Retire in Italy
To retire in Italy from outside the EU you need about €31,000 a year of passive income per person for the Elective Residence visa. Prices run at about 73% of the US, and a foreign pension is taxed at 23% to 43%, or 7% in small southern towns.
What it takes, what it costs, and where retirees settle, from Italy's law and official data. Checked on Oct 7, 2026.
- Retiree visa
- From €31,000/yr (about $34,650) Passive income after tax per person, from pensions, annuities, property rental or a stable…. Decree 850/2011; Consulate in Vancouver; Consulate in New York; Consulate in Paris. Checked Oct 7, 2026.
- Price level
- ~73% of the US Household consumption, 2025. World Bank. Checked Oct 7, 2026.
- Tax on a foreign pension
- 7% to 43% Foreign pensions taxed; 7% in small southern towns. PwC Tax Summaries. Checked Oct 7, 2026.
- Travel advisory
- Level 2 of 4 Exercise Increased Caution. US State Department. Updated Sep 9, 2026.
- Health spending
- $3,398/person Per year; US $13,473. World Bank. Checked Oct 7, 2026.
- US tax treaty
- Yes An income tax treaty with the US is in force. IRS. Checked Oct 7, 2026.
Do you qualify?
Retirees from outside the EU move to Italy on the Elective Residence visa (residenza elettiva): a national visa for people who live on stable passive income, such as a pension, annuity or rent, and do not work in Italy. Savings or a bank balance on their own do not qualify; the consulate looks at income that will keep coming.
Elective Residence visa: documents and feesRetiring in Italy, topic by topic
Visa
Elective Residence visa requirements
Documents, government fees and the other routes to residency.
Healthcare
Healthcare for retirees
The hospitals retirees use, what insurance covers, and Medicare abroad.
Money
Banking, pensions and tax
How US, UK and Canadian pensions reach a local bank, and what you report at home.
Budget
Cost of living
Official prices and a budget built from your own rent.
What it costs
Household prices in Italy run at about 73% of US levels. Rent is the line nobody publishes officially, so the cost of living page builds your budget from your own rent.
Build your budgetOfficial poverty line, couple aged 60-74, per month, 2024
ISTAT. Checked Oct 7, 2026.
Where retirees settle
Rome
- Capital, 2.75 million people (2023)
- Policlinico Gemelli, 1,526 beds
- Poverty line for a couple €1,306.42 a month
Florence
- City in Tuscany, 360,930 people (2023)
- Careggi university hospital
- Poverty line for a couple €1,366.10 a month
Lecce
- City in Puglia, 94,783 people (2023)
- Too large for the 7% regime, which needs a town under 20,000
Cefalù
- Town in Sicily, 13,881 people (2023), 16 m above sea level
- Small enough for the 7% regime
- Ospedale Giglio with an emergency department
Wikidata; Policlinico Gemelli; ISTAT; Careggi hospital; PwC Tax Summaries; Giglio hospital. Checked Oct 7, 2026.
Italy compared
More guides on Italy
Visiting Italy first
Most people spend a few weeks in Italy before they apply for anything. Two things to sort out for that trip:
Kiwi.com
Flights to Italy
Compare routes and dates before a scouting trip.
Airalo
eSIM for Italy
Mobile data from the day you land, without a local SIM.
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Retiring in Italy: questions
Is Italy safe for retirees?
The US State Department rates Italy Level 2, exercise increased caution.
Do I pay tax in Italy on my pension?
Yes. Italy taxes residents on worldwide income, so a foreign pension is taxed at 23% to 43% plus regional and municipal tax. In a town of under 20,000 people in eight southern regions, a new resident with a foreign pension can choose a flat 7% on all foreign income for ten years. US citizens still file a US return.
Where do retirees live in Italy?
Rome and Florence, for their university hospitals and city life; Lecce in Puglia; or a small town such as Cefalù in Sicily, where the 7% flat tax on foreign pensions can apply.
Where in Italy can I get the 7% tax rate?
In towns of under 20,000 people in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia. Cefalù, with 13,881 people, qualifies; Lecce, with 94,783, does not.
How much do I need to retire in Italy?
For the Elective Residence visa, about €31,000 a year of passive income per person. ISTAT's minimum spending for a couple aged 60 to 74 runs from €926.92 a month in a small Sicilian town to €1,366.10 in Florence.
