
Elective Residence Visa and Taxes: A Guide for American Retirees in Italy
How U.S. retirees in Italy are taxed under the Elective Residence Visa. Learn about the Italy–US tax treaty, 7% flat tax, and southern Italy incentives.
Discover Abruzzo, Marche, Sicily, and Puglia: charming villages with high quality of life, low rent, and affordable costs.

Moving to Italy means embracing a slower lifestyle, cultural richness, and the beauty of everyday life under the Italian sun. ☀️
But where can you live comfortably without overspending? Regions like Abruzzo, Marche, Sicily, and Puglia offer exactly what most retirees and remote earners seek — high quality of life at a low cost. 💰
In this article, we’ll explore these four regions, focusing on small towns and rural areas that combine authentic charm with affordable living.
Interested in Elective Residence Visa? Check the full requirements and process.
Abruzzo is one of Italy’s best-kept secrets. Nestled between the Adriatic Sea and the Apennine Mountains, it offers breathtaking views and remarkably low living costs.
🛒 Average monthly expenses:
🏡 Recommended towns:
Città Sant’Angelo, Scanno, and Penne — all offering peace, authenticity, and friendly local communities. 🤝
✅ Pros: pristine nature, mountains and sea close by.
⚠️ Cons: some remote villages have limited medical and public services.
Marche is perfect for those who seek balance — between coast and countryside, modern services and authentic rural charm.
🍅 Average expenses:
🏡 Recommended towns:
Urbino, Offida, Corinaldo, Camerino — historical, artistic, and surrounded by peaceful hills. 🌄
✅ Pros: well-balanced landscapes, mild climate, high livability.
⚠️ Cons: some internal areas lack good public transport connections.
Sicily is more than an island — it’s a lifestyle. Its sunshine, slow pace, and deep traditions make it one of the most affordable and fulfilling places to live in Italy. ☀️
🍋 Monthly expenses:
🏡 Recommended towns:
Noto, Scicli, Cefalù, and Gangi — postcard-perfect places rich in culture and history. 📸
✅ Pros: warm weather, delicious food, low costs.
⚠️ Cons: infrastructure in rural areas can be weak, and some towns are far from airports.
Puglia is one of the top choices for foreigners and retirees seeking sea views, affordable prices, and authentic Italian life. 🌊
🍞 Average monthly costs:
🏡 Recommended towns:
Cisternino, Locorotondo, Ostuni, Alberobello — whitewashed gems with exceptional quality of life. 🌸
✅ Pros: stunning coastline, great food, strong community life.
⚠️ Cons: some areas are quieter or less serviced in winter months.
In simple terms:
In short, moving to Italy with the Elective Residency Visa opens a world of opportunities.
🌻 Central and Southern Italy — especially Abruzzo, Marche, Sicily, and Puglia — deliver the perfect balance between cost, comfort, and authentic Italian life.
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