History and natural beauty intertwine in one of the places becoming a destination for American retirees looking to save money from their monthly benefits while enjoying a good quality of life. Every corner of this beautiful place tells a millennia-old story, and every landscape seems like it’s taken from a work of art. This country is an artwork in itself.
Here, retirees find welcoming and vibrant communities with top-notch medical care and a wide range of cultural and recreational activities for everyone. Additionally, the efficient transportation system makes it easy to explore charming cities and picturesque towns. And if that’s not enough, its delicious and healthy cuisine, based on the renowned Mediterranean diet, offers everything one needs. Yes, we’re talking about Italy, the new destination for millions of American retirees.
A recent AARP survey exposed some uncomfortable truths about Americans approaching retirement age. For example, 20% of adults aged 50 or older don’t have enough savings to enjoy a good retirement, while 61% are worried about not having enough money when they retire. To solve these problems, many people are considering (and carrying out life projects) moving abroad after retirement, and Italy has become one of the favorite destinations in recent years.
The Paradise of “La Dolce Vita” and Good Retirement: Thousands Moving There
Let’s address the elephant in the room that Americans don’t like to see: our country is extremely expensive to live in. Compared to the United States, Italy is 45% cheaper to live in, and rental prices in the United States are up to 151% higher than in Italy. You read that right, I didn’t typo any numbers: 151% higher rents in the United States than in Italy, meaning you’re paying more for a house in California, Florida, or Texas than in Rome, Genoa, or Sicily.
Beyond what experts may say, ultimately the decision should be yours, but let’s face it: Italy is one of the most beautiful countries in the world to visit, travel to, and even move to live in. There are projects aimed at attracting not only retirees but also young couples looking to buy homes. One of the most successful initiatives is the “One-Euro Houses,” which are sold exactly for that value, 1 euro, in small towns in Italy facing depopulation issues. Buyers of these houses are obligated to renovate them and live in them within the next two years.
Even with the renovation costs, these houses are worth much less—thousands of dollars—than any small house in any city with good quality of life in the United States.
Will My Retirement Savings Last Longer in Italy?
Actually, we’re not in a position to give you definitive financial advice; that’s up to finance and retirement experts. However, simply because the cost of living in Italy is 45% lower and the average rent in Italy is lower than in the United States, we can infer that your retirement money should go further. According to financial experts’ calculations, savings of one million dollars could last up to 56 years in Italy, compared to less than 30 years in destinations like Bermuda, Hong Kong, and Switzerland.
Furthermore, healthcare in Italy is free and universal, but you also have access to first-world hospitals, clinics, and care networks at notably lower prices. For example, private healthcare for an elderly couple ranges from 1500 to 2800 euros per year, which is equivalent to about $1620 to $3020 per year.
Great quality of life for retirees: Italy has it all. Not only because it’s cheaper, but also because many retired couples are considering moving to Italy, also known for having one of the world’s Blue Zones, of which there are only seven, where a large number of people over 100 years old live with fantastic and enviable health.
This is not only due to the tranquility, peace, and low pollution of its cities but also to the Mediterranean diet, which is based on slow-fermented bread, many salads and vegetables, lean meats, olives, olive oil, few fried foods, and of course, their delicious handmade pizzas and pastas made by the famous nonnas, as Italians call the grandmothers.
Expat Retirees Pay Lower Taxes in Italy
Lastly, to close this glossary of good references to Italy as a retirement destination, it’s worth mentioning that American expatriates can benefit from a fixed tax rate of 7% exclusively for this group of people. This incentive is aimed at older individuals moving their residence to Italy and whose retirement income comes from another country.
To enjoy this benefit, you must move your residence to a city with fewer than 20,000 inhabitants in the following regions:
- Sicily
- Calabria
- Sardinia
- Campania
- Basilicata
- Abruzzo
- Molise
- Puglia