How to Move to Italy from the USA: a Guide

If you’ve ever wondered how to move to Italy from the USA, you’re not alone. Over 15,000 Americans currently call Italy home, lured by factors like the lower cost of living, Mediterranean climate, breathtaking scenery, and unparalleled cuisine. Given the rise of remote work and a variety of visas to choose from, it’s arguably never been easier for Americans to move to Italy.  

So, how exactly do you make your dream of living la dolce vita a reality? Below, we dive into the practical matters of moving to Italy: which visas are available, what the cost of living is like, how your tax and reporting obligations will change, and much more.  

Let’s dig in!

Snapshot of Expat Life in Italy

Population: 59 million

Capital city: Rome

Currency: Euro

Official language(s): Italian 

Top cities for expats: Rome, Milan, Florence

Approximate number of American expats: Nearly 16,000

School-year calendar: September to June

How to move to Italy from the USA: Types of visas

To stay in Italy for over 90 days, you’ll need a Long-Stay Visa (aka a National Visa/D-Visa). Below are some of the most commonly-held visas for Americans living in Italy¹:

Digital nomad visa

Who it’s for: Remote workers

Overview: Italy’s digital nomad visa is geared towards teleworkers working for companies outside of Italy. The visa lasts for one year, but holders may renew it annually as long as they continue meeting the requirements

Requirements: Applicants must work in a qualifying profession, earn at least €24,789 (~$25,824) per year, have at least six months of prior experience, hold private health insurance, and have pre-arranged lodging

Work visa

Who it’s for: Those who have secured a job in Italy

Overview: This employer-sponsored visa allows American holders to legally live and work in Italy for either one year (for time-limited contracts) or two years (for indefinite contracts). Those who continue to meet requirements may renew their visa for up to five years at a time

Requirements: Applicants must have a job contract (contratto di soggiorno per lavoro) and entry clearance (nulla osta) from an employer willing to sponsor their visa. They may also need to provide an Italian residence contract as well as information on lodging, flights, and other details

Elective residence visa

Who it’s for: USA retirees and others with significant existing assets/passive income

Overview: The elective residence visa allows holders to reside (but not work) in Italy for one year. Those who continue to meet the requirements may renew it for up to five years at a time

Requirements: To be eligible for the elective residence visa in Italy, you must be 18+ and have pre-arranged lodging, a guaranteed passive yearly income of at least €31,000 (~$32,561), and private health insurance

B!T related: The 14 Best Countries to Retire in for Americans Abroad

Self-employed visa

Who it’s for: Independent contractors, freelancers, entrepreneurs, etc. 

Overview: This visa allows self-employed US citizens to legally live and work in Italy for up to one year. Those who a) continue to meet requirements and b) haven’t spent more than six months outside of Italy may renew it for up to five years

Requirements: Applicants must work within an eligible category, earn at least €8,500 (~$8,928) per year, have at least €14,000 (~$14,705) in existing assets, apply for the permits/licenses/certificates necessary to conduct their business, submit an entry clearance, and have pre-arranged lodging

Investor visa (aka golden visa)

Who it’s for: Americans who make a significant financial investment in Italy

Overview: This visa allows investors to live and work in Italy for up to two years, after which point they may renew it once more for three years²

Requirements: To qualify, applicants must either:

• Purchase at least €2,000,000 (~$2,100,730) in Italian government bonds, OR
• Hold at least €500,000 (~$525,183) in shares in an existing Italian company (reduced to €250,000/~$262,591 when investing in innovative Italian startups), OR
• Donate at least €1,000,000 (~$1,050,365) to a project of public interest in Italy

Student visa

Who it’s for: Those who want to study at an Italian educational institution

Overview: Italy’s student visa lasts up to one year at a time. If your studies exceed one year, you can renew the visa annually for the duration of your studies. Students may apply for a permit that allows them to work up to 20 hours a week

Requirements: Applicants must be 18+ (or 14+ if participating in an exchange program); enrolled in an eligible Italian educational institution; and have pre-arranged lodging, sufficient funds, and private health insurance

Most Italian visas (besides student visas) allow holders to apply for permanent residence after legally living in Italy for five years. After ten years, you can apply for Italian citizenship.

How to apply for an Italian visa as a US citizen

While the process varies from visa to visa, you generally must³:

Gather the required documents

This will likely include:

• A valid passport
• A completed visa application form
• A passport-sized photo
• A pre-paid self-addressed envelope, if your consulate returns passports by mail
• Documents specific to your visa (e.g. enrollment letter for student visas, job contract for work visas)

Other requirements may include:

• Proof of lodging, sufficient funds, and health insurance
• An entry clearance
• A clear criminal background check

Collecting all of these documents can take several months, so make sure to give yourself ample time to do so.

