Editor’s note: “Retire in Italy” is part of an ongoing series on retiring abroad. You can see all the articles in the series at the end of this story.
Whether landing a gorgeous villa in Tuscany or a sunny bungalow in Positano, retiring in Italy has its advantages. Those benefits include a warm climate, robust culture, rich history, and a reasonably straightforward path to citizenship. All those benefits help make “Viva Italia” a tempting calling card for US retirees.
“During my sabbatical in Tuscany, I got to experience the unique Italian way of life firsthand — early morning espressos at local cafes, farm-fresh produce shopping at the local market, and lazy afternoons wandering through quaint piazzas,” said Paul Stewart, founder of MyBaggage, a luggage shipping company in Belfast, UK. “In villages like Montepulciano, locals welcomed me with open arms as soon as they saw my efforts at communicating in the language, something that tourist experiences could never provide.”
Subscribe to Kiplinger’s Personal Finance
Be a smarter, better informed investor.
Save up to 74%
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Stewart is hardly alone. Italy often ranks within the top 10 of US retiree destinations thanks to its heritage, robust cuisine, and unhurried life, and adventurous older Americans are heading to the “Bel Paesi” (beautiful country) to find out.
“Italy has long been an attractive destination for American retirees,” said Federica Grazi, an Italian native and founder at Mitos Relocation Solutions, a consulting firm focused on retirement relocation in Europe.
While the ‘dolce vita’ lifestyle made it famous, the country offers something for every taste, Grazi noted. “Nature lovers can ski in the Alps in winter and soak on the Mediterranean coast in the summer,” she said. “Cultural options are never-ending and spanning over 2,000 years of history. Food and wine lovers will be delighted to explore the regional varieties and try all the 300 types of pasta available in the country.”
The key to retiring successfully to Italy is to start planning early
“While it’s easy to be carried away by the excitement of a new life abroad, it is key to plan the relocation carefully,” Grazi said. “Understanding your immigration options should be done early on, as American citizens will need to qualify for a residence permit to live in Italy.”
Taxation is another core aspect, as foreigners who spend more than six months a year in the country automatically become tax residents. “Other important aspects relate to healthcare, customs, banking and wealth planning,” Grazi said. “Early preparation is key, and working with local retirement and relocation professionals is recommended.”
Here’s a close look at retiring in Italy and Americans’ potential challenges in doing so.
(Image credit: Getty Images)
Handling visa requirements
One of the most pressing issues when retiring abroad includes navigating visa requirements.
“For US retirees moving to Italy, the Elective Residency Visa (ERV) is the most common option,” said Alison Swindells, founder of Why Wait Italy, an Italian immigration and relocation concierge service. “It requires proof of passive income (at least 31,000 euros annually for a single applicant), health insurance valid in Italy, and proof of accommodation (rental or owned property).”
However, the ERV doesn’t allow any form of employment, which can be limiting for couples where one spouse may still be working or consulting, but wouldn’t affect post-career retirees. “In some cases, the Investor Visa is an alternative that permits business activities. High-net-worth individuals using this visa may also benefit from Italy’s 7% flat tax regime on worldwide income,” Swindells said.
In addition to the ERV and the Investor Visa, Italy offers a Work Visa for U.S. adults employed in Italy (your employer can help get you through the visa process). The imminent Digital Nomad Visa, for Americans who want to work remotely, could be suitable for U.S. retirees who wish to work part-time while living in Italy.
While Italian visa processing times vary, expect clearance within two to three months. You can curb visa wait times by working early with an Italian consulate close to your US home.
Cost of living issues
Like most sizable European countries, the cost of living varies regionally.
“The cost of living in Italy changes dramatically from North to South, with the latter being considerably more affordable,” Grazi said. “Also, big cities and tourist hotspots like Milan, Rome, Florence or Venice demand higher prices.”
In Milan, for example, the country’s financial and fashion capital, the cost to rent a two-bedroom flat is around $2,000 a month, and a dinner in a mid-range restaurant starts at $50 per person. The cost of living in Rome is almost 20% lower and falls significantly in smaller and less busy destinations.”
For day-to-day living costs, expect to $15-to-$30 per person for a decent eatery. Utilities (heat, water, trash collection, and electricity) go for about $125 per month, Swindells said. A week’s groceries for two people costs about $75, depending on seasonal availability. “Your money goes much further in the south than in Milan or northern villages,” Stewart notes.
(Image credit: Getty Images)
Getting good healthcare
The quality of medical care is solid, particularly in northern portions of Italy. “Plenty of doctors speak English in large cities, and some of the over-the-counter medications here require prescriptions in America,” Stewart said.
US retirees living in Italy can choose to go with Italy’s Servizio Sanitario Nazionale, or SSN national healthcare service, at highly affordable costs as a legal resident between $1,500 and $2,500 or buy private international coverage for up to $2,500 annually, Stewart added.
Typically, new ex-pats get private healthcare while waiting for residency paperwork to clear.
(Image credit: Getty Images)
Handling taxes
Italy offers generous tax advantages to retirees.
“Italy’s ‘flat tax’ program charges qualified newcomers a minimal 7% on income earned abroad for their first 10 years,” Stewart said. “The US-Italy tax treaty eliminates double taxation, and property taxes are low.” The flat tax is available in Italy’s central and southern regions.”
You’ll still have to file U.S. taxes as a citizen, but there are benefits.
“US citizens can get tax relief, which is granted through Foreign Earned Income Exclusion and Foreign Tax Credits,” said Sebastian Garrido, digital marketing manager at Vibe Adventures in Mexico City, Mexico.
U.S. citizens who have trusts as part of their estate plan (whether these are trusts they created or of which they are beneficiaries) should take special precautions in Italy.
