Moving to Italy from the USA as an American Business Owner

The number of Americans moving to Italy from the USA has been on the rise in recent years, with 16,534 officially registered as Italian residents in 2024. (1) It’s not hard to see why. Italy boasts a great quality of life, from its Mediterranean climate to its lower cost of living, walkability, and robust social services.

And with several visa pathways available to American business owners, living in Italy is more accessible than ever.

To make sure Italy is truly the right fit for you, though, you’ll need to do some research. 

Read on to learn about the pros and cons of moving to Italy, the best places to move, which visas are available, how your taxes will change, and more.

Why Italy Appeals to US Business Owners

Moving to Italy from the USA is becoming an increasingly attractive prospect. From lifestyle benefits and healthcare to favorable tax incentives and residency options, Italy continues to draw in entrepreneurs and professionals from abroad.

While recent updates have made it more difficult for everyday individuals to claim Italian citizenship through ancestry (jure sanguinis), US business owners still have flexible pathways to residency and long-term life abroad.

A few factors that have been attracting US business owners to Italy include:

Culture

With iconic dishes like cacio e pepe, pizza, and gelato, Italy’s food is reason alone to visit. Combine that with world-class museums, stunning architecture, historic landmarks, and lively festivals, and you may just want to make Italy your new home.

Affordability

According to Numbeo, the cost of living in Italy (including rent) is a whopping 26.7% lower than in the US. Although prices have been on the rise in Italy, particularly for housing, your dollar typically goes much further in Italy than in the States

Weather

While the weather in Italy varies from region to region, the country generally enjoys a Mediterranean climate with mild winters and hot summers. Northern Italy tends to be colder in the winter and more humid in the summer, while Southern Italy has more temperate winters and long, dry, hot summers

Safety

According to the Global Peace Index, which tracks factors like crime rate and political stability, Italy is the 33rd safest country in the world, significantly higher than the US, which ranks at number 132.

Infrastructure

Like most of Western Europe, Italy’s infrastructure is well developed, comprising high-speed railways, well-maintained roads, reliable internet and utility services, and high-quality healthcare. Keep in mind, however, that Southern Italy’s infrastructure is often limited compared to more prosperous regions

Beauty

From the charming, colorful seaside villages of the Cinque Terre to the canals of Venice, the emerald waters of Sicily, the rolling green hills of Tuscany, and the snow-capped mountains surrounding Lake Como, you can see beautiful vistas all throughout Italy.

Relaxed pace of life

Italy is known for its laid-back culture, where the simple things in life — like good food, wine, design, and company — take precedence over the live-to-work mentality of the US. Outside of Milan, even Italian business culture is more relaxed, with a strong emphasis on work-life balance.

A few factors that sometimes frustrate US expats include the language barrier, limited local job opportunities, a lack of urgency, and bureaucracy. Things like applying for a visa or signing up for the Italian business register are often tedious, time-consuming, and inefficient. That said, most US expats living in Italy are willing to accept these trade-offs.

Best Regions in Italy for US Business Owners

Northern Italy is the country’s business and financial hub, with Central Italy — home to the capital city of Rome — at a clear second. South Italy may not have the same business infrastructure and international connectivity as cities like Milan and Florence, but it’s becoming increasingly popular for remote workers and entrepreneurs thanks to its lower cost of living.

Here’s a more detailed look at some of the most popular destinations in Italy for American expat business owners:

Milan

Milan is Italy’s economic powerhouse, home to an estimated 800,000 different businesses and a regional GDP surpassing €390 billion (~$441 billion). (2) While many types of businesses operate in Milan, the city is particularly well known for its finance, fashion and design, manufacturing, and tech industries. And with multiple large universities nearby, Milan offers a major talent pool.

Beyond business, Milan is well-known for its:

  • Trendy boutiques, cafés, and art galleries
  • Blend of old world and contemporary architecture, from the Il Duomo cathedral and Sforza Castle to the skyscrapers of the Porta Nuova district
  • Regional cuisine, including dishes like risotto alla milanese and osso bucco 

Rome

Italy’s capital and most populous city is the second-largest business hub behind Milan. From multinational enterprises to government agencies, nonprofits, startups, and financial service firms, a wide variety of organizations operate out of Rome. 

Lower real estate prices and lifted restrictions, meanwhile, present a particularly good opportunity for real estate investors. (3)

Beyond its burgeoning economic sector, expats also enjoy Rome’s:

  • Stunning architecture, from ancient structures like the Colosseum to the Baroque-period Trevi Fountain to modernist structures like the National Museum of 21st Century Arts
  • Local cuisine, which includes crispy thin-crust pizza and pasta alla carbonara
  • Entertainment options, including operas, ballet, theaters, concerts, and film festivals

Florence

As the birthplace of the Renaissance, it should come as no surprise that Florence’s industry revolves around artisan goods, tourism, and the arts. As a smaller city, Florence’s talent pool isn’t as expansive as that of Rome or Milan, but costs tend to be lower as well.

Moving to Florence, Italy, from the USA will also allow you to:

  • Explore some of the best art museums in the world, like the Uffizi Gallery and Accademia Gallery, which house pieces from Botticelli, da Vinci, Michelangelo, and many more
  • Leave your car behind, thanks to the city’s supreme walkability and excellent public transport system
  • Escape to nearby vineyards and tasting rooms in the heart of wine country — a major perk for any wine lover contemplating moving to Tuscany, Italy, from the USA

Sicily & Puglia

Sicily and Puglia are both located in Southern Italy — Puglia is the “heel” of Italy’s boot shape, while Sicily is the island located near the toe. 

While both regions have historically struggled with sluggish economies and high unemployment rates, the lower prices and growing investments in industries like agriculture, renewable energy, tourism, and real estate present a compelling opportunity for US business owners.

Moving to Sicily, Italy, from the USA gives you access to:

  • A unique culture characterized by its own dialect, festivals, and dishes, including caponata, an eggplant stew, and arancini, fried rice balls
  • Over 300 days of sunshine per year on average
  • Some of the best beaches in Italy, including Scala dei Turchi and the Vendicari Nature Reserve

Puglia also boasts a warm, sunny climate and stunning beaches, albeit in a more rural, less populated setting.

Steps to Moving to Italy as an American

To successfully navigate a move to Italy as a US business owner, you’ll generally need to:

  • Understand the US and Italian tax implications of an international move
  • Learn about the potential impact on your personal finances and update your strategy accordingly
  • Choose where to move (consider a visit ahead of time to scope out a few locations on your list!)
  • Secure a long-term visa for yourself and any family members you’ll bring with you
  • Decide whether to sell or rent any property you own (or alternatively, use it as a home base when you visit the US)
  • Sort through your belongings and sell, store, or pack/ship them accordingly
  • If you’re thinking of moving your dog from the USA to Italy — or any other pets — make sure to arrange transport and complete the necessary paperwork
  • Open an Italian bank account and choose an Italian cell phone provider
  • Find long-term housing, either through an online website like Immobiliare and Idealista or a real estate agent (popular options include Sotheby’s, Great Estate Group, and Engel & Völkers)
  • Register as an official Italian resident with the proper governmental bodies (e.g., tax authority, social security)
  • Choose your Italian business structure and register it with the proper authorities — the right setup can help you save thousands of dollars over time

Common Visa Pathways for US Business Owners

Below are a few of the most common visa options for American business owners looking to relocate to Italy.

Digital Nomad Visa

Who it’s for: Remote workers whose clients or employers are based outside of Italy

Key requirements: Earn at least €24,789 (~$28,074) per year

Duration: One year, renewable every year as long as you continue to meet the requirements 

Notes: To qualify for a digital nomad visa in Italy, your job must either require a post-secondary degree or three to five years of prior experience, depending on the position and role

Self-Employment Visa

Who it’s for: Freelancers, entrepreneurs, and other self-employed professionals of all kinds

Key requirements: Earn at least €8,500 (~$9,623) annually and have at least €42,000 (~$47,543) in assets to operate your business (4)

Duration: Two years, renewable every two years as long as you continue to meet the requirements

Notes: Italian self-employment visas are subject to strict quotas. In 2024, there were only 680 spots available for self-employed workers (5)

Tip: The self-employment visa involves jumping through bureaucratic hoops, as you must receive authorization from several different governmental bodies to be approved. Between that and the strict quotas, most expat business owners who qualify are better off applying for the digital nomad visa.

