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Hidden Gems in Italy: Why Small Towns Are the Best for Expats

  • Writer: Knotted.it
    Knotted.it
  • Jan 27
  • 4 min read

When thinking of relocating to Italy, most expats envision iconic destinations like Rome, Milan, or Florence. While these cities undoubtedly offer culture, history, and opportunities, they often come with a high cost of living, crowded streets, and a fast-paced lifestyle. For those seeking a more relaxed, authentic, and affordable experience, Italy's smaller towns—its hidden gems—may be the ideal choice.

From the rolling hills of Tuscany to the sparkling coastlines of Puglia and the rugged mountains of the Dolomites, Italy’s small towns promise a lifestyle that combines beauty, tradition, and community. Here’s why these destinations are becoming increasingly popular among expats.



1. Lower Cost of Living in Italy's Small Towns

Relocating to a small town in Italy offers significant financial advantages. Cities like Venice and Milan may drain your wallet with their high rents and expensive dining options, but smaller towns allow you to enjoy the same Italian charm at a fraction of the cost.

  • Puglia: Towns like Ostuni, known as the "White City," and Alberobello, famous for its Trulli houses, offer affordable housing options and cost-effective living. Here, you can rent a charming apartment for as little as €400 a month or purchase a traditional stone house at a reasonable price.

  • Sicily: With initiatives like the “€1 Homes” program in towns such as Sambuca and Mussomeli, you could own a piece of history for practically nothing, provided you’re willing to renovate.

  • Abruzzo: Often called the “Green Heart of Europe,” Abruzzo’s towns like Sulmona and Scanno combine natural beauty with affordability. The cost of living is 30-40% lower than in big cities.


2. Authentic Italian Lifestyle: The True Dolce Vita

One of the most compelling reasons to consider small towns is the chance to immerse yourself in the authentic Italian lifestyle. In these towns, life moves at a slower, more deliberate pace, allowing you to truly savor every moment.

  • Cultural Traditions: In smaller towns like Montepulciano (Tuscany) or Noto (Sicily), traditional festivals like the Palio dei Somari or the Infiorata di Noto give you a taste of Italy’s rich heritage.

  • Local Cuisine: Small towns often boast farm-to-table dining experiences. Picture yourself enjoying handmade pasta, locally sourced olive oil, and wines directly from nearby vineyards.

  • Community Connection: Unlike in larger cities, where expats often feel like outsiders, smaller towns like Lucca (Tuscany) or Tropea (Calabria) are known for their welcoming communities. You'll quickly become part of the local fabric, sharing meals and experiences with your neighbors.


3. Scenic Beauty: Nature at Your Doorstep

Italy’s hidden gems offer breathtaking landscapes that are often more accessible and pristine than those near urban centers. Whether you’re drawn to the sea, the mountains, or the countryside, there’s a small town in Italy that’s perfect for you.

  • Coastal Towns: The Amalfi Coast is beautiful but crowded. For a quieter experience, consider places like Maratea in Basilicata or Procida, a colorful island that was recently named Italy’s Capital of Culture.

  • Mountain Retreats: Towns like Castelrotto in the Dolomites or Santo Stefano di Sessanio in Abruzzo offer access to hiking, skiing, and stunning views of Italy’s mountainous regions.

  • Countryside Charm: Towns like Pienza in Tuscany or Spello in Umbria are surrounded by rolling vineyards and olive groves, providing a tranquil escape from urban life.


4. A Welcoming Environment for Expats

Small towns are known for their warm, welcoming locals. Whether you’re retiring, working remotely, or raising a family, these communities often provide the perfect environment to settle down.

  • Family-Friendly Towns: Towns like Trento (Trentino-Alto Adige) and Treviso (Veneto) are renowned for their excellent schools and child-friendly atmosphere.

  • Support Networks: Many small towns, especially those that attract expats, have established networks and groups to help newcomers adapt. For example, Lucca and Umbria are known for their active expat communities.


5. Real Estate Opportunities in Italy's Small Towns

For expats looking to invest in property, small towns in Italy provide some of the best opportunities. Not only is real estate more affordable, but it also offers higher potential for value appreciation, particularly in emerging tourist destinations.

  • Investment Potential: Regions like Le Marche and Basilicata are gaining popularity among expats and tourists alike. Buying property now could yield significant returns in the future.

  • Restoration Projects: If you’re interested in restoring a historic property, towns like Matera or Civita di Bagnoregio offer unique opportunities to own a home with centuries of history.


6. Perfect for Remote Work and Retirement

The rise of remote work has made smaller towns more attractive than ever for digital nomads and professionals seeking a better work-life balance.

  • Digital Nomad Destinations: Towns like Perugia and Bari are equipped with excellent internet connections, co-working spaces, and a relaxed pace of life.

  • Retirement Havens: For retirees, towns like Città della Pieve or Montefollonico offer not only beauty and tranquility but also proximity to high-quality healthcare and recreational activities.


7. Programs and Incentives for Expats

Italy is actively encouraging expats to settle in smaller towns with various programs and incentives:

  • €1 Homes: Available in towns like Gangi (Sicily) and Ollolai (Sardinia), these initiatives aim to revitalize aging towns.

  • Tax Benefits: Italy’s flat tax regime is particularly appealing for high-net-worth individuals, allowing them to pay a fixed amount of €100,000 per year (or €200,000 for families).


8. A Better Quality of Life

Ultimately, small towns in Italy offer a quality of life that is hard to match. The combination of lower living costs, scenic beauty, community spirit, and access to culture and history makes them an irresistible choice for expats.


Popular Hidden Gems to Consider

  • North Italy: Asolo (Veneto), Bardolino (Lombardy), Bressanone (South Tyrol)

  • Central Italy: San Gimignano (Tuscany), Assisi (Umbria), Orvieto (Lazio)

  • Southern Italy and Islands: Monopoli (Puglia), Cefalù (Sicily), Carloforte (Sardinia)





Ready to Begin Your Italian Journey?At Knotted.it, we specialize in helping expats discover the perfect place to call home in Italy. Whether you’re looking for advice on relocation, real estate, or tax planning, we’re here to guide you every step of the way.


📧 Contact us today at info@knotted.ch

📱 Or send us a WhatsApp message at +41 76 771 30 22


Your Italian adventure starts here. Let us help you make it unforgettable.


 
 
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