International Real Estate, Offshore Living

Best Places to Live in Italy for Americans

  • Author Written by The Nestmann Group
  • Reviewed by Brandon Roe
  • Calendar Updated: June 11, 2025
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In 2025, Italy became one of the most popular places for wealthy foreign investors – who now own approximately 70% of its luxury real estate – to buy property.

Italy’s real estate market is worth an estimated €16 trillion (about $18.24 trillion) in total. Prices for both new construction and existing properties are up, too – rising by about 9.4% and 3.4% in Q4 2024, respectively.

Annual changes in Italian house prices:

A chart from Global Property Guide illustrating annual changes in Italian house prices.

Why now?

  • Tax breaks: New residents can pay a flat €200,000 (about $228,000) per year on foreign income if they qualify. Eligible family members incur an additional charge of €25,000 (about $28,500) per person on top.

  • Tight supply in key areas: 2025 data shows that inventory is drying up in hotspots like Florence, Rome, and Lake Como. Buyers are moving fast to secure prime homes.

  • Safe diversification: Buying property abroad can help reduce risk, protect wealth, and open doors for residency.

Italy offers more than beauty and good food. For many, it’s part of a smarter, long-term plan to protect family wealth – while enjoying life at the same time.

Lake Como: Where the Wealthy Go to Slow Down

Lake Como has long been one of Italy’s most exclusive addresses – and in 2025, it still holds that crown. With mountains on all sides, a deep blue lake in the middle, and fast access to both Milan and Switzerland, it’s easy to see why wealthy Americans love it here.

But it’s not cheap. In May 2025, the average asking price for a house in Lake Como was right around €2,990 per square meter (about $3,412).

Why Americans Choose Lake Como

  • Fast travel connections: Trains from Como reach Milan in just over an hour and Lugano, Switzerland, in about 40 minutes.

  • Year-round comfort: The lake and mountains generally keep temperatures mild in both summer and winter.

  • Privacy: The area is known for low crime and high discretion – ideal for business owners, celebrities, and executives.

  • Diverse housing: Options range from historic villas to sleek, modern apartments with wide lake views.

  • Business access: Easy reach to Milan’s financial center and Swiss private banking hubs.

Best Towns Around Lake Como

  • Menaggio: A scenic town known for its art history and ferry access across the lake.

  • Como Town: The largest urban center on the lake, home to about 80,000 people and a stunning cathedral.

  • Bellagio: Famous for its luxury hotels, dramatic waterfront, and premium properties.

  • Varenna: A quieter village, known for charm, gardens, and beautiful lakefront homes.

Market Outlook

Tight supply and growing international demand are expected to fuel Lake Como’s residential property market.

There aren’t many homes for sale – and more buyers are entering the market. Not ideal for short-term yields or bargain deals – but for those planning to live there or hold long-term, limited supply and strong demand support price stability and future value.

Potential Downsides

Like anything, Lake Como isn’t perfect.

  • Low inventory: Good homes are limited and move fast.

  • High prices: Around €2,990/m² ($3,412) puts it in the top tier of Italian markets.

  • Tourist traffic: Towns like Bellagio get busy in peak season.

  • Older homes, strict rules: Renovations can be slow and expensive due to historic protections.

If you want total quiet or easy access to modern services, some areas may feel remote.

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Florence: Where Old-World Beauty Meets Modern Life

Florence is one of Italy’s most iconic cities – and one of the easiest for Americans to live in. It’s rich with art and history, but it’s also practical, walkable, and surprisingly livable for day-to-day life.

Here, it’s normal to walk past a 700-year-old cathedral on your way to the grocery store. Or sip espresso next to a bridge that’s older than the US Constitution.

Over time, all that culture becomes part of your daily routine.

Why Americans Choose Florence

  • Good housing value: Homes in Florence average €4,331 ($4,920) per square meter, according to Global Property Guide. Less than Milan, but still in a high-quality, high-culture city.

