View of Rome, capital of Italy

Moving to Italy

La dolce vita, a generous impatriate regime and unparalleled heritage

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European UnionCurrency: EuroImpatriate regime 70% exemption7% flat tax for retireesCapital: Rome-20/30% vs Paris

Factsheet: Italy

Italy is one of the founding members of the European Union and one of the world's largest economies. Birthplace of the Renaissance, design, gastronomy and a unique art of living, it attracts thousands of French expats every year, drawn by the sweetness of Italian life: the sun, the landscapes, the cuisine, the culture. But Italy has also become a highly attractive tax destination in recent years thanks to two specific regimes: the "impatriate regime" which provides a 70% exemption on employment income for 5 years (extendable to 10 years under certain conditions), and the 7% flat tax on foreign income for retirees who settle in southern Italy. For families, business creators, retirees and remote professionals, Italy now offers a combination of art of living and tax optimization that is hard to match in Europe.

🇮🇹
Italy
La dolce vita, a generous impatriate regime and unparalleled heritage
Capital
Rome
Official language
Italian (regional dialects)
Currency
Euro (€)
Population
~59.7 million
Timezone
UTC+1 (UTC+2 in summer)
🇪🇺 European Union
Yes, founding member (1957)
Digital nomad visa
No (elective residence visa or EU free movement)
Cost of living (vs Paris)
~20 to 30% cheaper (excluding Milan)

Why choose Italy?

Italy is often underestimated in terms of attractiveness for expats, due to a reputation for complex bureaucracy. But for those who make the effort to settle there, the advantages are real and numerous: exceptional cultural and natural heritage, very generous impatriate tax regime, still very reasonable cost of living in the south and mid-sized cities, and full EU membership. Here are the main reasons why Italy deserves serious attention.

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Founding member of the European Union
Full freedom of movement for EU citizens, European legal protection, access to the single market. Italy has been at the heart of European integration since 1957.
📊
Impatriate regime — 70% exemption for 5 years
Individuals who settle in Italy after at least 2 years of residence abroad benefit from a 70% exemption on their employment income for 5 years. The exemption rises to 90% if you settle in southern Italy.
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7% flat tax for foreign retirees
Foreign retirees (including French) who settle in certain municipalities in southern Italy (under 20,000 inhabitants) pay a 7% flat tax on their foreign income for 10 years. An exceptional regime in Europe.
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Incomparable cultural heritage and quality of life
Italy has more UNESCO World Heritage sites than any other country. Gastronomy, art, architecture, nature — the quality of life is among the best in the world for those who know how to settle in.
🌡️
Exceptional climate in the south and islands
Sicily, Sardinia, Calabria, Puglia enjoy a Mediterranean climate with warm summers and mild winters. Ideal conditions for families and retirees seeking sunshine.
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Very affordable cost of living outside Milan
Outside Milan and tourist areas, Italy is significantly cheaper than Paris. Southern Italy, Abruzzo, Sardinia and mid-sized cities offer excellent value for money.
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1-euro house program
Several Italian municipalities offer abandoned houses for a symbolic 1 EUR to buyers who commit to renovating them. A unique opportunity for those wishing to settle permanently in the countryside.

Visa & Residence

Italy does not have an official "digital nomad" visa like Spain or Portugal. As a French citizen, EU free movement allows you to settle without any special procedure. For non-Europeans, the elective residence visa (for those living on passive income or retirement) is the main available option. The impatriate tax regime and 7% flat tax are not visas but fiscal options, accessible regardless of residency status.

EU free movement for French nationals

As a French citizen, you can settle in Italy without any visa process. After 3 months, you must register with the anagrafe (municipal registry) and obtain a codice fiscale (Italian tax number, equivalent to the French social security number). This registration is free, quick (a few days) and grants access to most Italian social rights. After 5 years of continuous legal residence, you can apply for the EU permanent residence card.

