Moving to Italy from the UK: Tax, Pensions and Residency

Moving to Italy from the UK is a big lifestyle change, and it is a big financial one too. Italy has its own tax rules, residence tests and reporting duties. So it pays to plan your money before you pack. In this guide, we explain the main points for British expats: visas and residence, Italian tax residence, UK pensions, healthcare and your UK assets.

We also share a hypothetical example and a short checklist. Rules change often, so we link to official sources throughout.

Moving to Italy after Brexit: visas and residence

Since Brexit, British citizens are treated as non-EU nationals in Italy. As a visitor, you can stay up to 90 days in any 180-day period across the Schengen area. Time spent in other Schengen countries counts towards that limit. To live in Italy, you need the right long-stay visa before you travel.

The UK government’s Italy entry requirements page points you to the Italian Ministry of Foreign Affairs to check which visa fits your plans. Time spent on a long-stay visa or residence permit does not count towards the 90 days.

Once you arrive, the steps usually run in this order:

1. Apply for a residence permit (permesso di soggiorno) within 8 days of arriving.
2. Register as a resident at the registry office (Anagrafe) of your Comune if you will stay more than 3 months.
3. Get an Italian tax code (codice fiscale). You need it for health registration, banking and contracts.
4. Register with your local health authority (ASL).

After at least 5 years of legal, continuous residence, permanent residence may be possible. Italy also accepts dual citizenship with the UK. As a result, you would not need to give up your British passport to become Italian. The gov.uk Living in Italy guide covers these steps in more detail.

Italian tax residence when moving to Italy

Italy changed its residence rules from 2024. The Italian Revenue Agency (Agenzia delle Entrate) has published English guidance on the new test. Under it, you are Italian tax resident if you meet at least one of four tests for most of the tax year:

• you are registered with the Anagrafe;
• your habitual residence is in Italy;
• your domicile is in Italy, meaning the place where your personal and family life mainly takes place;
• you are physically present in Italy.

“Most of the tax year” means 183 days, or 184 in a leap year. The days do not need to be consecutive. In addition, even part of a day in Italy can count towards physical presence. Note that the Italian tax year follows the calendar year, unlike the UK’s April to April year.

Once you are resident, Italy generally taxes your worldwide income. Registration with the Anagrafe now creates a presumption that you can rebut. However, rebutting it needs evidence, so it is safer to treat registration as the point you become resident.

Leaving the UK tax system

Moving to Italy does not end your UK tax position on its own. First, the UK statutory residence test decides whether you are still UK resident. Next, you normally tell HMRC you are leaving, often with a P85 form. Our leaving the UK checklist covers the other UK admin.

Sometimes both countries treat you as resident. In that case, the UK–Italy tax treaty has tie-breaker rules. These look at your permanent home first, then your centre of vital interests, then your habitual abode and finally your nationality.

Your UK pensions when moving to Italy

Pensions are often the biggest money question when moving to Italy. The 1988 UK–Italy double taxation convention sets out which country can tax them.

• Private and workplace pensions: under Article 18, pensions for past employment and annuities are taxable only where you live. So, once you are Italian resident, Italy would usually tax them.
• Government service pensions: under Article 19, pensions paid for UK government service are generally taxable only in the UK. The exception is if you are both resident in Italy and an Italian national.
• UK State Pension: the treaty does not mention it directly. Check how Italy will tax it with a specialist before you move.

Your UK pension provider may keep deducting UK tax until HMRC agrees that treaty relief applies. So it is worth starting that process early.

State Pension increases in Italy

Italy is in the European Economic Area. As a result, a UK State Pension paid to you there gets the yearly increase. You can have it paid into an Italian or a UK account. Payments abroad are usually converted at the exchange rate on the day. That creates currency risk, which we explain in our guide to currency risk on a UK pension abroad.

Your tax-free lump sum

Many people plan to take 25% of a UK pension tax-free. However, Italy may not treat that lump sum as tax-free once you are resident there. Timing can therefore matter a great deal. Read our guide to taking a tax-free lump sum abroad, and get specialist advice before you draw anything.

The 7% regime for foreign pensioners

Italy also has an optional regime for people with pensions from abroad. It applies to those who move to certain smaller towns in southern Italy. Under it, a flat 7% tax applies to foreign income instead of normal Italian income tax. One condition is that you were not Italian tax resident in the previous five years. The regime can last up to nine years, and you opt in on your Italian tax return.

The list of eligible towns depends on the region and the population. These details have changed recently. For that reason, check your eligibility with an Italian tax adviser before choosing where to live.

Healthcare when moving to Italy

If you get a UK State Pension, you may be entitled to UK-funded healthcare in Italy through an S1 form. You request the S1 from NHS Overseas Healthcare Services. Then you register it with your local ASL. After that, you and your dependants get healthcare on the same basis as Italian citizens.

