What Americans Living in Italy Need to Know in 2026

Ask any American who’s settled in Italy what brought them here and you’ll hear the same themes: slower days, long mornings at the café, Mediterranean rhythms, the art, the food, and a sense that life runs on a different clock here.

Most Americans living in Italy fall into a few camps: remote workers escaping high-cost cities, retirees looking for stability and affordable healthcare, freelancers craving more space, and families wanting real community. From Tuscany to Sicily to Milan, Italy keeps pulling people in.

Stay a little longer, though, and you run into a very Italian truth: behind most picture-perfect moments, there’s a form, a rule, or a process. Here’s how to navigate the bureaucracy and make your move as smooth as possible.

Visa requirements for U.S. citizens

Before you can settle into your morning cappuccino and evening passeggiata routine, you’ll need to be clear on your immigration status. Most Americans living in Italy started out on one of the following long-stay visa options.

• Elective residence visa: Best for retirees and those with passive income or savings. You can’t work for an Italian employer under this visa, but it’s popular among expats who want a quieter, more settled life in Italy.
• Work visa (nulla osta & work permit): Requires sponsorship from an Italian employer. Work visa slots are limited and often depend on quota allocations under the Decreto Flussi.
• Self-employment visa: For freelancers, consultants, or entrepreneurs who plan to open a partita IVA and provide services from Italy. You’ll need a clear business plan and proof of financial viability.
• Startu/investor visa: For those bringing investment or starting an Italian company. If you plan to launch a startup or contribute substantial capital, this can be a viable path.
• Student visa: For Americans enrolling in Italian universities or language programs.  Requires proof of enrollment, financial resources, health insurance, and accommodation.
• Digital nomad visa (2026 updates): For remote workers with a foreign employer who meet the income and documentation criteria. This visa is still evolving but it’s a promising option if you work online.

Your visa journey will start at an Italian consulate in the U.S. Requirements vary by consulate, and “bring two copies of everything” is more than just a saying. In most cases, you’ll be asked for:

• A valid passport
• Proof of housing in Italy (rental contract, lease, etc.)
• Proof of income or savings (bank statements, pension statements, remote-work contracts)
• Health insurance (sometimes required upfront)
• An FBI background check or equivalent documentation

Once your visa is granted and you arrive in Italy, there’s one more step before you’re fully settle—securing a residence permit. 

Residency, legal status, and Italian citizenship

Becoming a resident in Italy involves more than stepping off the plane with a visa—it’s a multi-step process that starts within 8 days of your arrival. Here’s the roadmap of steps to take so you can settle in without surprises.

• Entering Italy with the right visa: Before anything else, make sure your visa matches your plans—whether it’s work, study, or a digital nomad permit.
• Apply for a permesso di soggiorno: Within 8 days of arriving, you’ll need to apply for your residency permit. This becomes your official proof of residence in Italy. 
• Register your address (Residenza): Once you have your Permesso, register your local address at the town hall (Comune). This makes you officially a resident and is required for things like healthcare registration, opening a bank account, and signing contracts.
• Get your codice fiscale: Think of this as Italy’s Social Security number. You’ll need it for pretty much everything: renting, banking, paying taxes, and signing contracts. You can get one at the Agenzia delle Entrate or through your local consulate before you arrive.
• Explore citizenship pathways (optional, long-term): Americans have a few ways to eventually claim Italian citizenship: residency (after years of legal residence), marriage, or ancestry (jure sanguinis).
• Consider other qualifying routes: Some expats can also establish residency through starting a company in Italy, passive income or retirement (proof of stable income), or family ties (joining an Italian spouse or relative).

Becoming a resident is not complicated, but it’s rarely fast, and it often involves returning to the same counter more than once.

Cost of living in Italy: 2026 edition

Italy is generally more affordable than most major U.S. cities, especially for housing, food, transportation, and healthcare. Actual costs vary widely by location, though—northern cities tend to be more expensive than the south and rural areas.

