Italy is one of the world’s greatest retirement destinations! The country is ranked 11th on International Living’s list of Best Places to Retire for 2018. And with good reason. Its relaxed life-style, hospitable people, delicious cuisine, pleasant Mediterranean climate, fine wines, ancient history, artistic beauty and breathtaking natural scenery all contribute to the natural allure Il Bel Paese exerts on those looking for an ideal retirement haven.
Retirement in Italy
Italy is one of the world’s greatest retirement destinations, but there are additional reasons that strengthen Italy’s appeal as a retirement destination:
- The cost of living is rather low, particularly outside of the major cities, making it one of the most affordable countries to live in in the European Union. While being part of the EU, Italy stands out as a budget-friendly choice.
- Italy takes pride in its superb healthcare system. The country ranks No. 2 on the World Health Organization’s list of countries with exemplary healthcare services. Access to quality healthcare is an important consideration for many people considering retirement in Italy. Hospital stays, medical treatments and prescription drugs are covered by the taxpayer in Italy. However over-the-counter medications do require personal payment. Aspiring residents from the US and Canada have the opportunity to apply for enrollment in the Italian health service once they attain legal residency.
Permits, Visa and Finances for Retirement in Italy
Elective Residency Visa (residenza elettiva): When choosing to retire in Italy, the visa you need is called an Elective Residency Visa. This is a long-stay visa, mostly used by foreign nationals who aspire to live and retire in Italy and have the financial means to do so without working.
If you are able to receive income from a retirement or pension plan, you may utilize this particular type of visa. Please keep in mind that this Visa does not grant you permission to work in Italy!
In order to obtain this visa, it is necessary to personally apply at the relevant Italian consulate that covers your jurisdiction before leaving home. You will be required to submit the following official forms:
- Proof of ongoing income: You need to demonstrate that you have a steady source of income. Please note that income earned through work in your home country cannot be used to support your residence in Italy. Examples of acceptable retirement income sources include:
- Social security checks
- Pension payments
- Investment returns and dividends
- Retirement accounts
- Income from real estate
- Rental agreement or property deed in Italy: You will need to provide evidence of a rental agreement or ownership of property in Italy. This demonstrates that you have arranged suitable accommodation for your stay.
- Valid medical insurance: It is mandatory to have a valid medical insurance coverage during your time in Italy. This ensures that you are adequately protected and can access necessary health care services.
- Confirmed flight reservation: You will be required to provide proof of a confirmed flight reservation. This confirms your intention to travel to Italy within the designated timeframe.
Residency Visa or Permit of Stay (Permesso di Soggiorno): Upon arriving in Italy, you will need to apply for a “Permit of Stay”. This initial permit allows you to legally reside in Italy while you complete the necessary procedures to obtain your Elective Residency Visa or any other type of residence permit you may be eligible for. It is essential to start this process once you arrive in Italy to ensure that you remain in compliance with the immigration rules.
Once you have received your Elective Residency Visa you can embark on your retirement adventure in Italy.
Integration agreement: As an American retiree in Italy, it is mandatory to sign an “integration agreement” as per the county’s laws. This agreement entails committing to the process of integrating into Italian society. You are expected to earn a total of 30 credits within a two-year timeframe. By signing the agreement, you immediately receive 16 credits, leaving you with the task of earning an additional 14 credits. These credits can be obtained by either attending classes or passing a test in Italian, focusing on topics such as the country’s civil structure, culture, and other specified requirements.
File an annual tax return: Italy extends a warm welcome to expats seeking retirement and their financial resources. Yet it is important to navigate the legalities of living in Italy. Regardless of the source of your income, even if it is entirely generated abroad, you are still required to file an annual tax return in Italy. This process may entail additional filings and specific reporting obligations. As tax regulations vary between countries, it is advisable to seek guidance from an accountant to ensure compliance with tax requirements.
Interested in buying an Italian property? Contact Italian Property Finder today.