In short
Rome is the cheaper capital: a single person with a central 1-bedroom spends about €1,930 a month, against about €2,185 in Lisbon. Portugal offers Americans a digital nomad visa, a retirement visa and a golden visa. Italy offers Americans a digital nomad visa, a retirement visa and a golden visa. Citizenship takes about 10 years of residence in both. Every figure below is checked against official sources.
The verdict
Which Country Fits You?
Where one side is clearly better for most Americans, it gets the point — the rest depends on your plans.
Choose Portugal if…
- You live on a pension or savings and want the lower bar: D7 visa — passive income from €920 a month (2026).
- You will run a company — corporate tax is 19% in 2026, falling to 17% by 2028.
- You are a founder: Startup Visa — accepted by an IAPMEI-certified incubator.
Choose Italy if…
- You want lower costs — about €260 a month less for a single person with a central 1-bedroom in Rome.
- You work remotely and want the lower bar: Digital nomad visa — at least €24,789 a year; degree or experience required; 1 year, renewable.
- You are a founder: Italia Startup Visa — €50,000 of funds; decision in about 30 days.
Cost of Living
Rome Is About €260 a Month Cheaper
| Portugal | Italy | |
|---|---|---|
| 1-bed apartment, city centre | Portugalabout €1,425 (Lisbon) | Italyabout €1,085 (Rome)✓ |
| 1-bed apartment, outside centre | Portugalabout €1,063 (Lisbon) | Italyabout €780 (Rome)✓ |
| Everyday costs, single person (no rent) | Portugalabout €760 (Lisbon)✓ | Italyabout €845 (Rome) |
| Total a month — single, central 1-bed | Portugalabout €2,185 (Lisbon) | Italyabout €1,930 (Rome)✓ |
Living costs: Numbeo estimates for the capital (2026), as shown with sources on each city guide and in the key facts below.
Visas & Residence
Visas & Work Permits Compared
| Portugal | Italy | |
|---|---|---|
| Apply from inside the country | PortugalNo — enter on the right visa; a tourist stay cannot be turned into residence | ItalyNo — D visas from your Italian consulate; a tourist stay cannot be converted |
| Digital nomad visa | PortugalD8 visa — remote income of at least €3,680 a month plus €11,040 in savings | ItalyAt least €24,789 a year; degree or experience required; 1 year, renewable✓ |
| Retirement / passive-income visa | PortugalD7 visa — passive income from €920 a month (2026)✓ | ItalyElective residence visa — about €31,000 a year of passive income; no work at all |
| Golden (investor) visa | PortugalGolden visa — €500,000 in funds or a company, €250,000 for culture; real estate closed since 2023 | ItalyInvestor visa — €250,000 in an innovative startup, €500,000 in a company or €2 million in bonds; no property route |
| Founders & startups | PortugalStartup Visa — accepted by an IAPMEI-certified incubator | ItalyItalia Startup Visa — €50,000 of funds; decision in about 30 days |
Settling In
Permanent Residence, Citizenship & Healthcare
| Portugal | Italy | |
|---|---|---|
| Permanent residence | PortugalAfter 5 years, with A2 Portuguese | ItalyEU long-term permit after 5 years, with A2 Italian |
| Citizenship | Portugal10 years since May 2026 (7 for some nationalities) | Italy10 years, B1 Italian; dual citizenship allowed |
| Public healthcare | PortugalLegal residents can use the public SNS | ItalyFree SSN for workers; others pay at least €2,000 a year to join |
Tax & Business
Taxes & Company Rules
| Portugal | Italy | |
|---|---|---|
| Income tax | Portugal12.5% to 48% (2026) | Italy23% to 43%, plus regional and municipal surcharges |
| Special tax regime | PortugalIFICI — 20% flat for 10 years on qualifying skilled jobs; not for pensions | Italy7% flat on foreign income for pensioners in small southern towns (10 years) |
| Usual company | PortugalLda — capital from €1; same-day formation | ItalySRL — €10,000 standard capital, or €1 if fully paid in cash; notarial deed |
| Corporate tax | Portugal19% in 2026, falling to 17% by 2028✓ | Italy24% IRES plus 3.9% IRAP |
| US tax treaty | PortugalSigned 1994; Social Security agreement since 1989 | ItalySigned 1999, in effect since 2010; Social Security agreement since 1978 |
US citizens & Green Card holdersThe US still taxes you
Wherever you live, the US taxes its citizens on worldwide income. You keep filing a US return, and an FBAR once your foreign accounts total more than $10,000 at any time in the year.
