Best places to live in Italy for expats and Americans in 2026

This guide compares Italian locations for expats and Americans in 2026 by using housing, monthly budgets, transport, healthcare access, English-language services, visa logistics, and tax rules. Current city data puts a central 1-bedroom apartment at about €658 in Palermo, €1,112 in Rome, and €1,504 in Milan. (Numbeo)

The article is written for US taxpayers and English-speaking residents planning a long-term move rather than a short visit. Because US citizens living abroad generally remain subject to US filing rules, relocation should be assessed alongside the Foreign Earned Income Exclusion for US expats.

For the relocation process itself, see our guide to moving to Italy from the USA. This article is educational and is not tax, legal, or immigration advice.

Best places to live in Italy: key facts for expats (2026)

The following 7 facts summarize the 2026 decision: central 1-bedroom rents range from about €658 in Palermo to €1,504 in Milan, long stays exceed 90 days, the 2025 FEIE cap is $130,000, and eligible 7% pensioner-regime municipalities may have no more than 30,000 residents.

• Italy offers at least 3 broad location types – global hubs such as Milan and Rome, university cities such as Bologna, and smaller coastal or rural communities.
• A single person’s current Numbeo baseline, including a central 1-bedroom apartment, is about €1,457 in Palermo, €1,960 in Rome, and €2,556 in Milan before discretionary savings and one-time relocation costs. (Numbeo)
• US citizens and green card holders generally continue to report worldwide income after moving, and the 2025 Foreign Earned Income Exclusion is capped at $130,000 per qualifying person on returns filed in 2026. (IRS)
• Italy generally treats an individual as tax resident when at least 1 statutory residence condition applies for most of the year – at least 183 days in a non-leap year. (Agenzia Entrate)
• A stay longer than 90 days normally requires a national Type D visa and a residence-permit application within 8 working days after arrival. (Visto per Italia)
• Italy’s 7% pensioner regime now uses a 30,000-resident municipal ceiling after Law No. 34 of March 11, 2026 took effect on April 7, 2026. (Gazzetta Ufficiale)
• Rome, Milan, Florence, and Bologna are among the best places to live in Italy for expats who need larger international communities, while Trieste, Palermo, Puglia, Abruzzo, and inland towns offer fewer English-language services in exchange for lower housing costs.

Taxes for Expats helps US taxpayers understand how living in Italy affects their US tax filings. Review our Italy tax guide for US expats and compare current figures through Numbeo’s cost-of-living data for Italy.

How to choose where to live in Italy as an expat

Choosing where to live in Italy starts with 5 questions: what rent fits your income, which visa applies, whether work is location-dependent, how much English support you need, and whether schools or healthcare matter. Central 1-bedroom rents average about €658 in Palermo and €1,504 in Milan. (Numbeo)

Large metros suit professionals who need airports, employers, international schools, and deeper service networks. Mid-size university cities suit students, families, and remote workers, while coastal and rural areas can be good places to live in Italy for retirees or buyers who accept more car use and Italian-language administration.

The following 5 decision criteria help expats shortlist locations that fit their situation:

• Budget: Compare central rent plus at least €800–€1,050 for current non-rent expenses before adding travel, private school, or savings. (Numbeo)
• Income stability: Match local employment or remote-work income to a 12-month housing commitment rather than relying on vacation-season prices.
• Visa route: Check the official Italian visa portal before choosing a city because a Type D visa covers stays of 91–365 days and category requirements differ. (Visto per Italia)
• Lifestyle: Decide whether daily priorities favor business access, university life, coast, mountains, nightlife, or a quieter town.
• Infrastructure: Confirm hospitals, schools, public transport, broadband, and the size of nearby international communities.

 

 

Read our moving to Italy guide for visas, residency, and setup, then use the Italy tax guide for US expats to test the tax consequences of the same shortlist.

Best cities to live in Italy: overview table

The best cities to live in Italy depend on cost, transport, work, schools, and healthcare. Central 1-bedroom averages run from €728 in Trieste to €1,504 in Milan, while baseline single-person totals range from about €1,457 in Palermo to €2,556 in Milan. (Numbeo)

The comparison below identifies the best cities to live in Italy by using current Numbeo estimates for rent and non-rent spending, then rounding them into practical monthly planning ranges. It does not include private school, large medical expenses, frequent international travel, or one-time deposits.

A single renter using a central 1-bedroom should plan for roughly €1,450 in Palermo, €1,650 in Trieste, €1,960 in Rome or Bologna, €2,270 in Florence, and €2,560 in Milan before optional spending.

