I have to admit I spend a good bit of time reading the Facebook groups that are set up for immigrants to Italy — Retired in Italy, Americans Living in Italy, Ultimate Italy, Affordable Italy, etc. I answer a lot of questions. There are a lot of people who want to move here. I think there are a combination of reasons. The Baby Boomers are all retiring right now. People are tired of the strife in US politics, the anger that seems to permeate society now. Prices are high in the U.S.. There are many descendants of the Italian immigrants who migrated to other countries over the last hundred years who are eligible for Italian citizenship.
I actually enjoy helping people with this…most of the time. Thing is, so many people don’t do the slightest bit of research before asking a very basic question. So many young people want to come and that can be very difficult. There are very few Visas for them. For retirees, it is easier. There is a Visa called the Elective Residency Visa. It is for people with enough passive income to qualify, who don’t need to work…i.e., retirees. Or smart young people who made their pile early and can qualify. But no work allowed.
Some facts about coming to live here. If you are not an EU citizen, you will need a Visa to come. Buying property is easy but it doesn’t confer permission to stay past the normal 90 day tourist visa. After you receive the Visa, you must apply for a Permesso di Soggiorno (permit to stay) within a week of arrival. Then you apply for residency. (Fact – you can’t buy a car unless a resident). Also, one of the biggest hurdles to living in Italy is obtaining your driving license. Test in Italian. Must be taken within a year of residency. Once you become a resident you will be liable to pay Italy taxes on your worldwide income and investments.
It is this last bit that seems to make people balk at moving full-time to Italy. It is a pet peeve of mine that so many people try to find a way to get out of paying taxes here but still want to be able to live here and enjoy all the things that the taxes pay for. Enter the Schengen Shuffle. Americans, Canadians and many other non-EU countries have an automatic 90 day tourist visa to come to any Schengen country — most of Europe is in The Schengen Zone. So a person can come to Italy (for example) and stay 90 days, then they must exit the Schengen zone for 90 days. They can repeat as often as they want. They never become residents. They never pay taxes. They use things taxes pay for, like museums, monuments, parks, historical sites, beaches, schools, universities, libraries, hospitals, public transportation.
To exit the Schengen zone and stay in Europe there are only a few possibilities. The United Kingdom – England, Scotland, Wales and Northern Ireland. Albania. Turkey. Or you can go back to your home country.
Now, from my personal perspective, the taxes are not all that bad. The tax rates are higher, yes. There is a tax treaty between the U.S. and Italy to protect against double taxation. We pay no tax in the U.S. now. We don’t pay any property taxes on our home here — we used to pay $10K+ a year in the U.S., a big savings. We don’t pay state tax, another ~$8K saved. Now that we have become permanent residents our health care is free in Umbria. [Other regions may vary.] You can apply for the long term residency at the five year mark. The cost to enroll in the system before you become a permanent resident is capped at €2,700 a person annually, but could be less. It is income based. €2K minimum cost. This is cheap by US standards. Cost of living here in Umbria is less than half what people pay in the U.S. and for some of the best, safest and most tasty food anywhere. To me, it is about a wash. Not all that much more in taxes and so worth it to us to live in this beautiful and tranquil country. 🇮🇹
Living here is not perfect by a long shot. There are a lot of hurdles people must leap. The bureaucracy is horrible. One must negotiate everyday life in a foreign language. One must abide by their rules. It is nothing like the U.S. One will get homesick. One will miss things from home. For us, the challenges are part of the draw. It keeps your mind working overtime. All normal, everyday things are now a challenge, or an adventure, depending on how you look at it. We are happy to be living here. Frankly, after ten years here, it is now our home. 🙂