Brambilla, who came up with the idea, told La Repubblica newspaper.

A fishing boat at dusk near the port of Catania on the east coast of Sicily credit: Bus photography

People of retirement age will be spared paying any taxes for a decade as long as they live for more than six months in their new home.

The average couple would spend €20,000-25,000 a year, helping to boost the local economy, the government calculates.

High unemployment and a lack of jobs means the south struggles to attract people of working age, but luring “grey panthers” is another matter.

Pensioners with disposable income can look forward to great weather, superb food and property for sale at rock bottom prices.

They would be directed towards towns and villages with populations of less than 4,000 which have suffered a population decline of 20 per cent or more in the last decade.

The towns will be required to demonstrate that they are well run, with decent street lighting, an efficient rubbish collection system, well-kept parks and, crucially for the target demographic, adequate health services.

The idea is to lure not only foreigners and Italians from the wealthy north, but also Italians who have moved abroad – similar low-tax or zero-tax schemes offered by countries such as Portugal and Malta have proved hugely popular with many Italians.

Cheap property, good food, plenty of sunshine and an unhurried pace of life awaits retirees in Sicily, Sardinia and Calabria credit: Roselena Ramistella

Older Italians have also flocked to destinations such as the Canary Islands, Central America and Cyprus to find a place in the sun and a cheaper cost of living.

Many Italians living in the north of the country came originally from the south, and migrated internally in the fifties, sixties and seventies to find work, especially in factories.

They too will be targeted by the new scheme.

“There are lots of southerners living in places like Milan, Turin and Genoa. They go back to their villages of origin only during the summer. Why not encourage them to make it a permanent move?” said Mr Brambilla.

“We’re calculating that up to 600,000 people could take advantage of the tax break and move to the three regions within three to four years.”

In the last 16 years, an estimated 1.8 million people have fled southern Italy in search of jobs and a better life, according to Svimez, a business association dedicated to promoting development in the south.

Another one million are expected to flee the Mezzogiorno, as the south is known, by the year 2065, according to Istat, Italy’s national statistics agency.