In this article, we delve into the 20 best places to retire in Italy for US citizens. If you wish to skip our detailed analysis on retiring in Italy, you may go to 5 Best Places to Retire in Italy for US Citizens.
Navigating retirement planning involves strategic decision-making, and for numerous US citizens, Italy has emerged as an enchanting destination to retire to. These American retirees are attracted to the richness of the Mediterranean lifestyle, the beauty of stunning landscapes, and the flavor of renowned culinary delicacies. From the enchanting hills of Tuscany to the sun-kissed shores of Sicily, this article navigates the intricate intersection of personal preferences and financial needs, offering a roadmap for a prosperous and fulfilling retirement in the heart of Italy.
Retiring in Italy: A Mediterranean Escape
Retiring in the US poses significant challenges, rooted in a complex interplay of socioeconomic uncertainties and political issues. The Fed Survey of Consumer Finances indicates that the complexity of these challenges contributes to a sense of failure in the retirement planning landscape of America. A few of these key factors include inadequate savings, increasing life expectancy, a shift from traditional pension plans to individual responsibility through 401(k)s, volatile markets affecting investment returns, and rising healthcare costs. Additionally, economic uncertainties, stagnant wage growth for many Americans, and the evolving nature of work has contributed to the overall fragility of the retirement planning system. Aon Consulting Group calculated in a 2018 survey that people nearing retirement need eight times their annual income in their accounts. By age 67, that rises to 11.1 times in order to maintain living standards in retirement. This means the median American household needs at least $470,000more in their retirement account for a comfortable retirement life in the US. They also indicated a risk in pension transfer of US citizens from the year 2023 to 2024, indicating a lesser retirement budget.
To cope with the lack of savings, many US residents are now considering planning their retirement elsewhere and Italy appears to be a popular choice among many. The dynamic history and culture of Italy, coupled with scenic views and an affordable cost of living attracts non-natives to plan their retirement here. Depending on where in Italy you choose to settle, the cost of living over there is noted to be drastically lesser than that in the US. According to Numbeo, for instance, the living expenses in the country are 21.8% lower than the USA. Obviously, if you opt for a living space in the fashion hub of Italy, i.e. Milan, your cost of living is likely to spike. In contrast, opting for a residence slightly away from the metropolitan area can result in a considerable reduction in the cost of living.
Italy has a wide selection of properties, from city apartments to country houses and coastal villas. However, renting a home before you buy one is a good way to assess the area. This could avoid an expensive mistake if you’re not sure where you want to retire to. A typical 200-square-meter house in Italy commands an average price of €368,000 ($400,369), equating to €1,840 ($2,000) per square meter. Another important factor in choosing the perfect place to settle in Italy, is the weather. The weather here is a critical factor for many people. Italy has different climates from north to south. The mild Mediterranean climate offers warm temperatures year-round in the west and south, while the north has a continental climate with warm summers and cold winters.
In Italy, nationwide insurance for a couple costs around €748 ($898) per year - with some out-of-pocket prescription costs, costing about €600 a year or $720. So, the total cost of medical care for a retired couple in Italy is roughly €1348 a year or $1618 or $135 a month. This cost covers an intimate knowledge of both the public and the private care system, covering operations, treatment, and ongoing care. So a couple who chooses to retire in Italy instead of the US, ends up saving $100,000 in medical costs. In order to retire to this country, individuals must apply for and obtain an Italian elective residence visa. Issued by the Italian consulate, the elective residency visa is issued to foreign nationals seeking to live and retire in Italy provided certain conditions are met. Non EU-nationals holding a legal residence permit for more than three months can register for Italian healthcare and avail public health services.
With that said, let's now move to the list of best places to retire in Italy for Americans.
A consensus approach was used to rank the places. A point was awarded to a place each time a source recommended it. Scores were summed up, and places were then ranked in ascending order from the lowest to the highest scores. Recognizing that retirement is not only a personal milestone but a financial venture, we have also discussed the cost of living, climatic implications, and healthcare amenities in the places discussed. The compiled list should help retiring citizens of the US to weigh the pros and cons of choosing to retire in Italy.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20 Best Places to Retire in Italy for US Citizens
20. Bergamo
Insider Monkey Score: 1
Bergamo is celebrated for its medieval architecture, including the Città Alta (Upper Town) and the Basilica of Santa Maria Maggiore. The city offers cultural events and festivals throughout the year. Bergamo generally has a moderate cost of living compared to larger Italian cities, making it relatively affordable. This place is said to enchant with its storied past and architectural elegance. According to Expatistian, the cost of living in Bergamo is 21% cheaper than Milan.
19. Parma
Insider Monkey Score: 1
Parma is famous for its exquisite food, including Parmesan cheese and prosciutto. It boasts historical landmarks such as the Parma Cathedral and the Teatro Regio. Parma's cost of living is typically reasonable, contributing to its attractiveness as a retirement destination. Rentals in the city cost around $800 on average, and a couple can manage a comfortable lifestyle on $1,650 on average.