 

Rent and non-rent figures were checked against current city pages in June and July 2026. Because Numbeo is crowdsourced, use its city cost comparison as a planning baseline and verify 3–5 live listings before signing a lease. (Numbeo)

For a US taxpayer, the best cities to live in Italy also depend on host-country tax and US reporting. US expat tax services in Italy can address the filing side, while our guide to the Foreign Tax Credit for US expats explains how qualifying Italian income tax may reduce US tax.

Milan – global business hub

Milan is the best city to live in Italy for professionals who prioritize employers, 2 major airports, public transport, and international services over low housing costs. Current averages are about €1,504 for a central 1-bedroom and €1,052 for one person’s monthly costs excluding rent. (Numbeo)

The city’s finance, fashion, design, and technology base gives location-dependent workers a broader employment market than smaller Italian cities. Among the best cities in Italy to live, Milan has the clearest business-first profile.

The trade-off is a baseline monthly total near €2,556 before savings, travel, or premium housing, making Milan one of the best cities in Italy to live only when income supports the rent. For that profile, it can also be the best city to live in Italy.

The following 2 expat profiles benefit most from Milan:

• Higher-income professionals: Proximity to employers and transport can justify paying about €1,500 for central housing.
• Remote workers with frequent travel: Airport and rail connections reduce the friction of regular European or transatlantic trips.

See current figures in Numbeo’s Milan cost-of-living data. Americans with higher salaries, stock compensation, or foreign accounts can also review US expat tax services in Italy before treating gross income as spendable income.

Rome – cultural capital with diverse neighborhoods

Rome is among the best places to live in Italy for Americans who need capital-city services, an international community, and a US embassy. Current figures put a central 1-bedroom near €1,112 and non-rent monthly costs near €847, for a baseline total of about €1,959. (Numbeo)

Neighborhood choice changes the experience sharply. Central districts offer walkability and culture, while outer neighborhoods can lower rent but increase commuting time, so review the neighborhood and residence process in the guide to moving to Italy from the USA.

The following 6 points summarize Rome’s main trade-offs:

• Pro 1: Embassy, government, universities, and international organizations create broad service access.
• Pro 2: Metro, bus, tram, and rail options reduce the need for a car in selected neighborhoods.
• Pro 3: Large expat communities in Italy make English-speaking professional networks easier to find.
• Con 1: Traffic can make a short map distance a long daily commute.
• Con 2: Administrative appointments may require repeated in-person visits and Italian-language documents.
• Con 3: Tourist demand raises prices in the historic center and near major attractions.

Review Numbeo’s current Rome prices and compare at least 3 neighborhoods before deciding whether Rome is the best city to live in Italy for your household.

Florence – art, tourism, and compact city living

Florence is one of the best cities to live in Italy for culture-focused expats who value a compact center, museums, and walkability. Current data puts a central 1-bedroom at about €1,265 and non-rent costs near €1,002, producing a baseline monthly total of about €2,266. (Numbeo)

The city works well for students, educators, remote workers, and residents whose income does not depend on a large corporate market. Tourism can tighten the long-term rental market, so the best place to live in Italy may be a neighborhood outside the historic core rather than beside the main monuments.

Check Numbeo’s Florence cost data against current listings. Self-employed residents, rental-property owners, and tourism workers should also read the Italy tax guide for US expats before estimating after-tax cash flow.

Bologna – university city with a balanced lifestyle

Bologna is one of the best cities in Italy to live for students, academics, and remote workers who want a major rail hub without Milan’s rent. Estimates are about €1,008 for a central 1-bedroom and €972 for non-rent monthly costs, or roughly €1,980 combined. (Numbeo)

The University of Bologna gives the city a young, international population, but demand near campus can make rentals competitive. The university’s own guidance lists about €400 plus utilities for a room in a shared apartment, which gives students a lower-cost option than renting a full 1-bedroom. (University of Bologna)

Remote earners considering Bologna should understand that the Foreign Earned Income Exclusion for US expats covers qualifying earned income, not pensions, dividends, or capital gains. Compare local prices through Numbeo’s Bologna page.

Trieste and northern coastal options

Trieste is one of the best towns to live in Italy for residents who want Adriatic access, Central European connections, and lower rent than Milan or Florence. A central 1-bedroom averages about €728 and non-rent monthly spending about €921, creating a baseline total near €1,649. (Numbeo)

The city’s border location suits retirees, researchers, and remote workers who value rail access to Slovenia and Austria. Its smaller employment market and thinner English-language service network mean it may not be the best city to live in Italy for a person who needs a specialized local career.