  • Walkable and family-friendly: The city is compact, with good schools and no need for a car. Everything’s within reach.

  • Beautiful, but livable: Art museums, famous landmarks, and historic architecture are woven into everyday life – not something you have to plan a trip to see.

Neighborhoods to Know

Each area has its own feel – but they all share the same historic charm:

  • Santo Spirito: Known for its creative vibe, artisan shops, and small bars. A favorite for artists and younger expats.

  • Duomo District: The heart of Florence, full of historic landmarks and elegant apartments with views.

  • Oltrarno: More residential and traditional, with family-owned restaurants, markets, and a quieter pace.

Florence is considered a smaller city, with a population of just about 714,000 people, so it’s easy enough to learn your way around quickly. Yet it still offers enough diversity, luxury, and activity to keep things interesting.

Tax Perks

Florence is part of Italy’s “impatriate” tax program, which can reduce your taxable Italian employment or self-employment income by up to 50% for up to five years if you move there for work. You can’t use this and Italy’s €200,000 program at the same time, but depending on how your income is structured, either could offer attractive tax savings.

And because Florence is a UNESCO World Heritage Site, you may qualify for tax credits if you restore or upgrade a property – whether it’s a house or an apartment – as long as it’s located in the city’s protected historic area and the work meets heritage guidelines (the rules that govern property restoration and renovation).

Potential Downsides

  • Local frustration: Locals are far from happy about the growing number of foreign investors buying their properties – placing upward pressure on housing prices.

  • Tourism pressure: Summers bring crowds, especially near the Duomo and Uffizi.

  • Noise and traffic: Narrow streets mean sound carries. Scooters and delivery vans can be constant in busier areas.

  • Historic limits: Many homes are old and come with renovation rules tied to UNESCO protections.

  • Limited green space: Parks are small, and private outdoor space is rare in central neighborhoods.

Rome: Where History and Practicality Live Side by Side

Rome offers something rare: a major international city with deep cultural roots and real-world convenience. For Americans considering a move, it strikes a thoughtful balance between lifestyle, infrastructure, and access.

Homes average around €3,124 per square meter (about $3,562), according to Global Property Guide. That’s less than what you’d pay in Milan.

Why Americans Choose Rome

  • Reliable public services: Rome has strong hospitals, international schools, and consulates. Many providers speak English.

  • Global connections: As Italy’s capital, Rome offers direct flights to most of Europe and North America (like San Francisco, Los Angeles, New York, and Miami).

  • Housing range: Buyers can choose from old apartments in the historic center to newer builds in areas like EUR or Monteverde. The variety makes it easier to align with your budget and lifestyle.

Areas to Know

  • Centro Storico: The historic center. High-end real estate, walkable streets, and Roman landmarks.

  • Trastevere: Trendy and older, with local cafés and more tourists. A popular spot for younger expats.

  • EUR: Rome’s business district – modern, green, and organized. Less charm, more convenience.

  • Monteverde: Residential, quieter, with family-run shops and access to parks.

Potential Downsides

Rome has strong fundamentals – but it’s not without its limitations:

  • Traffic: The city was built long before cars. Traffic is heavy, and driving can be unpredictable.

  • Bureaucracy: Even routine processes – like residency registration or healthcare enrollment – can be time-consuming.

  • Tourism fatigue: Summer crowds are intense in central areas. If you live near major landmarks, expect regular foot traffic and noise.

  • Air quality: Rome struggles with pollution during hot months, especially in low-lying parts of the city.

  • Waste management: Rome is notorious for its poor waste management systems.

  • Public transportation: The city had to authorize 1,000 new cab licenses in 2025 to meet basic consumer demand.

Milan: Italy’s Financial and Career Capital

Milan is Italy’s business center – and a top choice for Americans who want professional opportunity with a European lifestyle.

While it’s one of the most expensive markets in the country, it also offers high earning potential, solid infrastructure, and strong international connections.

Why Americans Choose Milan

  • Real estate strength: Luxury homes now average €4,986 per square meter (about $5,680 USD), according to Global Property Guide. Prices reflect Milan’s role as a stable and growing financial center.

  • Top salaries: Milan offers the highest income levels in Italy, especially in fields like finance, fashion, design, and technology.

  • Corporate base: The city hosts many US and multinational firms (like Google, Nestlé, and Amazon), making it easier to stay connected to global business networks.

  • Efficient transport: High-speed trains reach Rome in 3 hours and Paris in about 7. Milan is also home to three international airports with direct flights to major US cities (like New York, Chicago, & Atlanta).

  • Modern lifestyle: Milan has a fast, urban pace with reliable public services, upscale neighborhoods, and a metro system that’s easy to use.

  • Affordable transport: A monthly metro and bus pass costs around €50, making day-to-day travel simple and predictable.

  • Professional community: Milan has an active international business scene with frequent events and associations for expats and executives.

Potential Downsides

Milan works well for business – but it’s not for everyone.

  • High cost of living: Housing, dining, and services are expensive – especially in central areas.

  • Less historic charm: Compared to Florence or Rome, Milan feels more modern and commercial. It’s more efficient, but not always scenic.

  • Colder climate: Although summers tend to be very warm, winters are foggy and damp.

  • Work-first culture: The pace is faster, and the city can feel less relaxed than other parts of Italy. Good for careers, less ideal for slow living.

Sicily: Southern Italy’s Most Generous Tax Deal

For Americans with retirement income or passive investments, Sicily offers one of the best tax programs in Europe. Italy’s government created a special incentive to attract new residents to smaller towns – and Sicily is one of the top places where it applies.

If you qualify, you pay just 7% tax on all foreign income for up to nine years. That includes Social Security, pensions, dividends, rental income, and capital gains from outside Italy.

Tax Advantages for Americans

  • Flat 7% tax: Applies to most types of income earned outside Italy.

  • Program length: Up to nine years of reduced taxation – extended from the original five.

  • What’s covered: Pensions, rental income, dividends, capital gains, and other foreign earnings.

  • No foreign asset taxes: Italy doesn’t tax your foreign real estate or financial accounts while you’re in the program.

  • Example: On $100,000 in foreign income, you would pay just $7,000 in Italian tax – but as a US citizen, you’re still subject to US tax on worldwide income. In practice that means that – without additional planning – you’ll still be paying the same rates as what you would have paid if you stayed in the US.

To qualify, you must live in a town with fewer than 20,000 residents in Sicily or other eligible southern regions like Calabria, Sardinia, or Puglia.

Real Estate and Cost of Living

  • Palermo: Houses average €1,341 per square meter (about $1,528 USD), according to Global Property Guide.

  • Catania: Slightly lower at €1,240 per square meter (about $1,414 USD), also according to Global Property Guide.

  • Daily costs: Food, transport, and services remain far more affordable than in northern Italy or most US cities.

  • Infrastructure: Cities like Palermo and Catania have modern hospitals, shops, and airports. Transit links and roadways continue to improve.

Potential Downsides

Sicily has strong advantages – but there are trade-offs.

  • Location limits: To get the 7% tax deal, you must live in a small town. Major cities like Palermo don’t qualify.

  • Slower services: Bureaucracy and internet speeds can be less efficient than in northern regions.

  • Language gap: English is less common outside urban centers. Basic Italian skills are a must.

  • Less economic activity: Fewer business opportunities and slower local economies may be a factor if you plan to work or run a business locally. (That’s not a problem if you’re a digital nomad, of course.)

Tuscany: The Classic Italian Dream

Tuscany is what many Americans imagine when they think of Italy. Rolling hills, vineyards, stone farmhouses, and small medieval towns define the region’s landscape and rhythm of life.

