Everything To Know About Retiring In Italy

Retiring in Italy is a dream for many Americans—and for those who make the dream come true, it doesn’t disappoint.

With some of the most impressive history, art, and culture in the world packed into this small country, as well as amazing food and wine, this is a culture vulture’s paradise.

What most people don’t know is that Italy also delivers on outdoor pastimes, with mountains for skiing, long coasts full of award-winning beaches, oodles of countryside, and national parks to explore.

Whatever kind of lifestyle you’re looking for, Italy will deliver.

Are Americans Really Retiring In Italy?

With such a massive population of Italian descendants in the United States, numbered at 17.3 million according to a 2024 census, it’s no surprise that many of them dream of returning to the old country…

And many of them do—nearly 16,000 Americans are reported to be currently living in Italy.

Plus, according to the British Embassy in Rome, 30,000 Brits were living in Italy in 2021, a number that has likely risen since.

That means that you won’t have trouble finding English-speaking friends or community here in Italy, though in smaller towns or remote villages, you might need to go to more of a population center to find them.

I’ve often heard expats in the Italian countryside report that they had lived there for years and had just recently met another foreign couple who’d also been there for years—they had just never crossed paths.

The best way to meet people is to be active on social media and join lots of local groups.

Why Do People Prefer Retiring To Italy Over Other Countries?

La dolce vita in Italia (the sweet life in Italy) is renowned for a reason…

Italy offers a wide variety of lifestyles, from countryside to cosmopolitan city, from beaches to mountains, and from luxury to completely off-grid.

Because of its location on the Mediterranean, Italy enjoys fairly temperate year-round weather. Even in the north, where it can be rainier, foggier, and cooler than in the south, you won’t experience extreme colds here. In the summer, though, prepare for heat and humidity, as well as lots of sunshine.

With its two long coastlines along the Med and the Adriatic, there’s a wealth of beaches to enjoy, as well as any other water diversion you’d like.

Its world-class historical cities drew over 68 million visitors from around the world in 2024, a record-breaking number.

From the Roman Empire to the Renaissance, Italy maintains its connection to its past. When it comes to history and cultural sites, Italy has 60 UNESCO World Heritage Sites… to put that in perspective, China has 59 and is about 32 times bigger than Italy.

Italy offers endless opportunities for fun and adventure—especially for nature and history lovers.

Plus Rome and Milan’s international airports offer easy access to the world, with direct flights to the United States, Canada, and dozens of destinations all over Europe…

All that, in addition to the cuisine, wine, history, culture, arts, and general attitude towards life, makes Italy one of the most popular overseas locations in the world for retirement.

The Pros And Cons Of Retiring In Italy

On the plus side…

• There’s more art and history in this small country than almost any other in the world.
• The high quality of life can come at an amazing bargain.
• The Mediterranean Diet is one of the healthiest in the world, and all the rest of the cuisine is arguably the most popular in the world.
• The weather never gets too cold.
• Mountains offering some of the best skiing in the world.
• With 485 Blue Flag beaches, it has the fourth most Blue Flags in the world, with much less coastline than the three frontrunners.

On the other hand…

• You’ll definitely need to learn Italian to enjoy life here.
• In the north of the country, the weather is much cooler, wetter, and foggier than it is in the south.
• No matter where in the country, heat and humidity are unavoidable in summer (unless you’re up in the mountains).
• The cities are very expensive and can be too crowded with tourists.
• The time difference from North America can make it difficult to keep in touch with folks back home.
• To get here from North America will take at least eight-and-a-half hours (from New York) but could take significantly longer and include multiple stops, depending on your point of origin.

What Does Retiring In Italy Mean For Your Taxes?

Tax residents of Italy are subject to income tax on their worldwide income. There are three types of income tax in Italy: national income tax, regional income tax, and municipal income tax.

National income tax is quite high at 23% to 43%. Regional income tax ranges from 1.23% to 3.33%, depending on which region you live in. Municipal income ranges from 0% to 0.9% (according to municipality).

On the bright side, first-time buyers of a primary residence in Italy are not subject to tax, and subsequent homes are taxed at just 0.05%.

Italy imposes a wealth tax of 1.06% on real estate and 0.2% to 0.4% on financial investments owned outside of Italy.

Tax treaties with the United States and Canada prevent any risk of double taxation.

Does Retiring In Italy Require A Visa?

Italy does not have a retiree-specific visa but offers an independent means visa known as the Elective Residency Visa that many retirees use to live in the country long-term.

The basic requirement to qualify is proof of passive income (pensions, dividends, royalties, rents, etc.) of 32,000 euros per year. This grants you a one-year residence permit that is renewable.

The Golden Visa requires an investment of €250,000, €500,000, or €2 million in approved sectors. It’s valid for five years and is renewable.

A digital nomad visa is available if you can prove an income of €32,400 per year outside Italy as well as savings of €30,000. It’s valid for a year and is renewable. After five years you can apply for permanent residency and after another five for citizenship.

Do Locals Resent Foreigners Retiring In Italy?

Cities that have become overcrowded with tourists in summer, particularly Venice, have been putting in regulations to limit the number of visitors per day. But this attitude generally only applies to tourists, especially those who descend for just a few hours from cruise ships.

When it comes to people wanting to move to the country, Italy has been known to be especially welcoming, putting in incentive programs for businesspeople and digital nomads, selling homes for just a few euros, offering tax breaks, and offering citizenship through proving you have Italian-born parents or grandparents.

Who Would Enjoy Retiring In Italy... And Who Would Not?

Italy is no secret to those of us who love culture, great food and wine, and the beauty of the Old World. Any lover of history, art, culture, fashion, and food would love a life in Italy.

This popular European destination is a haven for expats searching for a dreamy, sunshine-filled retirement that offers the best of the outdoors as well.

Along with these generous stretches of coastline, Italy offers one of the most varied landscapes on Earth, including scenic mountain ranges like the Alps and the Apennines and stunning lakes such as Lake Garda and Lake Como.

If you don’t think you’re up for learning Italian, though, you’ll have a hard time settling in here. It’s also not the best destination for LGBTQ+ retirees, as this is one of the most conservative and traditional Catholic cultures in Europe.

Aside from those two caveats, Italy is a welcoming and hospitable country for Americans. So whether you prefer cities or the outdoors, retiring in Italy will deliver an enviable lifestyle for just about anyone.

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