Submit your application in person

Typically, you must submit Italian visa applications in person at your designated Italian consulate. Most consulates require you to schedule an appointment in advance online. In addition to handing in the required documents, you will likely also be interviewed by a consulate employee, have your fingerprints and photo taken, and pay the fee associated with your visa. 

Long-term visas typically cost $124.50, while student visas cost just $53.70⁴.

Wait for a response 

After submitting your visa application, it will take some time to process it. Typically, you’ll hear back within two to three weeks⁵, although processing times can vary depending on how busy the individual consulate is.

Collect your visa & head to Italy

Most consulates require you to pick up your visa in person, although some may allow you to collect it by mail. Once you have the visa in your possession, you can leave for Italy.

Apply for residence permits

Within eight days of arrival in Italy, you must apply for a permit of stay (permesso di soggiorno) at a national post office. Within 20 days of receiving that permit, you must apply for a certificate of residence (Certificato di Residenza) at your local civil registry (Anagrafe).

Planning for a long-term move as an American moving to Italy

Relocating to Italy may feel overwhelming at first. Fortunately, the following tips can help you find your footing in no time:

Banking

Opening a bank account in Italy can make day-to-day transactions easier. In some cases — such as if you want to purchase Italian real estate, receive payments from an Italian employer, or sign a utility contract — you may be required to open an Italian bank account. 

Typically, you must open your bank account in person. Head to the local branch of your desired bank with the following documents on hand:

• ID
• Proof of address
• Codice fiscale (tax number)
• Proof of employment/studies

Popular banks in Italy include Banco Nazionale del Lavoro (BNL), Intesa Sanpaolo, and Fineco Bank.

Keep in mind, though, that the added regulatory burden of the Foreign Account Tax Compliance Act (FATCA) makes some foreign financial institutions hesitant to work with potential American clients. If you encounter this firsthand, consider:

• Opening an online bank account (e.g. Wise, N26, Revolut)
• Opening an account at a bank headquartered in another country with branches in Italy (e.g. Deutsche Bank, ING, or Crédit Agricole)

Phone plans

While prepaid SIM cards and travel eSIMs are good for short trips to Italy, a mobile contract usually makes more sense in the long run. Some popular Italian cell phone service providers include Wind Tre, TIM Italy, Vodafone Italy, and Iliad.

Again, you usually need to set up a contract in person. Be sure to bring your ID, codice fiscale (tax number), and IBAN (bank number).

Managing your finances in Italy

A move abroad can complicate your finances, but with a little research and the right precautions, you can set yourself up for success. Here are a few tips to keep in mind as you navigate international finances:

• Consider hiring:
  • A US expat tax advisor
  • An Italian tax advisor
  • A US expat financial advisor
• Research the cost of living in Italy on websites like Numbeo, Expatistan, and Livingcost to help you draw up a budget for your new life in Italy
• Avoid investing in pooled international funds (e.g. internationally-based ETFs and mutual funds) due to the US’s harsh tax treatment of Passive Foreign Investment Companies (PFICs)
• If you plan to sell your US home — or any other large assets — try to do so before you become an Italian tax resident to avoid being subject to Italian capital gains taxes
• Some US-based investment accounts require a US-based address, so you may want to consider maintaining one
• Italy has a special tax regime for new high-net-worth tax residents which allows them to pay a flat tax rate of €100,000 (~$105,135) per year for up to 15 years

Education options for expats with children

If you’ll be moving to Italy with children, it’s worth learning more about the Italian education system, which comprises five different levels⁶:

• Preschool: Ages 3-6
• Primary school: Ages 6-11
• Lower secondary school: Ages 11-14
• Upper secondary school: Ages 14-19
• University: Ages 19+

Schooling in Italy is mandatory from ages 6 to 16 and free for all children residing there. Daycare costs are significantly cheaper than in the US, with prices typically ranging from about €170 to €440 (~$179 to $463) per month. Private daycare in expensive areas, however, can reach up to €600 or €700 (~$631 or ~$736) per month or more.

University, on the other hand, costs between €1,000 to €6,000 (~$1,051 to ~$6,308) for public institutions to as much as €20,000 (~$21,027) per year or more for private universities. 

Public schools are generally high-quality — of course, quality can vary from region to region and even school to school. It’s worth noting that all instruction in public schools is in Italian. For instruction in English or other languages, you’ll likely need to enroll your children in a private school, which often cost between €4,000 to €12,000 (~$4,205 to ~$12,616) per year.

Where to live in Italy as an American citizen

Italy has a wide variety of excellent places to live, from cosmopolitan cities to quaint villages to beach towns and more. Here are a few of the top destinations for US expats living in Italy:

Rome

Rome, the bustling capital of Italy, boasts modern amenities and a storied culture in equal parts. Foodies will enjoy the world-class culinary scene while arts and culture buffs will appreciate the wide variety of museums. From historical landmarks like the Colosseum, Trevi Fountain, and St. Peter’s Basilica to chic cafés, Rome offers surprises around every corner.

