Cost of Living in Italy in 2025

Italy is famous for ancient sites, great art, amazing food, and la dolce vita. But how much does life here cost in 2025? In general, living in Italy costs less than in many Western countries, especially the United States. You can often enjoy a richer lifestyle without paying huge prices. Still, the final amount depends on where you live, your habits, and whether you follow local ways or stick to a more international routine. Costs range widely, from higher prices in the busy northern cities to lower prices in smaller towns, especially in the south.

For one person, average monthly expenses are about €1,047.6 (around $888.0 USD), not including rent. For a family of four, the estimate is €3,682.7 (about $3,121.7 USD), again before housing. Overall, costs in Italy are about 10.8% lower than in the United States, and rent is about 51.5% cheaper. Italy can be a great deal, but you need to understand regional differences to plan your 2025 budget well.

Cost of Living in Italy in 2025: Key Trends and Economic Outlook

Italy, the EU’s third-largest economy, has a GDP of €2.1 billion and remains attractive to many. Its GDP per capita is €28,880, slightly below the EU average of €29,280. The European Commission expects Italy’s GDP to grow by 1% in 2025 and 1.2% in 2026, a bit below the EU forecast of 1.5% and 1.8%. This steady, moderate growth influences prices across the country.

People come for the scenery, art, culture, history, and mild climate. Many also move for retirement or a lifestyle change because everyday costs are often lower. Wages are also lower than in the United States, which helps keep prices down. In 2023, the average salary in Italy was €32,450, about half of the U.S. average of $65,470.

What factors influence cost of living in Italy?

Location matters most. Cities like Milan, Rome, and Florence cost more for housing, food, and daily items. Smaller towns and rural areas, especially in the south, are cheaper.

Your habits also matter. Eating out often, owning a car, or choosing designer brands will raise your costs. Cooking at home, using public transport, and shopping at markets help keep spending down. Housing choices (rent vs. buy, city center vs. outskirts, apartment vs. house), utility use, and access to public services like healthcare and education also shape your budget.

How is inflation affecting prices in 2025?

Forecasts point to calmer inflation in Italy in 2025 than in many EU countries. Average headline inflation is projected at 1.9% in 2025, below the EU average of 2.4%. It may ease to about 1.7% the following year, still below the EU’s roughly 2%. This helps with planning, as your earnings or savings may hold value better than in places with faster-rising prices.

Prices can still move differently by category. Utilities, for example, can swing based on energy markets and policy. The overall trend looks steady, but keep an eye on items like electricity, gas, and water.

How does Italy’s cost of living compare to neighboring countries?

Italy is generally cheaper than many Western European countries. Overall costs are about 10.8% lower than in the U.S., and rent is roughly 51.5% lower. Milan is the most expensive city in Italy, yet it still costs about 15% less than London. Rome ranks 67th on Mercer’s 2024 index and is cheaper than Amsterdam, Paris, Berlin, Dublin, Barcelona, and Vienna.

Italy’s total GDP is comparable to strong European economies, yet everyday costs often come in lower. This mix-solid infrastructure, rich culture, and moderate prices-draws many newcomers. While neighbors like Slovenia are growing fast, Italy’s long-standing systems and lower costs continue to appeal.

Average Monthly Expenses for Individuals and Families

Average figures help set expectations, even if regional differences are large. Smart budgeting starts with choosing the right location and spending habits.

The average monthly net salary after tax is about €1,658.05. In 2023, average household expenses were about €2,728 per month: higher in the North (€2,965) and Center (€2,953) and lower in the South (€2,234).

Sample budget breakdown for one person in Italy

A single adult in 2025 spends about €1,047.6 per month excluding rent. Add rent for a 1-bedroom outside the city center (about €561.35), and the total is around €1,608.95. A city-center 1-bedroom averages €723.95, bringing the total to about €1,771.55.

With a cheaper rent outside the center, a single person might spend €1,050-€1,300 per month (excluding higher rent options), before any extra or one-off costs. In Rome, a single person’s total can reach €2,100-€2,500 per month including rent.

Sample budget for a family in Italy

A family of four spends about €3,682.7 per month excluding rent. With a 3-bedroom outside the center (about €919.24), the total is around €4,601.94. In the city center (about €1,253.44), it’s closer to €4,936.14.

