Moving to Italy from the USA: Your Guide to Visas, Money, and Expat Banking

Italy is one of the most popular destinations for Americans moving abroad. The cost of living outside Rome and Milan is significantly lower than in most US cities, the public healthcare system is free for registered residents, and southern Italy has specific tax incentives designed to attract foreign retirees. For Americans moving to Italy from the US, it offers one of the most rewarding combinations of quality of life and financial accessibility in Europe.

Getting there takes planning. In Italy, each piece of paperwork unlocks the next, and the timelines are longer than they look. This guide covers everything you need to know before and after the move.

Which visa do you need

US citizens can enter Italy and the wider Schengen Area visa-free for up to 90 days. If you're staying longer, you need to sort residency before you leave the US. The main routes for Americans:

Elective Residency Visa (Visto per Residenza Elettiva): The standard route for retirees and people living on passive income: savings, pensions, rental income, or investments. Italy requires proof you can support yourself without working in the Italian job market. The income threshold is roughly €31,000/year for a single applicant (2026 figures; verify current thresholds with the Italian Ministry of Foreign Affairs).

Apply at your nearest Italian consulate in the US and allow two to three months for processing. You'll receive an entry visa valid for one year, renewable. After five years of continuous legal residency you can apply for permanent residency. Italian citizenship eligibility begins at ten years.

One time-sensitive step: within eight days of arriving in Italy you must apply for a Permesso di Soggiorno (permit to stay). This is mandatory, and the clock starts the day you land.

Digital Nomad Visa: Introduced in 2024 for remote workers employed by or freelancing for companies outside Italy. You'll need proof of ongoing remote work, a minimum annual income of around €28,000 (2026 INPS figures), and valid health insurance. The visa is valid for one year and renewable. If you're working remotely for non-Italian employers or clients, this is the right route.

Work Visa (Nulla Osta): For Americans with a job offer from an Italian employer. The employer applies for a work authorization permit through Italy's annual Decreto Flussi quota system. Spots are limited and the process is entirely employer-led.

Student Visa: Full enrollment at an Italian university or accredited language institute qualifies you. Full-time employment isn't permitted, but limited part-time work generally is.

The Codice Fiscale: get this sorted early

The Codice Fiscale is Italy's tax identification number. It's a 16-character code based on your name, date of birth, and place of birth. You need it to sign a lease, open a bank account, get a phone contract, access healthcare, enroll children in school, and deal with any Italian administration.

You can apply at your nearest Italian consulate in the US before you leave. It's free, and many consulates issue it on the spot. You can also apply at any Agenzia delle Entrate office after you arrive. Getting it before you leave is the more practical option. Without it, you can't do much once you land.

One thing that helps bridge the gap: bunq doesn't require a Codice Fiscale to open an account. You can open an Italian Bank Account before you land, useful for receiving transfers from the US and covering early expenses while you work through the paperwork queue.

What things cost

Italy's cost of living varies more by region than in most European countries. Rome and Milan are expensive by European standards. Much of the south and the islands are among the most affordable places in the EU.

Day-to-day spending is considerably lower than in the US. A full meal at a local trattoria costs €12 to €18. Groceries run roughly 25 to 35% cheaper than equivalent US prices. A monthly transit pass in Rome or Milan is around €35 to €40, and utilities for a standard apartment run €80 to €150/month.

A single person can live comfortably in a mid-sized Italian city on €1,700 to €2,300/month. A couple in Rome or Milan should budget €3,500 to €5,000 to cover rent and live well.

Healthcare

Italy's public healthcare system, the Servizio Sanitario Nazionale (SSN), covers registered residents for GP visits, specialist care, hospital treatment, and most prescriptions at low or no cost. Quality is generally solid, though wait times for non-urgent specialist appointments can be long in some areas, and there are real gaps between north and south.

Once you have your Permesso di Soggiorno and Codice Fiscale, you register at your local ASL (Azienda Sanitaria Locale) and choose a GP. Before that's in place, and as a condition of most visa applications, you'll need private health insurance. Private cover in Italy typically runs €60 to €150/month, which is considerably cheaper than equivalent US health insurance.

Your US health insurance won't cover routine care in Italy. Some policies include emergency international coverage, worth confirming before you go, but it isn't a substitute for local cover.

Taxes

US tax obligations for American expats in Italy

US citizens are taxed on worldwide income regardless of where they live. Moving to Italy doesn't change your obligation to file a US return each year. If your foreign bank accounts hold more than $10,000 at any point during the year, you'll need to file an FBAR (FinCEN Form 114). Depending on your asset levels, FATCA Form 8938 may apply too.