“It’s advisable to consult with local counsel in Italy to determine whether the current structures are tax efficient from the Italian perspective, ask if any changes are advisable and review any additional trusts are recommended to improve global tax efficiency,” said David Goldstein, a partner at the New York City-based law firm Farrell Fritz. “This should be done before obtaining Italian tax residence; doing so afterward may be too late and limit the client’s planning and restructuring options.”
Additionally, like many European countries, Italy has forced heirship, and U.S. retirees should know that.
“This is in contrast with many U.S. states, where the law allows for testamentary freedom (aside from certain protections for surviving spouses),” Goldstein said. “Thus, it’s important that an American expat obtaining domicile in Italy consult with an Italian attorney during life to determine whether their current estate plan will work within the framework of Italian succession law and, if not, what changes may be needed to ensure their wishes are carried out after death.”
(Image credit: Getty Images)
Best places to retire in Italy
Like a menu at your favorite Italian restaurant, Italy offers a wide variety of living choices for US retirees.
“Florence is best for those who love culture and history, and Sicily has low prices and a warm climate,” Garrido said. “Puglia offers coastal living and picturesque small towns, and the Italian Lakes region is for those who want beautiful scenery and tranquility. The best option will ultimately depend on your preferences and lifestyle goals.”
Swindells lists city-to-city places to retire and what they bring to the lifestyle table.
- Tuscany and Umbria: Both are known for their picturesque landscapes, rich cultural history, and charming small towns like Siena and Perugia.
- Puglia & Calabria: Each offers retirees affordable housing options with beautiful coastlines, ideal for those seeking warmer climates.
- Sicily: This world-famous island offers stunning scenery, vibrant culture, and eligibility for the 7% flat tax regime.
- Emilia-Romagna (e.g., Parma): Renowned for its gastronomy and high quality of life, Parma is more affordable than northern cities like Milan.
- Veneto and Turin: Veneto offers historic cities like Venice and Verona with strong manufacturing economies at lower costs than Florence or Milan. Turin combines affordability with a rich cultural scene and an emerging tech sector.
- Northern Cities (like Milan &and Bologna): Both cities offer modern amenities, excellent healthcare facilities, and easy access via high-speed trains but have higher living costs.
Local bureaucracy issues
Italy is infamous for its elongated legal and bureaucratic processes, which may frustrate American retirees accustomed to faster paperwork timeframes.
- Retirees can expect to follow Codice Fiscale, Italy’s tax code required for nearly all in-country financial transactions liked getting a bank account or purchasing a home.
- Registering Residency: This process is geared toward long-term visa holders and is usually handled at the local municipal office, or “Comune.”
- Use an in-country bank account: U.S. retirees looking to settle in Italy should opt for an Italian bank account, which can handle financial transactions more quickly and efficiently than a U.S. bank account.
A word on languages
Retirees can make life much easier for themselves by learning basic Italian. It will get things done faster, and making the effort goes a long way with the locals.
“Any attempt to speak the language is greatly appreciated by locals and will help Americans integrate into local Italian communities,” Swindells said.
Flights to and from Italy
Many good nonstop flights from the U.S. to major Italian cities run regular routes.
“Major US cities, including New York, Miami, Los Angeles, and Boston, have direct flights into Rome, Milan, and Venice,” Garrido noted. “This also makes it simple for retirees to see family in the U.S. or host visitors without complicated travel logistics.”
These flights are growing as Italy attracts more visitors in a post-COVID world.
“Delta Air Lines will launch daily year-round nonstop flights from New York (JFK) to Sicily starting May 22, 2025 — the first direct connection between the US and Sicily,” Swindells added. “New seasonal flights from Atlanta and Chicago to Naples start in May 2025, in addition to existing service from New York.”
In-country transport is highly available as well.
“Italy’s railway network is very well developed, especially in the North and Centre, so it’s easy to reach these international airports by public transport or connecting flights,” Grazi said.
(Image credit: Getty Images)
The final word on retiring in Italy
Life is just different in Italy — it moves at a more languid pace. Retirees will learn to take the extra time to soak up the surroundings and consider the rich history of one of the most popular destinations in the world.
“The appeal to U.S. retirees moving to Italy is often because of the history, relaxed lifestyle, and amazing cuisine,” said Ben Loughery, founder of the financial advisory firm Lock Wealth Management in Atlanta, Ga. “I studied abroad in Rome, and what I loved about my time there was the country’s diverse landscape, whether we were in Venice one weekend or Capri the next.”
Being prepared is the key to getting to and building a lifestyle retirement experience.
“Moving to Italy involves several challenges, such as securing a retirement visa, language barriers, healthcare planning, foreign banking, and cultural adjustment,” Stewart said. “Preparation involves a systematic approach: begin Italian classes at least one year beforehand, visit Italy at various times of the year, join established expat groups on the Internet, and take advice from financial experts familiar with Italy and the US economic systems.”
More on Where to Retire Abroad
Source link
:max_bytes(150000):strip_icc()/BTCUSDChart-8dfd320616d4455a95ccb1ae8448f589.gif?w=390&resize=390,220&ssl=1 "Watch These Bitcoin Price Levels as Cryptocurrency Reclaims 0,000 Level")
:max_bytes(150000):strip_icc()/APPChart-9aa61fdf8dd845ff83df03e29c558384.gif?w=390&resize=390,220&ssl=1 "Watch These AppLovin Levels as Stock Soars After Strong Earnings, Sale of Mobile Gaming Unit")
:max_bytes(150000):strip_icc()/GettyImages-2193163507-ce2aba0ec74c4afcbd6b122ed8d8838e.jpg?w=390&resize=390,220&ssl=1 "These States Are Least Prepared for a Recession")