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MOVING TO ITALY

How British citizens can retire to Italy after Brexit

Retiring to Italy is a dream for many people, but Brits now face more bureaucratic hurdles since the UK left the EU. Here's what you need to know about planning your retirement in Italy after Brexit.

How British citizens can retire to Italy after Brexit
Photo: Daniel Fazio on Unsplash.

It’s true that Brexit has made it considerably more difficult for British people to retire to Italy, but it is still possible.

As of January 1st, 2021, people from the UK no longer enjoy freedom of movement within the EU. British citizens now face the same immigration processes as other non-EU or ‘ third country’ nationals such as Americans, Canadians, and Australians.

People from these countries can retire to Italy, just as Brits still can, but it requires substantially more paperwork, patience and proof of significant financial resources.

EXPLAINED: What Brits need to know about visas for Italy after Brexit

From the visa paperwork to taxes and healthcare provision, here’s a guide to what British nationals now need to consider when retiring in Italy.

Visa

British people wishing to retire to Italy will now need to apply for a retirement visa known as the elective residency visa or ‘ERV’ (Visto per residenza elettiva).

This is essential for any British national who doesn’t have dual nationality with an EU country, and it applies to retirees wanting to stay in Italy for more than 90 days in every 180.

It’s a type of long-stay visa known as ‘Type D’ or ‘D-Visa’, which allows the holder to stay in Italy longer than the 90-day-rule permits. This type of visa covers moving here for study, work, family reasons – or retirement.

You can read further details about long-stay visas here.

To be eligible for the ERV, you need to show proof of suitable accommodation for at least a year, which can either be a rented or purchased property. However, bookings in B&Bs, Air BnBs, hotels or staying with family and friends are not accepted.

READ ALSO: ‘How I got an elective residency visa to retire in Italy’

Dreaming of retiring to Italy? You’ll need to get your paperwork in order. Photo by Jonathan Bean on Unsplash

Since Brexit, this visa has gained in popularity according to immigration legal expert, Marco Mazzeschi of the eponymous consultancy firm Mazzeschi.

“It’s not that hard to get one of these visas, as long as you meet the eligibility criteria,” he says.

The application process itself however can vary from consulate to consulate.

International financial advisor Daniel Shillito of D&G Property Advice tells The Local: “Your nearest consulate may be an extremely busy one with a backlog of applications, meaning that this visa is instead extremely hard to get.”

“If you meet the conditions, it can be straightforward. If you don’t quite meet the criteria, of course it will be tougher,” he adds.

One of the requirements is that you can’t work to generate an income on an ERV.

Before Brexit, many British citizens bought second homes with the intention of retiring in Italy and living there permanently later on.

But anyone with a second home in Italy wanting to spend more than 90 days in every 180 will now need some type of visa. There are different options available, including visas that allow you to come and work in Italy.

For retirees, however, “the ERV stipulates that you cannot work in Italy under any circumstances, which includes working remotely or running a B&B for example”, Mazzeschi tells The Local.

EXPLAINED: What type of visa will you need to move to Italy?

The Italian Consulate in London confirms, “This visa is issued solely to those applicants who are planning to move permanently to Italy and it does not allow the recipient to work.”

Moving to Italy permanently is crucial to obtaining the visa. “It can be denied to those who are found to have an activity in their home country and only want the visa for the purpose of not being limited by the 90/180 day rule,” says Mazzeschi.

To apply for this visa, you’ll need to attend the Italian consulate closest to you in person and each consulate may vary in the documentation they request. Here is the application form required by the Italian consulate in London, for example.

Other documentation you may need includes a passport, passport photos, international health insurance, a letter explaining why you want to move to Italy, a registered lease or deed for property in Italy and one-way ticket travel reservations. Make sure you bring plenty of copies of all the above.

READ ALSO: 16 of the most essential articles you’ll need when moving to Italy

An Italian retirement dreams are made of. Proof that you can afford it is crucial, though. Photo by Kristine Tanne on Unsplash

The process is theoretically supposed to take around 90 days, but in Shillito’s experience, it can be up to four months, so bear timescales in mind when submitting your application.

In addition to truly proving you want to retire to Italy – rather than just spend more time here – and not being able to work, you’ll need to prove you have the resources to support yourself through retirement.

Finances

You must be financially independent without working, yet you’re asking to potentially spend the next 20-30 years, maybe more, in the country.

As such, the authorities request proof of a minimum passive income of around €31,000 per year. This can come from pensions, investments, rental income and dividends for example.