Use Numbeo’s Trieste cost data to test a budget. Residents choosing northern coastal options can also review US expat tax services in Italy when foreign accounts, pensions, or remote income create US reporting.

Best places to live in Italy for expats: regions and smaller towns

The best places to live in Italy for expats extend beyond 6 cities. Tuscany, Umbria, Liguria, Puglia, Sicily, and Abruzzo offer smaller communities where rent may be hundreds of euros below Milan, but residents may need a car, stronger Italian, and longer trips for specialist services. (Numbeo)

Regional living suits retirees, remote workers, property buyers, and families who prioritize space or nature over a large English-speaking network. These can be the best places to live in Italy for expats who accept more Italian-language administration.

Before choosing where to live in Italy, compare municipal transport, hospital access, broadband, flood or earthquake exposure, and whether long-term rentals remain available outside the tourist season.

The following 6 regions are commonly chosen for long-term living:

• Tuscany: Hill towns, vineyards, and internationally known cities suit culture-focused buyers with a larger housing budget.
• Umbria: Inland towns and lower-profile communities suit residents seeking central Italy without Florence-level tourism.
• Liguria: Coastal access and rail links suit retirees who accept compact housing and steep terrain.
• Puglia: Lower housing costs and eligible 7% municipalities suit qualifying pensioners and value-focused movers.
• Sicily: Palermo, Catania, and smaller towns suit residents who prioritize coast, food, and lower rent.
• Abruzzo: Mountains, Adriatic towns, and access to Rome suit residents who want nature without complete isolation.

Regional choice also affects property, income, and municipal taxes. Use the Italy tax guide for US expats, review buying property in Italy as an American, and compare updated city figures through Numbeo’s Italy data.

Tuscany and Umbria – scenic central Italy

Tuscany and Umbria contain great places to live in Italy for residents who want hill towns, countryside, and access to Florence or Rome. Florence’s central 1-bedroom average is about €1,265, while smaller inland towns can offer lower advertised rents but fewer year-round listings. (Numbeo)

Famous Tuscan areas around Florence, Siena, and the Val d’Orcia command tourism and second-home premiums. Lesser-known towns in eastern Tuscany or Umbria may provide better value, but daily life can require a car and regular Italian-language contact with landlords, municipal offices, doctors, and tradespeople.

Property tax, rental income, and foreign tax credits should be reviewed together. See how the Foreign Tax Credit works for US expats, then use Florence cost data as a regional upper benchmark rather than assuming all of Tuscany costs the same.

Puglia and Southern Italy - value and incentives

Puglia and Southern Italy include the best places to live in Italy for expats seeking lower housing costs, warmer weather, and a possible tax incentive. Since April 7, 2026, eligible municipalities under Article 24-ter may have up to 30,000 residents rather than 20,000. (Gazzetta Ufficiale)

Qualifying recipients of a foreign pension who transfer tax residence to an eligible municipality in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise, or Puglia, plus specified earthquake-affected municipalities, may elect a 7% substitute tax on foreign-source income of any category. The regime can cover the transfer year and the following 9 tax years, subject to statutory conditions and exclusions. (Agenzia Entrate)

The 2026 expansion reportedly added 74 municipalities, increasing the eligible total from 2,345 to 2,419. That count comes from a secondary industry source, while the official law confirms the 30,000 threshold. (IMI Daily)

 

 

Based on our client scenario at TFX: A qualifying retiree with €60,000 of covered foreign-source income would calculate €4,200 at 7%. The Italian election does not end US worldwide-income reporting, so review the retiring in Italy guide for US citizens and US expat tax services in Italy.

The Italian Revenue Agency’s official 7% pensioner-regime page states that the tax applies to foreign-source income categories. A secondary explanation of the 2026 expansion of Italy’s 7% flat tax provides the added-town estimate.

Retiring in Southern Italy? Get clear next steps for your US filing.

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Sicily and Abruzzo – coastal and mountain value

Sicily and Abruzzo are good places to live in Italy for residents who value nature and lower housing costs over dense international infrastructure. Palermo’s baseline is about €658 for a central 1-bedroom plus €799 in non-rent spending, or roughly €1,457 before optional costs. (Numbeo)

Sicily offers major cities such as Palermo and Catania as well as smaller coastal and inland towns. Abruzzo combines Adriatic communities with mountain areas and access toward Rome, making both regions great places to live in Italy for retirees and remote workers.

