Living in Italy: 2026 Guide for Expats

Living in Italy in 2026 provides diverse options for professionals, retirees, investors, and digital nomads plus the country has visas catering to each of these groups. The average monthly cost of living in Italy is €1,500 to €2,000 for a single person. This range will increase considerably for cities likes Milan and Rome, in which, rent alone can be €1,500.

Italian residence permits like the Digital Nomad Visa, Elective Residence Visa, and Investor Visa offers ways to legally reside in the country and pursue permanent residency and citizenship. Our article will further explore these visas, the cost of living in Italy by city, pros and cons, bank accounts, and the tax incentives available to expats like the €300,000 per year flat tax.

Living in Italy: Key Takeaways

Living in Italy is an enticing prospect as one of Europe’s major economic and cultural hubs.

Non-EU/EEA/Swiss citizens will need a long-term visa to live in Italy.

Some of the options available include the Investor Visa, Digital Nomad Visa, and the Elective Residence Visa.

The country’s benefits include a relaxed pace of life, the climate, and the healthcare system.

Another major benefit for expats is the Italian Flat Tax Regime. This allows individuals to pay a flat tax of €300,000 per year on all foreign-sourced income, and you can add dependents for €50,000 per year.

01/ The Italian lifestyle

The Italian lifestyle is one of the biggest pros to living in the 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.

02/ Developed healthcare system

The healthcare in Italy is one of the best in the European Union. There are various options, including public hospitals, private healthcare, and specialist care. For expats, private health insurance is a must, as it is a visa requirement.

03/ 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, or head to the Pantheon, there is no shortage of things to do in Italy.

04/ Diverse regions

One of the main draws to Italy is its diverse regions. 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.

05/ 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 6 to 16, and it ranks 11th in the Global Education Report. For expats, private and international schools are good alternatives, offering programs in English or other languages. Tuition typically starts from €8,000 annually, depending on the school and location.

01/ Italian bureaucracy

Moving to Italy can sometimes be challenging as the country is known for its bureaucracy. This can be seen when applying for visas or dealing with other legal matters, as the level of paperwork involved can often seem excessive.

02/ Language barrier

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.

03/ Competitive job market

One of the few disadvantages of living in Italy is that finding a job in Italy as an expat can be difficult. 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.

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). Italy has several visas to choose from which you can apply for through an Italian consulate. They include:

Italy Golden Visa

The Italian Golden Visa, or Italian Investor Visa, is a residency program that offers the right to live and work in the country to non-EU nationals who invest in the local economy. The program has a starting cost of €250,000, which requires investment in an innovative Italian startup. Applicants must enter Italy on a visitor visa, then apply for a residence permit. The visa is valid for two years and renewable indefinitely in three year increments if the investment is maintained.

The following investment options are available for the Italian Golden Visa:

Elective Residence Visa

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

Italy Digital Nomad Visa

The Italy Digital Nomad Visa is for non-EU citizens who work remotely and want to live in Italy while continuing their employment abroad. To qualify, applicants must have a stable remote income of €28,000 per year, along with proof of accommodation and comprehensive health insurance. This visa allows stays of up to one year, with the possibility of renewal.

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 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, and your tax identification number (called a Codice Fiscale). Some banks in Italy 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.

You will need to pay taxes in Italy if you live in the country for more than 183 days a year. Italy has a progressive tax system (IRPEF), with rates ranging from 23% to 43%, depending on your income level. The following are the national IRPEF brackets for 2026:

• Up to €28,000: 23%
• €28,001 to €50,000: 33% (reduced from 35%)
• Over €50,000: 43%

In addition to national income tax, you will also need to pay small regional and municipal taxes:

• Regional Tax: Ranges from 1.23% to 3.33% depending on the region.
• Municipal Tax: Ranges from 0% to 0.9% depending on the town or city.

As a tax resident, you must pay taxes on your worldwide income. Italy offers three tax incentives for expats that you can use to reduce your tax burden:

Flat tax regime

The Italy flat tax regime is available for new tax residents. You can pay a fixed tax of €300,000 per year that accounts for all foreign-sourced income. The regime’s current flat rate was set by the 2026 Budget Law that was published in the Official Gazette on the 30th of December 2025.

The grandfathering rule applies to residents who registered before 31 December 2025. They continue paying their previous rate for the remainder of their term. Qualifying family members can be included for an extra €50,000 per person and the regime lasts for up to 15 years. High-net-worth individuals with foreign income of more than €1 million per year will benefit the most from the regime.

7% Pensioner Regime

The 7% Pensioner Regime in Southern Italy is a low-cost tax option for retirees with pension income. It offers a 7% flat tax on all foreign income, not just pensions, if you move to a small town with under 30,000 people in regions like Sicily, Calabria, Sardinia, Puglia, or Abruzzo. The regime is available for up to 10 years, and qualifying applicants are also free from reporting foreign assets and paying wealth taxes.

Inbound Workers Regime

The Inbound Workers Regime (Regime Impatriati) is Italy’s tax incentive for workers relocating from abroad. The regime allows employed expats to exclude 50% of their Italian employment or professional income from tax, meaning only 50% is taxed under IRPEF. It applies to income of up to €600,000 annually and covers both dependent employment and self-employed professional income.

You can combine the Flat Tax Regime with the Inbound Workers Regime, as there is no legal restriction on using both. This means foreign income can be covered by the flat tax, while Italian income can also benefit from reduced taxation under the Impatriati regime.

Italian Taxes for US Citizens

For Americans, you will need to file taxes in both the US and Italy. However, double taxation can often be avoided through the US-Italy tax treaty and the Foreign Tax Credit. It is recommended to seek professional tax advice to ensure full compliance in both countries. At Global Citizen Solutions, we offer bespoke tax advice to our clients to help them optimally structure their assets.

The Italian cost of living is lower than in the United States and many Western European, with a monthly average of €1,500 to €2,000. This range will increase further should you wish to live in cities like Milan or Rome. You can see what an average monthly cost of living would look like, including public transportation costs, food, utilities, and health care, with the following table:

Monthly expenses in Italy

Housing costs in Italy

The following Italian housing prices demonstrate the cost variance by city: