Country guide

Moving to Italy:
flat tax, elective residence, and la dolce vita.

The elective residence visa needs €31,000 a year in passive income. Retirees in qualifying southern towns can pay 7% tax on all foreign income. A home costs an average €2,188/m². Here's everything else — from official sources, checked and dated.

Italy quick facts · verified 8 July 2026
58.9MPopulation, of which 9.4% are foreign residents (ISTAT, Jan 2026)
€31,000/yrMinimum passive income for the elective residence visa — consulates often want more
7%Flat tax on ALL foreign income for pensioners in southern towns under 30,000 people — 10 years
€2,188/m²Average asking price nationally, Apr 2026 (Rome: ~€2,986) — Immobiliare.it
€14.45/m²Average asking rent nationally, Apr 2026 (Milan: €22.25) — Immobiliare.it
1.7%2025 average inflation, HICP (ISTAT)
85.7 yrsFemale life expectancy 2025 (men: 81.7) — among Europe's highest (ISTAT)
10 yrsResidence required for citizenship — and descent claims capped at two generations since 2025
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Recent rule changes

Three things that changed recently — and matter

Citizenship by descent is now capped at two generations. Law 74/2025 (in force 24 May 2025) limits jure sanguinis to people with an Italian parent or grandparent — and that ancestor must have held exclusively Italian citizenship. The unlimited-generation claims millions of Italian-Americans and Italian-Canadians relied on are gone. Applications filed before 27 March 2025 keep the old rules.
The 7% flat-tax map just got bigger. From April 2026, the population ceiling for qualifying southern municipalities rose from 20,000 to 30,000 (Law 34/2026) — adding 74 towns, including Ostuni and Pompei. Foreign pensioners who move to one pay 7% on all foreign income for up to 10 years.
The middle income-tax rate fell to 33%. The 2026 Budget (Law 199/2025) cut the IRPEF band on income between €28,000 and €50,000 from 35% to 33% — worth up to €440 a year. Rates are now 23% / 33% / 43%, before regional and municipal surtaxes.
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