Cost of living in Italy

The cost of living in Italy varies dramatically depending on where you are in the country, and generally whether you live in the more affluent north or the south. Northern Italy, particularly cities like Milan and Rome, typically 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.

Italy ranks high on the cost of living indexes for Europe, although it remains substantially cheaper than many other Western European countries. Milan is typically ranked as the country’s priciest city, while Rome follows closely behind.

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.

Property prices have been rising steadily in major cities, especially in Milan and other wealthy northern cities.

Accommodation in Italy

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.

Transport in Italy

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.

Major supermarket chains like Conad, Coop, and Esselunga provide good value, with Carrefour often ranking as the most affordable option for weekly shopping. Many globally mobile professionals find that learning to shop like locals – frequenting neighbourhood markets and buying seasonal produce – can significantly reduce grocery bills compared to sticking to familiar international brands.

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, offer excellent opportunities 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 major museums and galleries, is generally expensive as well.

Business dining follows similar patterns to leisure dining – expect to pay premium prices in central business districts like Milan’s Porta Nuova or Rome’s EUR. However, many Italian business meetings happen over long lunches at neighbourhood trattorias away from tourist zones, where prices remain reasonable. Professional networking events and conferences are becoming increasingly common in major cities, with costs comparable to those in other European business centres.

Cost of education in Italy

If you send your children to public schools in Italy, the 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 substantially 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.

International schools typically charge high fees, with additional costs for registration, lunch programmes, and after-school activities. American and British curriculum schools are particularly popular among globally mobile families. Many corporate relocation packages include education allowances specifically because these costs can represent a significant portion of an expat family’s budget.

Schools in Italy

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.

Recent policy changes have introduced new costs for expat access to public healthcare. Non-EU residents now face an annual fee for voluntary enrolment in the public system, making private health insurance an increasingly attractive option for many internationally mobile professionals. This fee applies regardless of income level, although reduced rates may be available for students and au pairs.

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 considering your options carefully.

Healthcare in Italy