Dreaming of La Dolce Vita as an American? Well, you are not the only one. Many Americans are thinking of retiring in the US, while many have made the move already. The reason behind this retirement trend to Italy is clear: Everyone wants the best for their second chapters. 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 will cover everything you need to know about retiring in Italy as an American, from the initial steps to take to Italy’s flat tax benefits and, eventually, residency pathways.
What to Discover in This Guide?
Italy: 4th Most Popular Retirement Destination in Europe
In 2022, at Get Golden Visa, we observed an investment migration pattern: American investors were leaving the US in record numbers, based on broad insights gathered from more than 100,000 investors across 47 nationalities and 16 residency and citizenship programs. We reflected it through our The Great American Exodus series.
The 2025-2026 edition goes further by focusing on the trend of retirement migration among Americans. The Great American Retirement Exodus features 8 real-life stories and insights from over 10 experts, offering a comprehensive view of mobility, security, and lifestyle.
Accordingly, Italy has positioned itself as the fourth retirement destination for US retirees. One indicator of this is that 15,465 American retirees are currently receiving Social Security benefits in Italy, according to the latest SSA data. Additionally, our team at Get Golden Visa realized that Americans drive a surge in Golden Visa queries in Italy, highlighting how Italy has become a lifestyle choice for many.
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 there are no restrictions on how many citizenships you can hold. 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.
7% Flat Tax Rate for Pensioners
Italy introduced a 7% tax regime in 2019, as part of its Budget Law, to attract foreign retirees willing to relocate to certain areas of southern Italy. To qualify, foreign retirees must establish their tax residence in certain municipalities below 30,000 residents as of 7 April 2026. The common ones include Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, and Puglia.
In addition, you must not have been a tax resident in Italy for at least five years prior to the move. You must relocate from a country that has an established administrative cooperation agreement with Italy.
Under this scheme, you can opt to pay a flat tax rate of 7% on your qualifying foreign-source retirement income up to a maximum of 10 years.
Can an American Move and Live in Italy Permanently?
Americans can visit Italy for short trips of up to 90 days within a 180 day period. However, if you wish to stay longer than that or move permanently to Italy as an American citizen, you must obtain a long term residence permit in Italy (Permesso di Soggiorno).
Italian Residency Visa Types: How to Retire in Italy from the USA in 2026
1. Italy Retirement Visa (Italian Elective Residence Visa)
If you plan to stay in Italy using your passive income or pension, you may be eligible to apply for the Italy Retirement Visa, also known as the Italian elective residence visa. This option is generally preferred by those who can commit to Italy for at least 183 days per year, as it requires physical residency.
Italy Retirement Visa requirements:
- For the Italian Retirement Visa, you must show proof of income. It must be at least €31.000 per year as passive income, for couples, €38,000. And if you decide to add additional family members, the amount increases by 20% per spouse and 5% per child.
- Proof of address, a title deed, or a rental agreement in Italy
- Private insurance that covers at least €30,000
- Payment of visa application (€116 per person)
- Clean criminal record
- Marriage certificates, if applicable
- Application letter, stating why and how you plan to relocate to Italy.
- Visa application forms
- Your passports
- Passport-sized photographs
How to apply for an Italy Elective Residence Visa?
To apply for an Elective Residence Visa in Italy as an American, you must follow the requirements and steps:
- Gather the necessary documentation we have stated above.
- Check the full list of Italy Consulates in the USA and schedule a visa appointment in the nearest consulate to you.
- Once you apply, you will receive your approval within 90 days. This residency visa will be valid for 1 year and allow you to enter multiple times.
- Once you arrive to Italy, you must go and apply for Italian “Permesso di Soggiorno”. You must visit the ufficio postale, in other words local post office to gather your application kit.
- Then, you must submit your application and attend an appointment at the Questura, police station.
- Once you have successfully submitted your application, you can receive your permesso di soggiorno, Italian residence permit.
This whole process can take up to 3 to 6 months depending on the complexity of your application. After you get your Italian residence permit, you can register as an Italian resident in the city in which you want to live. This will require you to provide a health insurance policy and a rental contract or title deed of your address in Italy. Then, you can also apply for your Italian ID card to buy a car or for any identification purposes with the Government.
2. Italy Golden Visa
Also known as the Italian Investor Visa, the Italy Investor Visa offers its applicants 2-year residency with a three-time renewal and family inclusion option. This option is mostly preferred by investors and those planning not to relocate full-time.
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 period to obtain 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.
