In short
Riga is the cheaper capital: a single person with a central 1-bedroom spends about €1,390 a month, against about €1,930 in Rome. Latvia 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. 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 Latvia if…
- You live on a pension or savings and want the lower bar: Pensioner permit — pension at least €1,231 a month (2026); private health insurance.
- You want lower costs — about €540 a month less for a single person with a central 1-bedroom in Riga.
- You want residence through investment and want the lower bar: Golden visa — €50,000 share capital in a Latvian company + €10,000 state fee; other routes closed in 2026.
- You have a job offer — the EU Blue Card salary bar is lower: €2,723 a month (€2,178 for shortage jobs).
- You will run a company — corporate tax is 20% on distributed profit only — 0% on retained profit.
Choose Italy if…
- You qualify for a special tax regime: 7% flat on foreign income for pensioners in small southern towns (10 years).
- 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.
Retirement Visa
Latvia Asks Less Income From Retirees
| Latvia | Italy | |
|---|---|---|
| Retirement / passive-income visa | LatviaPensioner permit — pension at least €1,231 a month (2026); private health insurance✓ | ItalyElective residence visa — about €31,000 a year of passive income; no work at all |
| Public healthcare | LatviaState-funded care only for people working in Latvia and permanent residents | ItalyFree SSN for workers; others pay at least €2,000 a year to join |
| Special tax regime | LatviaNone | Italy7% flat on foreign income for pensioners in small southern towns (10 years)✓ |
| Income tax | Latvia25.5% up to €105,300 a year, 33% above | Italy23% to 43%, plus regional and municipal surcharges |
Cost of Living
Riga Is About €540 a Month Cheaper
| Latvia | Italy | |
|---|---|---|
| 1-bed apartment, city centre | Latviaabout €520 (Riga)✓ | Italyabout €1,085 (Rome) |
| 1-bed apartment, outside centre | Latviaabout €345 (Riga)✓ | Italyabout €780 (Rome) |
| Everyday costs, single person (no rent) | Latviaabout €870 (Riga) | Italyabout €845 (Rome)✓ |
| Total a month — single, central 1-bed | Latviaabout €1,390 (Riga)✓ | 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.
Settling In
Permanent Residence, Citizenship & Healthcare
| Latvia | Italy | |
|---|---|---|
| Permanent residence | LatviaAfter 5 years, with A2 Latvian and a culture course | ItalyEU long-term permit after 5 years, with A2 Italian |
| Public healthcare | LatviaState-funded care only for people working in Latvia and permanent residents | ItalyFree SSN for workers; others pay at least €2,000 a year to join |
Tax & Business
Taxes & Company Rules
| Latvia | Italy | |
|---|---|---|
| Income tax | Latvia25.5% up to €105,300 a year, 33% above | Italy23% to 43%, plus regional and municipal surcharges |
| Special tax regime | LatviaNone | Italy7% flat on foreign income for pensioners in small southern towns (10 years)✓ |
| Usual company | LatviaSIA — €2,800 capital, or from €1 for a small-capital SIA | ItalySRL — €10,000 standard capital, or €1 if fully paid in cash; notarial deed |
| Corporate tax | Latvia20% on distributed profit only — 0% on retained profit✓ | Italy24% IRES plus 3.9% IRAP |
| US tax treaty | LatviaUS–Latvia treaty in force | 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 Riga and Rome
| Latvia | Italy | |
|---|---|---|
| Population (capital) | LatviaAbout 589,000 (2026) | ItalyAbout 2.75 million; 4.2 million in the metropolitan city |
| Public transport (capital) | LatviaMonthly pass €30 | ItalyMonthly pass €35; Leonardo Express to Fiumicino €14 |
| Currency | LatviaEuro | ItalyEuro |
FAQ
Latvia or Italy? Your questions
Is Riga or Rome cheaper?
Riga is cheaper: a single person with a central 1-bedroom spends about €1,390 a month there, against about €1,930 in Rome (Numbeo, 2026). Rent for a central 1-bedroom is about €520 in Riga and €1,085 in Rome.
Can I retire in Latvia or Italy as an American?
Latvia: Pensioner permit — pension at least €1,231 a month (2026); private health insurance. Italy: Elective residence visa — about €31,000 a year of passive income; no work at all.
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.
Latvia vs Italy: key factsLast verified 27 September 2026
| Latvia: 1-bed apartment | about €345/month (range €280–450) estimate Source: Numbeo: cost of living in Riga (Sep 2026) |
|---|---|
| Latvia: 1-bed apartment | about €520/month (range €400–600) estimate Source: Numbeo: cost of living in Riga (Sep 2026) |
| Latvia: Living costs, single person | about €870/month without rent estimate Source: Numbeo: cost of living in Riga (Sep 2026) |
| 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) |
| Latvia: Pensioner permit: minimum pension | €1,231/month personal, regular pension (from 1 Apr 2026) Source: PMLP: Necessary means of subsistence (from 1 Apr 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 |
| Latvia: Healthcare | Private health insurance needed; state-funded care covers only people working in Latvia and permanent residents Source: Health Care Financing Law, likumi.lv |
| 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) |
| 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 |
| Latvia: Personal income tax | 25.5% up to €105,300/year, 33% above Source: State Revenue Service: personal income tax rates |
| 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 |
| Latvia: Permanent residence | After 5 years on a temporary permit, with Latvian at A2 level and a culture and history course Source: PMLP: New Immigration Law takes effect, key changes · LV portāls: New Immigration Law in force (official publisher) |
| 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 |
| Latvia: Minimum share capital | €2,800 (or from €1 for a small-capital SIA) Source: Register of Enterprises: share capital · Register of Enterprises: small-capital SIA |
| 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) |
| Latvia: Corporate income tax | 20% on distributed profit (= 25% of the net dividend) Source: Corporate Income Tax Law, likumi.lv · State Revenue Service: corporate income tax |
| 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 |
| Latvia: US–Latvia tax treaty | In force Source: IRS: Latvia tax treaty documents |
| 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 |
| Latvia: Riga population | 589,000 (start of 2026) Source: Official Statistics Portal: population at the start of 2026 |
| 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) |
| Latvia: Public transport pass (Riga) | €30 per month Source: Rīgas satiksme: monthly ticket |
| 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 |
| 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) |
Go deeper
The full guides
Across Europe
Every guide and comparison
- OverviewMove to Europe
- CountriesAll 29 Countries
- LivingExpat Guides
- RetirementRetire by Country
- CitiesBest Cities to Live In
- BusinessCompany Formation
- FoundersStartup Visas
- InvestorsGolden Visas
- Remote workDigital Nomad Visas
- RetirementRetirement Visas
- CitizenshipCitizenship by Descent
- CostsCost of Living
- HealthHealthcare
- TaxTax Residency
- PetsMoving with Pets
- DrivingUS Driver's License
- PropertyBuying Property
- EducationStudy in Europe
- SafetySafety & Stability
- WorkWork-Life Balance
- TravelTravel & Schengen
- LifestyleLifestyle
Latvia or Italy — Let's Decide Together
Book a free consultation. We look at your income, work, family and timing, and tell you which route fits and what the move will really cost.