Dreaming of La Dolce Vita? Retiring in Italy is among the best things you can do in your golden years. It does not just mean great wine, a beautiful landscape, or historical culture. It is about enjoying life, settling into a lifestyle that values good food, strong community ties, and daily pleasures.
Nevertheless, retiring abroad is never as simple as packing up your suitcase. You have to carefully plan your whole journey from visa options to the cost of living. Luckily, this guide is here to assist you through what it takes to retire in Italy.
What to Discover in This Guide?
Top 7 Benefits of Retiring in Italy
Before deciding on moving to Italy, you need to consider the benefits that life will provide you:
1. Dual Citizenship
Dual citizenship in Italy is allowed, and it does not put any restrictions on how many citizenships you can have. Therefore, you can claim Italian citizenship through descent, marriage, and naturalization. Once you obtain your citizenship status, you can permanently access healthcare and have the freedom to live or work in any European Union country. This will offer you the best opportunities while retiring in Italy as a dual citizen.
2. La Dolce Vita: Italian Lifestyle
“La Dolce Vita” means “the sweet life”. It is the mindset of Italian culture that is equal to a slower pace of life, where afternoons stretch into evening meals and everyday pleasures take priority.
There is no room for anxiety, hard work, or unhappiness. Even if it is, there will always be pleasure in it: Experiencing life as it is. Therefore, if you are seeking balance and purpose in your retirement life, Italy will be the perfect environment for you.
3. Lower Cost of Living
Compared to many US cities, Italy offers a significantly lower cost of living for retirees whose only income is their pension. Here, the general cost of living in Italy:
4. High Quality of Life
There is a reason why Italy consistently ranks among the top countries with a high quality of life. One of them includes Italy’s public healthcare system. If you are a citizen or a legal resident, you can benefit from free treatments at Servizio Sanitario Nazionale (SSN) by enrolling in it. Besides, you can also opt for healthcare options, which are widely available and affordable if you want quicker treatment.
The Mediterranean lifestyle is also a plus. It promotes well-being with its rich vegetables, olive oil, legumes, seafood, and wine. Besides, many Italian towns and cities are compact. Therefore, in your daily routines, retirees can go anywhere on walking by getting into social interaction. This will help you live in an environment with a low-stress life.
5. Culture
From Roman ruins to Renaissance art, Italy has a vibrant and rich culture and history. As a retiree, you can find many things to do and many places to visit. You can either explore a museum or attend a town procession. While witnessing the rich Italian culture, you will feel the worth of your golden years.
6. Cuisine
When someone speaks of Italy, the first thing that comes to mind is its rich cuisine, as food is deeply embedded in Italian life. Each town or even each family has its culinary traditions and recipes for generations. The most popular tastes include handmade pasta, local cheeses, and seafood.
7. Ease of Travel
With its central location and extensive train and flight networks, Italy makes a perfect home base for exploring Europe. As a retiree, you can plan weekend trips to France, Spain, or Greece, as transportation is easy and affordable. Besides, if you obtain citizenship, you can travel to 192 countries visa-free with an Italian passport.
Italian Visa Types: How to Retire in Italy from the USA in 2025
If you are planning to stay more than 90 days in Italy, you need to apply for a long-term residency option, as a tourist visa will not be eligible for longer stays. This raises this question: Which visa type should I apply for as an American? Well, here are the most preferred ones listed.
1. Italy Retirement Visa (Italian Elective Residence Visa)
If you are planning to stay in Italy by using your passive income or pension, you can be eligible to apply for the Italy Retirement Visa, also known as the Italian elective residence visa.
Italy Retirement Visa requirements:
- For the Italian Retirement Visa, you must show at least €31.000 per year as passive income, for couples, €38.000. And if you decide to add your children, the amount increases by 20% per child.
- Proof of address
- Private insurance that covers at least €30,000
- Payment of visa application (€116 per person)
- Clean criminal record
If you qualify for this Italian Visa, you can gather the necessary documents and apply via the Italian consulate.
2. Italy Golden Visa
Also known as the Italian Investor Visa, the Italy Golden Visa offers its applicants 2-year residency with a three-time renewal and family inclusion option. To be eligible for the program, you have four investment options:
- €2 million investment in Italian government bonds
- €500,000 investment in an Italian limited company
- €250,000 investment in an Italian innovative startup
- €1 million donations to a philanthropic initiative in Italy
It does not require a minimum residency for getting an Italian residence permit. However, if you are planning to obtain Italian citizenship, you have to stay in the country for 10 years, at least 270 days per year.
