Retiring in Italy: guide for US citizens

Thinking about retiring under the Tuscan sun or spending your mornings with an espresso in a quiet piazza? Retiring in Italy offers you the chance to enjoy a rich mix of culture, history, and everyday beauty – along with affordable healthcare, excellent food, and a relaxed lifestyle.

This guide breaks down everything you need to know – from visa options and costs to taxes, healthcare, and where to settle for la dolce vita in Italy.

Pros and cons of retiring in Italy

The pace of life in Italy is distinctly slower than in the US, though it’s not always an advantage. Things often take (much) time – locals joke about the “rule of three,” meaning you’ll likely get only a few things done per day. Bureaucracy can be slow and frustrating, often requiring multiple visits just to complete basic tasks.

Language barriers are also a consideration. Outside major cities, few people speak English, making it essential to learn Italian.

Life in Italy is centered around family, food, and leisure – with a more relaxed daily rhythm. Healthcare is affordable and reliable through the public system, and the country offers endless cultural appeal, from Renaissance art to neighborhood festivals.

Pro tip. Many expats recommend the "90/90 shuffle" to experience Italian life before committing to a permanent move. US citizens can stay in Italy for up to 90 days within a 180-day period without a visa. This approach allows you to spend 90 days in Italy, return to the US for the next 90 days, and then repeat the cycle. This will help you assess if the Italian lifestyle suits you before making a long-term decision.

How to retire in Italy: visas and residency

The Elective Residency Visa (ERV) is the most common option for US retirees, but other routes exist too.

Elective Residency Visa (ERV): eligibility and requirements

The Elective Residency Visa (ERV) is designed for non-EU citizens who can support themselves without working in Italy – usually, this is the most suitable visa option for Americans looking to retire in Italy.

To qualify for the ERV, you must show proof of passive income such as pensions, dividends, and savings. Most consulates expect proof of €31,000/year for a single applicant, plus additional 20%–30% for a couple.

Other requirements:

• valid passport
• long-term accommodation in Italy (owned or rented)
• private health insurance that covers you in Italy for the first year

The application must be submitted to the Italian consulate serving your home area.

Housing requirements for ERV applicants

As we mentioned earlier, to qualify for the ERV, you must prove you have long-term accommodation in Italy.

You have three options:

1. Lease agreement. It must be officially registered with the Italian tax office (Agenzia delle Entrate) and show at least a 1-year term.
2. Property ownership. If you own a home in Italy, provide the deed or purchase documentation.
3. Stay with a host. You can stay with a friend or family member, but they must provide proof they own or rent the property, a formal declaration (known as a "hospitality letter"), and a copy of their ID and residency documentation.

Even though a long lease is required for the visa, once in Italy you have flexibility – especially if you find a home to buy or move to a different region.

Pro tip. Many US expats in Italy recommend these sites to look for housing in Italy: Immobiliare.it, Gate-away.com, and Idealista.com.

Residency permit (permesso di soggiorno)

After arriving with an Elective Residency Visa (ERV), you have eight days to start the permesso di soggiorno (residency permit) process. Apply at your local post office (Poste Italiane); you’ll later be scheduled for fingerprinting at the immigration office.

The permit must be renewed annually for the first four years. After that, you can apply for a permanent residency card.

To keep your residency status, you must live in Italy for at least 183 days per year.

Other visa and residency options for US retirees in Italy

While the Elective Residency Visa (ERV) is the most common path for retirees, some may qualify for other options:

Citizenship via ancestry: If you have Italian heritage, you may claim citizenship if your ancestor didn’t naturalize before their child turned 18.

Marriage with an Italian citizen: Married to an Italian? You can apply for residency and may qualify for citizenship in 2 years (or 1 with children).

Long-term residency: After 5 years of legal stay, you can apply for a long-term residency in Italy.

Cost of living in Italy for retirees

Urban centers like Rome, Milan, and Florence come with higher housing and daily expenses, while smaller towns and rural areas – especially in the South or central regions – offer a more affordable lifestyle.

Source: Numbeo – the world's largest cost of living database.

Healthcare for retirees in Italy

Italy offers both public and private healthcare options, and expats can choose to rely on either – or a mix of both.

Public health system in Italy

As a legal resident, you can enroll in Italy’s national health system (SSN) for around €2,000/year. Some regions offer lower rates based on age or income.

SSN covers doctor visits, hospital care, and subsidized medications – many under €5.To register, visit your local health service centre (Azienda Sanitaria Locale, ASL).

Residents over 65 may qualify for free care. You can also apply for an European Health Insurance Card (EHIC) to use while traveling in the EU.

Private healthcare in Italy

Private health insurance is required for the Elective Residency Visa (ERV) and remains useful even after registering with SSN.

Many expats opt for supplemental private insurance to bypass long wait times or access English-speaking doctors.

Trusted providers include Allianz Care, Cigna Global, AXA, and Generali.

Taxes for US retirees in Italy

If you're a resident (183+ days/year or registered locally), Italy taxes your global income. Americans must still file federal taxes and report foreign assets.

Italian tax system

Italian income tax

You’re generally considered a tax resident if you spend more than 183 days per year in Italy or are registered with the local municipality (Anagrafe).

The standard personal income tax, also known as the Imposta sui redditi delle persone fisiche (IRPEF), increases progressively with income.

Source: Agenzia delle Entrate.

