Retire in Italy: Everything You Need to Know

Whether you are steadily approaching retirement age or not, it is always a good idea to consider where you want to live out your golden years. You might have a destination in mind, but have you considered retiring in Italy? It’s one of the most beautiful places on earth, steeped in history and culture, and the Italians are world-famous for their cuisine.

In this guide, we’ll tell you about everything you need to know to live out your dream retirement in Italy. And if you can’t decide where you want to live abroad in Italy, we’ll also suggest the best places to retire.

Why Retire in Italy?

According to our Global Intelligence Unit’s US Retirement Trend report, retiring in Italy presents a compelling option for US citizens, thanks to its rich cultural heritage, picturesque landscapes, and favorable living conditions.

Italy came in seventh place for the best retirement locations in the world and offers an affordable cost of living compared to many parts of the United States, especially in smaller towns and rural areas. The Italian lifestyle, with its emphasis on leisurely meals, social gatherings, and outdoor activities, aligns well with a relaxed retirement pace.

Furthermore, Italy’s diverse climates cater to various preferences, from the Mediterranean warmth in the south to the cooler alpine regions in the north.

Retirees can immerse themselves in Italy’s abundant historical sites, world-class art, and culinary delights, making everyday life an enriching experience. The country’s well-developed infrastructure, including efficient public transport, also enhances the convenience of living there.

Italy’s residency options are relatively straightforward for retirees, with long-stay visas available for non-EU citizens.

This, coupled with the welcoming nature of Italian communities, makes the transition smoother for expatriates. Overall, retiring in Italy offers a blend of affordability, quality healthcare, a vibrant culture, and an enriching lifestyle attractive to US citizens seeking a fulfilling retirement abroad.

Healthcare for retirees

The healthcare system in Italy is well-known for its high quality and accessibility, making it an important consideration for retirees. According to the World Health Organization, Italy boasts some of the best healthcare in Europe.

Retirees, along with all Italian citizens and legal foreigners, are automatically covered by Italy’s National Health Service. The country’s NHS is fully funded by corporate and value-added tax (VAT) revenues collected by the central government, providing citizens and residents with cost-free or low-cost healthcare services including screenings, check-ups, primary care, inpatient care, maternity care, specialty care, home care, hospice care, preventive medicine, and pharmaceuticals.

While some co-payments may be required for specialty visits and procedures, residents have no deductibles. While private health insurance is available in Italy, it’s not commonly utilized by citizens. For those concerned about potential health issues while in Italy, investigating international health insurance options is a good idea.

Many non-EU citizens opt for this and then cancel the insurance once they become eligible for the NHS. Private healthcare costs are reasonable, with a comprehensive plan from Italian insurers like Generali Italia, Unisalute, and Allianz costing around €200 to €300 per year for a middle-aged person with zero out-of-pocket costs.

How to Retire in Italy

Italy doesn’t have a retirement visa like Portugal’s D7, but the Italian government has set out a few ways for prospective non-EU retirees to come to the country.

Elective Residency Visa

elective residency visa functions in much the same way. It is designed for non-EU citizens who wish to reside in Italy without working. This visa is particularly suitable for retirees and individuals with sufficient financial means to support themselves without employment.

Applicants must demonstrate a stable and substantial income from pensions, investments, or other financial sources, ensuring they can cover their living expenses in Italy. To apply, individuals must provide proof of financial resources, health insurance, and a suitable place of residence in Italy.

The temporary residence permit granted through these retirement visas allows you to stay in Italy temporarily. Fortunately, after five years, you can apply for permanent residency. This also opens the door to acquiring Italian citizenship and making it your new home country.

Required documents

If the idea of retiring in Italy and sipping cocktails on the beach sounds amazing to you, there are a few documents that you must submit for consideration.

• The long-term visa application form is duly filled in and signed at the Consulate, and you must appear in person.
• Passport-style photo (full front and white background).
• Passport or valid travel document valid for three months over the planned stay in Italy. The passport will be kept and returned with the visa if approved.
• A registered lease or deed for property in Italy.
• A letter explaining the reasons for your intention to move to Italy.
• Proof of sustainable funds.
• For the last two years of your income tax return,

The proof of funds is crucial for your application, as you must provide documented and detailed guarantees of substantial and stable private income. You need a minimum annual passive income of €31,000 as a single person, while the amount rises to €38,000 for married couples (you must provide a marriage certificate).

The elective residence visa can also be extended to dependent children over 18 living with their parents, but it incurs a 20 percent increase for every dependent.

While there are many ways in which you can make a living as a retiree, the most popular are from pensions, annuities, income from properties, and income from stable economic and commercial activities.

Again, the Italian government won’t accept any income documentation related to subordinate work or freelance activities. The consulate will only accept official letters from banks, financial consultants, financial institutions, US Social Security institutes, or similar.

While there are many benefits if you retire in Italy, the elective residence permit doesn’t allow you to work and is only intended for those planning to move permanently to Italy.

Italian Golden Visa

Launched in 2017 by the Italian government to encourage foreign direct investment, the Italy Golden Visa, also called the ‘Investor Visa for Italy,’ allows third-country nationals (non-EU/EEA and non-Swiss) to obtain a residence permit in exchange for an investment in the country’s economy.