Not everyone can use an S1. If you are not working and not covered as a dependant, you may register voluntarily and pay an annual fee. Otherwise, you will need private health insurance. Once registered, GP visits, emergency care and hospital stays are free. Even so, a co-payment (the “ticket”) usually applies to specialist visits, tests and prescriptions.

S1 holders can also get a UK-issued GHIC or EHIC for travel. The gov.uk Healthcare in Italy guide explains what to bring when you register.

ISAs, savings and UK property

Before moving to Italy, review every UK account and investment you hold. Some work well abroad; others may not.

• ISAs: the UK tax relief continues, but you cannot add new money once you are non-UK resident. Italy does not recognise the ISA wrapper, so income and gains may be taxable in Italy.
• Foreign asset reporting: Italian residents may need to declare overseas assets every year on the Quadro RW section of the tax return. The UK government warns that penalties for not filing can be severe.
• Wealth taxes: Italy also charges annual taxes on some foreign financial assets (IVAFE) and foreign property (IVIE). Rates and exemptions change, so check the current figures.
• UK property: under Article 6 of the treaty, the UK can tax rent from UK property. Italy may then tax it too, with credit for UK tax.

Any investments carry risk. Your capital is at risk, and the value of investments can fall as well as rise.

Inheritance tax

From 6 April 2025, UK inheritance tax is based on residence. If you were UK resident for at least 10 of the previous 20 tax years, UK inheritance tax can still apply for 3 to 10 years after you leave. Italy also has its own inheritance and gift tax. Our guide to inheritance tax for UK expats explains the UK side.

A hypothetical example of moving to Italy

Imagine Margaret, 67, a retired marketing manager from Bristol. This is a hypothetical example, not a real client. She has a workplace pension, a SIPP, a UK State Pension, a stocks and shares ISA and a small rented flat. She plans on moving to Italy in September and will register with her Comune soon after arriving.

First, Margaret checks the residence tests. Because she arrives in September, she will spend fewer than 183 days in Italy that calendar year. So she may not be Italian tax resident until the following January. That gap gives her time to plan, but she confirms it with an adviser.

Next, she looks at income. Italy would usually tax her workplace pension and SIPP income once she is resident. Therefore, she asks HMRC for treaty relief, so UK tax stops being deducted. Her rent stays taxable in the UK, and she declares it in Italy too.

Finally, she reviews her ISA. It keeps its UK tax benefits, but Italy may tax it. She lists all her UK assets for the Quadro RW. She also arranges an S1 for her healthcare.

Practical steps before moving to Italy

1. Check the visa you need and when to apply.
2. Plan your arrival date against the Italian and UK residence tests.
3. Get a State Pension forecast and statements for each private pension.
4. Find out how Italy will tax your pensions, ISAs and investments.
5. Decide where your pension is paid and how you will manage currency.
6. Arrange an S1, voluntary registration or private health cover.
7. Keep a list of overseas assets for the Quadro RW.
8. Review your will and estate plan for both countries.
9. Speak to a regulated adviser and, where needed, an Italian tax specialist.

You may also find our guides to moving to France and moving to Spain useful if you are comparing countries.

Moving to Italy: frequently asked questions

Do I need a visa for moving to Italy from the UK?

Yes, if you plan to live there. Visitors can stay up to 90 days in any 180-day period. For a longer stay, you need an Italian long-stay visa and then a residence permit.

Will Italy tax my UK pension?

Usually, yes for private and workplace pensions once you are Italian resident. However, UK government service pensions are generally taxed only in the UK, unless you are also an Italian national.

Can I keep my ISA after moving to Italy?

Yes. You can keep it and its UK tax relief, but you cannot pay in new money while non-UK resident. Also, Italy may tax the income and gains.

When do I become Italian tax resident?

You are resident if you meet one of the four tests for 183 days or more in a calendar year. These are Anagrafe registration, habitual residence, domicile or physical presence.

Get advice before moving to Italy

Moving to Italy works best when your pensions, savings and tax are planned together. We help UK expats arrange their finances before and after a move. See our page on financial advice for UK expats in Italy, or book a discovery call to talk through your plans.

_{This article is general information only and is not personal advice. Tax rules can change, and how they apply depends on your circumstances. Please seek specialist tax advice before acting. Information correct as at November 2026.}

Henry Temple-Baxter

Henry Temple-Baxter is the founder of Investments for Expats and is CISI Level 4 qualified. A long-term expat himself, he has lived and worked in Kuala Lumpur, Beijing, Bangkok, Hong Kong and Ho Chi Minh City. He set up the firm in 2018 to give UK expats fee-only, transparent advice on pensions, tax and investing abroad.

This guide is general information, not personal advice. Tax rules can change and their effect depends on your circumstances. Capital at risk.