Italy is often chosen as one of the best countries where expats decide to retire because of its Mediterranea weather, food and wine culture. In addition to this, Italy is known for its relaxed lifestyle, quality of life and for being cheaper than most other European countries.
If you’re thinking about retiring to Italy, this guide is for you. We’ll tell you everything you need to know, from the pros and cons of retiring in this beautiful country to the requirements and documents you need to prepare for moving to Italy.
Can expats retire in Italy?
Yes, everyone can retire in Italy. Non-EU citizens need to apply for an Elective Residency Visa, also known as Italy Retirement Visa. EU citizens can freely relocate to Italy. From 2022, the retirement age in Italy is set at 67 for both genders.
In addition to the Elective Residency Visa, if you’re from a Non-EU country, you’ll need to provide proof that you’ve sufficient funds to support yourself. Italy has some specific income requirements that you must meet:
If you’re alone, your minimum annual income must be €31,000.
If you’re a couple or married, you’ve to show a minimum annual income of €38,000.
Keep in mind that your income can’t be provided by an employer; the money has to come from other sources, such as
Any form of passive income (i.e., passive partnership in a company)
Your savings
Returns on investments
Income from properties that you own
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Keep in mind that you can’t do any type of paid work under the Elective Residency Visa.
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The pros and cons of retiring in Italy
Many foreigners choose Italy to retire. But before you make a decision, you should know that like in any other country, there’re pros and cons to living in Italy.
The cost of living in big cities can be quite high
Italians are friendly and helpful
Not many Italians (especially the elderly) speak English
Food is delicious and cheap
Fuel, gas and electricity can be quite high
Getting Italian citizenship is not as hard as in other countries
Staying on the elective residency visa is expensive in the long run
Renting a house in the city means you’ll be closer to expats
Renting or buying a house in the suburbs means you’ll need to know Italian as you’ll be surrounded by locals
Things to consider when retiring in Italy
Before making your move, it’s best to know what to expect and what to take into consideration when you retire to Italy.
The best places to retire in Italy
Some of the best regions in Italy where you can relocate and find a low cost of living are Basilicata, Campania, Puglia, Calabria, Marche, Molise, Umbria and Sicily; here, renting an apartment can be as low as €450.
If you don’t mind shelling out a bit more, you can opt for beautiful but slightly expensive regions, such as Lombardia, Liguria, Trentino or Lazio.
Cities like Milan, Rome and Florence are among the best places to live in Italy and where most expats decide to relocate to. In such expensive cities, the rent for an apartment can be as high as €1,300.
Buying v/s renting in Italy
To buy a house in Italy, you’re required to get a mortgage from a local bank. This can take time, especially when you’ve just moved to Italy. Buying a house is also a decision you shouldn’t take lightly.
It’s best to start by renting a house in a region or neighbourhood that you like and experience what’s it really like to live there. Once you’re sure, you can look into the bureaucracy of buying a house.
Do retirees pay taxes in Italy?
Yes, as an Italian resident, you’ll be subject to paying taxes even if you won’t be allowed to work with a retirement visa. Italian law requires that you’ll pay a 7% flat tax on your foreign income, which also covers any wealth tax, if you retire in Sicilia, Calabria, Campania, Basilicata, Abruzzo, Molise or Puglia. If you live in another city, Italian tax rates range from 23% to 43%.
Cost of living in Italy
Italy is known for having a lower cost of living compared to other countries. If you retire in the south of Italy, in addition to the warm weather and amazing landscapes, you can find a cheaper cost of living than in the north.
Despite the big difference between the north and the south of Italy, you can estimate that the average monthly cost of living in Italy is around €1,600.
Registering to the Italian healthcare system is not mandatory if you don’t work in Italy. However, it can be very convenient due to the free access to its services and the high quality of health institutions.
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The healthcare system has a constant presence on the World Health Organization (WHO) rankings, being ranked as the second best world healthcare system in 2020.
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The Italian healthcare system, also known as Servizio Sanitario Nazionale (SSN), is efficient and mostly free if you contribute to the national healthcare system. You can have access to it after you register as a resident in the city hall where you live.
Since the SSN is managed at a regional level, some costs or the quality of care could differ by region.
Learn Italian
If you’ll find yourself in Italy, you’ll notice that many locals, especially the elderly, are not proficient in or willing to use English. Of course, Italians will always try to help you if you ask for information. However, it would be better if you could learn the local language once you’re there or if you could learn a few simple and essential phrases before moving to Italy.
Bringing pets
Italy is a very pet-friendly country, with dogs allowed in most restaurants, public transport and closed spaces. The basic rules to respect are to carry a leash and a muzzle as you may need them when going on walks or on public transport. If you plan to move to Italy with your furry friend, there are some documents and requirements to meet, such as vaccination proofs and microchips.