Daily Life
Daily Life in Lisbon and Rome
| Portugal | Italy | |
|---|---|---|
| Population (capital) | PortugalAbout 576,000; 2.9 million in the metro area | ItalyAbout 2.75 million; 4.2 million in the metropolitan city |
| Public transport (capital) | PortugalNavegante pass €40 (metro area) or €30 (Lisbon only) | ItalyMonthly pass €35; Leonardo Express to Fiumicino €14 |
| Nonstop flights to the US | PortugalTAP nonstop from 8 US cities, plus United and Delta | ItalyRome and Milan about 8–9 hours nonstop from the East Coast |
| Currency | PortugalEuro | ItalyEuro |
FAQ
Portugal or Italy? Your questions
Is Lisbon or Rome cheaper?
Rome is cheaper: a single person with a central 1-bedroom spends about €1,930 a month there, against about €2,185 in Lisbon (Numbeo, 2026). Rent for a central 1-bedroom is about €1,425 in Lisbon and €1,085 in Rome.
Does Portugal or Italy have a digital nomad visa?
Portugal: D8 visa — remote income of at least €3,680 a month plus €11,040 in savings. Italy: At least €24,789 a year; degree or experience required; 1 year, renewable.
How long until I can get citizenship?
Portugal: 10 years since May 2026 (7 for some nationalities). Italy: 10 years, B1 Italian; dual citizenship allowed.
Do I still pay US taxes if I move?
Yes. The US taxes its citizens on worldwide income wherever they live. You keep filing a US return, and an FBAR once your foreign accounts total more than $10,000. Foreign tax credits and the treaties usually prevent paying twice on the same income.
Portugal vs Italy: key factsLast verified 1 October 2026
| Portugal: Lisbon rent | 1-bedroom about €1,425 a month in the centre and €1,063 outside (Numbeo, September 2026) Source: Numbeo: Cost of living in Lisbon |
|---|---|
| Portugal: Lisbon living costs | A single person spends about €760 a month without rent — about €2,185 with a central 1-bedroom (Numbeo, September 2026) Source: Numbeo: Cost of living in Lisbon |
| Italy: 1-bed apartment, Rome | about €1,085/month in the centre, €780 outside (Numbeo, Sep 2026) estimate Source: Numbeo: cost of living in Rome (Sep 2026) |
| Italy: Living costs, single person (Rome) | about €845/month without rent estimate Source: Numbeo: cost of living in Rome (Sep 2026) |
| Portugal: Entering as a tourist | Since 4 June 2024 you can no longer switch from a visa-free stay to residence (manifestação de interesse abolished) — you need a residence visa from a consulate first Source: Estrangeiros: Extintas as manifestacoes de interesse: APCMC |
| Italy: Where to apply | Long-stay (D) visas come from the Italian consulate for your US state of residence; a tourist stay cannot be turned into a residence permit in Italy Source: Consulate General of Italy in New York: digital nomad / remote worker visa · Italian Foreign Ministry: rights and duties of D-visa holders (Jun 2026) |
| Portugal: D8 digital nomad visa | Remote income from outside Portugal of at least €3,680 a month (4 × minimum wage) plus €11,040 in savings; a temporary-stay version lasts up to 1 year Source: A DEEP DIVE Into Portugal's D8 Requirements: Portugalist |
| Italy: Digital nomad / remote worker visa | At least €24,789 a year; a degree, licensed profession or 5 years' experience (3 for IT); 6 months of remote work; insurance of at least €30,000; 1 year, renewable Source: Consulate General of Italy in New York: digital nomad / remote worker visa · Embassy of Italy in Washington: digital nomad / remote worker visa |
| Portugal: D7 passive income visa | Passive income of at least €920 a month in 2026 (+50% for a spouse, +30% per child); consulates usually expect about 12 months of that (€11,040) in a Portuguese bank Source: What Portugal's 2026 Minimum Wage Rise Means for Visas: Portugalist · Portugalist: D7 visa requirements 2026 |