Elective residence visa (Visto per Dimora Elettiva)

This visa is for non-European nationals who wish to settle in Italy without engaging in local professional activity. It is particularly suited to retirees and those living on passive income (annuities, dividends, rental income). To be eligible, you must demonstrate regular income of at least 31,000 EUR/year (single) or 38,000 EUR/year (couple), housing in Italy and health insurance. The application is made at the Italian consulate in your country of residence. This visa is valid for 1 year and renewable, with the possibility of obtaining permanent residency after 5 years.

Duration
1 year renewable
Min. income
~31,000 EUR/year (single)
Timeline
30 to 90 days
Target
~116 EUR
This visa is ideal for retirees who wish to combine Italian residency with the 7% flat tax on their foreign income.

Impatriate regime (Lavoratori Impatriati)

This tax regime (art. 16 of Legislative Decree 147/2015, amended in 2024) allows individuals who settle in Italy after at least 2 years of residence abroad to be taxed on only 30% of their employment income (employment, self-employment) under IRPEF for 5 years. The exemption is therefore 70%, rising to 90% if you settle in a southern region (Sicily, Sardinia, Calabria, Campania, Basilicata, Puglia, Molise, Abruzzo). The duration can be extended by an additional 5 years if you have a minor child or purchase real estate in Italy. This regime applies to both employees and self-employed workers (partita IVA).

Duration
5 years (extendable to 10 years)
Min. income
Timeline
Request through employer or Agenzia delle Entrate
Target
Free (advisor fees: 500-2,000 EUR)
Note: the 2024 reform tightened eligibility conditions. It is essential to consult a commercialista (Italian chartered accountant) to verify your eligibility and optimize your situation.

Cost of living

The cost of living in Italy varies greatly by city. Milan is comparable to Paris, even more expensive in some neighborhoods. Rome is 15 to 20% cheaper than Paris. Meanwhile, Florence, Naples, Sardinia, Sicily and southern cities are much more affordable, with rents up to 50% lower than Paris for an equivalent or even superior quality of life. For an expat targeting tax optimization via the impatriate regime, the combination of "70% exempt income + lower cost of living" is particularly effective.

Estimated monthly budget: 1,400 - 2,400 EUR/month

Expense Monthly amount
Rent 1 bed, city center Milan 1,100 - 1,800 EUR
Rent 1 bed, city center Rome/Florence 700 - 1,200 EUR
Rent 1 bed, southern cities (Naples, Palermo) 400 - 700 EUR
Groceries 200 - 350 EUR
Restaurants (lunch menu ~12-18 EUR) 150 - 300 EUR
Transport (monthly pass) 25 - 50 EUR
Fiber internet + mobile 25 - 50 EUR
Private health insurance 60 - 180 EUR

📊 Taxation

Italy has several specific tax regimes designed to attract foreigners, among the most generous in Europe. The impatriate regime (70% exemption) and the 7% flat tax for retirees are the two flagship measures. Outside these regimes, the Italian tax system is progressive and relatively heavy, but the France-Italy tax treaty guarantees the elimination of double taxation. Working with a commercialista (chartered accountant) is essential to optimize your situation.

IRPEF — Standard income tax
Progressive brackets from 23% (0-15,000 EUR bracket) to 43% (above 50,000 EUR). Applicable to tax residents outside special regimes.
Impatriate regime — 70% exemption
Only 30% of employment income is taxed under IRPEF for 5 years (extendable to 10 years). Exemption raised to 90% in southern regions. Accessible after 2 years of residence abroad.
7% flat tax for foreign retirees
Foreign retirees settling in a municipality with fewer than 20,000 inhabitants in southern Italy pay a 7% flat tax on all their foreign income for 10 years. A regime without equivalent in Europe for retirees.
Corporate tax (IRES + IRAP)
IRES (corporate tax) at 24% + IRAP (regional production tax) at generally 3.9%. Effective rate around 27-28%. IRAP is an Italian specificity that increases the business tax burden.
VAT (IVA)
Standard rate of 22%. Reduced rate of 10% (food, tourism, medicines). Super-reduced rate of 4% (essential goods, books).
France-Italy tax treaty
Double taxation avoided. Essential to formalize Italian tax residency and sever ties with the French tax authority. Note that French real estate income remains taxable in France.