It’s not just beautiful. Tuscany offers strong healthcare, well-developed expat networks (like Luca and Pisa), and access to both rural peace and major cities like Florence and Rome.

Why Americans Choose Tuscany

  • Balanced lifestyle: The region appeals to those seeking a slower pace without giving up access to good services or cultural events.

  • Charming towns: Places like Siena offer medieval architecture, walkable streets, and a mix of locals and expats.

  • Lower prices in rural areas: While Florence can be pricey, nearby towns and countryside properties remain more affordable.

  • Well-developed expat support: Tuscany has long attracted American, British, and Northern European residents. That means English-speaking services, international schools, and reliable medical care.

  • Cultural access: From opera and food festivals to world-class museums, the region blends rural beauty with high-end lifestyle options.

Strong for Investment

Tuscany’s popularity as a travel destination makes it appealing for part-time residents and investors alike. Homes in areas like Chianti or Val d’Orcia can double as vacation rentals.

  • Agriturismo properties: Farm stay rentals (especially those with vineyards or olive groves) are in steady demand.

  • Personal + rental use: It’s common for owners to split their time between personal stays and seasonal rental income.

Potential Downsides

Tuscany is one of Italy’s best-known regions, but it’s not without limits.

  • Car required: Rural living often means you’ll need a vehicle for daily errands.

  • Property upkeep: Older homes, especially in the countryside, require maintenance – sometimes more than newcomers expect.

  • Higher upfront costs: The dream lifestyle comes at a premium in well-known areas. Buyers looking for value may need to explore farther from major towns.

Recommended Reading

Healthcare and Infrastructure in Italy: What to Expect

Italy provides universal healthcare through its national system, the Servizio Sanitario Nazionale (SSN), which covers all citizens and legal residents.

The system is funded by taxes and offers free or low-cost services, including primary care, hospital stays, and specialist visits. Patients may pay small co-pays for certain services and medications.

Private health insurance is available for those seeking faster access to specialists or private facilities, which have monthly costs ranging anywhere between €100 and €300 ($114 to $342).

Infrastructure: Reliable and Modern

Italy has a well-developed infrastructure that supports both daily life and business needs:

  • Transportation: High-speed trains connect major cities efficiently, with travel times like 3 hours from Milan to Rome. Public transportation within cities is reliable and affordable.

  • Internet: Broadband internet is widely available, with average speeds around 74 Mbps. Monthly costs range from €25 to €35 (about $28 to $40), depending on the provider and plan.

  • Utilities: Monthly utility bills for an 85 m² (about 915 square feet) apartment, including electricity, heating, water, and garbage, typically range from €150 to €220 ($171 to $251). Costs can vary based on usage and location.

Regional Variations

  • Northern Italy: Cities like Milan and Bologna offer advanced healthcare facilities and infrastructure.

  • Central Italy: Regions such as Tuscany and Umbria provide a balance of modern amenities and historic charm.

  • Southern Italy: Areas like Sicily and Calabria have lower living costs but may experience slower services and infrastructure development.

Bottom Line

Italy offers real advantages for Americans thinking globally. Whether you’re focused on Lake Como’s privacy, Florence’s culture, Milan’s business links, or Sicily’s tax breaks, the opportunity is clear: live well and protect your wealth at the same time.

Demand is rising, property in top areas is becoming harder to get, and infrastructure across the country is improving. Italy also gives you the peace of mind that comes with a stable, rule-based country in a lovely part of Europe.

At Nestmann, we’ve guided Americans through international living strategies for over 40 years. If Italy feels like a fit, feel free to get in touch. We’re here to help you explore how it can support your wealth, lifestyle, and legacy.

About The Author

Since 1984, we've helped high net worth American investors, entrepreneurs, and families go offshore. Our formula is simple: full-service programs for global investing, tax reduction, and second residency or citizenship -- so you skip the hard parts and keep the benefits. To learn more about how we can help you, please get in touch.

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