Startup Visa

Who it’s for: Founders interested in obtaining a business visa for Italy to grow their startup

Key requirements: Receive approval for your pitch deck and business plan from the Italy Startup Visa Technical Committee OR be accepted by a certified Italian incubator AND have at least €50,000 (~$56,682) available to grow your startup (6)

Duration: One year, renewable every two years as long as you continue to meet the requirements

If you’re wondering how to get this business visa for Italy, the Italian government has a comprehensive hub outlining the process. (7) Due to its complexity, however, you may want to hire a lawyer or specialists to help you navigate the application.

Elective Residency Visa

Who it’s for: Retirees or high-net-worth individuals with passive income

Key requirements: Earn at least €31,000 (~$35,147) to €32,000 (~$36,288) per year, (depending on the consulate), in stable passive income, such as income from pensions, annuities, dividends, or rental income. Bringing family members requires additional income

Duration: One year, renewable every year as long as you continue to meet the requirements

Notes: The elective residency visa in Italy does not permit remote work. While Italian officials may not have the bandwidth to enforce this rule 100% of the time, getting caught can come with steep consequences, including fines, visa revocation, and even deportation 

Related reading: How US Retirement Accounts Are Taxed Abroad: A Comparative Guide

Citizenship By Descent (i.e., Jure sanguinis)

Who it’s for: Those with Italian ancestry

Key requirements: Have a parent or grandparent who was born in Italy and never forfeited citizenship

Duration: Lifelong; however, you may need to exercise the “rights and duties” of Italian citizenship every 25 years by renewing your passport or voting in an Italian election (8)

Notes: Previously, eligibility for Italian citizenship by descent was much broader — anyone who was directly blood-related to an Italian citizen alive on or after March 17th, 1861, could apply. A recently passed immigration law, however, has significantly tightened the requirements. (9)

If you previously qualified for Italian citizenship by descent but don’t anymore, keep in mind that not all is necessarily lost, says Nick Metta, partner at the law firm Studio Legale Metta. 

“We’re encouraging people who are motivated to give it a try, because there is legal ground to fight the new restrictions in Court thanks to a number of legal technicalities.”

Nick Metta, Partner at studio legale Metta

Timeline Expectations

When applying for a visa, it’s important to have realistic expectations about how long it will take before you can move to Italy. As eager as you might be, the process can be long, especially in a country known for its bureaucracy.

  • It’s worth taking a scouting trip to get a feel for which areas you may want to move to
  • Pre-move tax and financial planning can take a few weeks or months, depending on factors like how complex your business structure is and whether you need to readjust your portfolio (especially common for retirees and trust beneficiaries)
  • Gathering visa documents can take anywhere from a few weeks to a few months. The digital nomad visa and elective residence visa are relatively straightforward, while the startup visa and self-employment visa require you to jump through multiple administrative hoops
  • Securing an appointment at your local Italian embassy, consulate, or visa processing center can also take two to eight weeks
  • After submitting your visa, you’ll likely receive a decision within one to three months. If you were rejected, you may need to appeal the decision, which can take six months to a year

In the best of cases, you can head to Italy with your visa in hand about six months after you begin the research phase. More likely, however, it will take between six to twelve months—or even more, depending on the complexity of your application and whether your visa application center is working through a large backlog.

Do US Citizens Pay Taxes in Italy?

Even if they don’t have dual citizenship with Italy, US citizens must pay taxes in Italy if they a) qualify as Italian tax residents or b) earn Italian-source income. 

The Italian government defines tax residents as anyone who meets at least one of the following conditions for over 183 days in a tax year:

  • Is physically present on Italian territory
  • Has a habitual abode in Italy
  • Has a domicile in Italy — in other words, Italy serves as the main center of their social, financial, or family life

Again, even those without Italian dual citizenship who meet the above requirements qualify as Italian tax residents and must file and pay taxes accordingly.

