27 August 2024 · Country Matchups · Global
Italy vs Greece: Retirement Residency Costs Compared (2025)
Written by Leonora S., CFP® and cross-border retirement planner at BorderPilot
Moving your golden years to the Mediterranean sounds romantic—until spreadsheets enter the chat. I spend a good chunk of my week turning daydreams about olive groves into line-item budgets, and the Italy-versus-Greece question lands on my desk at least twice a month.
Both countries offer sun, sea, warm people and tortured bureaucracy. Yet their retirement visas, housing markets, healthcare systems and pension tax breaks diverge in ways that can add—or subtract—five figures from a lifetime budget. Below is the same framework I use with one-on-one clients, re-created so you can run your own quick feasibility test before you start packing china into bubble wrap.
1. Visa Entry Thresholds
1.1 The Paper Trail, Simplified
| Requirement (2025) | Italy Elective Residency Visa (ERV) | Greece Financially Independent Visa (FIV) |
|---|---|---|
| Minimum monthly income | €2,841 (1× Italian social security allowance) for the main applicant; +20% spouse, +5% each child | €2,000 for the main applicant; +20% spouse, +15% each child |
| Lump-sum bank deposit | Not formally required but consulates like to see 12 months of income parked | €24,000 in a Greek bank (plus spouse/kids top-ups) |
| Up-front visa fee | €116 | €75 application + €150 residence permit card |
| Processing time | 60–120 days, varies by consulate | 2–3 months for entry visa, card issued 40 days after arrival |
| Renewal cadence | 1-year initial, then 2-year renewals | 2-year initial, then 3-year renewals |
| Physical presence required | 183+ days/year to maintain residency | 183+ days/year or prove “center of vital interests” |
Planner’s take
- Greece’s income floor is ~30% lower, great for modest pensions.
- Italy’s ERV demands proof the income is passive (pensions, dividends, rental). A part-time consulting contract usually disqualifies you.
- Consulates can—and do—move the goalposts. Treat the thresholds as a minimum viable wallet, not a guarantee.
Call-out: Italians love official translations; Greeks love stamps. Budget €500–€800 for apostilles, translations and sworn affidavits whichever route you choose.
1.2 Real-World Visa Budget (Couple)
| Cost line | Italy | Greece |
|---|---|---|
| Visa & permit fees | ~€350 | ~€450 |
| Document prep | €700 | €600 |
| Travel for appointments | €400 | €400 |
| Total Year 0 | €1,450 | €1,450 |
Surprised? The upfront admin spend is basically a rounding error in most retirement budgets. The bigger levers come later.
2. Housing Costs in Beach Towns
I’ve pulled 2024-Q4 data from Immobiliare.it, Spitogatos.gr and local agents I trust. Prices are per square metre; exchange rate assumed €1 = US$1.10 for sanity.
2.1 Purchase Prices
| Coastal Micro-Market | Italy (€/m²) | Greece (€/m²) |
|---|---|---|
| Liguria (e.g., Alassio) | 4,000 – 6,000 | — |
| Puglia (e.g., Monopoli) | 2,000 – 3,200 | — |
| Calabria (e.g., Tropea) | 1,200 – 2,000 | — |
| Crete (e.g., Chania) | — | 2,200 – 3,000 |
| Peloponnese (e.g., Nafplio) | — | 1,700 – 2,400 |
| Thessaloniki suburbs | — | 1,300 – 1,800 |
Rule of thumb: Greece beats Italy by ~15–20 % at like-for-like lifestyle levels, but Italy’s deep south undercuts many Greek islands.
Case study
Last October a Toronto couple I coached bought a 90 m² flat overlooking Puglia’s Adriatic coast for €235k including notary fees—€2,611/m². A comparable sea-view unit in western Crete listed at €267k (€2,966/m²). Currency swings and renovation appetite tipped the scales; they valued Italy’s train network over Greece’s cheaper property taxes.
2.2 Long-Term Rentals
| Region | 2-bed long let (€/month) | Notes |
|---|---|---|
| Sicily (Siracusa old town) | 700 – 900 | Off-season bargains at 550 |
| Tuscany coast (Grosseto) | 1,100 – 1,400 | Summer premium +50 % |
| Athens Riviera (Glyfada) | 1,200 – 1,600 | High expat demand |
| Rhodes town | 650 – 850 | Ferry noise baked in |
| Ionian islands (Lefkada) | 750 – 1,000 | Limited winter stock |
Pro tip: in both countries, annual leases often exclude July–August, which landlords reserve for short-lets. Negotiate a 12-month contract early (Jan–Feb) and offer to pay 6 months up front—still cheaper than a removal van crossing two borders.
3. Healthcare Coverage
3.1 Public Systems
Italy’s Servizio Sanitario Nazionale (SSN) remains the poster child of Mediterranean public care; WHO ranks it 2nd in the world for responsiveness. Greece’s EFKA/ESY underwent austerity triage in the 2010s but has stabilised.
| Metric | Italy | Greece |
|---|---|---|
| Annual voluntary contribution (pensioners) | 7.5 % of global income cap €2,000 | Flat €776 public insurance stamp |
| GP wait time (urban/rural) | 3 / 8 days | 5 / 12 days |
| English-speaking specialists | High in north, moderate in south | Athens/Thessaloniki yes; islands hit-or-miss |
| Out-of-pocket for MRI | €0–36 | €0–45 |
3.2 Private Top-Up Insurance
For clients with complex health histories I advise a hybrid: register for the public system (compulsory anyway) and buy private cover focused on speed.
| Age 65-69, no pre-existing | Italy (annual premium) | Greece (annual premium) |
|---|---|---|
| Tier 1 local plan | €1,100 | €900 |
| International expat plan | €2,400 | €2,100 |
Italy’s premiums are 10–15 % higher largely because providers assume greater utilisation (and Italians do love their medics).
