See the Budget tracker for announcements and effective dates.
How does take-home pay compare with the UK?
Annual GBP at the same gross salary, using the UK and destination engines. Single employee, no children or voluntary pension contributions. A converted salary is not a local job offer.
| Gross salary | UK take-home | Italy take-home | Difference before rent |
|---|---|---|---|
| £50,000.00 | £39,519.60 | £31,327.93 | -£8,191.67 |
| £75,000.00 | £54,057.40 | £43,557.80 | -£10,499.60 |
| £100,000.00 | £68,557.40 | £55,787.68 | -£12,769.72 |
| £150,000.00 | £91,286.40 | £82,889.73 | -£8,396.67 |
How is employee pay taxed?
The Milan model includes national tax, Lombardy and Milan surcharges, deductible INPS contributions and employment credits. Comparisons start at GBP 18,441 because a low-pay bonus is omitted. It assumes the standard FPLD pension category, first insured from 1996, without the sector-specific CIGS charge.
What is the foreign-income flat tax?
Foreign-sourced income covered by the option for eligible new residents. Transfers from 1 January 2026: EUR 300,000 a year plus EUR 50,000 a year per qualifying family member. Applicants must have been non-resident in Italy for at least nine of the ten tax years before the transfer. The duration is set in law. Excluded from employee take-home.
Law 199/2025 took effect on 1 January 2026. Paragraph 26 uses residence under article 43 of the Civil Code for the cut-off, rather than simply the first tax-resident year. A move spanning that date needs an individual check of when civil-law residence transferred. Earlier entrants have separate rules; the disputed 10 or 11 August 2024 boundary is not resolved here. This is separate from ordinary salary tax and excluded from employee take-home. Sources and dates appear in the notes below.
Tax period: 2026. Main city used: Milan.
How does Italy's foreign-income flat tax work?
Eligible new residents pay a fixed annual charge on covered foreign-sourced income. Applicants must have been non-resident in Italy for at least nine of the ten tax years before transfer. PwC's Italy summary supplies those conditions.
Does an overseas payer make income foreign-sourced?
No. Work location and the kind of receipt affect its legal source. A British employer paying someone to work from Italy raises a different question from foreign investment income.
The ordinary employee calculation does not apply the flat-tax regime. Do not add a fixed charge to it or substitute that charge for salary tax without checking which receipts each treatment covers.
What permission do I need to live and work here?
UK citizens need a visa and a residence permit (permesso di soggiorno) within 8 days of arrival. Register residency (iscrizione anagrafica) after 3 months. EU long-term residence after 5 years. Dual citizenship allowed.
Which residence permission does a British citizen need?
GOV.UK Living in Italy describes a visa and residence permit for a new British applicant settling there. It gives a permit application deadline within eight days of arrival and residence registration after three months. The route must match the proposed activity and any existing rights.
A job offer or rental contract does not settle every condition. Check permission for work carried out in Italy even where the employer is British.
How much rent does the comparison assume?
Rent estimate in Milan: €1,517.39/month for a city-centre one-bedroom home; Numbeo: Milan city-centre one-bedroom rent, checked 25 October 2026; method and exclusions.
Getting residence
New British arrivals can apply for work, study, family or non-working residence visas. The Italian consulate handles the visa; apply for a residence permit through the Italian police within 8 days of arrival.
FCDO, Living in Italy. Source date: . Checked .
Healthcare
Register with your local health authority (ASL) after arranging residence. Workers can join the national health service through compulsory registration. Some non-working residents can pay for voluntary registration; others need private insurance. Some treatments still involve patient charges.
Department of Health and Social Care, healthcare in Italy. Source date: . Checked .
An eligible UK State Pension recipient can ask NHS Overseas Healthcare Services for an S1 certificate, which confirms UK-funded healthcare. Register it with the local ASL health authority. Eligibility depends on which country is responsible for your healthcare.
Department of Health and Social Care, healthcare in Italy. Source date: . Checked .
Schools
Foreign minors can enrol even when identity or residence documents are incomplete. Contact the school office with the child’s available identity, previous school and vaccination records; ask it to assess placement.
Sardinia regional government, education for foreign residents. Source undated. Checked .
Banking and money
Lawful EU residents can request a basic payment account here, subject to identity and anti-money-laundering checks.
European Commission, basic payment accounts. Source undated. Checked .
The currency is the euro (EUR).
European Central Bank, euro area countries. Source undated. Checked .
Declare cash of EUR 10,000 or more when entering or leaving the EU.
European Commission, EU cash controls. Source undated. Checked .
Cost of living
Household price level: 97.1 in 2025, EU average 100. Preliminary national comparison; your household budget will differ.
Statistics Norway, Eurostat price level survey. Source date: . Checked .
Driving
A new resident must exchange a valid UK licence after 1 year of residence to continue driving. No driving test is needed for the exchange. Contact the local Motorisation Office before the deadline.
FCDO, Living in Italy. Source date: . Checked .
UK pensions
The UK State Pension receives annual increases in Italy.Frozen State Pension guide.
DWP, State Pension annual increases country list. Source date: . Checked .
See the Moving abroad checklist for UK reporting and residence checks, school questions and bank account checks.