| Italy: Elective residence visa | About €31,000 a year of passive income per adult (US consulates ask about €62,000 for a couple); registered lease or deed; no work of any kind, including remote work Source: Consulate General of Italy in Houston: elective residence visa checklist (Dec 2025) · Embassy of Italy in Washington: elective residence visa |
| Portugal: Golden visa (ARI) | Five routes in 2026: €500,000 in qualifying non-real-estate funds, €500,000 research, €250,000 culture, €500,000 company capital with 5 jobs, or 10 jobs; real estate and €1.5M capital transfer closed since October 2023 Source: Lei 23/2007 consolidated text (PGD Lisboa) art. 3 · Lei 56/2023: Diário da República |
| Italy: Investor visa | €250,000 in an innovative startup, €500,000 in an Italian company, €1 million donation or €2 million in Italian government bonds; no property route Source: Embassy of Italy in Pretoria: Investor Visa for Italy |
| Portugal: Startup Visa | For non-EU founders accepted by an IAPMEI-certified incubator; leads to a residence permit Source: Portaria 344/2017 (Informador) |
| Italy: Italia Startup Visa | €50,000 of funds for a new innovative startup; nulla osta from the MIMIT committee in about 30 days; free to apply Source: Italia Startup Visa: guidelines (MIMIT) · Italia Startup Visa: official site (MIMIT) |
| Portugal: Permanent residence | After 5 years of temporary residence, with A2 Portuguese, means of support and accommodation Source: Lei 23/2007 art. 75 (PGD Lisboa) |
| Italy: Permanent residence | EU long-term permit after 5 years: no more than 6 months away in a row or 10 months in total, A2 Italian and enough income Source: Assolombarda: EU long-term residence permit |
| Portugal: Citizenship | Since 19 May 2026: 10 years of legal residence (7 for EU and Portuguese-speaking countries), counted from when the first permit is issued; applications pending before then keep the old 5-year rule Source: Lei Organica n.o 1/2026: Diario da Republica · Portugal Citizenship Law Published: LiveinPT |
| Italy: Citizenship by residence | 10 years of legal residence, B1 Italian and enough income; €250 fee; dual citizenship allowed Source: InfoImmigrazione: citizenship by residence (Jul 2026) · Chamber of Deputies: Italian citizenship law — current rules |
| Portugal: Healthcare | Legal residents can use the public SNS with a user number; private hospital plans cost about €13–77 a month at age 40 Source: gov.pt: Pedir o número de utente do SNS · DECO PROteste: Seguros de saúde Multicare, Médis |
| Italy: Healthcare | Workers are enrolled in the national health service (SSN) for free; retirees and others not working in Italy pay at least €2,000 a year to join voluntarily (since 2024) Source: Arletti Partners: voluntary national health service enrolment (€2,000 minimum) |
| Portugal: Income tax | 12.5% to 48% in 2026 (top rate above €86,634), plus a 2.5% / 5% solidarity surcharge above €80,000 / €250,000 Source: PwC Tax Summaries: Portugal individual · CIRS art. 68-A: Portal das Financas |
| Italy: Income tax (IRPEF) | 23% up to €28,000, 33% to €50,000, 43% above (2026), plus regional and municipal surcharges Source: ECNews: 2026 Budget Law — new IRPEF rates |
| Portugal: IFICI (successor to NHR) | 20% flat tax for 10 years on income from qualifying highly skilled jobs, research and startups, with most foreign income exempt — not pensions; you must not have lived in Portugal in the previous 5 years Source: Incentivo fiscal a investigacao cientifica e inovacao: AT leaflet · Startup Portugal: Legal Bites #03 IFICI |