Property tax in Italy

If you become a legal resident in Italy and register your home as your primary residence, you can benefit from a full exemption from Italian Municipal Property Tax (IMU) on that home.

This zero-property-tax policy is a major financial advantage for American retirees planning to settle in Italy long-term.

To qualify for the IMU exemption:

• You must be a legal resident of Italy.
• You must be registered with your local town hall (Anagrafe).
• You must live in the home for more than 183 days per year.
• The property must not be classified as a luxury residence.

The property tax benefit applies nationwide.

Pension taxation

Retirees are subject to Italian income tax on their foreign pensions unless covered by a tax treaty. Italy has a tax treaty with the US, so you typically won't be taxed twice.

The 7% retiree tax scheme

Italy’s 7% flat tax regime is available to retirees who move to qualifying small towns (under 20,000 people) in Southern Italy (Abruzzo, Calabria, Campania, Molise, Apulia, Sardinia and Sicily regions) or 2016 earthquake-affected areas.

Some of the most important requirements to benefit from this tax scheme:

• receive a pension from a private or public institution abroad
• not have resided in Italy for 5 prior years
• establish legal residence in a qualifying Italian town

The 7% flat tax applies to all foreign income and lasts up to 9 consecutive years.

US tax obligations in Italy

As a US citizen or green card holder, you must file an annual US tax return, reporting your worldwide income regardless of where you live. Besides your federal return, you may need to file a state tax return.

You may also need to file FBAR (FinCEN 114) if your foreign financial accounts exceed $10,000 or FATCA (Form 8938) if you’re a foreign resident and your foreign assets exceed $200,000 on the last day of the tax year or $300,000 at any point ($400,000 and $600,000 for married taxpayers filing jointly).

Key tax deadlines for US citizens and resident aliens:

• Apr 15, 2025 – 2024 tax return due
• Jun 16, 2025 – filing deadline for Americans living abroad
• Oct 15, 2025 – final deadline for expats who filed an extension + FBAR deadline
• Dec 15, 2025 – last chance for filers with an additional 2-month extension

Any taxes owed are due by April 15. While expats get an automatic extension to Jun 16, interest accrues on unpaid taxes from April 15.

US-Italy tax treaty

The US–Italy tax treaty helps prevent double taxation. While it doesn’t exempt American retirees from US filing requirements, it allows them to claim credits for taxes paid to Italy.

Additionally, the two countries have a Totalization Agreement, which helps determine which country’s social security system you contribute to if you have self-employment or work history in both.

Best places to retire in Italy

Italy offers diverse and appealing retirement destinations, each offering a distinct lifestyle, cost of living, and cultural experience. Your ideal location will depend on your budget, healthcare needs, language comfort, and whether you want a quiet countryside escape or an active urban base.

Tuscany: classic countryside living

Pienza, Siena, Italy. Source: Pexels.

Tuscany is one of the most popular regions for Americans and Brits. Famous for its rolling hills, Renaissance art, and wine culture, Tuscany offers a high quality of life.

Florence and Siena provide easy access to public healthcare and cultural amenities, while rural towns like Arezzo or Lucca offer more affordable housing.

Sicily: affordable island lifestyle

Palermo, Sicily, Italy. Source: Pexels.

Sicily, the largest island in the Mediterranean, offers one of the lowest costs of living in Italy – housing, groceries, and dining out can be 30–40% cheaper than in the north.

Pro tip. Sicily qualifies for the 7% flat tax regime, making it a great choice for American retirees.

Umbria: peaceful and scenic

Assisi, Umbria, Italy. Source: Pexels.

Umbria is quieter than Tuscany but equally beautiful. Known for its forests, mountains, and medieval architecture, towns like Spello, Orvieto, and Assisi offer affordable living and proximity to Rome by train.

The region is ideal for retirees seeking a slower pace, clean air, and strong local traditions.

Apulia (Puglia): authentic Italian experience

Polignano a Mare, Puglia, Italy. Source: Pexels.

With baroque cities like Lecce and seaside towns like Polignano a Mare, Apulia (Puglia) combines natural beauty with affordability. Puglia is also known for its trulli houses and olive oil production.

Many towns in this region qualify for the 7% tax scheme.

Rome and Milan: urban retirement options

Rome, Italy. Source: Pexels.

Rome and Milan cater to retirees seeking cosmopolitan amenities – world-class hospitals, international airports, and vibrant arts scenes. Rome is rich in history and expat-friendly, while Milan offers sleek efficiency, shopping, and innovation.

Milan, Italy. Source: Pexels.

Both cities have higher living costs – rents for a two-bedroom apartment range from €1,500 to €2,500/month – but offer unparalleled access to services, especially for those needing regular medical care or direct flights abroad.

Enjoy your retirement in Italy – without tax headaches

Planning to retire in Italy or already enjoying la dolce vita? As a retiree, navigating your US tax obligations while living abroad can feel overwhelming, but it doesn’t have to be.

At Taxes for Expats, we specialize in helping American retirees in Italy stay compliant, informed, and stress-free. With over 20 years of experience supporting US citizens abroad, we understand the unique tax challenges retirees face – from pension reporting to managing foreign accounts and avoiding double taxation.

Need a trusted US tax accountant with expat expertise? Let us help you retire in Italy with the peace of mind you deserve – schedule your free consultation with our team.