Popular neighborhoods for expats include trendy Trastevere, charming Centro Storico, and tranquil Aventino.

Milan

Few places in the world exude as much elegance and class as Milan. A global hub of fashion and finance, Milan draws in designers, entrepreneurs, and professionals from all around the world. Stop by the city’s many posh restaurants and boutiques for urban recreation at its finest, or head to nearby Lake Como and the Alps to reconnect with nature. 

Top expat neighborhoods in Milan include LGBT-friendly Porta Venezia, bohemian Brera, and bustling Navigli. 

Florence

Florence, the cradle of the Renaissance, is just as much of a hub for arts and culture today as it was hundreds of years ago. 

Get lost in the works of masters like Botticelli, Michelangelo, da Vinci, and Raphael at the Uffizi Gallery and Galleria dell’Accademia, or sample gourmet goodies at the Mercato Centrale. And if you need to unwind after a long day of museum-hopping and shopping, stroll along the tranquil Arno River or through the magnificent Boboli Gardens.   

Some of Florence’s most popular neighborhoods for expats include artsy Santo Spirito, hip San Frediano, and family-friendly Campo di Marte.

Understanding the tax implications of moving to Italy from the USA

Italian taxes

Italy defines tax residents as those who a) live in the country for over 183 days in a year and b) have either:

• Registered as official residents, OR
• Established a habitual abode in Italy, OR
• Made Italy the center of their business, economic, or social interests

Most tax residents and non-tax residents who earn Italian-sourced income must file Italian tax returns. The primary tax forms in Italy are Modello 730 for employees and Modello Redditi for business owners, self-employed individuals, and others with complex financial situations. Modelo 730 is typically due September 30th, while Modello Redditi is due November 30th.

Italian income tax rates vary from 23% to 43%. Other common taxes in Italy include:

• Capital gains taxes: 26%
• VAT: 22%, with discounts on some goods and services
• Social security taxes: Typically 10% for employees or 20% to 25% for self-employed individuals

US taxes

All US citizens and permanent residents are subject to US taxation on their worldwide income, even if they live abroad. Those who meet the minimum reporting threshold must file, and potentially pay, US taxes.

While the typical US tax deadline is April 15th, US expat tax returns aren’t due until June 15th. You can extend this further to October 15th by filing Form 4868. Regardless of when you file your tax return, however, you must make an estimated payment by April 15th if you expect to owe taxes.

If you’re also subject to Italian taxes, you risk paying taxes on the same income to two different countries. While the US/Italy tax treaty prevents double taxation in theory, a tricky clause nullifies the majority of its benefits. US expats in Italy are usually better off claiming one or more of the following tax breaks instead:

• The Foreign Earned Income Exclusion (FEIE): Allows Americans who meet either the Physical Presence Test or Bona Fide Residence Test to exclude a portion of their foreign-earned income from taxation. In tax year 2024, the FEIE allows you to exclude up to $126,500 from US income taxes; in 2025, the limit increases to $130,000 to account for inflation
  • Note: Qualifying for the FEIE also automatically qualifies you for the Foreign Housing Exclusion, which can help you exclude additional foreign-earned income based off of your qualified foreign housing expenses
• The Foreign Tax Credit (FTC): Gives Americans dollar-for-dollar US tax credits on any foreign income taxes they’ve paid, provided they’re legal and charged in their name specifically. Essentially, this allows you to subtract what you’ve paid in foreign income taxes from your US tax bill

Although living abroad often qualifies you for some dedicated expat tax breaks, it can also add to or change your reporting obligations. A couple of the most common reports that American expats must file include the:

• Foreign Bank Account Report (FBAR): Requires anyone with over $10,000 in foreign account holdings to file FinCEN Report 114
• Statement of Specified Foreign Assets: Requires anyone with over $200,000 in certain foreign assets on the last day of the tax year — or over $300,000 at any point in the tax year — to file Form 8938

Note: Form 8938 thresholds vary for married couples filing jointly and Americans living within the US

References 

1. Services for foreign citizens
2. Investor visa for Italy
3. Long Term Visas for Italy
4. Handling Fees for Visa Applications
5. Long Stay Visa Italy
6. A Guide to Education & International Schools in Italy
7. These Italian Villages Will Pay You Up To $45,000 To Move There
8. Health Insurance and Healthcare in Italy Explained
9. The Cost of Living in Italy | An Expert Guide
10. Transportation and Driving in Italy
11. How to register for school in Italy in 2025 and the changes you need to know
12. Celebrate Democracy by ensuring you are prepared to vote in the 2024 U.S. Election