Retire in Italy: Elective Residence Visa Rules 2026

In 2025, the average household in southern Italy spent €2,215 a month. In the north-east, it spent €3,087. That is a gap of 39.3% (ISTAT, 2026). For a retiree, that gap can decide whether Italy feels tight or comfortable.

The short answer: As of October 2026, most non-EU retirees move to Italy on the elective residence visa (residenza elettiva). You need a stable passive income of at least €31,000 a year, plus at least 20% more for a spouse and 5% more for each child (Embassy of Italy in Kuwait, 2026). Some consulates ask for about €31,000 per adult instead. You cannot work in Italy on this visa. If you have a foreign pension and settle in a small southern town, you may pay a 7% flat tax on foreign income for up to 10 years.

The rest of this guide explains what that means in money, paperwork and daily life.

Elective residence visa at a glance

Check every figure with the consulate that covers where you live. Each consulate can ask for more documents.

The income rule, in real numbers

The legal floor is €31,000 a year. A couple needs at least 20% more, so about €37,200. Add one child and you reach about €38,750.

But read your own consulate's page closely. The Boston consulate asks for more than €31,000 a year per applicant (Consulate in Boston, 2026). New York says family applicants typically need around €31,000 per person (Consulate in New York, 2026). For a couple, that could mean €62,000, not €37,200.

What counts as income

The money must be passive and steady. Consulates accept pensions, annuities, rental income, investment income and similar sources. The San Francisco consulate lists Social Security, pensions and annuities as examples (Consulate in San Francisco, 2025).

Income from a job does not count. That includes remote work for a company abroad. New York states that you cannot finance your stay through any type of work (Consulate in New York, 2026).

So ask yourself honestly: is all of your income truly passive? Or is part of it a consulting fee you plan to keep earning?

Savings help, but income matters most

Large savings can support your case. Still, consulates focus on stable, repeating income. Expect to show bank statements and your last two years of tax returns. Not sure if your income fits? Our retirement visa finder compares Italy with other countries that suit your budget.

The 7% flat tax for pensioners in the south

This is the part most people ask about. It is real, but the rules are narrow.

Who can use it

Under Article 24-ter of Italy's income tax code (TUIR), you can choose a 7% substitute tax on all your foreign income. You must receive a pension paid from abroad. You must move your tax residence to a qualifying town (Agenzia delle Entrate, 2026).

The other conditions:

1. Region. The town must be in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia. Towns hit by the 2009 and 2016 earthquakes in central Italy also qualify, under the same population limit (Agenzia delle Entrate, 2026).
2. Town size. Since 7 April 2026, the town can have up to 30,000 residents. Before that, the limit was 20,000. The count uses ISTAT's figure for 1 January of the year before your first tax year in the regime (Agenzia delle Entrate, 2026).
3. Past residence. You must not have been tax resident in Italy for at least the five previous tax years (Agenzia delle Entrate, 2026).
4. Where you came from. Your last tax residence must be in a country that has a tax information agreement with Italy (Agenzia delle Entrate, 2025).

How long it lasts

The option runs for the year you move plus nine more. That is 10 years in total (Agenzia delle Entrate, 2025). You opt in on your Italian tax return for the year you move (Agenzia delle Entrate, 2026).

What it can save you

On a €31,000 foreign pension, 7% is €2,170 a year. Compare that with ordinary Italian income tax. In 2026, the band from €28,000 to €50,000 is taxed at 33% (Ministry of Economy and Finance, 2026). Local surcharges come on top of ordinary tax.

But a low tax rate does not fix everything. Small southern towns can be far from big hospitals and airports. Would you choose this town if the tax were the same everywhere? If not, look at other towns too.

Your home country may also tax your pension. Tax treaties decide this, and the answer depends on the type of pension. See our guide to countries that don't tax foreign pensions for the wider picture. Greece has a similar 7% scheme, covered in our Greece FIP visa guide.

Healthcare: joining the SSN

Italy's public health service is the SSN (Servizio Sanitario Nazionale). Elective residence holders do not join it for free. You join by voluntary registration and pay a yearly contribution.

What you pay

The contribution is 7.5% of income up to €20,658.28. Then it is 4% on income above that, up to €51,645.69. The minimum is €2,000 a year (Campania Region, 2026).

So the most anyone pays is about €2,789 a year per person. On a €31,000 income, the formula gives about €1,963. That is below the floor, so you pay €2,000.

Registration is valid for the calendar year, January to December (Campania Region, 2026). If you arrive late in the year, ask your local health office (ASL) whether you pay the full yearly fee.

Before you can register

You need private health insurance for the visa itself. Boston asks for a Schengen insurance policy that covers emergency evacuation and repatriation (Consulate in Boston, 2026). Many retirees keep private cover for the first months, until their SSN registration is active.

Public care in the south can mean longer waits and fewer specialists. Visit the nearest hospital before you sign a lease. How far would you drive for a cardiologist?

South vs north: what a month costs

ISTAT's 2025 data shows a clear split in average monthly household spending (ISTAT, 2026):

Housing, water, power and fuel took 36.0% of household spending (ISTAT, 2026). These are averages for all households, not a retiree's budget. Rents in Milan, Florence or a famous lake town are much higher than the averages suggest.

Now put that next to the visa. €31,000 a year is about €2,583 a month. In the south, that is above the average household's spending. In the north, a couple on €37,200 could feel tight, especially with rent and the €2,000 health fee each.

