Living in Italy: Pros, Cons and Expat Guide 2025

Living in Italy means more than enjoying pizza, pasta, and beautiful views. While the country’s rich history and culture attract millions of tourists, settling there as a foreigner comes with its own challenges, like dealing with bureaucracy and adapting to local customs.

Still, Italy has become a popular choice for foreigners, especially American retirees. According to the Global Citizen Solutions Retirement Index for U.S. citizens, Italy ranks 7th among the top retirement destinations.

This article will outline the pros and cons of living in Italy and answer questions about visas, bank accounts, and taxes.

• Pros and Cons of Living in Italy
• Cons of Living in Italy
• Do you need a visa to live in Italy?
• Do you need an Italian bank account?
• Do you need to pay taxes while living in Italy?
• Understanding The Cost of Living in Italy

Pros and Cons of Living in Italy

The Italian lifestyle

The Italian lifestyle is one of the biggest pros to living in this beautiful country. From the incredible scenery and delectable cuisine to the cultural exploration and outdoor activities, the Italian lifestyle offers something for every expat. With its living museum feel, tourist areas full of character, and relaxed way of life, Italy is the perfect place for many to call home. This is one of the reasons why Italy is one of the most popular retirement destinations for American citizens, ranking 7th on the Global Retirement Index.

Developed healthcare system

The Italian healthcare system is one of the best in the European Union. There are various options, including government hospitals, private healthcare, and specialist care. For expats, private health insurance is a must, giving you access to the very best care in the country.

Rich history and culture

Italy is one of the most historic countries in the world, with more UNESCO World Heritage sites than any other country. Whether you want to explore the ruins of the Colosseum, head to the Pantheon, or explore the ancient historical sites where Italian myths come to life, there is no shortage of things to do in Italy.

Diverse regions

One of the main draws to Italy is the diverse regions. This offers something for everyone. Whether you’re looking for coastal living, a ski trip in the mountains, history hunting in the major Italian cities, or wine tasting extravaganzas in the rolling Tuscan hills, Italy offers something for every expat lifestyle. The natural beauty, good food, and charm of everyday life add to its appeal.

Fantastic education system

Italy provides high-quality education at all levels, including famous universities. Italy’s public education system is free and compulsory for those aged six to 16, and it ranks 11th in the Global Education Report by Global Citizen Solutions. For expats, private and international schools are good alternatives, offering programs in English or other languages. Tuition typically ranges from €5,000 to €15,000 annually, depending on the school and location.

Cons of Living in Italy

Italian bureaucracy

Relocating to a new country requires a few considerations, and Italy is no different. Moving to Italy can sometimes be challenging as the country is renowned for frustrating levels of bureaucracy. This can be apparent when applying for visas or dealing with other legal matters, as the level of paperwork involved can often seem excessive.

Language barrier

No surprise here, in Italy they speak Italian. This can make integrating into Italian life a challenge for English speakers. However, the locals will genuinely appreciate if you learn some of the basics, showing an interest in learning as much as you can. Learning basic Italian through Italian courses will make your transition easier and help you connect with locals and make Italian friends. Besides, it’s all part of embracing a new culture.

Competitive job market

One of the few disadvantages of living in Italy is that finding a job in Italy as an expat can be a struggle. The job market in Italy can be challenging for foreign nationals, especially those without Italian language skills. While unemployment has dropped to 6.5%, it remains higher than in some other countries. It is recommended that foreign workers secure a job before moving. Many foreign workers find opportunities for skilled roles through multinational companies, internal transfers, or government-backed programs. International recruitment agencies can also help with job placement and visa support.

Do you need a visa to live in Italy?

Yes, you need a visa to live in Italy if you are a non-EU citizen. The type of visa depends on your reason for staying, such as work, study, retirement, or family reunification. After arrival, you must also apply for a residence permit (permesso di soggiorno). Fortunately, Italy had a few visas to choose from which you can apply for through an Italian consulate. These include:

Italy Golden Visa

The Italian Golden Visa, or Italian Investor Visa, offers a residence permit to non-EU nationals who invest in the Italian economy. Options include €2 million in government bonds, €500,000 in an Italian company, €250,000 in an innovative startup, or a €1 million donation to a philanthropic initiative. Applicants must enter Italy on a visitor visa, then apply for a residence permit. The visa is valid for two years and renewable if the investment is maintained. While it doesn’t lead directly to citizenship, naturalization is possible after ten years of legal residence.

Elective Residence Visa

The Italy Elective Residence Visa is for individuals who can support themselves in Italy without working, using income earned abroad. Applicants must show at least €32,000 per year (€38,000 for couples), proof of housing, and health insurance covering at least €30,000. Successful applicants receive a one- or two-year residence permit, which can be renewed. After five years of continuous residency, they may apply for permanent residency in Italy.

