Moving to Italy from the UK: A Post-Brexit Guide

Getting Your Codice Fiscale

The codice fiscale is your Italian tax identification number, similar to a UK National Insurance number. You need this code for virtually all administrative procedures in Italy, including opening bank accounts, signing rental agreements, purchasing property, registering for healthcare, and filing taxes.

UK citizens residing abroad can apply for a codice fiscale through the Italian Consulate in the UK. Required documents typically include a completed application form, a valid passport copy, proof of UK residential address such as a utility bill or bank letter, proof of why the tax code cannot be requested through a representative in Italy, and a copy of your birth certificate with translation if not in English or Italian.

If you are already in Italy, you can apply at any office of the Agenzia delle Entrate, the Italian Revenue Agency. The process is straightforward and usually completed the same day.

Tax Implications of Moving to Italy

Understanding tax residency and obligations is crucial when relocating from the UK to Italy. Both countries have residence-based taxation systems, and the UK-Italy double taxation treaty prevents you from being taxed twice on the same income.

Tax Residency Rules

Italy applies the 183-day rule for tax residency. If you spend more than 183 days in Italy during a calendar year, or if your primary home or center of vital interests is in Italy, you are considered an Italian tax resident.

One common source of confusion is that the UK and Italy operate different tax years. The UK tax year runs from April 6 to April 5, while the Italian tax year follows the calendar year from January 1 to December 31. This can create complexity during your year of relocation.

Double Taxation Treaty

The UK-Italy Convention for the Avoidance of Double Taxation, signed in 1988 and effective since 1990, determines which country has primary taxing rights over different types of income. If you are considered resident in both countries under domestic rules, the treaty includes tie-breaker clauses that consider your permanent home, center of vital interests, habitual place of residence, and nationality.

When claiming double taxation relief in Italy, the Italian tax authorities may request proof of UK residence for the relevant period. You can obtain this documentation from HMRC through their online portal.

Flat Tax Regime for New Residents

Italy offers an attractive flat tax regime for high-net-worth individuals who transfer their tax residency to Italy. As of January 2026, following changes in the Budget Law, the annual flat tax amount is EUR 300K on all foreign-sourced income, with an additional EUR 50K for each family member electing the regime.

This represents an increase from the previous rate of EUR 200K , which applied until December 31, 2025. However, existing beneficiaries who registered before 2026 are grandfathered at the old rates.

To qualify, you must have been non-Italian tax resident for at least nine of the ten fiscal years preceding your transfer to Italy. The benefits apply for 15 years from registration. This regime can provide significant tax savings for individuals with substantial foreign income or assets.

UK State Pension in Italy

Many British retirees considering a move to Italy wonder about their state pension entitlements. The good news is that UK state pensions remain payable when you live in Italy.

For UK nationals who were living in an EEA state or Switzerland by December 31, 2020, the Withdrawal Agreement protects your right to annual pension increases. Your UK state pension will be uprated every year as long as you continue to live in those countries.

However, for those who moved to Italy after December 31, 2020, the situation is less certain. Annual increases for new movers depend on any bilateral arrangements between the UK and Italy. This could potentially result in a frozen pension without annual increases, as happens in some non-EEA countries.

If you are eligible for a UK state pension while living in Italy, you should continue to receive your payments. Contact the International Pension Centre before your move to arrange payment to your Italian bank account and understand your specific entitlements.

Healthcare Access in Italy

Italy has a high-quality national healthcare system, the Servizio Sanitario Nazionale. Understanding your healthcare rights as a UK citizen is essential for a smooth transition.

Short-Term Visitors

UK nationals visiting Italy temporarily can use a UK Global Health Insurance Card or European Health Insurance Card to access medically necessary state-provided healthcare. This gives you the same rights as Italian residents for urgent or essential care during your visit. However, it does not cover private treatment, non-urgent care, or repatriation to the UK.

