A comfortable retirement works out cheaper in Philippines — around £1,650/month for a couple, versus £2,700 in Italy (about 39% more).
Cost of living, side by side
| Italy | Philippines | |
|---|---|---|
| Modest (couple/mo) | £1,900 | £1,000 |
| Comfortable (couple/mo) | £2,700 | £1,650 |
| Premium (couple/mo) | £4,300 | £2,700 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Italy: Foreigners can buy property freely in Italy.
Philippines: Foreigners can own a condominium unit outright (freehold) as long as foreign ownership across the building stays within the 40% cap, but cannot own land directly. Land is instead held through a long-term lease (recently extended up to 99 years for qualifying projects) or via a genuine majority-Filipino company.
Italy: The elective residence visa suits retirees with stable passive income.
Philippines: The Special Resident Retiree's Visa (SRRV) is the main route; since a 2025 overhaul it opens from age 40 with a bank deposit (from roughly US$15,000 for pensioner applicants aged 50+, more for younger or non-pension applicants) plus proof of income.
Italy: Italy's public health service (SSN) is well regarded and low-cost; retirees on an elective-residence visa register voluntarily for a means-tested annual fee starting around EUR 2,000 (capped near EUR 2,800 for higher incomes), or use comparatively affordable private cover. Facilities are generally strongest in the north and larger cities.
Philippines: Private hospitals in Manila and Cebu are modern and far cheaper than in the West, and most expats use them; the state PhilHealth scheme is basic, so private cover is common — international plans from about US$1,000 a year, or cheaper local HMOs. Retirees enrolled through the retirement authority pay a modest annual PhilHealth fee of around US$250.
Italy: As a resident you are taxed on worldwide income including foreign pensions at progressive rates, but retirees moving to a small town (population under 30,000) in the eight southern regions can elect a flat 7% tax on all foreign income for up to ten years. UK government-service pensions are usually taxed only in the UK under the double-tax treaty, so take advice.
Philippines: The Philippines taxes residents only on Philippine-source income, so a foreign pension is generally not taxed at all; retirement income remitted from abroad, and SRRV-holders' pensions, are explicitly exempt. It is one of the more tax-friendly bases for a pensioner, though your home country may still tax the pension.
Italy: Warm Mediterranean summers and mild winters in the south and along the coasts, with colder, wetter winters and hot summers inland and up north. Spring and autumn (April-June and September-October) are the most pleasant times. Italy is safe with a relaxed pace, though petty theft occurs in tourist cities; they drive on the right, and while English is common in cities and tourist areas, some Italian makes daily life far easier in smaller towns.
Philippines: Tropical and hot year-round with high humidity; the dry season (roughly November-April, coolest December-February) is most comfortable, while June-November is wetter with typhoon risk. Famously warm and welcoming, with normal precautions against petty crime and some far-southern areas best avoided; English is an official language and very widely spoken, and driving is on the right.
Italy: Registration tax is 9% for a second home or 2% for a main residence, charged on the property's cadastral value which is usually well below the market price (new-builds carry VAT of 10% instead), plus notary fees and agent commission of around 3% plus VAT. Completion typically takes two to three months.
Philippines: For the buyer, one-off costs are roughly 4-5% — documentary stamp tax of 1.5%, transfer tax of 0.5-0.75%, plus registration and notary fees — while the 6% capital gains tax is customarily the seller's. Foreigners can own condominium units (not land), and title transfer through the Registry of Deeds takes some weeks.
Italy: Puglia and Abruzzo for affordable, sunny southern living and the 7% flat-tax towns; Tuscany and Umbria for classic rolling countryside; the northern lakes such as Como for scenery; and Liguria for a milder coastal base.
Philippines: Cebu for city amenities with beaches close by, Metro Manila for the widest choice of hospitals and services, laid-back Dumaguete for an affordable university-town pace, and Tagaytay for cooler upland air near the capital.
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