However, in reality, the consulate may ask for much more in Mazzeschi’s experience.

“You need substantial income, so the authorities may deem that €31,000 per year is not enough,” he says. “They want to see that you can afford to come to Italy and support yourself in the life you’re planning – their question is, ‘how can you justify coming to Italy to enjoy yourself?'”

To prove you have enough passive income, you’ll need to submit documents that show a hefty and steady income for the rest of your life.

These can include bank account statements, showing how much money your capital is generating. Mazzeschi points out that it might not be enough to simply have a large lump sum sitting in the bank – it must keep making you money.

Social security pensions, private pensions, property ownership deeds, business ownership evidence and tax returns may also be submitted for consideration.

“The authorities need to see that enough money is coming in every month. If that’s evident, they can tick the box and move on,” Shillito says.

You don’t already need to be retired to show how much your monthly pension payments are, as there are other ways to show your passive income if you wish to apply beforehand.

“Get advice before you make the application. Show an immigration lawyer or consultant your proof first to check you truly have a passive income or how to set up the evidence that will work,” recommends Shillito.

A bright and sunny retirement in Italy is alluring – and still possible for Brits post-Brexit. Photo by Nicola Pavan on Unsplash

Benefits for pensioners in Italy

Good news for foreign nationals retiring to Italy: some municipalities in central and southern Italy are offering a 7 percent flat-tax regime on all income generated abroad.

They are located in Sicily, Calabria, Sardinia, Campania, Basilicata, Abruzzo, Molise and Puglia, and must have a population not exceeding 20,000 inhabitants, according to Italy’s Inland Revenue (Agenzie delle Entrate).

Elsewhere in Italy, the normal personal income ‘Irpef’ tax brackets apply. All foreign nationals retired in Italy must file tax returns in Italy on all worldwide income.

Healthcare

As noted, you will have to show that you have health cover when you make your visa application.

In the past many British citizens have used their EHIC (European health insurance card) to cover them in the gap between arriving and getting registered within the Italian system, but this is no longer possible.

Once residing in Italy, you can apply to Italy’s national healthcare system, Il servizio sanitario nazionale (SSN), by paying a fee in proportion to your income.

Getting your residence permit

If you’ve jumped through all the hoops and satisfied all the conditions, you’ll have your visa and be allowed to enter Italy.

Once you’re on Italian soil, you’ll need to register your residence at the Questura (local police department) within eight days of your arrival date.

To be legally allowed to stay in Italy, you need a residence permit known as a permesso di soggiorno.

READ ALSO:

This can take a few months to obtain and usually lasts a year, which can then be extended yearly. Sometimes, a two-year extension is granted, according to Mazzeschi.

After five years of residence in Italy a non-EU citizen can apply for a permesso di soggiorno per soggiornanti di lungo periodo (permission to stay for a long period), which can be renewed less frequently. But you’ll need to meet further conditions such as passing a language test.

Getting a mortgage once you’re retired in Italy

Italian banks may be prepared to offer you mortgage even if you’re retired on passive income and no longer have a permanent job.

They prefer you to be employed, but they will look at people on pension income and check that you have a regular stream of funds that you can’t spend before in one go, like blowing it on a Porsche!” Shillito tells us.

READ ALSO: How can a non-EU citizen get a mortgage to buy property in Italy?

He advises that it’s worth bearing in mind that you can’t have outstanding mortgage debts and that mortgages usually have to be paid off by the time you’re 75. So obtaining a 15-year-loan at the age of 60 is feasible, but beyond the age of 65 would be “fairly tough”, he adds.

Citizenship

It might be worth checking if you are entitled to citizenship of an EU country. The above rules only apply to people who don’t have dual nationality with an EU country. People who have the passport of an EU country can continue to take advantage of freedom of movement, which eliminates a lot of paperwork.

Getting Italian citizenship isn’t an easy process, but it is an alternative route for British and non-EU nationals wishing to avoid the paperwork required to retire to Italy.

Daniel Shillito provides financial planning and property purchase assistance services for expats, retirees and investors in Italy.

Marco Mazzeschi runs an immigration and citizenship consultancy firm in Italy. You can get in touch with him for advice on retiring to Italy here.

Find out more on our section on visasresidency and moving to Italy.

Please note that The Local is unable to advise on specific cases. For more information about visa applications, see the Italian Foreign Ministry’s visa website, or contact your embassy or local Questura in Italy.

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MOVING TO ITALY

INTERVIEW: ‘Americans live to work, Italians know how to balance’

After gathering a huge online following and writing a book about her life in Italy, TikTok star Kacie Rose Burns tells The Local how the country drew her in and what she’s learned along the way.