Puglia, Sicily, and Abruzzo can be among the best places to move in Italy for lower-cost living, but location alone does not establish 7% regime eligibility. Before choosing one of the best towns to live in Italy, use the moving to Italy guide to check transport, hospitals, schools, and permit steps, then compare Palermo’s current costs.

Best places to live in Italy for Americans

The best places to live in Italy for Americans differ by profile: Milan can suit career-focused workers, Rome and Bologna can suit families, and Southern towns can suit retirees. US filing continues, and the 2025 Foreign Earned Income Exclusion is $130,000 per qualifying taxpayer. (IRS)

Remote workers comparing the best places to live in Italy for Americans should test connectivity and earned-income rules. Families should compare schools, healthcare, and commute patterns, while retirees should test pension taxation and 7% eligibility.

Those differences explain why the best places for Americans to live in Italy are not the same for every household. A retiree’s shortlist will differ from a family’s.

The following 3 factors matter most when comparing the best places to live in Italy for Americans:

• Consular and travel access: The US mission operates an embassy in Rome and consulates general in Milan, Florence, and Naples, giving 4 main regional contact points. (U.S. Embassy Italy)
• English-language services: Major cities offer a larger pool of international schools, private clinics, and English-speaking professionals.
• US tax administration: Foreign accounts, Italian pensions, investments, and self-employment may add FBAR, Form 8938, Form 1116, or Form 2555 to the annual return.

The US Embassy and Consulates in Italy provide citizen-service and regional contact information. For filing, use US expat tax services in Italy and review how the Foreign Earned Income Exclusion applies to US expats.

Cities Americans most often choose

Americans frequently shortlist 4 location groups: Rome, Milan, Florence or Bologna, and lower-cost Southern or coastal towns. These choices reflect access to airports, English-language services, universities, and expat communities in Italy rather than a single official ranking or one universally best city.

The following 4 location groups match common long-term profiles:

• Rome: Capital-city services and a large international community suit families and long-term residents.
• Milan: Higher-income jobs and international transport suit professionals and frequent travelers.
• Florence and Bologna: Universities, culture, and compact centers suit students, educators, and lifestyle-focused remote workers.
• Southern and coastal towns: Lower rent and selected 7% municipalities suit qualifying retirees and value-focused movers.

The best places to live in Italy as an American also depend on citizenship status. The best places for Americans to live in Italy still require the same US filing review.

Dual nationals remain subject to US filing unless US citizenship has formally ended, so review US–Italy dual-citizenship tax rules before assuming an Italian passport changes the US result.

Best places to live in Italy for English speakers

Milan, Rome, Florence, and Bologna are the easiest large-city options for English speakers because each has at least 1 major university, international business sector, tourism base, or diplomatic network. Smaller expat-dense coastal towns can also work, but English becomes less dependable in municipal offices and public healthcare.

The following 5 locations are generally easier for English speakers:

• Milan: International companies and schools create the broadest professional English network.
• Rome: Diplomatic, academic, tourism, and international-organization communities support English-language services.
• Florence: Tourism and study-abroad programs make English common in the historic center.
• Bologna: University life supports international students and researchers.
• Selected coastal or northern towns: Existing expat communities in Italy can help new residents find bilingual providers.

The best place to live in Italy for English speakers still requires a plan to learn Italian. In practice, the best place to live in Italy for English speakers is the city where essential services remain accessible while language skills improve.

Residence permits, leases, utilities, public healthcare, school administration, and municipal registrations may involve Italian forms and appointments even in the largest cities.

For that reason, the best places to live in Italy as an American are those where the household can function during the first 6 months while building language skills. See the administrative sequence in our guide to moving to Italy from the USA.

Cost of living, housing, and healthcare

Current data shows a wide cost spread among 6 Italian cities: a central 1-bedroom averages about €658 in Palermo and €1,504 in Milan, while the corresponding baseline total for one person is about €1,457 and €2,556. Housing is the main budget variable. (Numbeo)

The current rent-and-basics gap between Palermo and Milan is about €1,100 per month, before private school, travel, savings, or one-time moving costs.

