Italy relocation costs breakdown

In 2021 I re-evaluated my life through my FIRE-lense and realized that I needed to move back closer to the mountains to do my favorite hobby: hiking. I made a short list of countries in Europe with good hiking. I narrowed that list to countries with a self-employment visa/residence permit. Lastly, I narrowed that list down to countries I could save money (e.g. cost of living, and taxes). Italy ticked all the boxes. It took about 1 year of bureaucracy but I'm finally here, and now I share with you the breakdown of the €14,000 total expenses to make this happen (and how I will recoup that in 1 year).

Cost categories for a solo person

I bucketed my costs into the following categories, keeping in mind that I already lived in Europe and my cats already had their vaccines and pet passports from previous moves:

• Immigration costs - private: the costs related to hiring my lawyer to get my visa entry as it is impossible to obtain the "lavoro autonomo" by yourself unless you already live in Italy (such as on a student residence permit). Only 500 are handed out each year by the Italian government and they never use up the quota because most applicants fail to meet the requirements or provide correct documentation. This also includes a flight, Airbnb, and metro costs of an immigration visit that I had to make to Italy during the process (2 nights stay).
• Immigration costs - government: just to separate these from my private costs, I made a line item for the costs I have paid the government through my immigration process.
• Temporary housing costs for visa application: this cost me €0 but I mention it as many people may have this expense. In order to apply for most visas you need proof that you have long term accommodation. Many people buy property for this evidence. I did not want to buy property or pay rent on an apartment with the real chance that my application would be denied. So I found a friend in Italy that sub-leased me a room in his apartment for free (since I wasn't actually staying with him during this process).
• House hunting trip costs: I needed to visit Italy for 2.5 weeks in order to find an apartment to live in once my entry visa was approved. I flew from another city in Europe, stayed in an Airbnb spare bedroom, and travelled by metro. I do not include my meals in these costs. Many people will need more than 2.5 weeks, I'm just not very picky.
• Moving costs: I rented a return trip car from the Netherlands in order to drive my stuff and my cats to Italy, and then drive the car back to the Netherlands. One-way rental cars would cost 4x the price of round-trip. I returned the car and then flew one-way back to Italy. So these costs include the rental car, gas, tolls, parking, cat sitter for 4 days, and reduced by €75 I received from 2 riders that joined my drive via the website BlaBlarCar. 
• Tax advisor: I run a sole trader business and normally take care of all of my own bookkeeping. But because I am not yet fluent in Italian, I was not going to risk screwing things up in a country famous for its bureaucracy. So I am paying a "commercialista" to handle my taxes which was not an expense I had in my last country of residence.
• Extras: When I flew to Italy to do my "real" house hunting trip, I applied for 2 apartments before settling on the second one. I forfeited a deposit to the first apartment. I also paid a lawyer to review my lease contract and other issues I was having. Lastly, I paid an Italian woman to join me for apartment viewings and translate Italian to English for me.

The breakdown, in Euros

• Immigration costs - private: €7,140
• Immigration costs - government: €245
• Temporary housing costs for visa application: €0
• House hunting trip costs: €1,925
• Moving costs: €1,232
• Italian commercialista for 1 year (tax advisor): €2,000
• Extras: €1,302

Total costs = €13,844

How soon will I recover these costs?

Italy has a tax scheme for new or returning residents where for 5 years (and sometimes 10) you are only taxed on 30% of your income (or 10% if you live in some of the most southern cities).
Click here to learn more about the tax scheme.

In my previous country of residence, my annual effective tax rate was 40%. Now in Italy it will be around 10-15%. I will earn back the costs of my move in my first year living in Italy simply based on the reduction in my tax rate.

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