UK Pensioners and the S1 Form

UK state pensioners may qualify for an S1 form issued by the UK NHS. This certificate allows you to register with the Italian national health service with healthcare costs funded by the UK government.

You must request the S1 before or shortly after moving to Italy. As of 2026, UK state pensioners can apply online through the NHS Business Services Authority portal. Once approved, you receive documentation that you must register with your local Italian health authority.

Registration of your S1 form means you and your dependents receive healthcare in Italy on the same basis as Italian citizens, including access to general practitioners, specialists, hospital care, and prescription medications with standard co-payments.

Enrolling in the SSN

If you do not qualify for an S1 form, you can register with the Italian SSN as a resident. Registration requirements and fees vary by region but generally require proof of residency, your codice fiscale, and your permesso di soggiorno.

Self-employed individuals and those without qualifying income may need to pay annual contributions for voluntary enrollment. Once registered, you receive a health card and can choose a general practitioner.

Driving License Exchange

Since March 30, 2023, UK citizens can exchange their UK driving license for an Italian license without taking a test, thanks to a bilateral agreement between the two countries.

However, important restrictions apply. You can only convert your UK license if you have been resident in Italy for less than six years at the time of submitting your application. This restriction does not apply to holders of UK licenses who acquired residence in Italy on or before December 31, 2020.

UK visitors to Italy do not need to exchange their license for short visits and tourism. Your UK license is valid for driving during your stay. You do not need an International Driving Permit or additional documentation.

To exchange your license, contact your local motorization office, the Ufficio di Motorizazzione Civile, with your UK license, proof of residency, passport, codice fiscale, and passport photos. Processing times vary by location but typically take several weeks.

Property Purchase

UK citizens can still purchase property in Italy after Brexit. Thanks to reciprocity agreements, UK nationals have the same rights to purchase Italian real estate as Italian nationals have to buy property in the UK. There are no restrictions preventing British citizens from owning property in Italy.

However, buying property in Italy does not grant automatic residency rights. You still need appropriate visas and permits to live in your Italian property long-term. The 90/180-day rule applies whether you are staying in a hotel or your own home.

You can purchase property as a resident or non-resident. Buying as a resident offers lower purchase and local taxes, but establishes tax residency implications for your worldwide assets. Buying as a non-resident is simpler from a tax perspective but carries higher transaction costs.

Italian banks may treat UK buyers as non-residents for mortgage purposes, affecting loan-to-value ratios and required documentation. Many UK citizens purchase property outright or arrange UK-based financing to avoid these complications.

Banking Considerations

Opening an Italian bank account is advisable once you establish residency. You need an Italian account to receive your permesso di soggiorno receipt, pay utilities and taxes, and conduct everyday transactions.

To open an account, you typically need your passport, codice fiscale, proof of Italian address, and proof of income or employment. Some banks may require your permesso di soggiorno, while others allow account opening with proof of application.

Many Italian banks offer limited English-language services, so basic Italian language skills help. Online banking platforms are generally user-friendly, and major cities have banks with international client services.

Maintain your UK bank account initially for receiving pension payments, managing UK investments, or maintaining credit history. Inform your UK bank of your move to avoid account restrictions due to residence changes.

Cost of Living Comparison

The cost of living in Italy is generally lower than in the UK, though expenses vary significantly by region. Overall, Italy is approximately 25 to 33 percent less expensive than the UK.

Housing costs in Italy average around GBP 1K compared to the UK average of GBP 1K . Renting a one-bedroom apartment in Italy typically costs EUR 1K monthly, substantially less than comparable UK accommodation. However, Milan and Rome command higher prices, with Milan among the most expensive Italian cities.

Groceries and everyday essentials are more economical in Italy. Staples like bread, milk, fresh produce, and even some imported goods cost less than UK equivalents. Dining out is generally more affordable, especially outside major tourist areas.