Groceries may run €500-€700. Utilities for a larger home: €200-€350, higher in winter. Transport may include passes for two adults or car costs (fuel, insurance, maintenance). Education and childcare add a lot: private preschool is around €492.82 per month per child; international primary schools often start at €9,066.98 per year. Public healthcare keeps costs low, but you may still pay for some medicines or private insurance. Leisure and extras can add €300-€600. Families in costly areas or using private schools can easily top €5,000 per month.

Cost Differences Among Italian Cities and Regions

Costs vary a lot by region and city. This is a key point for anyone planning a move.

As a rule, the North is more expensive than the South due to higher incomes and more industry. Big cities cost more than smaller towns. Many people save money by living outside major hubs while still enjoying a good quality of life.

Price index: comparisons by region

The gap-about €700 per month between North and South-comes mainly from housing and rent, with other categories contributing too.

Living costs in Rome, Milan, Florence, and Naples

Here’s a look at four well-known cities:

• Milan: The costliest city in Italy. Cost of Living Index: 72.0; Rent Index: 44.3. About 15% cheaper than London, but pricier than Turin by about 34%. Higher rent and eating out, though groceries are about 14% cheaper than in Rome.
• Rome: Cost of Living Index: 62.2; Rent Index: 36.0. Cheaper than Amsterdam, Paris, Berlin, Dublin, Barcelona, and Vienna. A single person’s full monthly cost is often €2,100-€2,500. A 1-bedroom in the center averages €723.95.
• Florence: Cost of Living Index: 67.3; Rent Index: 28.8. Often pricier than Rome or Naples. Groceries are about 10% cheaper than in Rome. Tourist zones raise prices.
• Naples: Cost of Living Index: 59.4; Rent Index: 27.6. Cheaper overall, with lower rents than Rome or Milan, even for 3-bedroom homes in the center.

Comparing north vs. south Italy costs

The North has higher incomes (over $35,000 per family on average) and higher prices across housing, transport, and daily items. Cities like Milan, Bologna, and Florence post higher indices.

The South has lower average family incomes (under $26,000) and cheaper rents, property, and many daily goods. An apartment renting for €650 in Parma might be €450 in Palermo. The South offers good value without losing the classic Italian feel.

Popular destinations for affordable living

Smaller towns and southern cities usually offer the best value. In Rieti (Central Italy, under 50,000 people), a couple can live on under $3,500 a month, including housing, food, utilities, and car costs. A basic two-bedroom can be as low as €420 per month.

In the far south, cities like Caltanissetta, Reggio Calabria, Ragusa, Taranto, and Cosenza often have the cheapest rents and purchase prices. Caltanissetta averaged €365 per month for rent in July 2024. These areas provide a slower pace, strong community, and low costs-great for retirees or remote workers.

Housing Costs in Italy: Rent, Property, and Utilities

Housing is usually your biggest expense. Compared with many rich countries, rents and purchase prices are often affordable, especially outside the biggest cities.

In 2023, average monthly housing costs were about €982 per household, including rent or mortgage, utilities, and renovation. Regional averages: North €1,076, Center €1,107, South €763. Location heavily affects what you’ll pay.

Average rents in major cities and small towns

Nationwide averages:

• 1-bedroom, city center: €723.95 (range €500-€1,453.45)
• 1-bedroom, outside center: €561.35 (range €400-€1,025.86)
• 3-bedroom, city center: €1,253.44 (range €800-€2,896.55)
• 3-bedroom, outside center: €919.24 (range €600-€1,881.03)

City figures vary a lot. In Rome, a one-bedroom averages €1,270. Milan costs more than Rome. Smaller towns can be much cheaper: Rieti has two-bed unfurnished units around €420. As of July 2024, some of the cheapest rents were in Caltanissetta (€365), Reggio Calabria (€437), and Ragusa (€478).

Trends in property prices for 2025

Property sales rose through 2024 and look set to keep growing in 2025. The average home price in 2024 was €1,857 per square meter, up about 2.1% year over year. Over the last decade, Italy’s price growth has been among the lowest in the EU, second only to Finland.