Safety
Generally speaking, Italy is considered a safe country to live in. Police are available in all cities if you need any help. Yet, like any other country, you should keep in mind the general safety rules that apply everywhere. To call the police, dial 112, while 118 is the number for the ambulance.
Requirements to retire in Italy for non-EU citizens
Requirements for Non-EU citizens wanting to retire in Italy depend on your current residence: if you’re already in Spain or still living abroad.
Non-EU citizens already living in Italy
You need to have lived in Italy for 20 years as a foreigner to apply for a full pension scheme. This is because you must have accredited 20 years of contributions.
After 10 years of living in Italy with a permanent residence permit, you’ll be allowed to apply for Italian citizenship. If you do this, you can enjoy the benefits of the Italian pension scheme provided by the Italian government.
Non-EU citizens living abroad
You must be over 18 years old
You must prove that you’ve enough money to support yourself without working (Individual annual income is €31,160 and €38,000 for couples)
You can’t do any type of paid work during your time in Italy
After entering Italy on a Retirement Visa, you’ve to apply for a residence permit ("Permesso di Soggiorno") at the police station, no later than 8 days after your arrival.
Show proof that you’ve accommodation in Italy
Buy international health insurance that covers at least €30,000 in all of Europe
Police Check Certificate from the countries you’ve spent the last 5 years in
How much money do you need to retire in Italy?
To retire in Italy, you must show that you’re able to provide for yourself during your time in the country. As of 2022, the minimum amount of money you need to have is
€31,000 if you’re alone
€38,000 if you’re a couple
At least €20,000 for any dependent child coming with you
Requirements to retire in Italy for EU citizens
As an EU-citizen, you’ve got the right to retire freely and live in Italy for more than 3 months if you have a sufficient passive income and a health insurance coverage in Italy.
However, there’re some additional requirements you’ve to meet:
You’ll be asked to register your residence in Italy after 3 months
Carry an identity card or passport with you at all times or you can be fined or temporarily detained
After you legally live in Italy for 5 years in a row, you can apply for permanent residence
Keep in mind that you can lose your right of permanent residence if you live outside Italy for more than 2 years in a row. However, this is not affected by temporary absence (less than 6 months a year) and 1-month absence in 12 consecutive months, for important reasons such as serious illness or work.
How to apply for an elective residence visa
If you still live abroad, the first step is to get in touch with the Italian consulate in your home country and schedule an appointment at the embassy to apply for an elective residence visa.
At the appointment, you’ll be asked to bring with you all the necessary documents and the visa application filled up and signed. You’ll also need to pay the Visa fee of €116.
Essential documents for the elective residence visa in Italy
To be able to get the elective residence visa, there’re some key documents that you need to have:
A valid passport
A passport photo
Filled out long-term visa application form
Show proof of your accommodation in Italy (hotels and hosts are not accepted)
Police Check Certificate from your last country of residence
Bank statements from the last 6 months
Proof of your monthly income
Tax returns for the past 2 years
A cover letter stating your reason for permanently residing in Italy, where you intend to retire, and the names of those coming with you.
Validity of elective residence visa in Italy
The elective residence visa is valid for 1-year and can be renewed after this period if you keep meeting the original requirements over time. After 5 years of continuously living in Italy, you’ll be able to apply for Italian permanent residence. This is a better choice in the long run as you don’t need to meet all the requirements every year.
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Keep in mind that to keep your Elective Residence Visa renewable, you’re not allowed to leave Italy for more than six months at a time
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Get your residence permit for an Elective Residency Visa
Here’s what you need to do to apply for an Italian residence permit (Permesso di Soggiorno):
Go to the nearest post office and buy a “yellow kit”.
Fill up the kit and return it to the post office with the application and all the documents required.
You’ll be issued with a receipt and an appointment with the “Questura” (police station).
At your appointment, make sure to bring with you all the necessary documents. Here they’ll take your fingerprints.
Wait for 4 to 6 weeks and after the police station will call you, you can go and collect your Residence Permit.
Alternatives to Elective Residence Visa in Italy
Do you have Italian ancestry? You could apply for dual citizenship. This could facilitate your process and give you access to the benefits of Italian citizens.
You could also check your eligibility for citizenship by naturalisation, and other ways to get Italian citizenship, such as applying for a golden visa.
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Those who want to retire to Italy can obtain long-term residence visas which enable them to live there for more than 90 days, however, just like an ordinary residence permit, this visa has a validity of 5 years. If the visa holders decide to remain here, the permit can be renewed.
While a visa is unnecessary if you're merely visiting Italy from the U.S., you'll need to apply for one in order to gain permanent residency. You will also have to provide proof of sufficient retirement funds with which you can support yourself.