Transportation costs are significantly lower in Italy. A monthly public transport pass costs approximately EUR 0K compared to GBP 0K in the UK. Fuel prices are comparable, but insurance costs may vary depending on your driving history and location.

Utilities in Italy average around EUR 0K monthly, with internet services costing approximately EUR 0K for 60 Mbps connections. These costs are competitive with UK rates.

Healthcare costs depend on your enrollment status. SSN members pay modest co-payments for prescriptions and some services, far less than UK private healthcare. Private health insurance is available for supplementary coverage at reasonable rates.

Popular Areas for British Expats

British expatriates have established communities throughout Italy, with certain regions particularly popular for their lifestyle, climate, and amenities.

Tuscany

Tuscany remains the quintessential choice for British expats seeking rolling hills, vineyards, Renaissance art, and charming medieval towns. Approximately 11 percent of residents in some areas are foreign nationals. British communities are well-established in smaller towns throughout the region.

Cities like Pisa and Lucca attract expats seeking urban amenities with manageable sizes. More affordable areas include Garfagnana to the north and Maremma to the south, offering authentic Italian experiences at lower costs than famous tourist centers.

Liguria (Italian Riviera)

The Italian Riviera is famous for sunny climate, stunning Mediterranean views, and proximity to France. This coastline attracts UK retirees who appreciate seaside towns like Sanremo and Bordighera for relaxed ambiance and historic charm.

Picturesque villages including Portofino and the Cinque Terre offer luxurious and scenic coastal living, though property prices reflect the prestige of these locations. Smaller coastal towns provide more affordable alternatives with similar climate and lifestyle benefits.

The Italian Lakes

Lake Como, Lake Maggiore, and Lake Garda represent sophistication and natural beauty in northern Italy. These areas attract expats seeking prestige addresses surrounded by mountains and pristine waters. The lakes region offers excellent transport links to Milan and Switzerland, mild climate, and world-class amenities.

Property prices are higher around the lakes, reflecting international demand. However, towns away from prime lakefront locations offer better value while maintaining access to the stunning landscape.

Puglia

Puglia in southern Italy offers authentic Mediterranean lifestyle at considerably lower costs than famous northern regions. The white city of Ostuni is popular with British buyers, and the Ionian coast attracts both expats and Italian holidaymakers.

Puglia features distinctive trulli houses, excellent cuisine, beautiful beaches, and warm hospitality. The region remains relatively undiscovered compared to Tuscany, offering better value for property purchases and lower daily living costs.

Sicily

Sicily, the largest Mediterranean island, combines rich history, vibrant culture, and affordable living. British expats particularly favor the eastern side around Taormina on the coast and inland areas on Mount Etna slopes.

The island offers ancient Greek temples, Norman architecture, volcanic landscapes, and excellent seafood. Property prices are generally lower than mainland Italy, and the warm climate appeals to those seeking year-round sunshine.

Final Considerations

Moving to Italy from the UK requires more planning since Brexit, but the dream remains achievable with proper preparation. Start your visa application early, research your preferred location thoroughly, and consider visiting during different seasons to experience year-round conditions.

Learning Italian significantly improves your experience. While English is spoken in tourist areas and major cities, daily life requires at least basic Italian for shopping, healthcare appointments, and integration into local communities. Language learning also fulfills requirements for permanent residence applications.

Connect with existing expat communities for practical advice and support during your transition. However, make efforts to build relationships with Italian neighbors and participate in local events to truly integrate into your new home.

Consult with tax advisors familiar with UK-Italy taxation before your move to optimize your financial situation and ensure compliance with both countries' requirements. Professional guidance on the flat tax regime can provide substantial benefits if you qualify.

With careful planning and realistic expectations, moving to Italy from the UK offers the opportunity to enjoy Mediterranean climate, rich culture, excellent cuisine, and a more relaxed pace of life. The additional administrative steps required post-Brexit are manageable obstacles on the path to your Italian adventure.