The Real Cost of Retiring to Italy
Retiring to the sun-drenched hills of Tuscany or the picturesque coastline of Puglia sounds like a dream—and it can be. But how much will it cost to make this dream a reality? From visas to moving, and from car purchases to settling into your new Italian life, let’s break it all down in a way that’s as delightful as an afternoon espresso.
The Visa Journey: Your Ticket to La Dolce Vita
To retire permanently in Italy, you’ll need an “Elective Residency Visa” (Visto per Dimora), which replaced the old residenza elettiva system. This visa is designed specifically for retirees and self-funded individuals who won’t work in Italy. For U.S. citizens, the visa application costs about €116 (roughly $125 USD), while Australians pay around AUD $150 (approximately $100 USD). But that’s just the beginning.
You’ll need to gather a stack of supporting documents and have them translated by certified translators—expect to pay €30–€80 per document (up significantly from previous years due to stricter requirements). Getting them stamped with apostille certifications costs about €20–€50 each. Add to that notarized proof of income, which can cost between €50–€150, depending on where you live.
Here’s the crucial part: You’ll need proof of passive income of at least €31,000 annually for singles or €38,000 for couples. This must be passive income only — pensions, rental income, dividends, or investments. Work income doesn’t count because this visa prohibits employment in Italy. Plus, you’ll need comprehensive health insurance with minimum €30,000 coverage, which will set you back €800–€2,500 annually, depending on your age and coverage needs.
Note: These requirements can vary by consulate, and you should consult with an Italian immigration lawyer before applying.
Packing Up: The Cost of Moving Across the World
Getting to Italy is more than just booking a flight, though that’s a good place to start. One-way tickets to Italy from major U.S. cities typically range from $900–$1,500 per person in economy class, while from Australian cities expect $1,200–$1,800 per person.
But then there’s the matter of all your stuff. **Shipping costs vary dramatically by origin**:
From East Coast U.S.: Full 20-foot container $6,000–$8,000; partial container $3,000–$5,000
From West Coast U.S.: Full container $8,000–$12,000; partial container $4,000–$6,500
From Australia: Full container $7,000–$10,000; partial container $3,500–$5,500
You’ll need insurance for your shipment, which could add another $800–$1,500 depending on the value of your belongings.
If you’re traveling light, you might only deal with excess baggage fees, which range from $150–$400 per piece. Either way, your bank account will feel it—but just imagine sipping Chianti in your new Italian home, surrounded by your favourite belongings. Worth it, right? Maybe you’d prefer an Italian shopping spree.
Finding Your New Home Sweet Home
Once you’ve arrived, you’ll need somewhere to stay while you hunt for the perfect long-term rental. Short-term accommodations, such as Airbnbs or hotels, will cost between €1,200–€2,200 ($1,300–$2,350) for a month in popular Tuscan areas, or €900–€1,800 ($950–$1,900) in Puglia.
Once you’ve found the perfect villa or apartment, rental ranges are:
Tuscany: Rural areas €900–€1,800 per month; cities like Florence €2,200–€3,800
Puglia: Coastal towns €800–€1,500; inland gems €600–€1,200
Remember, you’ll also need to put down a security deposit, usually two to three months’ rent, which could set you back another €1,800–€5,400 ($1,900–$5,750).
Getting Around: The Car Conundrum
In Italy, having a car isn’t just a convenience; it’s a ticket to exploring those winding country roads and quaint medieval villages. But here’s where it gets complicated.
For non-EU residents, purchasing a car is extremely challenging. You’ll need:
Italian residency (not just a visa)
Italian tax code (Codice Fiscale)
Italian bank account
Proof of Italian address
The bureaucratic maze can take 6–12 months to navigate, and many dealerships simply won’t sell to non-EU residents.
Your realistic options:
Long-term leasing: €350–€800 per month for 12–24 month contracts
Extended car rental: €800–€1,500 per month (expensive but flexible)
Rent-to-buy programs: Some companies offer these, typically €500–€900 monthly
If you eventually navigate the purchase process, expect €8,000–€20,000 for used cars, €18,000–€35,000 for new models, plus annual insurance costs of €800–€1,800 and registration fees of €200–€400.
Remember, driving in parts of Italy can feel like a race track—consider those Italian language lessons for reading road signs!
The Tax Reality: What Nobody Tells You
Here’s the big one that many retirement guides skip: **tax implications**. If you spend more than 183 days per year in Italy, you become an Italian tax resident and must pay taxes on your worldwide income.
This means:
Your U.S. or Australian pensions, rental income, and investment gains are taxable in Italy
Italian income tax rates range from 23% to 43% depending on income levels
Additional regional and municipal taxes may apply
Strategic consideration: Some retirees maintain the “183-day rule”—spending less than 6 months annually in Italy to avoid tax residency. This requires careful calendar management and maintaining primary residence elsewhere.
Southern Italy incentive: New residents moving to southern Italian regions can benefit from a flat 7% tax rate on foreign income for up to 10 years, significantly reducing the tax burden.
Always consult with a qualified international tax advisor before making the move.
Settling In: Life’s Little (and Big) Extras
Once the big expenses are handled, you’ll need to budget for everyday living. Utilities, including electricity, water, and internet, typically range from €180–€380 ($190–$405) per month. Food is surprisingly affordable, with a monthly grocery bill for two averaging €400–€650 ($425–$690). And let’s not forget dining out—a casual meal in a trattoria can cost €15–€40 per person.
To truly integrate into Italian life, you might want to invest in Italian language classes. Private lessons cost €25–€65 per hour, while group courses can run €250–€650 for several weeks. Ordering gelato in fluent Italian is an experience worth paying for.
What’s the Final Tally?
Moving to Italy isn’t cheap, but it’s an investment in your dream. For a couple, the initial costs to relocate range from $22,000–$52,000 (€20,650–€48,750) in Tuscany, and slightly less in Puglia at $20,500–$48,500 (€19,200–€45,450). These figures include visa applications, flights, shipping, initial accommodation, legal fees, and setting up your new life.
Exchange rates calculated at $1 USD = €0.938 as of September 2025. Rates fluctuate daily.
Why It’s All Worth It
Sure, there are hurdles—bureaucracy, costs, tax complications, and cultural adjustments—but the rewards are unparalleled. Imagine strolling through vineyards in Tuscany, exploring olive groves in Puglia, and living a life enriched by Italy’s art, food, and history. With careful planning, professional guidance, and realistic budgeting, you can turn this vision into a reality, enjoying la dolce vita without breaking the bank.
The key is understanding that retiring to Italy isn’t just about the romantic dream—it’s about navigating a complex system that rewards those who do their homework and plan meticulously.
Italy is calling. Are you ready to answer?