If you have savings of at least €175,000 ($200,000) and a steady source of income from social security, a pension or investments of around €1,750 ($2,000) to €2,300 ($2,650), you can afford to retire here comfortably.
In conclusion, Italy does tax retirement income, including US social security benefits, but there are tax treaties and agreements in place to avoid double taxation. As a retiree in Italy, you may also be subject to Italian social security contributions if you work or have income in Italy.
You'll need to maintain your investment as long as you want to keep your visa. After 5 years, you can apply for permanent residency in Italy which will no longer oblige you to maintain your investment level. Cost: Free.
How Benefits Can Be Paid. If you have Social Security credits in both the United States and Italy, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.
Con: The cost of living can get quite high in the main cities. The high cost of living is a common problem associated with living in major cities throughout Italy. Many people who are moving to the country have no idea how much it'll cost them, and they can be caught off guard by some unexpected expenses.
Yes, everyone can retire in Italy. Non-EU citizens need to apply for an Elective Residency Visa, also known as Italy Retirement Visa. EU citizens can freely relocate to Italy. From 2022, the retirement age in Italy is set at 67 for both genders.
145/2018) dedicated a special chapter (Art.1, paras.273 – 275) to those who benefit from a pension treatment abroad (pensions or comparable allowances). These people, if they wish, will be able to access a preferential regime that allows them to subject their income to a 7% substitute tax.
Under the new preferential tax regime, an individual would be exempt from income taxes at the normal scale on all foreign income and only pay 7%. This includes pension income, capital gains and dividends, overseas business income, rental income and Social Security.
The new double taxation agreement allows the United States to tax US branches of Italian companies. The new treaty also allows Italy to tax a foreign company on a dividends equivalent amount. The agreement also changes the way pensions and other benefits are taxed.
It's the primary reason many people first consider moving overseas. In general, the COL in Italy can be 30% to 70% lower than the cost of living in the U.S., depending on where in Italy you want to live, and how you want to live.
You can get dual citizenship in USA and Italy if you can prove you have Italian ancestry with a demonstrable unbroken line of citizenship. Since 1992, Italy has allowed dual citizenship with the United States, and you will not need to renounce your American citizenship during the process of applying.
Is healthcare free in Italy? Healthcare in Italy is not free, but the fees are usually quite reasonable and Emergency Medical Assistance is provided to anyone in need, regardless of their nationality, without asking for upfront payment. Healthcare in Italy is provided to anyone with a mixed Public and Private system.
If you earned Social Security benefits, you can visit or live in most foreign countries and still receive payments. Look up the country on the SSA Payments Abroad Screening Tool to be sure you can receive your payments.
To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.
If you leave the U.S., we will stop your benefits the month after the sixth calendar month in a row that you are outside the country. You can make visits to the United States for specific periods of time, depending on how long you've been outside, to continue receiving your benefits.
Tuscany. If your retirement plan involves sipping local wine, then Tuscany is the perfect region for you. Expats who have already moved to this part of Italy are in love with its rolling green landscape, extensive vineyards and unbeatable chianti wine.
Firstly, the Global Peace Index 2021 ranks Portugal as the fourth-safest country to live in, while Italy is ranked at thirty-two. Of course, this doesn't mean Italy is completely unsafe, but an environment where you don't have to worry about your safety is an added benefit for older people.
Other pros to making Italy your new home is that you'll be able to eat fresh and wholesome food every day, have access to a topnotch education system, good public transport, gorgeous scenery, and a rich culture and history. Essentially you'll be living where many Americans only dream of having their ideal vacation!
If you move to one of the following countries, your Social security benefits will not be taxed by the US -- Canada, Germany, Egypt, Ireland, Israel, Italy (only if you are an Italian citizen), Romania, UK.
How retiring abroad affects your 401(k) or IRA taxes. Distributions from your 401(k) and pensions are still taxed as income, albeit they're treated as unearned income—meaning you won't be able to claim them under the Foreign Earned Income Exclusion.
Where is the friendliest city in the world? Polignano a Mare has been voted the most welcoming tourist destination in the world by Booking's Traveller Review Award. The coastal city in the southern region of Puglia has long been a favorite summer vacation spot.
There are no restrictions for foreigners who want to buy properties in Italy. However, the Italian authorities have the power of making some verifications of criminal records and other aspects.
Can I get residency in Italy if I buy a house? Purchasing real estate in Italy does not entitle foreign citizens to a residence permit in the country. But you can choose other investment options via the Italy Investor Visa program.
