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Guide · Moving from the US

Retiring to Italy from the United States

What changes when your pension crosses the Atlantic.

Americans are the largest group of English-speaking retirees moving to Italy, and the route is well-worn — but it runs on US-specific rails. Here is what actually matters, in the order it usually bites.

The visa: Elective Residence, through your consulate

The Elective Residence visa is the standard route for US retirees. You apply through the Italian consulate that covers your state, and each consulate sets its own income threshold and document list — the same application can be routine in one consular district and demanding in another. The core question is passive income: pensions, Social Security, and investments that continue without you working. The full sequence is here.

Social Security travels. Medicare does not.

Social Security payments continue while you live in Italy — the US pays benefits to citizens living abroad, and the US–Italy totalization agreement keeps the two systems coordinated.

Medicare is different: it does not cover you in Italy. Keeping Part B while abroad is a judgment call about whether you might return — dropping it and re-enrolling later triggers permanent premium penalties. Some Medigap plans include limited foreign-travel emergency cover, but that is trip cover, not residence cover. The practical answer for most US retirees is private cover through the visa and registration period, then Italy's public system. How the healthcare transition works.

You never leave the IRS

The US taxes citizens on worldwide income wherever they live, so Italian residence adds a tax system rather than replacing one. In practice:

• You file in both countries. The US–Italy tax treaty and the foreign tax credit usually prevent true double taxation, but the filing obligation stays.
• FBAR and FATCA reporting apply to your Italian bank accounts from the day you open them. Penalties for missing them are out of proportion to the effort of filing.
• Italian financial accounts are reported in Italy too (IVIE and the quadro RW). Cross-border filing is a specialist's job — budget for one.

We map which rules apply to your situation; the actual tax positions belong to a cross-border accountant. That boundary is deliberate.

Dollars in, euros out

Your income arrives in dollars and your life costs euros. The exchange rate you planned at will not be the rate you live at, and bank wire fees quietly tax every transfer. A multi-currency account or a specialist transfer service usually beats a US bank wire by a wide margin. Build a currency buffer into your first-year budget — the setup year is when the gap hurts most.

Logistics that are easier from the US

Two honest advantages: the consulate network is large, so your filing location is usually within a day's travel; and the time difference works in your favour — our intro sessions run in the US morning, which is afternoon in Italy.