Buying is usually cheaper than in the U.S. Expect around €1,798 per square meter on average, with wide location differences. Milan and Rome lead price increases and have the highest prices. Average city-center purchase price per square foot is about €330.20; outside center about €207.50. In the Rieti area, homes can start around €50,000, and fixer-uppers near Contigliano around €45,000. Among the cheapest: Caltanissetta (~€643/m²) and Ragusa (~€736/m²). Many cash buyers find good deals in less urban areas. Banks often stop issuing mortgages at age 75, which can affect older buyers.

Cost of utilities: electricity, water, gas

Utilities can be on the higher side compared with some EU countries. Expect €120-€310 per month, depending on home size and usage. For a 915 sq ft apartment, basic utilities average €195.52 (range €124.67-€310.00).

• Electricity: €0.2451 per kWh in the first half of 2024 (EU average: €0.2187).
• Gas: €0.085 per kWh in the first half of 2024 (EU average: €0.0802). Italy has six gas payment zones; households in Palermo pay less than one-third of what households in Milan pay.
• Water: About €2.62 per m³. Annual bills range widely, from about €181 in Molise to €770 in Tuscany.

Heating raises costs in winter. Rural homes often mix heating sources-wood, pellets, solar-to keep bills down.

Food and Grocery Prices Across Italy

Italian food is a highlight of daily life, and good produce doesn’t have to be expensive. Groceries are the second-largest expense after housing. In 2023, monthly food and non-alcoholic drink spending averaged €525 per household: €510 in the North, €527 in the Center, and €547 in the South.

Buying seasonal, local items at markets is common and keeps prices low. Fresh, less processed food is widely available and can help you eat well while keeping costs in check.

Typical grocery expenses per month

One person: €200-€300 per month. A family of four: €500-€700. Sample prices in 2025:

• Milk (1 gallon): €5.43
• Fresh white bread (1 lb): €1.86
• Rice (white, 1 lb): €1.19
• Eggs (12): €3.50
• Local cheese (1 lb): €6.59
• Chicken fillets (1 lb): €4.88
• Beef round (1 lb): €7.98
• Apples (1 lb): €0.99
• Bananas (1 lb): €0.85
• Oranges (1 lb): €1.06
• Tomatoes (1 lb): €1.31
• Potatoes (1 lb): €0.79
• Onions (1 lb): €0.73
• Lettuce (1 head): €1.33
• Water (1.5 L bottle): €0.46

Local markets and small shops often beat supermarkets for price and freshness, especially for produce and specialty foods. Building relationships with vendors can lead to better picks and deals.

Eating out: restaurant and café costs

A basic meal is about €15.00 (range €10.00-€25.00). A three-course dinner for two at a mid-range place averages €70.00 (range €50.00-€100.00). A McMeal is around €10.00.

A cappuccino averages €1.71. A domestic draught beer (0.5 L) is about €5.00; an imported bottle is around €4.50. A mid-range bottle of wine is about €6.00. A slice of pizza can be as low as about €0.85 ($1). “Aperitivo” often costs around €7 for a drink with a buffet of snacks, offering good value. Tourist zones tend to charge more, so try local spots off the main paths.

Transportation and Daily Mobility Costs

Getting around Italy is part of the fun-on foot, by scooter, bus, or train. Public transport is widespread and usually cheaper than owning a car, especially in cities.

In 2023, households spent about €289 per month on transport: €333 in the North, €306 in the Center, and €213 in the South.

Public transit fares and monthly passes

Public transport is run locally, so prices vary by city. Typical costs:

• One-way ticket: About €1.70 (range €1.45-€2.30). Rome: 100-minute ticket €1.50. Milan: 90 minutes €2.20.
• Monthly pass: About €37.00 (range €30.00-€52.17). Rome monthly: €35; annual: €250. Milan day pass: €7.60.
• Intercity trains: Round trip Rome-Naples around €26. High-speed Rome-Milan can be near €100; slower trains often cost about half.

Regular riders save with monthly or yearly passes. Bike-sharing exists in cities like Milan, Pisa, and Trieste for about €0.50-€1.00 per hour.

Driving: vehicle expenses, fuel, parking

Owning a car is costly compared with public transport. In 2022, average annual car costs were about €1,062 (not counting the car’s price). Main costs include:

• Fuel: As of Feb 2025, gasoline is about €1.83/L (≈€6.74/gal); diesel about €1.74/L.
• Insurance: Average annual premium in 2023 was €316, but it varies widely. New drivers can pay much more.
• Road tax: Depends on region, vehicle power, and emissions class.
• Maintenance: Inspection every two years costs €45-€80. Routine work (oil, filters) averages about $150 per year.
• Parking: Varies by city; can add up fast in centers.

