What Americans Need To Know Financially Before Moving To Italy

For U.S. citizens and dual citizens living abroad, investing and saving for retirement is an exercise in futility.

Stef
6 min readDec 24, 2023
Arco della Pace in Milan, Italy.
Arco della Pace in Milan, Italy.

Moving to Italy in 2022 has been the highlight of my twenties. As a dual U.S. and Italian citizen, I feel immensely fortunate to live and work in Milan, and I do not have any interest in returning to my birth country of the United States, or to my previous home in Oslo, Norway.

With the luxury of a good job, life in Italy has surpassed all of my expectations. Unfortunately, my U.S. passport works overtime to try and rain on my Italian parade.

The Harsh Implications of Citizenship-Based Taxation

The U.S. is one of the only countries in the world that taxes its citizens based on citizenship, not residency. This means that as an American living in Italy, even if you’re a dual U.S.-Italian citizen earning Italian income, you are obligated to file U.S. taxes and comply with IRS reporting requirements for the remainder of your life.

IRS Reporting Requirements for Americans Living Abroad

--

--

Stef

American emigrant & resident Italian. Read more about what it's like to live and work in Italy at layoverinitaly.com.