Italian Tax Residents Are Subject to Taxation on Their Worldwide Income 

This includes US-source income. Non-tax residents, on the other hand, are subject to taxation only on Italian-source income.

Italy levies taxes at the following rates in the 2025 tax year (US values are approximations and may vary based on the exchange rate):

Income (EUR)Income (USD)Tax Rate
Up to €28,000Up to $31,75723%
€28,001 – €50,000$31,758 – $56,71735%
€50,001+$56,718+43%

Other Key Taxes (10)

  • Regional income taxes: 1.23% to 3.33%, depending on the region
  • Inheritance taxes: 0% to 8%, depending on the value of the estate and the heir’s relationship to the deceased

While these tax rates may seem daunting, it’s important to keep a few things in mind. 

The US has relatively low effective tax rates, particularly at a federal level, compared to many European countries. In countries like Italy, “tax brackets are compressed, meaning you pay higher taxes at lower income levels, and the terminal tax rates can be high.

Alex Ingrim, President and co-founder of Liberty Atlantic Advisors

In exchange, however, Italy offers a lot in return.

“The cost of living in Europe is often lower, and there’s often no need to take out private health insurance or budget for significant college costs for the kids,” Ingrim pointed out.

Plus, you can almost always reduce your tax burden with some strategic preparation.

“Do some tax planning ahead of time to try to mitigate your liabilities before an international move,” Ingrim advised. “Don’t let tax concerns dictate important life decisions. Be informed, and make decisions based on planning, data, and where you want to be.”

Americans opening a new business in Italy with sales not exceeding €85,000 (~$96,682) may be able to benefit from an effective tax rate of ~11.7% of gross sales. If their business is completely new — not just a continuation of what they were doing in the US — their effective tax rate could be as low as 4.1% of the gross revenue.

Not only could this lower your tax rate — it could also result in less of an administrative burden, since you don’t have to turn in any invoices for your costs and neither you have to comply with VAT regulations.

Key Callouts for Different Expat Demographics

Entrepreneurs 

Italy offers a number of benefits for entrepreneurs setting up shop in undeveloped regions designated special economic zones (SEZs). You can find SEZs in Southern Italy (e.g., Sicily, Calabria, Puglia, and Campania) and inner regions (e.g., Abruzzo, Molise, and Basilicata). (11) Benefits may include:

  • Reduced corporate tax rates
  • Tax credits
  • Grants or funding
  • Subsidized loans
  • Hiring incentives, like social security contribution exemptions
  • Streamlined administrative processes

To receive these benefits, you generally must apply through the local chamber of commerce.

Freelancers

If you’re a freelancer whose income exceeds €85,000 (~$96,383), you’ll need to register for a  Partita IVA, or value-added tax (VAT) ID number. (12)

In such cases, you’ll need to charge VAT and remit the proceeds to the government if you’re providing services to individuals in another EU country. Services for clients outside of Italy are typically exempt from VAT, while services for businesses within the EU must account for VAT (not you). The standard VAT rate in Italy is 22%. 

Tip: Consult an Italian tax specialist to ensure that the invoices you remit to the government are fully compliant with all requirements.

You’ll also need to register for and contribute to Italy’s social security program. Social security contribution rates are typically 26.23%. Registered professionals (e.g. doctors, lawyers) and artisans, and merchants pay at different rates depending on their profession’s pension fund.

Newly registered freelancers may benefit from a 50% reduction in social security contributions for the first three years of their operation.

Retirees

Non-Italian retirees residing in Italy may qualify for a special 7% flat tax regime on all foreign income (not just foreign retirement or pension income!). To qualify, you must:

  • Not have been an Italian tax resident for the past five years
  • Transfer your tax residence to Italy
  • Live in a municipality of Southern Italy with less than 20,000 inhabitants in one of the following regions:
    • Abruzzo
    • Basilicata
    • Calabria
    • Campania
    • Molise
    • Puglia
    • Sardinia
    • Sicily
    • Lazio, Le Marche, and Umbria, limited to some areas within such regions  

This favorable tax treatment lasts for ten years before expiring. (13)

Remote Workers

You are allowed to work for an Italian client. Holders of the self-employment visa can work in Italy for Italian clients or non-Italian clients or businesses based in Italy. 