Run your own numbers with our cost of living tool.

From consulate to Questura: the steps

Step 1: Get your documents ready

1. A passport valid for at least 15 months, if you apply in San Francisco (Consulate in San Francisco, 2025). Other consulates may differ.
2. A one-year lease or a property deed in your name, registered with the Agenzia delle Entrate.
3. Proof of passive income: pension letters, bank statements, two years of tax returns.
4. A criminal record check, if your consulate asks for one.
5. A letter explaining why you want to live in Italy and where.
6. Health insurance.

Step 2: Apply at the consulate

Book an appointment and pay the €116 visa fee (Ministry of Foreign Affairs, 2025). San Francisco says it can take up to 90 days, so do not buy flights early (Consulate in San Francisco, 2025).

Step 3: Get your codice fiscale

The codice fiscale is your Italian tax code. You need it for leases, bank accounts and the SSN. A first code for a foreign citizen needs an in-person appointment. People living abroad can ask the Italian consulate in their country. If you still have no code when you apply for your permesso di soggiorno, the Questura assigns one (Agenzia delle Entrate, 2025).

Step 4: Apply for your permesso di soggiorno

You must apply within 8 working days of arrival (Ministry of the Interior, 2026). The costs are a €16 revenue stamp, €30 postal fee, €30.46 for the electronic card, and a permit fee of €40, €50 or €100 depending on the permit (Polizia di Stato, 2026). The Questura will call you in for fingerprints.

San Francisco notes that the Questura checks each year that you still meet the requirements (Consulate in San Francisco, 2025). Keep your income proof up to date.

Step 5: Long-term residence, then citizenship

After 5 years, you can apply for the EU long-term residence permit. You need income of at least the yearly assegno sociale (social allowance) (Polizia di Stato, 2026). You must also pass an Italian language test (Ministry of the Interior, 2026). Citizenship by residence needs 10 years (Ministry of the Interior, 2026).

The emotional side

Italy is often a dream long before it is a plan. Maybe it started with a holiday, a family name or a film. That is fine. But a dream and a daily life are different things.

In a small southern town, the pharmacy may close at lunch. Offices may only speak Italian. The bureaucracy can feel slow and personal. Some days, a simple form takes a whole morning.

Ask yourself:

• What will a normal Tuesday in February look like?
• Who will you call if you fall ill at night?
• Are you moving towards something, or away from something?
• If you lost your partner, would you want to stay there alone?
• How will you feel being far from your grandchildren?

The retirees who settle well usually rent first. They learn some Italian before they land. They pick a town for its hospital and train station, not only for its view. They join something: a choir, a walking group, a parish, a volunteer project.

Common mistakes

1. Planning to work remotely. The visa does not allow any work. Income from a job does not count.
2. Using the wrong income figure. Your consulate may want €31,000 per adult, not €31,000 plus 20%.
3. Signing a short or unregistered lease. Consulates want a lease of at least one year, registered in Italy.
4. Choosing a town only for the 7% tax. Check the population, the hospital and transport first.
5. Missing the 8-day deadline. Apply for your permesso di soggiorno soon after you land.
6. Forgetting the health fee. Budget €2,000 or more per person each year for the SSN.
7. Ignoring home-country tax. Your home country may still tax some pensions.

When to get a licensed professional

Speak to an Italian immigration lawyer (avvocato) if your income is close to the limit or comes from mixed sources. Get one too if a consulate refuses you or if you have a past visa problem.

Speak to a tax adviser (commercialista) who knows both countries before you choose your town. The 7% regime has strict conditions, and a wrong move can cost you the benefit. If you have pensions from more than one country, our guide to pension and social security portability is a good first read. US retirees should also see our guide to Social Security and Medicare abroad.

Frequently asked questions

How much income do I need for the Italy elective residence visa?

The usual minimum is €31,000 a year for one person. A spouse adds at least 20% and each child at least 5%. Some consulates, such as Boston and New York, expect about €31,000 per adult. Always check the consulate that covers where you live.

Can I work in Italy on an elective residence visa?

No. The visa does not allow any work in Italy. Your income must come from pensions, investments, rent or similar passive sources. Income from a job, including remote work, does not count toward the requirement.

Which towns qualify for the 7% flat tax?

Towns with up to 30,000 residents in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise or Puglia. Towns of the same size hit by the 2009 and 2016 earthquakes in central Italy also qualify. The 30,000 limit applies from 7 April 2026. Before that it was 20,000.

How long does the 7% tax regime last?

It lasts for the year you move plus nine more years, so 10 years in total. You choose it on your Italian tax return for the year you move. After that, ordinary Italian tax rules apply.

Do retirees get free healthcare in Italy?

Not on the elective residence visa. You can join the SSN by voluntary registration. The fee is based on income and is at least €2,000 a year per person. Registration covers the calendar year.

Can the elective residence visa lead to citizenship?

Yes, over time. After 5 years you can apply for the EU long-term residence permit. That needs enough income and an Italian language test. Citizenship by residence needs 10 years of legal residence.

Is Italy the right place for you?

Italy rewards people who are patient, curious and ready to slow down. The south can be affordable, and the 7% tax can make a real difference. But the income bar is high, you cannot work, and the paperwork never fully ends.

Compare Italy with other options in our guide to the best countries to retire abroad or our Portugal vs Spain for retirees comparison. You can also read our full Italy migration guide. If you want a clear answer for your own situation, take our free migration assessment.

This guide is general information, not legal or tax advice.