Monthly update on September 2026: Italy immigration — record EU permits, ERV pension tax risk, and EU-wide rule changes
PublishedEditorial policy
September 2026 brought a record 3.9 million EU residency permits issued in 2025 (up 10% year-on-year), a sharp warning for Elective Residency Visa holders that foreign pensions are fully taxable in Italy, and two European Commission proposals that could reshape professional
Key takeaways
- EU countries issued a record 3.9 million new residency permits in 2025 — a 10% increase over 2024 — with Italy among the top destinations.
- Elective Residency Visa holders who become Italian tax residents must declare and pay Italian tax on all foreign pension income; double taxation is a real risk mitigated only by applicable Double Taxation Agreements (DTAs).
- US citizens become eligible for EU long-term resident status after five consecutive years of legal residence in Italy, provided they demonstrate stable income, suitable housing, and a clean criminal record.
- The European Commission has proposed unified EU-wide standards for recognising non-EU professional qualifications, targeting faster processing for engineers, doctors, and IT specialists.
- The European Commission is also reviewing short-stay Schengen visa rules; potential changes to procedures, required documents, and fees have not yet been specified.
Record 3.9 million EU residency permits issued in 2025 — Italy among top destinations
September 2026 opened with a landmark statistical release: EU member states granted 3.9 million new residency permits to non-EU nationals in 2025, a 10% rise on 2024 and the highest figure on record. The growth is attributed to labour shortages in specific sectors, family reunification, and sustained economic demand across the bloc. Italy is identified as one of the major receiving countries in this trend.
The headline number reflects acceleration, not a loosening of controls. Individual member states — including Italy — continue to apply their own eligibility criteria, and a record EU-wide total does not translate into easier approval for individual applicants. Processing times and documentation requirements remain country-specific.
For prospective applicants, the data confirms that legal pathways are well-established and widely used, but competition for places in popular destinations is real. Anyone planning a move to Italy should treat the record figure as context, not a guarantee, and verify current Italian-specific requirements before applying.
ERV holders: foreign pensions are taxable in Italy — double taxation risk is real
Published on 30 September 2026, this is the month's most consequential alert for financially independent movers. Once an Elective Residency Visa (ERV) holder becomes an Italian tax resident, all foreign pension income must be declared and is subject to Italian taxation — regardless of the pension's country of origin. Italian tax law does not carve out an exemption based on the income source.
The primary safeguard against paying tax twice is Italy's network of Double Taxation Agreements (DTAs). However, the scope and effectiveness of these treaties vary significantly between country pairs. A DTA that fully exempts pension income in one bilateral relationship may only partially reduce liability in another. There is no universal answer: the outcome depends entirely on the specific countries involved.
The practical implication is clear: consulting a tax specialist fluent in both Italian tax law and the rules of your pension's country of origin is not optional — it is a prerequisite before relocating on an ERV. Waiting until after arrival to address this creates retroactive liability. Investors and retirees considering the ERV route should build tax due diligence into their pre-move timeline.
Permesso di Soggiorno essentials: what every new arrival must do first
Two complementary guides published in early September 2026 set out the non-negotiable administrative sequence for anyone arriving in Italy on a long-term visa. The Permesso di Soggiorno (residency permit) is mandatory for any stay beyond the standard tourist period — without it, legal work and long-term residence are impossible, and the path to Italian citizenship is blocked. Applications are submitted to the local Questura (police headquarters), not to a consulate.
Alongside the Permesso, new arrivals must obtain a Codice Fiscale (tax code) and register their address with the local anagrafe (municipal registry). The Codice Fiscale is a prerequisite for opening a bank account, registering with a GP, and signing any employment or rental contract. Delaying these registrations — even by a few weeks — can trigger cascading problems: employers may refuse to hire, banks may freeze accounts, and healthcare access can be denied.
Requirements for the Permesso di Soggiorno differ by visa category (work, study, family reunification, elective residency) and can vary by region. The Local Italy's September guides explicitly warn against relying on anecdotal advice or generic online checklists. The correct approach is to confirm the exact document list directly with the local Questura before submitting, as an incomplete application results in rejection and restarts the clock.
Five-year path to EU long-term residency: what US citizens need to qualify
A guide published on 2 September 2026 clarified the route from initial residency to EU long-term resident status for American nationals. After five consecutive years of legal residence in Italy, US citizens become eligible to apply — but eligibility is not automatic approval. The application must be filed with local Italian immigration authorities (not a US consulate), and three substantive conditions must be met: demonstrable stable income, suitable housing, and a clean criminal record.
The status conferred is EU long-term residency, which is distinct from Italian permanent residency. Its key benefit is portability: holders gain the right to live and work in most EU member states, not just Italy. It also simplifies access to Italian social services and education, and serves as a foundation for those eventually pursuing Italian citizenship.
The five-year clock starts from the date of first legal residence, not from the date of visa issuance. Any significant gap in legal status resets the count. US nationals planning this pathway should ensure continuous, uninterrupted legal residence and maintain documentation of income and housing throughout the qualifying period.
European Commission proposes unified recognition of non-EU professional qualifications
On 19 September 2026, the European Commission tabled a proposal to standardise how EU member states evaluate professional qualifications obtained by non-EU nationals. Currently, each member state — and in Italy's case, sometimes each region — applies its own criteria, leading to lengthy delays, duplicated paperwork, and inconsistent outcomes for the same diploma assessed in Rome versus Milan versus Bologna.
The proposal would replace this patchwork with a single EU-wide assessment framework. For non-EU professionals, this means a diploma would be evaluated against one consistent set of criteria regardless of which member state they apply in. The Commission specifically targets sectors facing acute shortages: engineering, medicine, and IT. Faster recognition means professionals could begin working in their field shortly after relocating, rather than waiting months or years for a decision.
The proposal is currently at the legislative stage and has not yet been adopted. Member states and the European Parliament must still review and approve it. Professionals with non-EU qualifications who are planning a move to Italy should monitor official European Commission publications for adoption timelines, as the change — once enacted — would materially shorten the path to employment in regulated professions.
Schengen visa rules under review: procedures, documents, and fees may change
Also on 14–15 September 2026, the European Commission confirmed it is reviewing the regulatory framework governing short-stay Schengen visas. The stated objectives are greater consistency across member states, enhanced security screening, and a more efficient process for legitimate travellers from third countries. Italy, as a major Schengen destination, would be directly affected by any changes adopted.
Specific proposals have not yet been published. The review could encompass application procedures, the list of required supporting documents, and the fee structure. The Commission has framed the exercise as balancing tighter security with a smoother experience for bona fide applicants — suggesting both tightening and simplification are on the table simultaneously.
For anyone planning a short-stay visit to Italy or other Schengen countries, the practical advice from the source is to monitor official European Commission announcements before applying, as changes to required documents or fees could affect applications already in preparation. No implementation date has been announced.
Sources
- Taxing Foreign Pensions in Italy: What Elective Residency Visa Holders Need to Know
- EU Commission Proposes Unified Rules to Simplify Recognition of Non-EU Professional Qualifications in Italy
- EU Issues Record 3.9 Million New Residency Permits in 2025, Up 10% from Previous Year
- European Commission Considers Revisions to Schengen Visa Rules
- Moving to Italy: Essential First Steps After Visa and Understanding Your Permesso di Soggiorno
- US Citizens: Apply for EU Long-Term Residency in Italy After Five Years of Legal Residence
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