🚀 For entrepreneurs

Italy is not the easiest destination for starting a business (bureaucracy is often cited as the main obstacle). But recent reforms, the combination of the impatriate regime with a Partita IVA, and the dynamism of the Milan ecosystem make it a viable destination for entrepreneurs who settle with a solid project. Working with a commercialista is essential.

Partita IVA — Self-employed status
Equivalent of the French auto-entrepreneur status. Quick and inexpensive to set up. Flat-rate regime (regime forfettario): 15% flat tax (5% for the first 5 years) for income < 85,000 EUR/year. Very advantageous when combined with the impatriate regime.
SRL (Societa a Responsabilita Limitata)
Equivalent of a French SARL (LLC). Minimum capital of 1 EUR (SRL semplificata) or 10,000 EUR (standard SRL). Formation: 2 to 4 weeks, mandatory notarial deed. IRES 24% + IRAP 3.9%.
Impatriate regime for entrepreneurs
Self-employed individuals (Partita IVA) and company founders can benefit from the impatriate regime on their employment income. Combined with the flat-rate regime (5%), this creates a very significant tax optimization window for the first 5 years.
Startup ecosystem — Milan leading
Milan is Italy's main entrepreneurial hub: Google Campus, Talent Garden, Microsoft Hub. Access to European markets, pool of technical and creative talent, active venture capital funds.
Incubators and public aid
Invitalia (national agency), CDP Venture Capital, regional Camere di Commercio: several aid and funding programs exist for innovative startups and SMEs, often unknown to foreigners.

❤️ Healthcare

Italy has a public health system (Servizio Sanitario Nazionale, SSN) of generally high quality, although significant disparities exist between the north (excellent) and the south (more uneven). Residents who register with their local ASL (Azienda Sanitaria Locale) have access. Waiting times for specialists can be long; private healthcare is very widespread in Italy, at reasonable rates.

SSN — Public system
Accessible to residents registered with the local ASL. Free general practitioner (medico di base). Specialists and tests partially reimbursed (co-payment: generally 15-50 EUR).
Private healthcare — very accessible
Very widespread in Italy, even among locals. Fast and affordable private clinics: specialist consultation 50-120 EUR. Comprehensive private insurance: 80-200 EUR/month depending on age and coverage.
North/south disparities
The north (Lombardy, Veneto, Emilia-Romagna) has world-class hospitals. The south has more uneven infrastructure. A factor to consider if you plan to settle in the Mezzogiorno.
Dental care
Not covered by the SSN (except specific cases). Numerous private dental clinics, cheaper than in France. Typical rates: consultation 40-60 EUR, crown 400-700 EUR.

Where to live

Italy offers a palette of radically different cities and regions for expats. Milan is the European economic capital, Rome the eternal and international city, Florence the jewel of Tuscany, Naples the gateway to the sunny, authentic south, Sardinia the island paradise for those seeking nature and tranquility.

Milan
Milan
Italy's economic and financial capital, startup and design hub, intense cultural life, direct access to the Alps. Cost of living comparable to Paris but higher salaries. Large francophone community.
Best for: Executives, entrepreneurs, fashion and design
Rome
Rome
Political and cultural capital, international city with embassies, NGOs and multinationals. Rents 30% lower than Milan. Authentic neighborhood life, exceptional gastronomy.
Best for: Professionals, families, culture lovers
Florence
Florence
Capital of Tuscany, human-scale city (380,000 inhabitants), dense UNESCO heritage, internationally recognized university. Exceptional setting, moderate rents. Very popular with families and creatives.
Best for: Creatives, families, students
Naples
Naples
Italy's third city, gateway to the south. Among the lowest rents in Italy (400-700 EUR city center), legendary cuisine (pizza!), proximity to Positano/Capri/Pompeii. Benefits from the 90% exemption impatriate regime.
Best for: Adventurers, freelancers, retirees
Sardinia
Sardinia
Island with some of Europe's most beautiful beaches. Cagliari (capital) offers genuine service infrastructure. Affordable rents, peaceful pace of life, 7% flat tax for eligible foreign retirees.
Best for: Retirees, remote workers, nature lovers