 

The total combines Numbeo’s current central 1-bedroom average with its single-person estimate excluding rent. These are crowdsourced planning figures rather than guaranteed lease prices, so test each city against 3–5 current listings and confirm whether utilities, condominium fees, and furniture are included. (Numbeo)

Based on our client scenario at TFX: Moving from Milan’s €2,556 baseline to Palermo’s €1,457 baseline produces a planning difference of about €1,099 per month, or €13,188 over 12 months. Actual savings depend on lease terms, travel, private insurance, and lifestyle.

Housing cost does not determine healthcare eligibility. Visa status, residence registration, work, and regional rules affect access, so verify enrollment and coverage before relying on a public system or private policy.

Americans should model tax separately from living costs. The Foreign Earned Income Exclusion and Foreign Tax Credit address different income and tax facts, while Numbeo’s Italy data provides a current spending baseline.

Tax and visa basics for US expats in Italy

A move lasting more than 90 days usually requires a Type D visa, and a new arrival normally applies for a residence permit within 8 working days. Italian tax residence can arise when 1 statutory test applies for most of the year, generally 183 days. (Visto per Italia)

Italian tax residents generally enter a residence-based tax system, while US citizens and green card holders continue US worldwide-income filing. The 2025 FEIE limit is $130,000, not $132,900; the $132,900 amount applies to 2026 income generally filed in 2027. (IRS)

The US–Italy income tax treaty provides rules for allocating taxing rights and relieving double taxation. Article 23 allows US credits for appropriate Italian income tax, subject to US limitations, but treaty outcomes vary by income type and the saving clause. (U.S. Department of the Treasury)

Location choice affects tax and visa administration in the following 3 ways:

• Retirees: Eligible 30,000-resident municipalities can matter for the 7% regime.
• Remote workers: Cities with dependable broadband and transport can support work, but visa and Italian permanent-establishment issues still depend on the facts.
• Students and families: University cities may provide easier campus support, while school enrollment and residence permits remain category-specific.

Foreign accounts can add separate reporting. The FBAR threshold is an aggregate balance above $10,000 at any time, while Form 8938 thresholds for qualifying unmarried taxpayers living abroad are more than $200,000 at year-end or more than $300,000 at any time. (IRS)

 

 

Check the official Visa for Italy portal, then review US expat tax services in Italy, the Foreign Earned Income Exclusion, the Foreign Tax Credit, the US–Italy tax treaty guide, and the Italy tax guide for US expats.

Living in Italy changes your filing facts – get clear US tax next steps.

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How to narrow down your shortlist step by step

A workable shortlist contains 2–3 locations, not 10. Start with monthly income, remove cities that fail the rent test, confirm the visa category, compare service access, and then spend enough time in each finalist to test ordinary weekday life rather than relying on a vacation impression.

The following 5 steps help expats narrow down the best places to move in Italy and identify which location deserves a longer trial stay:

1. Set the budget. Add central or outer-district rent, non-rent costs, health coverage, travel, tax preparation, and a 10% contingency. Remove any city where dependable income does not cover the total.
2. Confirm the visa route. Match work, study, family, retirement, or elective-residence facts to the official visa category before signing a long lease.
3. Choose 2–3 finalists. Use the city and regional tables to balance cost, employment, healthcare, schools, transport, climate, and expat communities in Italy.
4. Model tax and reporting. Test Italian residence, US filing, FEIE or FTC, FBAR, Form 8938, pensions, and the 7% regime before moving funds.
5. Test daily life. Visit or research grocery routes, broadband, hospitals, school commutes, winter weather, summer crowds, and travel time to an airport.

A strong answer to where to live in Italy should survive all 5 tests. The moving to Italy from the USA guide provides the broader visa, residency, and setup sequence.

Bottom line

A strong Italian shortlist combines an affordable 12-month budget with the visa, tax, healthcare, school, and transport facts that apply to the household. Milan offers business access, Rome offers capital-city services, Bologna balances university life and cost, and Southern regions can reduce rent.

The following 5 takeaways summarize the decision:

• The best cities to live in Italy are profile-specific rather than universal.
• Current baseline totals range from about €1,457 in Palermo to €2,556 in Milan.
• Americans continue US filing, and the 2025 FEIE cap is $130,000 on returns filed in 2026.
• Long-term stays normally require a Type D visa and a residence-permit application within 8 working days.
• The 7% pensioner regime now uses a 30,000-resident municipal ceiling, but all eligibility conditions still apply.

Choose 2–3 candidates, verify live housing and visa facts, and model both Italian and US tax before signing a long lease. By using our US expat tax services in Italy, we can help connect the location decision to the 2025 US return filed in 2026.

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