New cars: VW Golf 1.4 90 KW Trendline ~€28,000; Toyota Corolla Sedan 1.6l 97kW Comfort ~€29,423.83. Used cars are cheaper, and credit is available with proof of income. Many families rely on public transport; schools don’t run bus systems, so children use public transit too.

Regional differences in transportation costs

Northern cities often have higher fares and costs linked to car use, while southern areas usually spend less on transport. In 2023, monthly transport spending averaged €213 in the South vs. €333 in the North. Shorter distances and lower local prices help keep costs down in many southern towns.

Healthcare, Insurance, and Medical Expenses

Italy offers both public and private healthcare at prices well below those seen in places like the United States, which lowers total living costs.

The public system, the Servizio Sanitario Nazionale (SSN), covers almost everyone living in Italy. Residents must register. Most services are free at the point of use, but you may pay for medicines or some procedures. In 2023, households spent about €117 per month on healthcare: €122 in the North, €135 in the Center, and €99 in the South.

Access to public healthcare and out-of-pocket costs

After six months in Italy-and once you have your Permesso di Soggiorno and Carta d’Identità-you can enroll in the SSN. You’ll register with your local health office and choose a general doctor. The cost depends on province, age, and/or income and is usually affordable.

Expect small co-pays for some prescriptions, specialist visits, and tests. One person reported about €600 per year for prescriptions. Overall, people pay much less than in many other countries while still getting good care.

Private health insurance options

Some residents add private insurance to get faster appointments, more doctor choices, or services not fully covered by the SSN (like dental or vision). Basic plans can start around €50 per month, rising with broader coverage.

Premiums can be higher for older adults or those with pre-existing conditions. Even then, total medical costs remain low by international standards. One couple spent €1,348 per year (about $1,618), or around $135 per month, including nationwide insurance and prescriptions.

Common medical expenses for expats and residents

With SSN registration, most major care is covered, including hospital stays and serious procedures. Additional costs might include dental work and certain therapies, which may require private coverage or out-of-pocket payment. If you are new and not yet in the SSN, travel insurance or short-term private insurance is a good idea.

Education and Childcare Costs

Italy offers public and private education. Public schools are very affordable but teach mainly in Italian. Many expat families choose private or international schools, which cost more.

Households spend about €16 per month on education on average (excluding childcare). Regionally: North €20, Center €17, South €9.

Preschool and childcare fees

Public nurseries (0-3) and preschools (3-5) charge income-based fees. These are cost-effective but taught in Italian, which may be a challenge for children who don’t speak the language.

Many expats choose private options. A nanny costs about €12/hour. An au pair costs about €250-€300 per month plus room and board. There is no free public after-school care for older children, so families should plan for those costs.

Public vs. private school expenses

Schooling is mandatory from age six. Public primary, middle, and high schools are free for residents, with families paying for books and supplies. Classes are in Italian.

Private and bilingual schools vary widely in price. International primary schools can cost €5,000-€10,000 per year, and high school can reach up to €25,000. Add transport, uniforms, activities, and special materials on top of tuition.

University tuition fees for domestic and international students

Public universities are very affordable, usually €500-€3,000 per year. Italy has world-known universities, such as Bologna and Padua, at a fraction of U.S. prices.

Private universities cost more but still compare well internationally. Bocconi (Milan) and Luiss (Rome) often charge €10,000-€15,000 per year. Combined with moderate living costs, Italy is appealing for students from abroad.

Telecommunications and Internet in Italy

Internet and mobile plans are fairly priced, with many providers and bundles to fit different needs.

In 2023, communication spending averaged €74 per month: €79 in the North, €81 in the Center, and €60 in the South. This typically includes internet and mobile, sometimes TV packages.

Monthly costs for internet and mobile plans

Fiber broadband can start at €29.99 per month (installation extra). A standard 60 Mbps+ unlimited plan averages €27.26 (range €24.00-€35.00). Bundles (TV, internet, phone) can reduce costs.