Those who want to retire to Italy can obtain long-term residence visas which enable them to live there for more than 90 days, however, just like an ordinary residence permit, this visa has a validity of 5 years. If the visa holders decide to remain here, the permit can be renewed.
On average you're looking at around 1500 euros or 1900 USD a month to move to a small city or larger town. That doesn't include the moving costs, which would be around 6,000-10,000 USD depending on your situation for the plane ticket, deposit on an apartment, help with a visa, etc.
Foreigners who are resident in Italy are subject to the same income tax laws as Italian citizens. This means that they must pay taxes on all income earned in Italy, including employment income, self-employment income, real estate investments, capital gains, wealth tax, and inheritance and gift tax.
American expats in Italy are also subject to regional income taxation. Regional income tax rates range from 1.23% to 3.33%, depending on the applicable region of residence.
Reduced rates are provided for specifically listed supplies of goods and services, such as 4% for listed food, drinks, and agricultural products, and 10% for electric power supplies for listed uses and listed drugs.
This is called an Elective Residency Visa (residenza elettiva), and it is mostly used by foreign nationals who wish to retire in Italy – and have the financial means to do so. This is why it is often referred to as an Italy retirement visa.
If you decide to retire in Italy, income tax is charged at 7% per annum for up to 10 years. Additionally, other foreign-sourced income can be disregarded for tax purposes as long as a Dual Tax Treaty or Tax Information Exchange Agreement exists between Italy and the other country.
Starting from January 1, 2019, non-business individuals are subject to a flat tax of 26% on capital gains earned from both qualified and non-qualified participation in Italian and foreign companies.
Well, if you qualify for the Foreign Tax Credit, the IRS will give you a tax credit equal to at least part of the taxes you paid to a foreign government. In many cases, they will credit you the entire amount you paid in foreign income taxes, removing any possibility of US double taxation.
Do I still need to file a U.S. tax return? Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live.
If you are an American living abroad, you must file a US federal tax return and pay US taxes on your worldwide income no matter where you live at that time. In other words, you are subject to the same rules regarding income taxation as people living stateside.
Understand the Legal Requirements on Moving to Italy
You are free to live and work there without a visa. However, a work visa is necessary for everyone else coming to Italy for non-tourism purposes. Expats need to organize more than just their work visas. The length of your stay determines the next step.
The World Health Organization (WHO) ranks the Italian healthcare system second in the world, after the French healthcare system. Italians enjoy the 6th highest life expectancy in the world, as well as very low levels of infant mortality.
Because of Italian law at the time, you aren't seen as a citizen if you naturalized before the given date. In order to reacquire your citizenship, you will have to establish residency in Italy, and going about it is a bit of a process.
Applying for Italian Citizenship through Great Grandparents
You can apply for Italian citizenship through great grandparents if this relation was born in Italy and had Italian citizenship or the right to claim Italian citizenship when your respective grandparent was born.
Living in Italy as a US citizen is possible if you have the right permit. There are 2 types of residence permits in Italy: 1. Permesso di Soggiorno: a temporary, renewable residence permit with varying durations of validity.
All legal residents, both Italians and foreigners, have the right to public healthcare. These services are usually free-of-charge or subject to a symbolic cost and are provided by the Servizio Sanitario Nazionale (SSN).
Seeing a doctor in Italy if you don't have overseas health insurance. Some health insurance companies allow travellers to receive free treatment from GPs (General Practitioners) in Italy. However, the additional payments are the same as for Italian patients. Tourists can go directly to a GP's surgery.
All foreign citizens are entitled to healthcare in Italy, a service provided by the Italian Servizio Sanitario Nazionale (NHS – National Heath Service). It is possible to obtain healthcare and medical services through: Compulsory registration (in italian) Voluntary registration (in italian)
This regulation is strictly enforced in Italy. U.S. citizens may enter Italy for up to 90 days for tourist or business purposes without a visa. All non-residents are required to complete a declaration of presence (dichiarazione di presenza).
If you earned Social Security benefits, you can visit or live in most foreign countries and still receive payments. Look up the country on the SSA Payments Abroad Screening Tool to be sure you can receive your payments.
If you are among the growing number of Americans who spend part of their career working outside the United States, both the United States and a foreign social security system cover your work. You would normally have to pay social security taxes to both countries for the same work.
It's absolutely possible to live and survive in Italy without speaking Italian. Particularly if you're moving to Italy for a short while and plan to live in expat-friendly cities, such as Rome and Milan.
You can provide proof that you have sufficient financial resources to fund a trip to Italy in one of the following ways: Bank statements. You must provide an original copy of your bank statements issued within the past month. The bank statement must be stamped and signed by an authorized bank official.
Investors and their family members with residence permits in Italy may visit the Schengen countries without a visa and stay up to 90 days out of 180 days.
Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.
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