Things to Consider Before Retiring in Italy
Wondering about whether it is good to retire in Italy? Well, it depends on your expectations for a retiree’s life. Therefore, before retiring in Italy as an American, you need to think carefully about some basic life requirements. These are stated below.
1. Healthcare in Italy
Known as Servizio Sanitario Nazionale (SSN), the Italian healthcare system stands out with a 65.1 healthcare index. If you are considered a legal resident or a citizen, you can enroll and access it. The healthcare personnel are well educated, and the quality of care is generally high.
However, you can wait for long periods if you want to receive a non-urgent treatment, which can be long in the public system. Therefore, you can choose private healthcare with your health insurance. It is typically more affordable compared to the US healthcare system.
2. Language Barrier
The more you go away from city centers, the less likely you are to come across English-speaking people. Learning some basic Italian will make your life easier and help you to interact with Italian citizens. If it will be hard for you to learn, it is best to be in places where expats live, such as Rome, Florence, and Milan.
3. Housing Options
The real estate market in Italy is expected to grow at a compound annual growth rate (CAGR) of 1.02% between 2024 and 2029. This highlights that if you are going to invest, you can buy a property in Italy and watch your investment grow. At this point, you might be wondering whether you can buy a house in Italy. As a US citizen, you can purchase any property in Italy, as there is a reciprocal treaty between the two countries.
The secret benefit here is that the Italian government does not impose heavy taxes on real estate. The property taxes vary between 0.4% to 0.8%. Besides, you may have to pay TASI tax for government services, and a TARI tax for trash collection. Accordingly, if the property is your primary residence, you do not have to pay them.
Apart from these, you might also pay these taxes when buying a house:
- Imposta Di Registro: Also known as the property tax registration, it is between 2%-9%.
- Value Added Tax: It is applied on newly built or renovated houses, around 4%-22% depending on the property’s location.
- Notary & Legal Fees: When buying a property, you have to pay up to 2% in notary and legal fees.
The property prices, on the other hand, change from region to region:
|
City |
Avg.. Cost for Real Estate (per sq. m) |
|
Florence |
€4,970 |
|
Rome |
€3,395 |
|
Milan |
€5,512 |
|
Como |
€2,993 |
|
Palermo |
€1,502 |
4. Cost of Retiring in Italy
For a retiree, living is based on passive income. This increases the significance of finding a place to live without thinking about how expensive life is. At this point, compared to many parts of the US, the cost of living in Italy is lower, especially outside of the major cities like Milan or Rome.
Retirees can find that everyday expenses such as groceries, dining out, public transportation, and healthcare are more affordable. For example, a meal at a local trattoria might cost €15, while a monthly public transit pass is typically under €40. Besides, rent for a one-bedroom apartment outside city centers can range from €500 to €700 per month. Thus, with careful budget planning, many US retirees find they can enjoy a high quality of life in Italy without overspending.
Cost of Retiring in Italy vs the US
|
Category |
Italy (€) |
US (€) |
|
Meal (Inexpensive Restaurant) |
15.00 |
17.28 |
|
Meal for 2 (Mid-range, 3 courses) |
70.00 |
64.80 |
|
Cappuccino |
1.67 |
4.53 |
|
Milk (1 liter) |
1.44 |
0.92 |
|
Eggs (12) |
3.47 |
3.73 |
|
Local Cheese (1kg) |
14.29 |
11.15 |
|
Chicken Fillets (1kg) |
10.75 |
10.55 |
|
Apples (1kg) |
2.19 |
4.56 |
|
Tomatoes (1kg) |
2.85 |
4.25 |
|
Bottle of Wine (Mid-range) |
6.00 |
12.96 |
|
Monthly Public Transport Pass |
36.47 |
56.16 |
|
Gasoline (1 liter) |
1.78 |
0.80 |
|
Utilities (85m² apartment) |
192.92 |
179.95 |
|
Mobile Plan (10 GB+) |
11.59 |
49.61 |
|
Internet (60 Mbps+) |
27.25 |
62.05 |
|
Fitness Club (monthly) |
49.09 |
39.63 |
|
Cinema Ticket |
9.00 |
12.10 |
|
Rent (1BR outside center) |
570.72 |
1240.08 |
|
Rent (3BR in center) |
1293.31 |
2485.32 |
|
Average Net Salary (monthly) |
1615.13 |
3731.26 |
5. Taxes
If you are considering retirement in Italy, the taxes also come into play. But, when will you be counted as a tax resident in Italy? Here are the general rules:
- If you stay more than 183 days per year in the country
- If you are officially registered as an Italian resident
- Have a habitual residence in Italy or have established Italy as the center of your economic or social life, such as through family or business.