Italy Digital Nomad Visa

The Italy Digital Nomad Visa is designed for non-EU citizens who work remotely and want to live in Italy while continuing their employment or freelance activity abroad. To qualify, applicants must have a stable remote income, usually around €2,066 per month, along with proof of accommodation and comprehensive health insurance. This visa allows stays of up to one year, with the possibility of renewal. After five years of legal residence, digital nomads may become eligible for permanent residency in Italy.

Do you need an Italian bank account?

Yes, if you’re a foreign national planning to live in Italy, you will need to open a local bank account to pay your everyday expenses, pay bills, and receive income. The process is straightforward but requires some preparation.

To open an account, you’ll need a valid passport, proof of address in Italy (like a rental contract), and your tax identification number (called a Codice Fiscale). Some banks may also ask for proof of employment or a residency permit. Many banks offer services in English, but it’s helpful to visit a branch in person to complete the application

Do you need to pay taxes while living in Italy?

Yes, you may need to pay taxes if you live in Italy for more than 183 days a year. Italy has a progressive tax system, with income tax rates ranging from 23% to 43%, depending on your income level. As a tax resident, you must pay taxes on your worldwide income, including earnings from abroad.

For Americans, this means filing taxes in both the U.S. and Italy. However, double taxation can often be avoided through the U.S.–Italy tax treaty and the Foreign Tax Credit. It is recommended to seek professional tax advice to ensure full compliance in both countries.

Understanding The Cost of Living in Italy

The Italian cost of living is lower than in the United States and many Western European countries like the UK, Germany, and Ireland, making it an attractive option for foreign nationals.

You’ll also find tables showing the average cost of living, along with housing costs in major cities and smaller towns across Italy to accommodate different budgets. Also, what an average monthly cost of living would look like, including public transportation costs, food, utilities, and health care.

Monthly expenses in Italy

Housing costs in Italy

Frequently Asked Questions about Living in Italy

Is Italy a good place to live?

Yes, Italy is a good place to live due to its high quality of life, overall healthcare system, and relatively affordable cost of living compared to other Western European countries.

Italy is one of the best places to live. Italian cuisine and wine are world-renowned, and la dolce vita (the sweet life) of Italian culture encourages people to slow down and enjoy life’s experiences. 

Is living in Italy as a foreigner hard?

Although Italian bureaucracy can be somewhat frustrating, and foreigners who don’t speak Italian may find it harder to get things done, living in Italy as a foreigner is not hard. Generally speaking, Italy is a beautiful country with fascinating history, friendly locals, amazing gastronomy, and breathtaking scenery.

What is typical life in Italy?

Italian life comes in many shapes and forms, and local culture in Italy can vary from region to region. The energetic Italian lifestyle in major cities like Milan differs greatly from the slower-paced lifestyle on the Amalfi Coast in southern Italy. However, a synonymous aspect of the typical Italian life is spending time with family, as Italians tend to be extremely family-oriented and value time spent with loved ones.

What is the best place to live in Italy?

The best place to live in Italy depends on your personal tastes and preferences. The major cities like Rome, Milan, and Florence are ideal for those looking for a bustling city life. Whereas an area like the Amalfi Coast is ideal for retirees and families looking to explore the slower pace of Italian life. 

What is life like for Americans living in Italy?

Living in Italy as an American can take some getting used to. Overall, living in Italy as an American is a rewarding experience, with the rich culture, delicious food, and beautiful surroundings, along with a slower, more relaxed pace of life. However, adjusting to language barriers, bureaucratic processes, and the job market can be challenging.

What is living in Italy as an expat like?

Expat living in Italy is fantastic. From the incredible Italian cuisine and welcoming Italian citizens to wonderful expat communities and great healthcare system, expat life in Italy offers a rewarding experience.

Is it worth living in Italy for a year?

Absolutely! Living in Italy for a year is very popular for students and digital nomads. A year in Italy gives you enough time to experience what living in Italy is truly like, while exploring the different regions to the fullest.

Is learning Italian necessary to live comfortably in Italy?

If you don’t already speak Italian, learning the language should be your top priority when moving to Italy permanently. While it may seem obvious, being able to communicate with locals will make a huge difference in your experience and help you avoid potentially difficult situations. Mastering Italian will open doors, make day-to-day life easier, and help you connect with the culture on a deeper level.

How does the cost of living in Italy compare to other European countries?

The cost of living in Italy is generally moderate compared to other European countries, though it varies by region. Major cities like Rome, Milan, and Florence tend to be more expensive, especially in terms of housing, similar to other Western European capitals. However, Italy is often more affordable than countries like Switzerland, the UK, and France.

How is healthcare in Italy for foreigners?

The Italian healthcare system is well regarded by the World Health Organization. However, private health insurance is an absolute must for foreigners living in Italy. Expats are only covered by the public health service once they become residents or citizens.