INTERVIEW: ‘Americans live to work, Italians know how to balance’

Moving to Italy from the States was a no-brainer for Florence-based social media star Kacie Rose Burns. In 2018, aged 24, she dared to book a solo trip to the peninsula and has not looked back since.

“I was a dancer in New York and it was so demanding,” says Kacie, who is now a viral TikTokker with a million followers.

“I lived in a tough city, with a tough career and I was hustling for everything. It was all too grey for me.

“Growing up I had a strong urge to travel to Italy. I don’t know why, I’m only two percent Italian, but I just did.”

Kacie’s initial 10-day solo trip started in Florence, where she met her partner, Dario Nencetti. The pair hit it off immediately and there was an instant attraction that outlasted her 10-day visit: the two were long-distance for a year afterwards. Dario then moved to New York for a year after their long-distance period. Then Covid-19 struck.

“Basically my whole industry shut down during that period and I came to the conclusion I was no longer happy doing dance anymore,” Kacie shares. “Plus Dario’s visa was up.

“And I thought, yeah, let’s give Italy a six-month trial period, and here we are three years later. It sucks you in like that and I know so many people who have had the same experience as me.”

Photo: Kacie Rose Burns

The first six months of Kacie’s time in Italy were not easy. She defines it as one of the hardest periods in her life, due to the many differences in the everyday. 

“The biggest shocks are always the first shocks,” she says. “One of them is that I went to a pharmacy to get Dario a birthday card. I asked the pharmacist where I could get a card and granola bar and she looked at me like I had three heads and said “this is a pharmacy”.

“I had no idea where to get a card from because in the States you get lots from the pharmacy. It is the little things from your country and culture that you wouldn’t think about twice, but it’s the little things that are the biggest culture shock.”

The language barrier was another struggle. Although Kacie practised her Italian, she was not prepared for the country’s many different dialects. She recalls a time when she and Dario were in their apartment and he asked her for a Coca-Cola from the fridge.

“In Tuscan dialect, the letter c is removed,” she continues, before chuckling: “I thought he was calling me a rude name.”

READ ALSO:

As the months went on, Kacie felt her mindset changing to fit in with a slower pace of life, which she initially said made it harder for her to settle more so than any pharmacy or language barrier could have done.

“Besides the food, I have to say the thing I hated the most at the start is now the thing I love the most about Italy,” she says. “Italians are more embracing of life, they take hold of it. It is not to be taken for granted.

Kacie exploring ruins in Italy. Photo: Kacie Rose Burns

“Americans live to work and I used to thrive off chaos. Italians do way less so. They know how to balance. Having a full life means incorporating rest and coming from a culture that demonises rest, it was hard to grasp at first but now it’s my favourite thing.”

She sums up the lust-for-life attitude she finds more apparent in Italy than in her home country through something her Neapolitan friend said to her. 

“One day they turned to me and said ‘Kacie, we live next to a volcano that destroyed a city. We have to live life always’ and it just stuck,” she adds.

Shortly after in 2022, Kacie set up her own tour company, which she says is “the most rewarding” thing she has ever done.

“I can see the beauty through their eyes and it is so special,” she says. “We live in a gorgeous country and we are a little spoiled. It’s not bad at all.”

Kacie Rose Burns on Instagram

She details her trials and tribulations and the differences between the two countries she calls home in her upcoming book, You Deserve Good Gelato. 

“It’s been a long time coming and I’m so excited,” she says. “More often than not we are more capable than we think we are and it’s a message I wish I had known when I was younger. 

“If one person reads this and feels empowered I would be so happy. There are embarrassing mistakes, sad moments, cringey failures and happy moments. Failing is how we learn how to do life. I’ve failed a lot and it’s ok and normal.”

This book has been a year in the making and a few chapters explore adjusting to new countries. When asked what advice she would give Americans looking to make the leap to Italy, she swiftly responds: “Prepare yourselves for Italian bureaucracy.”

READ ALSO: 15 must-have apps to make your life in Italy easier in 2024

“You need time and patience,” she adds. “The biggest piece of advice is it’s not always going to be easy but it will be worth it. My first six months were tough as I had to adjust so much and I was lucky to have a support network in place.

“I have so much respect for people who have no support network in place and moved here alone. That takes guts.

“I guess be prepared for the first six months but know it’ll get easier.”

You Deserve Good Gelato is available to preorder on Amazon and comes out worldwide on May 28th.

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