Does Italy Have a Tax Treaty with the US?

Yes, the US–Italy income tax treaty was signed on August 25, 1999, and entered into force on December 16, 2009. The US-Italy tax treaty also contains some tax benefits, but most of them are nullified due to a savings clause that lets the US tax citizens and permanent residents as if the agreement didn’t exist. Still, a few benefits survive the savings clause, which we’ll go into more detail on later.

So, which forms do US expats with an Italy business need to complete when filing their US expat tax return? A few of the most common include:

  • Form 1040: For reporting your income and calculating your overall tax liability
  • FinCEN Form 114 (aka the FBAR): For reporting foreign financial account holdings, when the sum of them exceeds $10,000 at any point in the year
  • Form 8938 (aka FATCA): For reporting certain foreign assets when your assets exceed $200,000 on the last day of the tax year or $300,000 at any point during the tax year
    • Note: This threshold is doubled for married couples filing jointly
  • Form 1116: For claiming the Foreign Tax Credit (FTC)
  • Form 5471: Information Return of US Persons With Respect to Certain Foreign Corporations
  • Form 8858: Information Return of US Persons With Respect to Foreign Disregarded Entities
  • Form 8865: For US persons with an interest in foreign partnerships

Tip: Timing your move mid-year may help optimize tax obligations across both countries. Assuming that you don’t have a domicile or habitual abode in Italy already, spending less than 184 days in the country will make you a non-tax resident in Italy. As a result, you’ll only have to pay Italian taxes on Italian-source income if you move during the second half of the tax year.

US Freelancers and Business Owners Moving to Italy

If you’re a US freelancer or business owner, it’s imperative to choose the right visa and legal structure for your business. 

Generally, the digital nomad visa is the easiest visa to qualify for and apply for, while the startup visa and self-employment visa have higher barriers to entry. 

That said, there are circumstances in which you may qualify for the startup visa or self-employment visa but not the digital nomad visa. 

How Different US Business Structures Are Generally Taxed in Italy

StructureHow It’s Taxed
Sole Proprietorship/LLCProfits taxed as personal income
S Corporation or PartnershipSince Italy doesn’t recognize these US business structures, it generally treats your share of profits as personal income
C CorporationC corporations are recognized as separate legal entities. If you actively manage the company from Italy, you may be subject to Italian corporate tax (generally 27.9%) as well as taxes on dividends

You may even want to restructure or transfer operations of your business. For example, handing over operational reign or selling a portion of your equity to a US-based partner can reduce the tax rate you pay on dividends.

Before heading to the Italian business register, you’ll also want to think about how you want to register your US business in Italy. An Italian business structure called the Società a responsabilità limitata (Srl), for example, provides similar benefits to an LLC in the US 

Tip: An organization called the Business Association Italy America, founded to support businesses that operate in both Italy and the US, can be a valuable resource as you navigate a move to Italy.

Retirement, Investments & Foreign Income

Retirement Income Taxation

While you must declare all of your US retirement accounts, a surviving benefit of the US-Italy tax treaty provides that pension income from US retirement accounts (including 401(k)s) and IRAs) is taxable only in Italy. Similarly, US Social Security income received when a resident of Italy is subject to taxation exclusively in Italy under the treaty. This means US citizens residing in Italy face potential double taxation on their retirement benefits, though they can claim foreign tax credits under Article 23 to mitigate this burden.    

Investment Income

Capital gains are generally subject to a flat 26% tax, although there are a few exceptions: (14)

  • Gains from the sale of a primary home are typically exempt
  • Gains from the sale of a property owned for more than five years are typically exempt
  • While crypto gains are currently subject to a 26% tax, the rate will increase to 33% as of tax year 2026
    • Note: You can opt to “revalue” your crypto assets or other assets that might generate capital gains, like company shares, which may lower your cost basis in exchange for paying an 18% tax rate on the entire amount of the assets.

