Italy is on every retiree’s shortlist — and post-2024 increases in Portugal D7 taxation have pushed more retirees toward Italy’s Elective Residence visa. With Tuscany’s vineyards, Sicily’s affordable coastal living, Puglia’s emerging expat communities, and Milan/Rome’s healthcare, Italy delivers Mediterranean retirement at lower cost than France or Spain.
Last verified: May 26, 2026.
Elective Residence (Residenza Elettiva) visa
- Income threshold: €31,000/year single (~€2,580/month), €38,000 couple
- Validity: 1 year, renewable annually then 5-year card
- Eligibility: non-EU retirees with passive income (pensions, dividends, rental, royalties)
- Critical: cannot work in Italy on this visa — strictly retirees
- Tax: Italian tax resident worldwide income if >183 days; flat 7% tax for retirees in southern villages (special regime)
- Path to PR: 5 years; citizenship 10 years
The 7% flat-tax for retirees in southern Italy
Italy introduced a special 7% flat-rate scheme for foreign retirees who move to certain southern villages (population <20,000) in Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sardinia, Sicily. Valid for 9 years. Pays 7% on ALL foreign income including pensions, dividends, capital gains. This is one of Europe’s most generous retirement tax regimes — and Italy specifically wants retirees in depopulated southern villages.
Where retirees settle in Italy
Tuscany — classic but expensive
Florence, Lucca, Cortona, the hill towns. International expat community established. 2-bed Tuscan villa rental €1,500-3,500/month. Property purchase €350K-800K typical retiree budget.
Puglia — emerging affordable favorite
Lecce, Ostuni, Polignano a Mare. Beautiful Adriatic coast, lower cost. Trulli (cone-roof houses) iconic. 2-bed apartments €700-1,400/month. Property €150K-350K. Strong British+German retiree growth.
Sicily — cheapest, deepest culture
Palermo, Catania, Taormina, Ortigia (Syracuse). Genuine Mediterranean affordability. 2-bed €500-1,000/month. Property €100K-250K. 7% flat tax villages cover much of inland Sicily.
Lake Como / Garda — luxury retire
Northern lakes, premium prices. 2-bed €1,800-3,500/month. Property €600K-2M+. For wealthy retirees who want stunning lake views + EU access.
Cost of living — Italy retirees 2026
- Couple monthly comfortable Tuscany: €3,000-4,500
- Couple monthly comfortable Puglia: €2,000-3,200
- Couple monthly comfortable Sicily: €1,800-2,800
- Private health insurance couple 65+: €1,500-3,500/year
- SSN registration (after residency): €387-2,800/year sliding-scale fee
- Property tax IMU: 0.4-1.06% of cadastral value
FAQ
Healthcare for retirees in Italy?
Public SSN is excellent and free at point of use once registered. Wait times for non-urgent specialists 2-6 months; private supplements common. Italy ranks consistently top-10 globally on health outcomes.
Can I drink + drive freely?
Italy has 0.05% BAC limit (lower than UK 0.08%). Enforcement strict in northern/central regions, lighter in deep south. Just don’t drink+drive — Italian drivers do post-meal lighter than Americans/Brits assume.
Related: Retire in Portugal · Retire in Spain · Italy DN visa.
✓ Last verified: May 26, 2026.