Preparing for Retirement in Italy
Look if you hope to retire in Italy, there are things you can do now to prepare for the transition and make sure that your new life there runs smoothly.
Dreaming of a New Life in Italy?
We doubt not your dedication to your work, but find you often enough these days dreaming of the time you can retire and move to Italy?
Then, if that’s the case, you’re in pretty good company too; every year, scores of people move to Italy in search of a more relaxed way of life among the olive trees and coffee culture.
Career Shift Considerations
Many people do not wish to transition straight from full-time employment to complete retirement, so you may be considering a shift in your career path, like starting a bed and breakfast or organizing tours or workshops. Before anything else, it's going to be pretty important to see whether you would even be allowed to work in Italy.
For people who have citizenship from a European Union member state, this should be no problem; however, for those non-Europeans, eligibility to work shall depend on the particular visa or residency permit one holds.
Residency Visa Option for Retirees
Friendly residency visa option made for retirees is elective; it does not allow work in Italy.
Italy provides an investor’s golden visa, with the requirement to invest between €250,000 and €2 million in an Italian startup, business, charitable project, or government bonds.
Introduced last year, the digital nomad visa allows prospective employees to work but comes with several conditions to fulfill: for instance, proving an income that does not fall below €28,000 annually.
Exploring Italian Properties
ALSO READ: ‘A bureaucratic nightmare’: An American entrepreneur tells how she obtained Italy’s new digital nomad visa
Some of their properties in Italy are used as holiday bases during the working years, and later in retirement, they relocate permanently to the country.
Choosing the Right Location
No location in Italy yet? Spend the years before retirement deciding where to settle down. We stress ‘years’ rather than ‘months’ because it’s best to see a place in both winter and summer before making up your mind.
Factors of Living in the Countryside
In the countryside, it is a notable factor in holiday areas and isolated from main services as they differ enormously in the low season.
If you're thinking about moving to the country, consider if you'll need a car or if you need to take an Italian driving test, and what your options would be if you can't drive. Research your healthcare options.
Healthcare and Residency Permits
If you are a non-EU national moving to Italy, it is worthwhile to plan your medical facilities in advance because adequate health coverage is one of the prerequisites for getting your residency permit, popularly known as permesso di soggiorno.
Recently arrived foreign citizens frequently subscribe to a temporary private health policy while their permits are being processed, while permitted individuals are given two alternatives: they can register with the national health system (Servizio Sanitario Nazionale, SSN) or purchase private health coverage.
If you belong to the group of foreign residents who qualify for 'mandatory registration’ (iscrizione obbligatoria) and need to register for the SSN, there is no charge for doing so. If you do not fall within this category, you can still register with the SSN on a voluntary basis (iscrizione volontaria), but at a hefty price, as the minimum charge has been hiked from less than €400 to €2000 in 2024.
Language Skills and Integration
This is a commonly referred piece of advice in The Local according to the readers who have moved to Italy.
The 2024 English Proficiency Index (EPI) by Education First ranks Italy as one of the lowest countries in Europe when it comes to English skills, specifically at 32 out of 35 member states.
READ ALSO: 'You can get by, but won’t feel at home': Is it possible to relocate to Italy without knowing Italian?
Sure, a basic understanding of Italian is going to be important with the hundreds of administrative tasks you’ll have to take care of once you arrive; not to mention talking with your neighbors, keeping up with Italian news and television, and immersing yourself in the local community to really get the most out of your experience.
Getting Started with Language Learning
Therefore, one of the best ways to get started is to watch Italian movies and TV shows on a streaming platform that provides English as well as Italian subtitles. Furthermore, there are many Italian language schools that provide online courses for those who cannot take up dedicated fully fledged on-campus programs.
Understanding Tax Regulations
Tax regulations in Italy would need to be further looked into, and a tax professional acquainted with Italian law as well as the laws of your home country should be consulted in order to ensure that all tax requirements are adhered to by your plans.
You will be considered a tax resident in Italy if you remain for a period of not less than 183 days in the territory during any calendar year, or you are registered as a resident with the Anagrafe registry office, or has a residence or habitual abode in Italy.
If you are a tax resident in Italy, you have to declare your worldwide income, referring to earnings not just in Italy but also in other countries (for example: foreign pensions, rental income from abroad, and so on).
Tax Treaties and Proper Reporting
The text is accurate but there can be complex issues within this jurisdiction among countries and they hugely differ so it’s better to seek advice from professionals with respect to applying these provisions to an individual’s particular case.
Italy has tax treaties with several countries, for example, the UK, and the US. This means that if you have already paid taxes on your earnings in another country, you probably will not be double-taxed. You will, however, have to tell the Italian tax authorities about this income.
