---
title: Retire in Italy from the UK
description: Italy offers a 7% flat tax on all foreign-source income for new residents who settle in a qualifying southern village (population under 30,000 since Law…
canonical: "https://www.retirementabroad.co.uk/destinations/italy"
format: text/markdown alternate of the HTML page at canonical
published: 2026-05-18
updated: 2026-09-26
reviewed: 2026-07-22
author: Retirement Abroad UK editorial team
category: Destination
region: Europe
climate: mediterranean
keywords:
  - retire in Italy from the UK
  - retiring to Italy from the UK
  - Italy Elective Residence Visa (Visto per Residenza Elettiva)
  - UK State Pension in Italy
  - cost of living in Italy for British retirees
---

# Retire in Italy from the UK

> Italy offers a 7% flat tax on all foreign-source income for new residents who settle in a qualifying southern village (population under 30,000 since Law 34/2026, effective 7 April 2026 — raised from 20,000) for up to 10 years under Article 24-ter TUIR. The Elective Residence Visa is the standard retirement route, requiring proof of approximately €32,000/year of passive income for a single applicant. Puglia, Abruzzo, Calabria and Sicily are increasingly popular with British retirees taking advantage of the 7% regime.

_By Retirement Abroad UK editorial team · Published 18 May 2026 · Updated 26 September 2026 · Last reviewed 22 July 2026_

- **Applies to:** British citizens retiring permanently to Italy
- **As of:** 22 July 2026 (last full review)
- **UK State Pension in Italy:** rises every April, as in the UK — source: [GOV.UK (Department for Work and Pensions)](https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension), checked 26 September 2026
- **Full new State Pension:** £241.30 a week (2026/27) — source: [GOV.UK (Department for Work and Pensions)](https://www.gov.uk/new-state-pension/what-youll-get), checked 26 September 2026

## Key facts

- 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

**UK State Pension in Italy: uprated every April.** Italy is in the EEA — the UK State Pension is uprated each April. The full new State Pension is £241.30 a week (£12,548 a year, about £1,046 a month) for 2026/27.

## Monthly cost of living

| Item | Single retiree (£/month) |
| --- | --- |
| Rent (one-bedroom) | £600 |
| Groceries | £240 |
| Utilities | £130 |
| Transport | £60 |
| Healthcare | £110 |
| Leisure and eating out | £360 |
| **Total — single retiree** | **£1,500** |
| **Total — couple** | **£2,300** |

Indicative GBP per month for a single retiree; a one-bedroom rental averages £600. Foreign-currency figures converted at the rates fixed at the last annual review (€1 ≈ £0.85, $1 ≈ £0.79, ฿1 ≈ £0.022).

## 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 income:** about £2,270/month — above the full new UK State Pension (£1,046/month), so other pension income or savings are needed on top
- **Processing time:** 60–120 days at consulate
- **Renewable:** Yes — initial 1 year, then 2-year renewals, leading to permanent residence after 5 years
- **Difficulty:** 3/5 (1 = easiest)

**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

- **Regime:** Article 24-ter TUIR — Special regime for foreign-pension retirees
- **Rate on UK pension income:** Flat 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.
- **UK double-tax treaty:** Yes — 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

- **Public system:** SSN — Servizio Sanitario Nazionale
- **UK S1 form accepted:** Yes — UK State Pension recipients register for public healthcare on the same terms as nationals
- **Private health insurance:** about £80/month
- **Healthcare score:** 4/5

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

- **Puglia (Lecce, Ostuni)** — 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. (about £1,400/month)
- **Abruzzo (Sulmona, Vasto)** — Mountains meet Adriatic. Lowest property prices in Western Europe, 90 minutes from Rome, growing British community in Sulmona; includes 2009 earthquake reconstruction zones. (about £1,300/month)
- **Sicily (Modica, Ragusa)** — Baroque towns, mild winters. Year-round mild climate, 18 newly eligible 7%-regime towns added by Law 34/2026, exceptional food culture. (about £1,300/month)

Popular with British retirees: Lecce, Palermo, Tropea, Lake Como.

## FAQ

**Q: Where can I move to qualify for Italy's 7% pension tax?**
A: 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.

**Q: Can I work part-time in Italy on the Elective Residence Visa?**
A: 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).

**Q: How long does the Italian 7% tax regime last?**
A: 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.

**Q: Which Italian towns qualify for the 7% retiree tax in 2026?**
A: 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.

**Q: What income proves the Italian Elective Residence Visa?**
A: €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.

**Q: Can UK pensioners use S1 to access Italian healthcare?**
A: Yes. S1 holders register with the local ASL and receive the tessera sanitaria, giving SSN access on the same terms as Italian citizens.

## Italy guides

- **Full guide:** [Retiring to Italy from the UK in 2026](https://www.retirementabroad.co.uk/blog/retiring-to-italy-from-uk-2026)
- **Visa:** [Which Countries Offer Retirement Visas for UK Citizens? Country-by-Country Guide 2026](https://www.retirementabroad.co.uk/blog/retirement-visas-uk-citizens-2026)
- **UK pension:** [UK Pension in Italy 2026](https://www.retirementabroad.co.uk/blog/uk-pension-in-italy-2026)
- **Tax:** [UK Pension Tax Abroad (2026)](https://www.retirementabroad.co.uk/blog/uk-pension-tax-abroad-guide-2026)
- **Healthcare:** [S1 Form UK (2026)](https://www.retirementabroad.co.uk/blog/s1-form-retire-europe-guide)
- **State Pension:** [UK State Pension Uprating Countries 2026](https://www.retirementabroad.co.uk/blog/uk-state-pension-uprating-countries-2026)
- **Cost:** [Cheapest Places to Retire in Europe for UK Pensioners 2026](https://www.retirementabroad.co.uk/blog/cheapest-place-retire-europe-uk-pensioner-2026)

## Sources

- [Agenzia delle Entrate — Art. 24-ter TUIR](https://www.agenziaentrate.gov.it/)
- [Italian consulate in London](https://conslondra.esteri.it/)
- [GOV.UK — Living in Italy](https://www.gov.uk/guidance/living-in-italy)
- [GOV.UK — Countries where we pay an annual increase in the State Pension](https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension)

_Last reviewed 22 July 2026 · Last updated 26 September 2026. Canonical page: https://www.retirementabroad.co.uk/destinations/italy_