Cost of Living in Italy
What a month actually costs, with rent and salary context
Italy divides sharply. Milan is expensive, Rome and Florence are moderately so, and much of the south is among the cheapest living in western Europe — which is precisely where the seven percent pensioner tax regime applies.
| Average net salary | Roughly EUR 1,600–1,900 per month source |
| 1-bed rent, Milan | Commonly EUR 1,100–1,600 |
| 1-bed rent, Bologna or Turin | Commonly EUR 650–950 |
| 1-bed rent, Puglia or Sicily | Commonly EUR 350–600 |
| VAT | 22% standard rate |
Monthly budget, one person
| Item | Milan (EUR) | Lecce, Puglia (EUR) |
|---|---|---|
| Rent, 1-bedroom | 1,300 | 480 |
| Utilities and internet | 190 | 150 |
| Groceries | 330 | 280 |
| Transport pass | 39 | 30 |
| Phone | 12 | 12 |
| Total before discretionary spending | 1,871 | 952 |
Tax regimes worth planning around
- Seven percent for pensioners. A flat rate on all foreign income for people who move their residence to a municipality under twenty thousand inhabitants in the south, available for up to ten years.
- Impatriate regime. A partial exemption on Italian employment income for workers transferring their tax residence to Italy, subject to conditions that were tightened for arrivals from 2024.
- Flat tax for high net worth individuals. An annual lump sum covering all foreign income for new residents, with the amount raised for those who elected it after mid-2024.
- Each has strict qualifying conditions and interacts with your home country's rules. This is the area where professional advice repays itself several times over.
The hidden costs of an Italian home
Property taxes on a primary residence are light, but purchase costs are not: notary fees, registration tax and agency commission add a substantial percentage. Old buildings carry condominium fees and, in the south, heating costs less but summer cooling costs more.
The famous one-euro house schemes come with binding renovation obligations, deposits and deadlines, and the renovation is where the money goes.
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Checked against these pages in September 2026. Fees and processing times change without notice — confirm before you act.