Housing and rent

Compared with cities like New York, Boston, or San Francisco, where similar apartments often exceed $3,000/month, rents in Italy are noticeably lower.

• Rome, Florence, and Milan: €814–€1,431 a month on average for a one-bedroom apartment.
• Mid-sized cities like Bologna or Turin: €522–€878 a month on average.
• Southern regions and rural areas: €358–€628 a month on average.

Groceries and dining

Food costs in Italy are about 27% cheaper in Italy than in the USA, especially for fresh produce, bakery items, and local wine. Many Americans find they can cook more simply and cheaply, thanks to neighborhood markets and seasonal ingredients.

Utilities and transportation

You can expect around €140–€310/month for electricity, water, and internet. Public transit is generally reliable and far more budget-friendly than in the U.S., with monthly passes in large cities rarely exceeding €50.

Healthcare expenses

Public coverage significantly reduces medical costs once you’re registered. Private insurance plans are still far cheaper than typical U.S. premiums, ranging from €500 to €3,000 per year, depending on coverage level, age, and extras.

Healthcare in Italy: How expats access the system

One of the biggest reasons Americans love living in Italy is the healthcare system. Italy offers a mix of public universal coverage and affordable private care, with consistently high international rankings.

Public healthcare (SSN)

Once you have a valid Italian resident permit, you can register with the Servizio Sanitario Nazionale (SSN). You’ll choose a local doctor, have access to public hospitals, and pay minimal fees for many services.

Private healthcare

Many expats also use private clinics for shorter wait times or English-speaking specialists. Even then, private care is typically far cheaper than equivalent treatment in the U.S.

Coverage for workers, retirees, and remote workers

• Employees: Usually register through their employer via the local ASL office.
• Retirees: Can register by paying an annual contribution based on income.
• Freelancers/nomads: Often need private health insurance for the first year, then may switch into the public system once eligible.

Banking, taxes, and managing your finances

Even something as simple as opening a bank account can feel confusing to newcomers, let alone figuring out taxes or moving money internationally. The good news? Once you know the steps, it’s much easier to navigate. 

Opening a bank account

Most banks will ask for:

• Your passport
• Your codice fiscale
• An address in Italy

Some banks offer non-resident accounts, but many will want to see an Italian residence permit or proof of a long-stay visa before they fully onboard you.

Cross-border finances

Transferring money from the U.S. to Italy is usually straightforward, but exchange rates and transfer fees add up quickly. Digital banks and fintech platforms often offer better rates and lower fees than traditional banks.

Italian taxes for expats

Italy taxes residents on their worldwide income. If you work, invest, or run a business from Italy, you may owe Italian tax–and as a U.S citizen you still need to file an annual U.S. tax  return from abroad. Italy also has regional and municipal taxes, plus specific rules for property and passive income.

The good news? 

U.S. expats often qualify for major tax breaks like the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC). These can significantly reduce or eliminate your U.S. tax bill, especially if you’re paying into Italy’s tax system.

Everyday life: culture, language, and getting around 

For many Americans living in Italy, the real joy lies in everyday life—immersing in the culture, savoring la dolce vita, and navigating the quirks of Italian routines.

Language 

You can get by in English in major cities, but learning Italian can significantly transform your experience. Even basic Italian language skills can help with housing, healthcare, shopping, and building community.

Daily living

Expect longer lunch breaks, shorter store hours, and a pace that prioritizes relationships over urgency. Public transport is widespread and affordable, though schedules can vary by region.

Community

From local markets to small cafés where the barista memorizes your order, Italy rewards consistency and effort. Many towns also have active expat communities, international schools, and social groups that make it easier to plug in.