Quick anecdote: My father-in-law snapped a tendon in Abruzzo, got an MRI inside 48 hours at the local A&E—no co-pay. A client on Paros island waited three weeks for the same scan last May. Distance to tertiary hospitals matters more than the country label.
4. Tax on Pensions
Here’s where spreadsheets make or break the gnocchi.
4.1 Headline Regimes
Italy’s “7 % flat tax” for foreign pensioners applies only if you settle in a town under 20,000 residents in the Mezzogiorno (south). Greece offers a clean 7 % flat tax nationwide for all foreign-source income, for 15 years.
| Scenario | Italy | Greece |
|---|---|---|
| Ordinary progressive rates | 23–43 % after €15,000 | 9–44 % after €10,000 |
| Special 7 % regime length | 10 years | 15 years |
| Social security agreement with US/CA/UK | Yes | Yes |
| Wealth tax | None | None |
| Inheritance tax | 4–8 % for close relatives | 1–10 % |
Planner’s math moment
A US couple drawing $60k (≈€54,500) annual pension:
• Italy, no 7 % regime (they like Umbria): €9,870 tax
• Italy, 7 % regime (they pick Molise): €3,815
• Greece, flat 7 %: €3,815
Tie game? Not quite. Greece locks the rate for 15 years; Italy only 10. On year 11–15, Italy flips to progressive, Greece still cruises.
4.2 Double-Tax Treaty Nuances
Both nations’ treaties generally assign pension taxation rights to the resident state. But if you’re holding a government pension (e.g., US federal), the paying country may reserve rights. Always map treaty articles before you sign a lease.
I routinely collaborate with our in-house cross-border accountants—yes, the ones who wrote our deep-dive Tax optimisation guide.
CTA-ish aside: BorderPilot can simulate 30-year after-tax cash flows for each regime in under two minutes. Grab a free plan at the end of this article.
5. Secondary Costs Retirees Forget
5.1 Utilities
Electricity is the budget gremlin everywhere in Europe.
| Typical 2-bed apartment | Italy | Greece |
|---|---|---|
| Electricity (kWh price) | €0.46 | €0.32 |
| Annual spend (6,000 kWh) | €2,760 | €1,920 |
| Broadband 100 Mbps | €28 | €26 |
| Mobile 20 GB | €11 | €10 |
Yes, Italian power bills can roast chestnuts. Solar panels qualify for 50 % tax credit but the admin will age you faster than the sun.
5.2 Car Ownership
Importing your Volvo? File under “possible, rarely sensible.” Both countries levy a registration tax based on CO₂ emissions; Italy’s is steeper for larger engines. In Greece, islanders often ditch cars entirely and use mopeds plus ferries.
5.3 Exit Taxes
If you’re leaving France, Spain or another high-tax origin country, don’t overlook their goodbye present: the exit levy on unrealised gains. Start your project by reading our explainer on Exit tax rules when leaving France even if you’re not French—the mechanics echo across Europe.
6. Sample Monthly Budgets (Couple, 2025 Prices)
| Cost line | South Italy small town | Greek island mid-size |
|---|---|---|
| Rent (2-bed, annualised) | €800 | €900 |
| Groceries & dining | €550 | €600 |
| Healthcare top-up | €183 | €150 |
| Utilities | €230 | €180 |
| Transport | €150 | €120 |
| Entertainment/travel fund | €400 | €400 |
| Pension tax (7 % regime) | €318 | €318 |
| Total | €2,631 | €2,668 |
You’re staring at a €37/month delta—hardly decisive. The swing factor becomes where in each country you choose and whether the 7 % tax room fits your 10- versus 15-year horizon.
7. Decision Matrix
| Priority | Advantage Italy | Advantage Greece |
|---|---|---|
| Lower visa income requirement | ✅ | |
| Robust public healthcare | ✅ | |
| Longer flat-tax window | ✅ | |
| Faster rail/connectivity | ✅ | |
| English prevalence | ✅ (north) | ✅ (urban) |
| Lower electricity | ✅ | |
| Cheaper property in deep south | ✅ |
My typical recommendation:
• If you need every euro of pension to stretch, lean Greece.
• If healthcare outcomes top your list and you’re open to the under-populated south, Italy’s SSN plus 7 % regime is compelling.
• If you crave big-city culture (Milan, Rome, Athens), remember neither flat-tax regime applies; rerun the progressive rates.
8. Planner’s Checklist Before You Book a One-Way Flight
- Run a 20-year cash-flow projection with both tax regimes.
- Get unofficial feedback from the specific consulate you’ll apply through—requirements can vary shockingly.
- Pre-verify your foreign pension can be direct-deposited locally (some US custodians balk at Greek IBANs).
- Budget a 10 % safety margin; nothing erodes retirement joy like a surprise bill.
- Apply for an international driving permit; Greek police still ask.
- Schedule a reconnaissance trip during shoulder season—no rose-tinted holiday goggles.
“Retirement should be a spreadsheet that funds your bucket list, not handcuffs it.”
—A mantra taped to my monitor
Ready to See Your Numbers?
Creating a relocation plan doesn’t commit you to anything—except clarity. Plug your pension amounts and preferred coastal towns into BorderPilot’s free planner and get personalised cost benchmarks, visa timelines and tax estimates in minutes. Mediterranean sunsets await; let’s make sure the budget does too.