Dividends are typically subject to a flat tax rate of 26% as well.

Tip: In most cases, Americans should avoid foreign (i.e., non-US) pooled funds or mutual funds. These investment vehicles are often considered passive foreign investment companies (“PFICs”), which result in such harsh tax treatment from the US that any increase in value is usually offset by an increased tax burden.  

Similarly, in the inverse, Italian tax residents should avoid non-Italian pooled funds or mutual funds. These investment vehicles fall under the Non-Harmonized Funds regime. Any income, such as capital gains and/or dividends, from this type of investment is taxed at ordinary rates in Italy instead of the flat 26% tax rate.

Before making any major financial move as an Italian tax resident, it’s always best to consult cross-border tax professionals to make sure it aligns with your overall tax strategy.

Social Security, Healthcare, and Long-Term Planning

Social Security

The US has a Totalization Agreement with Italy that prevents Americans living in Italy (and vice versa) from having to pay social security taxes in both countries. 

Americans who plan to live in Italy for five years or less will continue paying US Social Security taxes, while those who plan to live in Italy beyond five years should pay Italian social security taxes.

However, you may choose to pay Italian social security taxes regardless of how long you plan to live there if you want Italian public healthcare.

Per the Totalization Agreement, exceptions to the above rules apply to dual nationals, i.e., people who have both Italian and US citizenship.

Italy’s Healthcare System

Italy offers low-cost universal healthcare to all citizens and legal foreign residents. In 2023, the Legatum Prosperity Index ranked Italy’s healthcare system at #17 out of 167 different countries. (15) Although the quality is generally good, it can vary by region, with greater availability and more modern facilities in the north than in the south. 

Wait times can also be long, especially for specialists. As a result, many Americans who live in Italy choose to supplement their public healthcare with private plans, which are still typically much more affordable than they are in the US 

Typically, private plans cost between $330 and $3,330 per year, depending on coverage. (16)

Some visas require applicants to hold private health insurance, including the elective residency visa, self-employment visa, and digital nomad visa. Once holders of those visas register with the national healthcare system, however, they can generally access it as well. 

Long-Term Planning

Whether you plan to live out your days in Italy or just want to cover your bases, it’s wise to do some long-term planning before you make your move. A few things you’ll want to consider:

  • Long-term care: Although long-term care generally costs less in Italy, it can still add up quickly. You may want to consider purchasing long-term care insurance, drafting an advanced medical directive, and selecting a medical power of attorney before your move 
  • Estate planning & international wills: After moving to Italy, it’s a good idea to a) revisit your US estate plan and b) create an Italian estate plan. Drafting these documents with estate planning lawyers in each country helps ensure that your final wishes are carried out and that you can take care of your loved ones even after you’re gone

Italian Citizens Moving Back From the US & International Couples

Italian Citizens Returning Home

If you’re an Italian citizen who’s moving to Italy from the USA after years of residence, you may be eager to head back as soon as possible, but it’s important to consider the tax implications first. 

If you’re a US citizen or hold a Green Card (i.e., are a permanent resident) when you move, you must continue to file (and potentially pay) US taxes, even after you leave the country.

In this case, the only way to sever your US tax and reporting obligations is to formally abandon your Green Card or renounce your US citizenship. 

Doing so, however, can trigger an expensive exit tax if you meet any of the following criteria: (17)

  • Your average annual net income tax for the past 5 years exceeded $206,000 in 2025 (this figure increases each year due to inflation)
  • Your net worth is $2 million or more
  • You fail to certify full tax compliance in the past five years

When the exit tax does apply, you must pay the capital gains tax on all net unrealized gains above the exclusion amount ($890,000 in 2025).