Drawbacks to know

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Slow and complex bureaucracy
Italian administration is recognized as one of the slowest in Europe. Obtaining the codice fiscale, registrations, building permits, company formation — expect long delays and essential local support.
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Rigid job market and modest salaries
Italian salaries are among the lowest in Western Europe for executives and professionals. The market is very rigid and professional mobility is limited. Italy is better for remote workers and freelancers than for local employees.
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Uneven digital infrastructure
Fiber optic is well deployed in major cities but rare in rural areas and the deep south. Mobile coverage is variable. A factor to verify before settling in a remote area.
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Natural hazards in some areas
Italy is exposed to earthquakes (center and south), volcanic eruptions (Vesuvius, Etna, Stromboli) and flooding in some plains. To be considered when choosing a location and for home insurance.
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High tax burden outside special regimes
Without the impatriate regime or flat tax, Italian taxation is heavy (IRPEF + IRAP + social contributions). These special regimes are time-limited; you need to plan for what comes after.
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Italian often essential
Outside Milan and tourist areas, English is very poorly spoken. For daily life, administrative procedures and local professional relationships, Italian is indispensable.

Frequently asked questions

How do you qualify for the impatriate regime in Italy? +
The impatriate regime (Lavoratori Impatriati) is accessible if you have not been a tax resident in Italy for the last 2 fiscal years (or more, in certain post-2024 cases) and you commit to residing in Italy for at least 2 years. It applies automatically through your tax return (730 or Modello Redditi PF). You must inform your employer or activate it through the Agenzia delle Entrate if you are self-employed. A commercialista is essential for managing the process correctly.
The 7% flat tax for Italian retirees — how does it work? +
This regime (art. 24-ter TUIR) is for foreign retirees (receiving a foreign pension) who settle in an Italian municipality with fewer than 20,000 inhabitants in a southern region (Sicily, Sardinia, Calabria, Campania, Basilicata, Puglia, Molise, Abruzzo). They then pay a 7% flat tax on all foreign-source income (pension, rental income, dividends) for 10 years. The application is made to the Agenzia delle Entrate. It is one of the most advantageous tax regimes in Europe for retirees.
Is Italy suitable for digital nomads? +
Italy does not have an official digital nomad visa in 2026. As a French national, free movement is sufficient to settle there. Digital infrastructure is adequate in major cities but deteriorates quickly in rural areas. Cities like Milan, Rome, Florence and Naples have an active coworking ecosystem. For nomads seeking a formalized legal and tax framework, Italy is less turnkey than Spain or Portugal.
Is it really possible to buy a house for 1 euro in Italy? +
Yes, but with conditions. These programs exist in numerous small municipalities in central and southern Italy seeking to repopulate their deserted villages. The buyer commits to renovating the property within a set timeframe (often 3 years) and investing a minimum amount (generally at least 15,000 to 25,000 EUR). Notary and renovation costs are very real. It is a serious opportunity for those with the time, resources and taste for adventure, not a quick property flip.
How do you open a bank account in Italy? +
For individuals, traditional banks (Intesa Sanpaolo, UniCredit, BNL) require a codice fiscale and proof of Italian address. The simplest solution to start is using Wise, Revolut or N26, which work perfectly in Italy. Italian neobanks like Buddybank or Hype are also quick to open. For a company (SRL), you need a business account: processing times are longer and a commercialista can help.
Is Italy a good country for raising children? +
Yes, under certain conditions. Italian family culture is very strong, children are very well accepted everywhere, and the public education system is generally adequate (excellent in the north). French and international schools exist in Milan and Rome. Safety is good in most cities. The main challenge is the language: children learn it quickly, but parents must anticipate school procedures in Italian.
Do you need a commercialista to expatriate to Italy? +
For important tax and administrative matters (impatriate regime, Partita IVA, tax returns, company formation), yes, using a commercialista (chartered accountant) is strongly recommended, if not essential. Rates range from 50 to 200 EUR/hour. Bilingual Franco-Italian firms exist in Milan, Rome and Florence and understand the specificities of French expat situations.

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