How to apply for an Italy Golden Visa?
To apply for an Italian Golden Visa, you must follow the steps below:
- Reach out to Get Golden Visa, our specialized team will help you to find the best investment option that suits your needs.
- Apply for Nulla Osta, pre-approval.
- Undergo a preliminary check and get your Nulla Osta
- Visit Italy and apply for a permesso di soggiorno.
- Make your investment and get your residency card.
The whole process can take up to 3 to 6 months.
3. Italian Dual Citizenship
Italy allows dual citizenship; however, it is always best to check with your country of origin as well. If your country of origin does not allow you to do so, you may need to renounce your citizenship. When we turn our face to American citizens, it is best to say that America allows dual citizenship, too.
Accordingly, you can become an Italian citizen in three ways: by descent (jure sanguinis), by marriage (jure matrimonii), or by residency (naturalization).
- For Italian citizenship by Descent, you must provide proof that one of your parents or grandparents was an Italian citizen and had no dual citizenship at the time of their descendant’s birth or at the time of their death.
- For Italian citizenship by marriage, you must have been married for 2 years in Italy or 3 years if residing abroad.
- For Italian citizenship by naturalization, non-EU citizens can apply after 10 years of legal residency, while EU citizens can apply after 4 years.
When it comes to citizenship processing times, they can range from 9 months to 3 years, depending on the path you have chosen.
Get Golden Visa: How Can We Help You?
At Get Golden Visa, we have been providing tailored global mobility consultancy services since 2014. Throughout this process, we guide individuals through residency and investment opportunities worldwide, providing access to 16 programs.
We focus on offering flexible solutions that align with your personal goals. Our approach is not about presenting a single route, but about understanding your priorities. Our role is to simplify the process and stand by you at every step with independent guidance.
You can fill out the contact form below to get in touch with us
How to Retire to Italy: Step by Step
Step 1: Choose your residency path
One of the questions we always get is, “Which residency path should I choose?”. Well, it is basically depending on how you want to retire in Italy. If you are looking for a flexible path, we can always recommend you Italy Golden Visa, as it requires no residency.
However, if you are ready to move to Italy from the USA as an American, with a relatively affordable budget, we can recommend that you choose the Italian Elective Residency Visa. You must keep in mind that this visa requires you to spend at least 183 days in Italy.
On the other hand, Italian dual citizenship can be preferred if you have a real ties to Italy through descent or marriage. Naturalization is also applicable if you comply with the residency requirements.
Step 2: Pick the Path for Permesso di Soggiorno
Once you pick the path you want to go with, you can start gathering documents for that residency visa type and apply for it.
Step 3: Find an accommodation
If you prefer to go with Italian Elective Residency Visa or wish to live in Italy in the long term, you must provide a rental contract or a title deed for a property in Italy. Therefore, you must search for the right property that you wish to live for the long term, and secure your proof of residency.
Step 4: Open a Bank Account
If you are planning to live in Italy, you will likely need to open a local bank account to manage your everyday expenses. This includes paying rent, utility bills, and healthcare costs, which are all much easier to handle with an Italian account.
To open one, you will usually need your Codice Fiscale, a valid form of identification, and proof of your address.
Step 5: Enroll in healthcare services
Once you have your residency in place, you can register with Italy’s public healthcare system, known as the Servizio Sanitario Nazionale. It provides solid coverage, but you might still consider private insurance if you want quicker access to services.
Step 6: Complete your financial and legal arrangements
After settling in, you will need to activate utilities, arrange for your pension transfers, and make sure you are meeting tax obligations in both Italy and the US.
You should do this to comply with US requirements, including FBAR and FATCA reporting.
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. Code Fiscale
Although Codice Fiscale is not strictly required, it may simplify your administrative processes. It is basically a personal tax number issued by the Agenzia delle Entrate based on your personal details, such as your full name, date of birth, and place of birth.
You do not necessarily need to be in Italy to obtain one. You can submit it through Italian consulates abroad. Alternatively, professionals or advisory firms in Italy can assist with the application directly through the tax authorities.
Once assigned, your Codice Fiscale remains permanent. However, if you have any update on your personal details, you must change it as soon as possible.
6. 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.
Plus, retirees who transfer their tax residence to certain smaller municipalities in Southern regions (Sicily, Calabria, Sardinia, Campania, Basilicata, Apulia, Abruzzo, Molise) can apply for a 7% flat tax on all foreign-source income, including pensions.
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.
7. 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.
8. 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.
