Planning Your Move to Italy: U.S. Expat Life, Taxes, and Family Insights
In this episode of Passport To Wealth®, host Arielle Tucker, CFP®, EA, sits down with Alex Ingrim, CEO of Liberty Atlantic Advisors, to talk about what life in Italy really looks like for U.S. expats. With years of experience as a cross-border financial advisor, and firsthand knowledge as an American living in Tuscany, Alex brings clarity to the opportunities and challenges of building a life abroad.
From North America to Europe to Italy
Alex and his family didn't land in Italy overnight. Their international journey spanned Canada, the U.K., France, and Malta before finally settling in Florence, where his wife's Italian heritage and their children's schooling made Italy the right long-term fit.
"Italy felt like the right final resting place for our family: somewhere slower, rooted in culture, and connected to my wife's family."
What Life in Italy Really Looks Like
When many Americans picture Italian life, food and culture take center stage. But Alex says the reality is often more nuanced. Regional cuisine matters, and Tuscan life, for example, is much more meat-heavy than the pasta-and-pizza image Americans often imagine. Family time is sacred, weekends aren't for work, and children gain independence earlier, biking to school or riding the bus solo by age 13. Work and money aren't the centerpiece, either, and conversations rarely revolve around careers or finances the way they do in the U.S.
"Life here feels a lot like raising kids in 90s America. It's slower, less digital noise, and far more intentional."
Italian Finances: What U.S. Expats Need to Know
As a financial advisor, Alex helps U.S. expats bridge the gap between American and Italian financial systems. He warns that the biggest mistakes Americans make are tax-related. Many assume U.S. retirement income like Social Security or IRA distributions won't be taxed in Italy, which isn't true. Others overestimate the wealth tax, which often has less financial impact than people fear.
"DIY tax planning is where people get into trouble. These aren't logical systems, so assumptions often lead to costly surprises."
This is exactly the kind of situation where a general accountant back home isn't enough. An [EXPAT TAX ADVISOR | HTTPS://WWW.PASSPORTTOWEALTH.COM/ESSENTIAL-TAX-ESTATE-AND-INVESTMENT-INSIGHTS-FOR-GLOBAL-PROFESSIONALS] who understands how Italian and U.S. rules interact can catch these false assumptions before they turn into a tax bill.
Italian Tax Incentives for Expats
Italy also offers several unique tax regimes that may benefit expats. A 7% flat tax is available for retirees in southern Italy, including Sardinia and Sicily, for those with foreign pensions. A 50% income exemption is available for those relocating to Italy for work, providing a substantial tax reduction for five years. With top Italian tax rates reaching 43% on income above €50,000, planning ahead is essential.
Retirement and Social Security
Italy and the U.S. share a unique totalization agreement, meaning self-employed Americans in Italy may still contribute to U.S. Social Security. This often creates planning opportunities.
"U.S. Social Security is actually more generous for what you put in compared to Italy's system, but each case is different, that's why planning ahead matters."
Alex's Advice for Aspiring Expats
Alex's biggest tip is don't rush.
"Take your time to plan the move, and give yourself at least two years to decide if it's right for you. That first year can be tough, but if you push through, you might find you never want to leave."
If you're weighing a move to Italy, working with a financial advisor for Americans in Italy like Alex, someone who has personally navigated the same transition, can shortcut a lot of the trial and error.
You May Also Like
- Understanding U.S. Taxes and Business Structures for U.S. Expats in Spain, for anyone building a business abroad rather than just living there
- American in Paris: Building a Life and Business Abroad, on the cost of learning U.S. tax rules the hard way
- U.S. Expats: Say Goodbye to Citizenship Based Taxation and Join the Tax Fairness Movement, on why every American abroad still has to file, no matter where they live
About the Author
Arielle Tucker, CFP®, EA, is a cross-border financial planner, founder of Connected Financial Planning and the host of Passport To Wealth®, helping U.S. expats simplify their finances while building intentional, global lives. She brings firsthand experience navigating cross-border tax and relocation planning to every client conversation. Ready to build your own financial roadmap for life abroad? Schedule a paid expat expert coaching call with her directly.