Mobile plans are cheap. Plans with calls and 10GB+ data can be as low as €10.61 per month (options €6.00-€14.99). Ho.Mobile offers 5G from €5.99. Major networks include Vodafone, TIM, Three, and Wind. Coverage can vary by area, so check reception before you sign. Some carriers have tricky cancellations, so read the contract.

Leisure, Lifestyle, and Miscellaneous Expenses

Leisure is part of daily life in Italy. Many low-cost or free activities make it easy to enjoy without spending too much.

In 2023, people spent about €101 per month on culture, sports, and recreation: North €123, Center €118, South €59. Spending on hotels and restaurants averaged €155 per month: North €199, Center €162, South €84.

Entertainment: cinemas, sports, cultural activities

Weekday movie tickets usually cost €5-€8; weekends €9-€12. Two theatre tickets are about €62. Museum entry is often €5-€20, with many public museums free on the first Sunday of the month.

Gyms cost about €30-€80 per month depending on city and membership, and many require a medical certificate. Renting a tennis court for an hour on weekends averages €22.02. Italy’s mountains and coasts also offer plenty of free outdoor fun.

Clothing and personal care

Clothing costs are similar to the EU average. In 2023, people spent about €102 per month: North €99, Center €106, South €103. Basics like underwear are €3-€10; dresses and jeans €30-€120; business shoes €40-€200. Designer items can be cheaper locally than abroad.

Personal care is also affordable: shampoo €1.25-€29.95 per liter, deodorant €1.90-€9.55, soap €1.00-€3.00, toothpaste €1.20-€7.05 (75 ml). Laundry detergent is €1.80-€9.80 per liter; all-purpose cleaner €1.85-€5.65 per liter.

Other common monthly expenses

Extras vary by person. A pack of 20 Marlboro cigarettes is about €6. A men’s haircut in an expat area averages €23. Aperitivo costs about €7 per person. Pet food and vet bills go here too.

Set aside a buffer for surprises or trips. One couple in Rieti reported about $630 per month on extras and entertainment, including pets, travel, and dining out.

Financial Aid, Resources, and Tips for Saving Money

Moving finances can be tricky at first, but Italy offers support programs and many simple ways to cut costs.

Residents may qualify for aid based on need and situation. National and local programs help households with low income or special challenges. You can also use online tools and everyday habits to lower spending.

Available financial assistance and aid programs

Key programs include:

• Inclusion Allowance (Assegno di inclusione): Up to €7,560 per year for low-income households. Requires five years of residence.
• Work accident/occupational disease benefits: Help for those affected by work-related risks.
• Civil incapacity and long-term care benefits: For chronic physical and/or mental incapacity.
• Incapacity and disability benefits: For people unable to work fully or at previous capacity.
• Family benefits: Support with child-raising costs.
• Social Allowance: For people over 67.
• Unemployment benefits: For people between jobs.

If food is an issue, contact your local social services. A social worker may connect you with the local food bank (Banco Alimentare). For consumer protection, check the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato).

Useful tools for cost comparisons

• Cost of living sites: Numbeo and Expatistan help compare rent, groceries, transport, and more across cities.
• Real estate portals: Idealista and local agencies show rental and purchase trends by area.
• Supermarket flyers and apps: Coop, Esselunga, Conad, and others post weekly deals.
• Public transport sites: Local operators list fares, passes, and discounts.

Local community groups and expat forums can also provide tips specific to your town or city.

Practical tips for reducing expenses in Italy

• Use public transport: Buses, trams, and trains save money. Monthly passes are a bargain. Walk or cycle when you can.
• Cook at home: Buy seasonal produce at markets. Home cooking is cheaper than frequent dining out.
• Shop smart: Smaller shops and markets can beat big chains for price and quality. Buy in season.
• Control utilities: Learn your heating system (gas, electric, wood, pellets) and use energy-saving settings and appliances.
• Pick the right location: Smaller towns and the South have much lower housing costs than big northern cities.
• Learn Italian: Speaking the language helps with deals, paperwork, and local advice.
• Enjoy free activities: Parks, beaches, first-Sunday free museum days, and an evening passeggiata cost little or nothing.
• Share housing: Flat-sharing can reduce rent for singles and students.

With the right choices, you can enjoy la dolce vita without overspending.