Italy Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Italy.
How Italy Taxes Work
Italy's tax system: Worldwide income; flat tax option (€100K/year) for new residents.
FEIE vs Foreign Tax Credit
Italy's flat tax regime for new residents is powerful — €100K flat covers all foreign income. Otherwise, FTC + totalization.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Italy has a totalization agreement with the US. This prevents double Social Security taxation.
Banking for US Expats
Intesa Sanpaolo, UniCredit, and Fineco Bank work with US expats.
Visa Options
Elective Residence visa, Digital Nomad visa, or Self-Employment visa.
Cost of Living
Moderate — $2,000–$3,500/month in Rome/Milan, less in southern Italy.
Frequently Asked Questions
Do US expats in Italy need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
Italy's flat tax regime for new residents is powerful — €100K flat covers all foreign income. Otherwise, FTC + totalization.
What is the cost of living?
Moderate — $2,000–$3,500/month in Rome/Milan, less in southern Italy.
Compare FEIE vs FTC vs Combined strategies for Italy.
Try the Calculator →Get the 30-Day Stability Sprint — 4 weeks of systems, habits, and financial clarity delivered to your inbox.
The Capacity Read maps your money, energy, and systems — then gives you the exact sequence to fix them.
Get Your Capacity Read →