If the criteria above apply to you, you qualify as a tax resident and Italy will impose tax on your worldwide income, including your retirement income, social security benefits, or retirement funds from the US.
Income tax rates are stated below:
- Up to EUR 28,000: 23%
- From EUR 28,001 up to EUR 50,000: 35%
- Above EUR 50,000: 43%
In addition to income tax, you can also pay regional taxes ranging from 1.23% to 3.33%, and municipal taxes up to 0.9%. This may change depending on where you reside.
There is also a special tax incentive for investors. According to this, you have to pay an annual tax of €200,000 on your income. Apart from that, if you live in low-density areas, you can benefit from a reduced 7% flat tax rate.
6. The US Taxes for Retirees Abroad
Moving to Italy for retirement does not exempt you from your US tax liabilities. As a USA citizen, you have to pay taxes on your worldwide income regardless of where your main residence is. So, you must continue filing your tax returns if your income exceeds certain thresholds. At this point, you can also benefit from the foreign earned income exclusion to avoid double taxation:
- Foreign Tax Credit (FTC): If you pay income taxes in Italy, you can use those payments to lower or eliminate the taxes you owe in the US.
- Foreign Housing Exclusion (FHE): If you consider retiring abroad, you may be able to deduct housing costs like rent, utilities, and insurance from your US taxes.
You can also file these forms:
- Foreign Bank Account Report (FBAR): If you have over $10,000 in foreign bank accounts at any time during the year, you must report them to the US government each year.
- Form 8938: If the total value of your foreign earned income is more than $200,000 at the end of the year, or over $300,000 at any point, you need to report it on this form when you file your taxes.
6. Bureaucracy and Paperwork
Italy is mostly notorious for its slow and complex Italian bureaucracy. Therefore, settling up, getting a residence permit, utilities, or registering for healthcare can take longer. This requires lots of patience. At this point, you might also consider getting professional or legal assistance to streamline the process.
Best and Affordable Places For Americans Retiring in Italy
Now that we have covered the basics for your retirement in Italy from the USA, it is time to pick up the affordable and best places to retire:
1. Puglia
Puglia is one of the charming seaside towns of the Italian peninsula. It is known for its dramatic cliffs, white washed buildings, and crystal clear Adriatic waters. You might assume that all this natural beauty should not be low-priced. Well, compared to northern cities, it is relatively affordable for a retiree to live. For sure, you will enjoy the slow pace of life that the US has failed to offer.
2. Sardinia
Some parts of Sardinia are considered for luxury travelers. However, many inland towns and villages offer a peaceful lifestyle with reasonable prices. For example, Nuoro and Oristano may provide an affordable alternative to expat retirees while they enjoy the island life.
3. Calabria
Located in the south, Calabria is one of the most affordable regions in Italy. The city stands out with its breathtaking coastlines, mountains, and villages. So, if you are looking for a peaceful environment for your golden years, Calabria can be the one. It provides a high quality of life with low property prices and affordable cost of living in towns such as Tropea or Scilla.
4. Abruzzo
Abruzzo, located in Southern Italy, is often referred to as “the greenest region in Europe”. Life in here is in perfect balance. There is a harmony between its mountains, forests, and long coast. Plus, it is affordable to live as a retiree. You can opt for cities like Sulmona and Teramo if you are looking for a quiet yet charming place to retire.
5. Florence
Although not as cheap as the southern regions, Florence offers cultural richness, world-class healthcare, and modern infrastructure. Living here can be costly; however, you can opt for smaller nearby towns like Fiesole or Pontassieve.
6. Sicily
Sicily is one of the cheapest places to live in Italy. It has a lot of history, culture, and beautiful beaches. For instance, cities such as Ragusa, Modica, and Cefalù are known for their charm, with old buildings and relaxing seaside views. Besides, food, transport, and daily needs are also cheaper than in northern Italy.
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Frequently Asked Questions on Retiring in Italy
Can Americans live in Italy?
American citizens can live in Italy with the right visa if their stay exceeds more than 90 days. If not, they can temporarily stay less than 90 days in the country.
Does Italy tax US Social Security benefits?
If you are a tax resident in Italy, your worldwide income is taxed. This includes your US Social Security benefits, too.
How much money do I need to retire in Italy?
To retire in Italy with a retirement visa, you need to follow the income requirements of about €31,000 per year if you are single, or around €38,000 if you are a couple. It can come from pensions, rent, or investments. You also need proof of a place to live and health insurance.
Can an American move to Italy permanently?
Yes, you can apply for permanent residency with a long-stay visa. If you meet the minimum residency requirements, you can also submit a citizenship application.
