Utalio

Ways to stay in Italy

Already Italian or an EU citizen? You don't need a visa: just register your residence at the comune. Everyone else needs one of the routes below, and most lead to permanent residence after 5 years and citizenship after 10.

2025 change to citizenship by descent

Law 74/2025 limits jure sanguinis for people born abroad with another citizenship, generally to those with an Italian parent or grandparent. Applications filed before March 27, 2025 keep the old rules. Read the guide

Citizenship routes

The fastest way to stay for good, if you qualify.

Visas for non-EU citizens

Americans and other non-EU nationals need one of these to live in Italy.

Becoming permanent

Where every visa route eventually leads.

Tax regimes to know

Impatriati regime (returning-worker incentive)

50% of qualifying income from work done in Italy is exempt from IRPEF for 5 years, or 60% with a minor child. The cap is €600k. It applies to employees and the self-employed who move their tax residence to Italy.

  • Under Legislative Decree 209/2023 (moves from 2024): you need 3+ years of prior non-Italian tax residence, or 6–7 years if you return to the same employer or group
  • You must have high qualifications or specialization (a degree, or relevant professional experience) and remain resident for at least 4 years, or the benefit is clawed back
  • The old 90% 'southern regions' version no longer applies to new arrivals
  • Decree-Law 38/2026: from 2027 moves, it cannot be combined with the neo-resident flat tax. Moves completed by December 31, 2026 keep the older framework
  • Italian citizens should document their time abroad (AIRE registration, or tax residence in a treaty country such as the US)
  • It covers only income from work physically performed in Italy

7% flat tax for foreign-pension retirees

A 7% substitute tax on all foreign-source income for 10 years if you receive a foreign pension and move to a southern town with fewer than 20,000 residents.

  • Eligible regions: Sicily, Sardinia, Calabria, Campania, Apulia, Basilicata, Abruzzo and Molise, plus some earthquake-zone towns in central Italy
  • You must not have been an Italian tax resident in the previous 5 years
  • Pairs naturally with the Elective Residence Visa
  • Check how it interacts with US taxation (Social Security, IRAs) with a cross-border CPA

Flat tax for new residents (Art. 24-bis)

A fixed annual substitute tax on foreign-source income for up to 15 years. It is €200,000/year for people moving from August 2024 (previously €100,000).

  • Aimed at high-net-worth individuals with large foreign income
  • Covers foreign income only; Italian-source income is taxed normally
  • It can no longer be combined with impatriati for moves from 2027

US taxes for Americans in Italy

US citizens keep filing with the IRS. Most Americans in Italy do better with the Foreign Tax Credit than the FEIE, because Italian rates are higher.

  • Because impatriati reduces your Italian tax, it also shrinks your available Foreign Tax Credit. Model this with a cross-border CPA
  • European ETFs/funds are PFICs for US tax: avoid them or plan carefully
  • Report your US accounts on Italy's Quadro RW (IVAFE wealth tax) and your Italian accounts on the FBAR/Form 8938
  • The US–Italy Totalization Agreement prevents double social security contributions (get a Certificate of Coverage)

Planning taxes on both sides? Use our cross-border CPA checklist.