The Foreign Earned Income Exclusion lets eligible taxpayers exclude a portion of foreign-earned income from US tax. The Foreign Tax Credit lets you offset US liability against taxes already paid in Italy. The US and Italy have a bilateral tax treaty that prevents double taxation in most cases. Most American expats end up owing little or nothing to the IRS once both are applied correctly.

Italian income tax (IRPEF)

Spend more than 183 days in Italy in a calendar year, or maintain your primary home there, and you're an Italian tax resident taxed on worldwide income. Italy's income tax (IRPEF) is progressive:

• 23% on income up to €28,000

• 35% on €28,000 to €50,000

• 43% above €50,000

Regional and municipal surcharges apply on top.

Special tax regimes for American expats

The 7% flat tax for pensioners: Retirees who move to municipalities with fewer than 20,000 inhabitants in certain southern regions, including Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily, can apply for a flat 7% rate on foreign-sourced income for up to ten years. It's one of the most generous incentives for American retirees anywhere in Europe.

The flat tax for new residents: New Italian tax residents who haven't been resident in Italy for nine of the ten preceding years may be able to pay a fixed annual tax on foreign-sourced income instead. It's designed for higher earners with significant overseas income and isn't worth the setup costs for most expats.

A commercialista handles tax filings, residency paperwork, and dealings with Italian bureaucracy. Fees are reasonable and their knowledge of the system saves real time. Find one before you need to file anything.

Banking

Traditional Italian banks create specific headaches for US citizens. Many are reluctant to open accounts for Americans due to FATCA compliance obligations. Those that do typically require a Codice Fiscale, proof of Italian residency, and a branch visit. None of those will be in place on arrival.

bunq bridges that gap. Open a Bank Account from your phone with no Codice Fiscale required at sign-up and no branch visit. We’re a fully regulated European bank, so you get an Italian IBAN you can use for receiving transfers, everyday spending, rent payments, and subscriptions. 

Whether you're still in the US planning the move or already in Italy working through the paperwork, you can have a fully functional European account ready before you land. Open your Bank Account in 5 minutes.

Finding a place to live

Italy's rental market is competitive in Rome and Milan, where international demand has pushed up prices and reduced vacancy rates. The rest of the country, including Bologna, Florence, Naples, the south, and the islands, is considerably more manageable.

Useful platforms for finding accommodation:

• Immobiliare.it: the largest Italian property portal

• Idealista.it: particularly strong in major cities

• Subito.it: a mix of private and agency listings outside the main cities

• Expat Facebook groups for specific cities regularly surface furnished short-term lets that don't appear on the main platforms

Landlords typically ask for the first month's rent plus a deposit of two to three months, a Codice Fiscale, and proof of income. Some will accept a passport and confirmation of your Codice Fiscale application. Others will want the actual code. Taking a short-term rental for the first two to three months buys you time to get settled, find the right neighborhood, and get your Permesso di Soggiorno and Codice Fiscale sorted before committing to a longer lease.

Driving

A US driving license is valid in Italy for the first year of residency. After that, you'll need an Italian one. Italy doesn't have a full reciprocal exchange agreement with US states, which means you'll generally need to sit both the Italian theory exam (Esame di Teoria) and a practical driving test. Driving schools (autoscuole) handle the preparation. Budget €500 to €1,500 depending on how much support you need.

If you're settling in Rome or Milan, both cities have public transport networks that make a car unnecessary for daily life, at least initially. Outside the major cities, and especially in the south, rural areas, and the islands, a car makes considerably more sense.

Language

Italian is more essential to daily life than in most other European countries Americans tend to move to. English is spoken in major tourist and business centers, but healthcare appointments, administrative processes, and landlord negotiations all require at least functional Italian.

Italian is generally considered one of the more approachable languages for English speakers. Language schools (scuole di lingua) are common in every significant city. Conversation exchanges are one of the more effective ways to build fluency while also meeting people. Arriving with at least a foundation in the language makes the early months significantly less frustrating.

Getting started

Moving to Italy from the US is a big step, but your banking doesn't need to be complicated. With bunq, you can open your account from your phone, get a euro IBAN before you land, and manage your money in English from day one. Whether you're moving for the lifestyle, the food, the culture, or the tax incentives, bunq helps you handle your finances with less stress and more freedom.

Before you go: start your visa application at your nearest Italian consulate well in advance, as appointment availability varies significantly by city. Apply for your Codice Fiscale at the same time, since many consulates process it alongside the visa. Get private health insurance that meets Italian visa requirements sorted early. And find a commercialista before you need to file anything.

Ready to make Italy home? Open bunq and start banking like a local.

This article is for general information only and does not constitute legal, tax, or financial advice. Requirements and thresholds change. Consult a qualified adviser for your specific situation.