🇮🇹 Italy

Europe · Mediterranean

Retire in Italy

Southern villages with a 7% flat tax for new retiree residents

Key facts at a glance

  • 7% flat tax on all foreign income for 10 years (Article 24-ter TUIR, extended from 9 years)
  • Qualifying town size raised from 20,000 to 30,000 residents on 7 April 2026 (Law 34/2026) — unlocks 74 new towns
  • Eligible regions: Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, Sicily (plus 2009/2016 earthquake reconstruction zones)
  • Elective Residence Visa: €32,000/year single, €38,000 couple, +20% per dependant, plus €30,000 health cover
  • Must not have been an Italian tax resident in any of the previous 5 years

Monthly cost of living

Typical monthly outlay for a single retiree, in pounds.

Category£ / month
Rent (1-bed apartment)£600
Groceries£240
Utilities (electric, water, internet)£130
Local transport£60
Healthcare (private cover or co-pays)£110
Leisure (dining, entertainment, travel)£360
Total (single)£1,500
Total (couple, typical)£2,300

Retirement visa: Elective Residence Visa (Visto per Residenza Elettiva)

Apply at the Italian consulate in the UK with proof of stable passive income, suitable accommodation, and clean criminal record. No working allowed.

Minimum monthly income£2,270+
Processing time60–120 days at consulate
RenewableYes — initial 1 year, then 2-year renewals, leading to permanent residence after 5 years

How to apply

  1. Secure long-term accommodation in Italy (annual rental or property purchase)
  2. Compile 12 months of bank statements showing €32,000/year single / €38,000 couple
  3. Obtain €30,000+ valid health insurance for year one
  4. Obtain ACRO criminal-record certificate, apostille and translate
  5. Submit visa at Italian consulate in London or Edinburgh in person
  6. Within 8 days of arrival, request permesso di soggiorno at local Questura

Tax on your UK pension

Pension tax rateFlat 7% on all foreign-source income (pension + investments) for new residents in qualifying southern towns. Population threshold raised from 20,000 to 30,000 by Law 34/2026, effective 7 April 2026.
Special regimeArticle 24-ter TUIR — Special regime for foreign-pension retirees
UK double-tax treatyYes — UK / Italy DTT in force

Must move tax residence to a qualifying town in Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia or Sicily (or a 2009/2016 earthquake reconstruction zone in Abruzzo, Lazio, Marche, Umbria). Available for up to 10 tax years; must not have been Italian tax-resident in any of the previous 5 years.

Healthcare for UK retirees

Public systemSSN — Servizio Sanitario Nazionale
UK S1 form eligibleYes
Typical private cover~£80/month

Register S1 with ASL (local health authority) to receive tessera sanitaria. Quality consistently ranked top 10 globally.

Pros and cons

Pros

  • 7% flat tax in Southern towns under 30,000 residents — up to 10 years
  • World-class healthcare (top 10 globally per WHO)
  • Lowest property prices of any major Western European country
  • Mediterranean diet, rich cultural heritage

Cons

  • Basic Italian is essential in qualifying small-town locations
  • Bureaucracy is famously slow — codice fiscale, permesso, ASL all take time
  • Property purchase legal costs can run 10–12% of price
  • 7% regime confined to qualifying southern towns (≤30,000 residents) and earthquake zones

Where British retirees settle in Italy

Puglia (Lecce, Ostuni)

£1400/mo · Trulli houses, olive groves, Adriatic & Ionian coasts

Many towns under 30,000 qualify for the 7% regime, strong British interest since 2019, direct Stansted flights to Bari and Brindisi.

Abruzzo (Sulmona, Vasto)

£1300/mo · Mountains meet Adriatic

Lowest property prices in Western Europe, 90 minutes from Rome, growing British community in Sulmona; includes 2009 earthquake reconstruction zones.

Sicily (Modica, Ragusa)

£1300/mo · Baroque towns, mild winters

Year-round mild climate, 18 newly eligible 7%-regime towns added by Law 34/2026, exceptional food culture.

Frequently asked questions about retiring in Italy

Where can I move to qualify for Italy's 7% pension tax?

Any town with fewer than 30,000 residents (raised from 20,000 by Law 34/2026, effective 7 April 2026) in Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia or Sicily — plus eligible earthquake reconstruction zones in central Italy. You must move your tax residence there from abroad and not have been an Italian tax resident in the past 5 years.

Can I work part-time in Italy on the Elective Residence Visa?

No — the Elective Residence Visa explicitly excludes any kind of paid work or business activity. You must show all income is passive (pension, rentals, dividends, royalties).

How long does the Italian 7% tax regime last?

Up to 10 consecutive tax years from the year you become Italian tax-resident in a qualifying town. After that, standard Italian progressive rates apply.

People also ask

Which Italian towns qualify for the 7% retiree tax in 2026?

Any town with fewer than 30,000 residents (raised from 20,000 by Law 34/2026, effective 7 April 2026) in Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia or Sicily — plus several earthquake reconstruction zones in central Italy.

What income proves the Italian Elective Residence Visa?

€32,000/year for a single applicant or €38,000 for a couple, +20% per dependant, all from passive sources (pension, rental, dividends). The consulate also requires €30,000 of valid health insurance for year one.

Can UK pensioners use S1 to access Italian healthcare?

Yes. S1 holders register with the local ASL and receive the tessera sanitaria, giving SSN access on the same terms as Italian citizens.

Sources & last reviewed

Last full editorial review: 13 June 2026. We refresh figures and visa rules annually against the following authorities.

At a glance

Monthly cost (single)£1,500
Monthly cost (couple)£2,300
1-bed rent£600/mo
ClimateMediterranean
Healthcare
English spoken
British community
Safety
Visa ease
UK pension uprated?Yes — annual