🇮🇹 Retire in Italy
Everything you need to know about early retirement in Italy — taxes, cost of living, healthcare, visa options, and how to calculate your FIRE number.
Quick Facts
Taxes for Retirees in Italy
Italy has 26% capital gains tax on long-term investments. The income tax system uses progressive brackets with a top rate of 43%. For FIRE retirees living off investment income, the effective tax rate is typically much lower than the top bracket since most withdrawals come from capital gains rather than earned income.
Income Tax Brackets
Cost of Living in Italy
Italy has a relatively high cost of living with an index of 65 (where New York City = 100). While not the cheapest destination, many retirees find the quality of life excellent relative to cost, especially outside major cities.
Healthcare in Italy
Public healthcare available for residents (estimated $0/year post-retirement).
Universal healthcare for residents. Quality varies by region.
Special Tax Regimes & Visa Options for Italy
Flat Tax for Retirees
7% flat tax on ALL foreign income for retirees in Southern Italy/small towns.
Impatriate Regime
70-90% income exemption for workers.
Ready to Calculate Your FIRE Number?
See exactly how much you need to retire in Italy. Compare taxes, cost of living, and run Monte Carlo simulations — all free.
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FAQ: Retiring in Italy
How much money do I need to retire in Italy?
Using the 4% safe withdrawal rate, you need approximately 25x your annual spending. With Italy's relatively high cost of living (index 65/100), your FIRE number could be significantly similar to what you'd need compared to retiring in the US. Use our free calculator to get your exact number.
What are the tax implications of retiring in Italy?
Italy has 26% capital gains tax and a top income tax rate of 43%. For FIRE retirees primarily living off investment income, the effective tax rate depends on your withdrawal strategy and account types. Our calculator models this in detail for your specific situation.
Can I get a visa to retire in Italy?
Flat Tax for Retirees available — 7% flat tax on ALL foreign income for retirees in Southern Italy/small towns.. Visa requirements depend on your nationality, income, and assets. Check the visa details in our calculator for the most up-to-date information.