Why Are Expats Moving to Italy for Retirement?
Italy has long been considered one of the most attractive destinations for retirement abroad. Every year, individuals from across the globe—particularly from the United States, the UK, and Germany—choose the Bel Paese for a new chapter of life in style.
Why? The reasons are many, but some stand out more than others:
- Lifestyle: Italy is renowned for its relaxed pace of life, vibrant social culture, and extraordinary food and wine. It combines elegance and simplicity in a way that appeals to a wide range of tastes.
- Natural Beauty and Diversity: Though geographically compact compared to other European countries, Italy offers remarkable geographic and cultural variety. From the snow-covered Alps to sun-soaked southern beaches, via rolling hills, volcanoes, cosmopolitan cities, and tranquil medieval villages—it’s a country that suits nearly every lifestyle.
- Tax Incentives: Italy offers attractive tax schemes that can benefit retirees at all income levels. The 7% flat tax regime is available for foreign pensioners who settle in towns with fewer than 20,000 residents in southern regions. For wealthier individuals, the €200,000 lump-sum tax regime can provide efficient tax planning solutions.
Recent Changes in Immigration Law
In March 2025, the Italian government introduced a major reform to its immigration legislation, specifically affecting citizenship by descent.
Previously, Italian citizenship could often be claimed by those with relatively distant ancestry. The new rules, however, introduce stricter limits.
In short:
- Citizenship by descent is now limited to two generations. Only those with an Italian-born parent or grandparent qualify automatically at birth.
- New applicants born abroad who hold another nationality can no longer claim Italian citizenship by descent unless one of the following conditions is met:
– a parent who is an Italian citizen was born in Italy or had resided in Italy for at least two continuous years prior to the applicant’s birth;
– a grandparent who was an Italian citizen was born in Italy.
Some aspects of the reform are still awaiting implementation via a dedicated law. Among them, spouses of Italian citizens will have to reside in Italy for two years to apply for citizenship. The previous rule—which allowed applications after three years of marriage abroad—will no longer be valid.
In parallel, a national referendum held in June 2025 proposed to shorten the naturalisation period for non-EU residents from 10 years to 5. However, the measure did not pass.
Why This Reform?
The reform was driven by a sharp increase in applications for Italian citizenship by descent—particularly from Latin America. Between 2014 and 2024, the number of Italian citizens officially registered abroad grew from 4.6 million to 6.4 million. This surge placed pressure on consulates and local authorities tasked with processing requests.
Beyond administrative capacity, a key driver of this reform is the desire to protect the cultural integrity of citizenship. The new law aims to ensure that Italian nationality is reserved for individuals with genuine ties to Italy. and demonstrable intent to maintain those bonds over time.
What Changes for Those Who Want to Retire in Italy?
Importantly, these legal changes do not affect the immigration routes used by most retirees today.
- EU citizens still enjoy freedom of movement and can retire in Italy with minimal formalities, primarily involving local registration.
- Non-EU citizens continue to rely on the Elective Residence Visa. This visa requires a stable annual income of at least €31,000 (€38,000 for couples) and proof of accommodation in Italy, alongside standard requirements such as private health insurance and a clean criminal record.
The path to citizenship through residency usually involves:
- 10 years of legal residence for non-EU citizens
- 5 years for EU citizens
- 3 years for certain individuals with Italian heritage or close familial ties, provided they do not already qualify by descent
- 2 years in certain other cases, such as for spouses of Italian citizens and those that previously lost their citizenship.
That said, fulfilling the residence timeline is not sufficient on its own. Italian authorities usually also expect proof of integration, such as language proficiency, and a track record of minimum income.
These elements are evaluated individually, and processing times can vary significantly.
Conclusion
Although the recent reform narrows eligibility for citizenship by descent, Italy remains highly open to retirees — particularly those seeking to live in the country without necessarily acquiring citizenship.
The elective residence route continues to provide a clear, viable pathway for financially independent non-EU retirees, giving access to a cultivated lifestyle, excellent healthcare, and rich cultural life.
As long as you meet the financial requirements and are ready to embrace the local way of life, Italy continues to be one of the most rewarding retirement destinations in Europe.