| Italy: 7% regime for pensioners | 7% on all foreign income for 10 years if you receive a foreign pension and move to a southern town of up to 30,000 people (since April 2026); no Italian tax on foreign assets Source: Fiscomania: 7% flat tax for foreign pensioners — towns up to 30,000 · Il Sole 24 Ore: no foreign-asset reporting for the 7% regime |
| Portugal: Usual company type | Lda or single-member Unipessoal Lda: capital from €1 per share; same-day Empresa na Hora (€360) or Empresa Online (€220 with standard articles) Source: Decreto-Lei 33/2011 (Diário da República) · InvoiceXpress: Como criar uma empresa em Portugal em 2026 |
| Italy: Usual company type | SRL (limited liability company): €10,000 standard capital, or €1–9,999 if fully paid in cash; notarial deed Source: Civil Code art. 2463 (SRL capital) |
| Portugal: Corporate tax | 19% in 2026 (18% in 2027, 17% in 2028); 15% on the first €50,000 for SMEs, 12.5% for certified startups; plus up to 1.5% municipal surcharge Source: CIRC art. 87 (Portal das Finanças) · PwC Tax Summaries: Portugal corporate income |
| Italy: Corporate taxes | IRES 24% plus regional IRAP 3.9% (4.82% in Lazio) Source: PwC Tax Summaries: Italy — corporate income tax · InformazioneFiscale: regional IRAP rates |
| Portugal: US tax treaty | Signed 1994, in force since 1996; the saving clause keeps US taxation of citizens Source: Portugal tax treaty documents: IRS |
| Italy: US tax treaty | Signed 1999, in effect since 2010; US citizens still file US returns Source: Accounting Today: the US–Italy tax treaty enters into force |
| Portugal: Lisbon population | 575,739 in the city (2024 estimate); about 2.9 million in the metropolitan area Source: INE: Retrato municipal Lisboa 2025 · Renascença: Censos 2021 Área Metropolitana de Lisboa |
| Italy: Population | Italy 58.9 million (ISTAT, 1 Jan 2026); Rome 2.75 million, metropolitan city 4.22 million Source: ISTAT: demographic indicators (Mar 2026) · Il Sole 24 Ore: Rome, Italy's most populous municipality (ISTAT data) |
| Portugal: Lisbon transport | Navegante monthly pass €40 for the whole metro area or €30 for Lisbon only; free for under-18s, students up to 23 and Lisbon residents over 65 Source: Carris: Frequent travellers (Navegante prices) |
| Italy: Rome transport | Monthly pass €35, annual €250; 100-minute ticket €1.50; Leonardo Express to Fiumicino €14, about 32 minutes Source: ATAC: Rome tickets and passes · Trenitalia: Leonardo Express to Fiumicino |
| Portugal: Flights from the US | TAP flies to Lisbon from Newark, New York, Boston, Washington, Chicago, Miami, San Francisco and Los Angeles; United and Delta add more Source: TAP: Flights from United States · Echo Boomer: United reforça Lisboa-Washington Verão 2026 |
| Italy: Flights from the US | Rome and Milan about 8–9 hours nonstop from the East Coast; nonstops to many US cities; none to Florence Source: Boltflight: direct flights from the US to Rome · The Local Italy: new direct US–Italy flights in 2026 |
Go deeper
The full guides
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- OverviewMove to Europe
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- RetirementRetire by Country
- CitiesBest Cities to Live In
- BusinessCompany Formation
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- InvestorsGolden Visas
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- RetirementRetirement Visas
- CitizenshipCitizenship by Descent
- CostsCost of Living
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- TaxTax Residency
- PetsMoving with Pets
- DrivingUS Driver's License
- PropertyBuying Property
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