The cost of living in Italy can fluctuate significantly depending on where you are – whether you live in the more affluent north or the south. Northern Italy, particularly cities like Milan and Rome, generally sees higher costs compared to rural areas, partly due to tourism. As a result, you’ll find that prices in these bustling cities reflect their popularity and economic stature.
It’s worth noting that Italy ranks high on the cost of living indexes for Europe. According to the 2024 Mercer Cost of Living Survey, Milan, Italy’s priciest city, placed 57th globally, while Rome came in at 67th out of 226 cities. When planning your budget, these factors will come into play, particularly if you’re looking to settle in major urban areas.
Cost of accommodation in Italy
Accommodation will likely take a hefty slice of your budget, often around a quarter of what you spend monthly. Housing prices and rents vary widely, especially between urban and rural areas. Renting in Milan might set you back twice as much as in Naples, while in Rome, a small flat could cost three times more than a similar one in a more rural spot.
Demand for both retirement and second homes has been increasing. More people, including Italians and expats, are looking at rural areas for better value for money. Post-pandemic lifestyle changes have also driven up prices in rural spots, but even so, the cost of living there is lower than in the city centres. Many find it possible to live quite frugally in these areas compared to other parts of Europe.
Cost of transport in Italy
The cost of private transport in Italy can be staggering. Fuel prices are some of the highest in the world, and buying a car is no small expense either. Insurance is another costly affair, with payouts notoriously slow. So, if you plan to drive, be prepared for these additional expenses.
On the flip side, public transport is a more affordable option. Buses and subways offer reasonably priced travel in most cities. If you’re travelling regionally and have some time to spare, it’s smart to avoid Eurostar trains, as they can be double or triple the price of slower regional trains.
Cost of groceries and clothing in Italy
When it comes to groceries, buying local and in-season produce is a tried-and-true method for cutting costs. Imported goods, especially from your home country, will come with a higher price tag. Inflation has added some pressure on grocery costs, particularly for imported items.
Fashion-wise, Italy is known for its style, but you don’t need to splash out on designer labels to dress well. Locally made clothing from chain stores offers good value. Factory outlets, especially in Florence, are a great place to find discounted designer items, and you can snag some bargains during the end-of-season sales in January and July.
Cost of eating out and entertainment in Italy
The cost of eating out can vary greatly depending on where you go. Restaurants in high-tourist areas will typically charge more, especially near famous landmarks. If you’re looking for a more affordable meal, try restaurants away from these hotspots.
For entertainment, tickets to theatres or events can be on the pricey side, and entry to popular tourist attractions, such as renowned museums and galleries, is generally expensive as well.
Cost of education in Italy
If you send your children to public schools in Italy, costs will be minimal. Like local children, your kids can attend public schools for free until they finish primary school, after which you’ll pay a small yearly fee. Keep in mind that you’ll need to buy extras such as textbooks.
If you opt for private or international schooling, expect significantly higher fees, especially at international institutions. Negotiating an education allowance as part of your relocation package to help cover these costs is a good idea.
Cost of healthcare in Italy
The cost of healthcare in Italy can vary widely depending on whether you use public or private services. Public healthcare is either free or heavily subsidised, but the quality of care can vary by region, with the north and central areas typically offering better services than the south.
If you choose private healthcare, you’ll skip the queues and have access to top-notch medical professionals, but it won’t come cheap without insurance. Health insurance premiums depend on factors such as age, health status, and lifestyle habits, so it’s worth exploring your options thoroughly.
Cost of living in Italy chart
Note that prices may vary depending on the location and service provider. The table below is based on average prices in Milan for September 2024.
Accommodation (monthly rent) | |
Three-bedroom apartment in the city centre | EUR 3,000 |
Three-bedroom apartment outside the city centre | EUR 1,900 |
One-bedroom apartment in the city centre | EUR 1,400 |
One-bedroom apartment outside the city centre | EUR 1,000 |
Food and drink | |
Dozen eggs | EUR 4.95 |
Milk (1 litre) | EUR 1.55 |
Rice (1kg) | EUR 3.25 |
Loaf of white bread | EUR 2.55 |
Chicken breasts (1kg) | EUR 6.20 |
Pack of cigarettes (Marlboro) | EUR 6.15 |
Eating out | |
Three-course meal for two at a mid-range restaurant | EUR 85 |
Big Mac Meal | EUR 11.15 |
Coca-Cola (330ml) | EUR 2.90 |
Cappuccino | EUR 1.95 |
Bottle of beer (local) | EUR 1.70 |
Utilities/household | |
Mobile phone plan (monthly, calls, and data) | EUR 9.75 |
Internet (uncapped ADSL or cable – average per month) | EUR 30 |
Basic utilities (average per month for a standard household) | EUR 190 |
Transportation | |
Taxi rate/km | EUR 2.05 |
City-centre public transport fare | EUR 2.25 |
Gasoline/Petrol (per litre) | EUR 1.90 |
What do expats think about the cost of living in Italy?
"My cost of living is half of the US. Although, it is not why I chose Italy."
Read more about living in Rural Italy in our expat interview with American Laurie.
"Thirty EUR a head for dinner may seem pricey but considering how much food you eat for that, it makes it seem like a great deal!"
American expat Anna shares her perspective of the cost of living in a small town in Italy.
"Italy as a whole is more expensive when it comes to petrol, electricity, gas, rent, insurance, but my husband insists groceries and clothes are cheaper over here than in Australia."
Get some insights from Elisa, an Australian expat living in Tuscany here.
Further reading
►For more on managing your finances while living in Italy, read Banking, Money and Taxes in Italy
►Read Working in Italy for an overview of the job market in the country
Are you an expat living in Italy?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Italy. Please contact us if you'd like to contribute.
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