International couples

If you’re marrying an Italian who doesn’t hold US citizenship or permanent residence, you’ll need to consider a few key things:

  • Whether to file jointly or separately: If your nonresident spouse has significant foreign income or assets, it’s often better to file separately. If not, filing jointly may help you save on taxes by allowing you to qualify for tax breaks that you wouldn’t otherwise, or lowering income thresholds for your marginal tax rates. Proceed with caution, however, if you decide to file jointly: Filing jointly means your spouse must elect to be treated as a US taxpayer and will be subject to all of the same US tax and reporting obligations as you are, including FBAR and Form 8938 reporting (if applicable). This is an election that can be made each year – using it one year does not require that you make the election again in the following year.
  • How to structure joint accounts and business interests: You may need to be careful about how you handle ownership of joint financial and business assets. Sharing assets with a non-US national can trigger additional reporting requirements, income attribution issues, and foreign trust classification risks
  • US gift and estate tax limits for non-citizen spouses: Unlike gifts between US citizen spouses, which are unlimited, gifts to non-citizen spouses are only eligible for a limited annual exclusion ($185,000 in 2024, $190,000 in 2025). Estates that leave assets to a non-citizen spouse may also face up to a 40% estate tax on the portion exceeding the $13.61 million federal exemption, unless done through a qualified domestic trust (QDOT)

Final Thoughts: Make a Plan Before You Move

Italy offers a high quality of life, but it’s not a move to make without a tax and financial strategy. 

After deciding to move to Italy, we recommend taking at least six to 12 months in advance to give yourself time to scout out locations, gather documents, submit your application, hear back from immigration officials, and finalize your tax and personal finance strategy. 

Interested in a joint, paid consultation with our go-to Italian tax law expert? Just let us know when you reach out. Sitting down with two experts in one space is often the most constructive way to get clear on the best plan for you.

References

  1. Italy, regions, provinces – Country of citizenship
  2. Why invest in Milano: Milano in figures
  3. Move over Milan: property investors set their sights on spruced-up Rome
  4. Self-employment visa
  5. Quotas in detail
  6. Italia Startup Visa
  7. https://italiastartupvisa.mise.gov.it/#ISVhome 
  8. Special Economic Zones
  9. Italian Citizenship Jure Sanguinis – Further Restrictions – Studio Legale Metta
  10. Regime Forfettario in Italy: What it is and how it works
  11. Italy – Individual – Taxes on personal income
  12. Italy – Individual – Other taxes
  13. Italy – Individual – Income determination
  14. Rankings: Legatum Prosperity Index 2023
  15. Guide to Health Insurance and Healthcare System in Italy
  16. Expatriation tax

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Frequently Asked Questions

Have more questions? Then this section is for you!
Is it worth moving to Italy?
It certainly can be, particularly if you’re interested in moving abroad to a safe, relatively affordable, and beautiful country with a rich culture and robust infrastructure. That said, you’ll need to navigate Italy’s complex bureaucracy to secure a visa, register your business, and optimize your tax and personal finance strategy. However, many US expats living in Italy find that the quality of life is well worth the initial hurdles.
Do high taxes prevent Americans from moving to Italy?
Not necessarily. With the right planning, taxes in Italy can be manageable, especially if you capitalize on advantageous tax regimes for freelancers or retirees. There are also many other kinds of tax relief available to Americans living in Italy, such as credits, deductions, and exclusions, among others.
Where in Italy are Americans moving to?
While you can find US expat hubs throughout Italy, Milan, Rome, Florence, and Sicily are among the most popular options, each offering different strengths in lifestyle and business opportunities.
What if I’m married to an Italian citizen — do special tax rules apply?
Yes. If your spouse is a US nonresident alien, you’ll need to consider whether to file jointly or separately. Electing to file jointly subjects your spouse to US tax and reporting obligations, but it may also allow you to claim additional tax credits, increase your standard deduction, potentially lower your overall tax rate, and offer more favorable treatment under estate and gift tax rules.
What should Italians returning from the US prepare for?
Italians returning to their home country from the US should understand that if they acquired American citizenship or permanent residence, their tax and reporting obligations will continue indefinitely. The only way they can terminate those obligations is by formally abandoning their Green Card or renouncing US citizenship. However, this may subject them to an exit tax, and could make returning to the US significantly more difficult. Before making a decision, they should consult a cross-border tax specialist like the ones at Rook CPAs and an immigration attorney.

Ready to learn more?

Rook CPAs offers dedicated one-on-one time to fully understand your current situation and propose the best tax strategies for your US business.