Europe · Money guide
Italy draws movers from around the world with its lifestyle, food and affordable rural property, including the famous €1 homes in depopulating villages. The money focus is the elective residence visa for non-workers, the costs and notaio process around property, and Italy's flat-tax incentive for new residents with foreign income.
Written by Matt Woodley · Reviewed against official sources · Last reviewed 15 June 2026. Figures are indicative — confirm visa and tax thresholds with the official source linked below.
Currency
EUR €
Rent (1-bed, city)
€700–€1,300/mo
Living costs (ex-rent)
€650–€950/mo
Transfer time
1-2 days
Northern cities (Milan) are pricier; the south and rural areas are very affordable. Renovation budgets matter if you buy a cheap rural property — the headline price is rarely the real cost. Fresh food and eating out are excellent value.
Indicative monthly rent (1-bed, city centre)
€700–€1,300
Indicative monthly living costs (excl. rent)
€650–€950
Elective residence visa: stable passive income ~€31,000+/year
The elective residence visa, the main route for non-working residents and retirees, requires substantial, stable passive income — around €31,000/year for an individual and roughly €38,000 for a couple, from pensions, investments or property (not employment). You also need suitable accommodation and private health cover.
Official source: Italian Ministry of Foreign Affairs (visa portal)You need a codice fiscale (tax code) to open an account, sign a lease or buy property. Banks such as Intesa Sanpaolo and UniCredit offer resident and non-resident accounts. A local account and IBAN (starting with IT) are needed for utilities and ongoing costs.
Italy uses the euro, so your exposure is your home currency against the euro; once funds are in euros, SEPA payments are cheap and fast. If you are buying a low-cost rural home, remember the real outlay is the renovation budget, which you will likely fund in stages — each conversion is a fresh exchange-rate decision.
Italy is in SEPA, so the conversion into euros is the cost to manage; once in euros, payments are cheap and fast. Property purchases go through a notaio, and the headline price on a cheap rural home is usually dwarfed by renovation costs, so budget the full project in euros. New residents may elect a flat tax of €100,000/year on all foreign income — attractive only for high earners. On larger transfers a regulated specialist beats a bank by thousands.
| Route | Typical cost |
|---|---|
| High-street bank | €3,750–€6,000 (2.5–4% margin + fees) |
| Regulated currency specialist | €150–€900 (0.1–0.6% margin) |
| Typical saving | €3,500–€5,000 |
Indicative: banks typically apply a 2.5–4% exchange-rate margin plus a transfer fee; regulated specialists typically apply 0.1–0.6% with no fee. Your actual cost depends on the provider, amount and timing.
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You are tax resident if registered as resident or present more than 183 days. Italy offers a flat-tax regime (€100,000/year covering all foreign-source income) for new residents, plus a 7% flat rate for pensioners who move to certain southern towns. Italy's double-taxation treaties prevent the same income being taxed twice; standard rates otherwise apply.
Get a codice fiscale
Obtain the Italian tax code — required for a bank account, lease or property purchase.
Budget the full project
For cheap rural homes, cost renovation in euros — it usually exceeds the purchase price.
Evidence income for the visa
Show ~€31,000+/year of stable passive income for the elective residence visa.
Transfer funds efficiently
Use a regulated specialist and SEPA to move savings and pay the notaio.
Check the flat-tax options
Assess the €100,000 regime or the 7% southern-town pensioner rate against standard rates.
You must show stable passive income of around €31,000/year for an individual and roughly €38,000 for a couple — from pensions, investments or rental income, not employment. You also need suitable accommodation in Italy and comprehensive private health insurance. Confirm the current threshold with the Italian consulate, as it is reviewed periodically.
The €1 (or low-price) homes in depopulating villages are real, but the price is the start, not the total. Buyers typically commit to renovating within a set period, and renovation costs commonly run into the tens of thousands of euros. Budget the full project in euros and transfer funds via a specialist to control the exchange cost.
New residents can elect a flat tax of €100,000 per year covering all foreign-source income, regardless of amount — beneficial only for high earners. Separately, pensioners moving to certain southern towns can qualify for a 7% flat rate on foreign income. Italy's double-taxation treaties apply in all cases.