Best places for Americans to live in Italy

The “best” place in Italy really depends on your lifestyle, budget, and how fast you like life to move. These are some spots that tend to attract  Americans:

• Rome: Historic, international, and lively. Great for culture lovers,  professionals, and families who want big-city energy
• Florence: A favorite among students, artists, and families seeking beauty, walkability, and a compact city center.
• Milan: Italy’s business and fashion capital, ideal for career-focused workers and entrepreneurs who want strong transport links and services.
• Tuscany (region): Picturesque countryside, small towns, and slower living–often chosen by retirees and remote workers who don’t want the pace of a big city
• Sicily (region): Generally more affordable, warm for much of the year, and increasingly popular with remote workers and families looking for space.

You’ll also want to think about urban vs. rural. Cities tend to offer more jobs, services, and international schools; smaller towns and rural areas usually mean more space, lower rent, and a slower pace. Both can have active expat communities–they just feel very different day to day.

Working in Italy: visas, permits, and opportunities

Italy’s job market can be competitive, but there are solid opportunities for Americans, especially if you’re flexible about how you work. Some of the most in-demand sectors include:

• Creative fields
• Tourism and hospitality
• Online consulting and tech
• Education and English-language services

If you already have a job lined up, the next step is making sure your paperwork matches your plans..

• Work permits: Require a formal job offer from an Italian employer and approval under the Decreto Flussi quota system.
• Self-employment visas: Common among digital nomads, consultants, and freelancers. You’ll need a business plan,proof of sufficient income/savings, and a Partita IVA (Italian VAT number).
• Digital nomad visa: Fully active in 2025 and designed for remote workers with foreign employers. It requires meeting a minimum income threshold (currently roughly €28,000/year) plus proof of remote work and health insurance.

Pros and cons of living in Italy as an American expat

Deciding to move to Italy is more than picking a city—it’s weighing daily life, finances, and cultural adjustment. Here’s a closer look at what life really feels like for expats living in Italy, from the sunny pros to the practical challenges.

Pros

• Slower, more intentional lifestyle: Life moves at a gentler pace, giving you time to savor meals, social connections, and local routines.
• Affordable healthcare: Italy’s public healthcare system covers most services, so unexpected medical bills are rare.
• Italian culture and food: Living in Italy means daily access to world-class cuisine, art, and traditions.
• Real estate value outside major cities: Smaller towns offer more space and lower rent, making it possible to live comfortably on a moderate salary.
• Effortless access to European countries: Weekend trips to France, Germany, or Spain are easy thanks to Italy’s location and transportation network.
  

Cons

• Bureaucracy is almost always slow: Applications, permits, and registrations often require multiple visits to government offices.
• Language barriers early on: Italian is essential for many services and social integration; relying solely on English can slow things down.
• Italian tax complexity: Dual tax obligations mean U.S. citizens need careful planning to stay compliant and avoid surprises.
• Limited job opportunities if you don’t speak Italian: Even the roles that advertise as “English-speaking” usually end up requiring at least basic Italian, making it harder for expats without work to find a job.

Final steps and resources for moving to Italy

On your path to Italy, your most reliable guides are the Italian consulates in the U.S., the official Italian government portals, and the local questura once you arrive. Many Americans living in Italy also find that the real lifelines are fellow expats who’ve already navigated the maze and are happy to share the map.

Here’s a quick recap of the steps most U.S. expats take:

• Apply for your long-stay visa
• Lock in housing, even temporary accommodation
• Get your codice fiscale (Italian tax ID)
• Open an Italian bank account
• Apply for your permesso di soggiorno after arrival
• Register for healthcare

From bureaucracy to belonging: making Italy work for you 

Moving to Italy is more than just getting there. It’s new rhythms, new priorities, and a different way of thinking about work, money, and everyday life. For Americans, that shift can be exciting and confusing—especially when U.S. tax obligations don’t disappear just because you crossed an ocean.

The upside? With a clearer understanding of how life in Italy actually works (and a solid plan for your U.S. taxes), you can avoid costly surprises and focus on building a life that feels balanced, not stressful.

If you want straightforward guidance as you settle in, the Bright!Tax newsletter shares practical, no-drama U.S. expat tax updates—so you stay compliant, claim what you’re entitled to, and keep your finances simple while living abroad.

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