← Back to WhereToFIRE Calculator

🇦🇺 Australia vs 🇮🇹 Italy

Side-by-side early retirement comparison — taxes, cost of living, healthcare, and FIRE number.

Key Takeaway

Italy is somewhat cheaper than Australia for retirees. With a cost of living index of 65 vs 80, your money goes 19% further in Italy. Capital gains tax is 26% in Italy vs 0% in Australia. Use the calculator to see your personalized FIRE number for both countries.

Side-by-Side Comparison

🇦🇺
Australia
🇮🇹
Italy
Cost of Living
Overall Index
80
65
Rent (City)
$2,400/mo
$1,200/mo
Rent (Suburb)
$1,600/mo
$700/mo
Taxes
Capital Gains (LT)
0%
26%
Top Income Tax
45%
43%
Healthcare
Est. Annual Cost
$0
$0
Public Access
Yes
Yes
Other
Currency
A$ AUD
€ EUR

Tax Comparison for Retirees

🇦🇺 Australia Taxes

A$0–A$18,2000%
A$18,200–A$45,00019%
A$45,000–A$120,00033%
A$120,000–A$180,00037%
A$180,000+45%

🇮🇹 Italy Taxes

0–€28,00023%
28,000–€50,00035%
50,000+43%

Special Tax Regimes for Expats

🇮🇹

Flat Tax for Retirees

7% flat tax on ALL foreign income for retirees in Southern Italy/small towns.

10 years📋 Pensioners moving to municipalities <20k population in Southern regions.
🇮🇹

Impatriate Regime

70-90% income exemption for workers.

5-10 years📋 Not resident in Italy for 2+ years. Must work in Italy.

Calculate Your Exact FIRE Number

Enter your portfolio, spending, and retirement age to see a personalized comparison between Australia and Italy — with Monte Carlo simulations and tax modeling.

🔥 Open Calculator — Australia vs Italy

FAQ: Australia vs Italy for Retirement

Is it cheaper to retire in Italy or Australia?

Italy has a cost of living index of 65 compared to Australia's 80(where US = 100). Italy is somewhat cheaper than Australia for retirees. Your money goes approximately 19% further in Italy.

How do taxes compare between Australia and Italy?

Capital gains tax is 26% in Italy vs 0% in Australia. The top income tax rate is 43% in Italy vs 45% in Australia. For FIRE retirees, the effective tax rate depends on your withdrawal strategy — use our calculator for a personalized estimate.

What about healthcare in Italy vs Australia?

Estimated annual healthcare costs are $0 in Italyvs $0 in Australia. Italy offers public healthcare access for residents. Australia offers public healthcare access for residents.

More Comparisons

More about retiring in AustraliaMore about retiring in Italy