I saw a Rick Steves show in which he visited a small "cemetery" where they painted the skulls, but I can't remember where that was? I thought it was Sicily, but can't find anything on it. Does anyone know where this was?
The graveyard of the main church in Hallstatt, Austria is where the painted skulls have appeared in Rick's video. There are other locations for painted skulls in Europe, but this is the one featured in Rick's video, Salzburg and Surroundings.
As Kent said, the painted skulls are in Austria. There is a Capuchin Crypt in Rome that has lots of skulls in a similar layout but not painted the same way.