Italy’s Golden Visa also provides you with access to a special tax incentive that allows golden visa holders to pay reduced income tax after becoming an Italian tax resident. The minimum investment amount is €250,000 in government bonds, corporate shares, innovative startups, or philanthropic donations, and the investor residence permit is valid for two years, which can be renewed for three more years. It can also be renewed continuously if the investment is upheld.

Italian Citizenship through Residency

The residence permit allows you to stay in Italy for long periods, but like most European Union countries, non-EU citizens can obtain permanent residency after five years. This also opens the door to acquiring Italian citizenship and making it your new home country.

Requirements for permanent residency

Five years after you retire in Italy, you shouldn’t have a problem knocking off the requirements from the list. To apply for full-time residency, leading to citizenship, you must prove the following to the nearest Italian Embassy or Consulate:

• You must prove that you’ve been residing in Italy for the past five years.
• You must present a clean criminal record.
• You must pass an Italian language test proving that you have at least a proficiency level of A2.
• You must still have sufficient income to support yourself or any dependent child.

Best Places to Retire in Italy

If you have dreamt of retiring abroad, there is no better place than Italy. The beautiful country is a stunning mix of bustling big cities, amazing food, and rolling hills. It is divided into 20 regions, so there is definitely a corner along the Mediterranean coast that’ll qualify as one of the best places to retire in Italy.

Central Italy

Of all the Italian regions, Lazio is probably the most well-known. It is home to Italy’s capital city Rome, and you’ll find a large expat community there. However, because it’s tremendously popular and packed with luxury shops, it’s generally considered one of the most expensive regions.

Rome and Milan

According to the US Retirement Trend report, the cost of living in Rome and Milan is significantly lower than in New York City. Consumer prices in Rome are 43.5% lower without rent and 57.3% lower with rent included.

In Milan, rent and dining out costs are considerably cheaper. For instance, the average monthly rent for a city apartment is approximately $1,140.44 in Rome and around $1,529.76 in Milan, both much lower than New York’s average of $4,189.81.

Thankfully, other parts of the country are more suitable for a relaxed lifestyle. If sampling local wine and lazing in the sun sounds like a good enough reason to retire to Italy, you’ll love the Abruzzo region.

Charming and friendly, it won’t attract many ex-pats retiring here as it’s a bit off the traditional tourist route. However, it does boast some of the lowest living costs compared to other Italian regions.

Southern Italy

Southern Italy is an ideal retirement destination due to its warm Mediterranean climate, affordable cost of living, and stunning coastal landscapes. The region offers a slower, relaxed pace of life, perfect for retirees.

Rich in history and culture, southern Italy (often called the Mezzogiorno) boasts charming towns, delicious cuisine, and welcoming communities. It comprises several regions, including Campania, Apulia (Puglia), Basilicata, Calabria, Molise, and the islands of Sicily and Sardinia.

Apulia

Also known as Puglia, this southern Italian region is an excellent retirement destination. Its stunning coastline along the Ionian and Adriatic Sea offers retirees access to some of the most beautiful beaches in Italy. The region is dotted with smaller towns, and the countryside is rich in history, offering a relaxed, laid-back lifestyle.

It’s certainly beneficial if you can speak Italian, but the region has attracted many people who can’t over the years. This makes it somewhat easier to integrate with the local community.

However, getting around can be a challenge for retirees as public transportation isn’t as well developed in the region as elsewhere in Italy. That said, the local Apulian people are known for their hospitality and willingness to assist.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions about Retiring in Italy

How much money do you need to retire in Italy?

While that largely depends on your living standards, most retired couples can comfortably retire and still enjoy the outdoors for about $2,000 per month.

However, if you look at the minimum annual income required for the elective residence visa and divide it per month, it works out to about €3,160 – which is more than enough to retire in Italy and contribute to the Italian economy.

Is it difficult to retire in Italy?

That depends on several factors, such as your retirement income, how many retirement years you have left, and where you want to live. Italy is a fairly laid-back country, and there are plenty of things to see and do.

Naturally, it helps a lot if you can speak Italian, but it mainly comes down to how you manage your finances and whether you surround yourself with other foreign retirees. It will only be a matter of time before you call Italy your new home country.

Are retirees subject to paying taxes in Italy?

Whether you are American or British, anybody who retires in Italy is subject to tax. Expect to pay a seven percent tax on any foreign income, including pensions. In terms of tax incentives, new residents can pay a flat €100k annual tax fee on foreign income remitted to Italy for 15 years.

Does Italy allow dual citizenship?

Yes, Italy allows you to hold more than one nationality, and you don’t have to renounce your original citizenship when you acquire an Italian one, provided your home country allows dual citizenship.

What other visas are available for Italy?

As Italy is part of the European Union and the Schengen Area, it provides many of the same visa categories the other European countries do.

As long as you are a non-EU citizen and have a valid passport and the necessary documents, you can apply for an entry visa such as a tourist, business, study, or family reunification visa. Non-EU residents also need to provide proof of a valid visa before entering Italy, unless visa exempt.

EU citizens don’t need to go through the visa application process, but there are guidelines they must follow to retire in Italy. The elective residency visa doesn’t apply to them as they have automatic freedom of movement.