18. Modena
Insider Monkey Score: 1
One of the best places to retire in Italy, Modena is renowned for its balsamic vinegar and has a thriving culinary scene. The city features UNESCO-listed sites like the Modena Cathedral and the Ghirlandina Tower. Modena tends to have a moderate cost of living, offering a balance between cultural richness and affordability. A budget of $1,748 per month for a retired individual should allow a cheap retirement stay in Modena, barring any additional leisure expenses.
17. Trento
Insider Monkey Score: 1
Nestled in the Trentino region, Trento is surrounded by the stunning Dolomite mountains. The city is known for its high quality of life, combining a rich cultural heritage with a relaxed lifestyle. Trento generally has a moderate cost of living, and its appeal lies in the balance of nature, culture, and affordability. Retired expats tend to enjoy such places for their post retirement stay due to the scenic value it offers. The cost of living for an individual expat is around $2,900.
16. Perugia
Insider Monkey Score: 1
Perugia is an artistic city, hosting the renowned Umbria Jazz Festival and boasting numerous museums and galleries. The presence of the University of Perugia contributes to a vibrant and dynamic atmosphere. Perugia typically has a reasonable cost of living, making it an attractive option for retirees seeking cultural enrichment without excessive expenses. The average cost of living for an expat is estimated to be around $1,500 per month.
15. Bologna
Insider Monkey Score: 2
Bologna is located in northern Italy and is celebrated for its gastronomy, with a vibrant food scene and numerous traditional markets. The city boasts historic architecture, including the iconic Two Towers and the University of Bologna. Bologna generally has a moderate cost of living, making it an appealing destination for retirees. A retirement income of approximately $36,700 ($3,058 monthly) annually would allow you to savor all the flavors Bologna has to offer.
14. Verona
Insider Monkey Score: 2
Verona is famous for being the setting of Shakespeare's "Romeo and Juliet," with a charming medieval old town. The city features well-preserved Roman architecture, including the Verona Arena. Verona typically has a moderate cost of living, combining cultural richness with a relatively affordable lifestyle.
13. Siena
Insider Monkey Score: 2
Siena, often ranked as one of the cheapest places to retire in Italy, is known for its medieval streets, the Piazza del Campo, and the stunning Siena Cathedral. The city hosts the Palio, a historic horse race, showcasing its cultural heritage. Siena generally has a moderate cost of living, providing a blend of history and affordability.
12. Cagliari
Insider Monkey Score: 2
Cagliari, the capital of Sardinia, offers a Mediterranean lifestyle with beautiful beaches and historical sites. The city has a diverse cultural scene and hosts various events throughout the year. Cagliari typically has a moderate cost of living compared to larger Italian cities, contributing to its appeal. The cost of living for an individual expat is $2,142 per month.
11. Lucca
Insider Monkey Score: 2
Lucca is known for its well-preserved Renaissance walls, providing a unique and picturesque atmosphere. It hosts events like the Lucca Summer Festival, attracting music and art enthusiasts. Lucca generally has a moderate cost of living, offering a tranquil setting for retirees.
10. Genoa
Insider Monkey Score: 3
Genoa is a historic port city with a rich maritime history and impressive architecture. The city features museums, historic palaces, and the UNESCO-listed Strade Nuove. Genoa tends to have a moderate cost of living, making it an appealing destination for those interested in maritime history and culture.
9. Catania
Insider Monkey Score: 3
Catania is known for its baroque architecture, including the iconic Cathedral of Saint Agatha. It offers a Mediterranean lifestyle with markets, festivals, and historic sites. Catania typically has a moderate cost of living, providing a blend of cultural richness and affordability.
8.Turin
Insider Monkey Score: 3
Turin is a cultural hub with museums, historic cafes, and the beautiful Royal Palace of Turin. The city's proximity to the Alps offers outdoor and recreational opportunities.Turin generally has a moderate cost of living, making it an attractive destination for retirees interested in both culture and outdoor activities. The average cost of living is $1,900 per month for an individual retiree.
7. Naples
Insider Monkey Score: 4
Naples is known for its historic city center, art museums, and proximity to Pompeii and Herculaneum. The city is famous for its pizza and vibrant street food culture. Naples typically has a moderate cost of living, offering a rich cultural experience with a relatively affordable lifestyle. A retirement budget of $2,378 per month can allow a comfortable time in Naples. It offers a feast for the senses, from its world-famous pizza to its rich historical sites.
6. Milan
Insider Monkey Score: 4
Milan, ranked 6th on our list, is Italy's financial and fashion capital that offers a cosmopolitan and dynamic atmosphere to retirees. The city hosts major cultural events, fashion weeks, and boasts iconic landmarks like the Cathedral of Milan. Milan tends to have a higher cost of living compared to other Italian cities, reflecting its status as a global economic hub. An individual retiree can live comfortably in the capital for a monthly average of $2,000.
