Your guide to the cost of living in Italy (2023) (2024)

FAQs

Where is the cheapest place to live in Italy 2023? ›

So what are the cheapest cities to live in Italy? Turin, Palermo, and Naples are the cheapest cities to live in in Italy. The cost of living in Milan is just slightly higher than the living costs in Rome.

A family of four estimated monthly costs are 3,126.9$ (2,853.9€) without rent. A single person estimated monthly costs are 896.8$ (818.5€) without rent. Cost of living in Italy is, on average, 17.4% lower than in United States. Rent in Italy is, on average, 57.6% lower than in United States.

According to Salary Explorer, the average gross salary for Italy as of March 2023 is around €43,800 per year or €3,650 a month.

The average monthly budget of a married couple in Italy is €1,500. The cost of living in Milan, Rome, Bologna, Florence, Verona and other large and touristic cities is higher. If you plan to move to one of these cities, we recommend adding about €400 to your budget.

Presicce-Acquarica has been struggling with a declining population and abandoned homes. To help lure new homeowners, the town has promised grants to people who buy a house and register as residents of the town. Here's what you need to know if you're interested in purchasing property in this pretty town.

It's the primary reason many people first consider moving overseas. In general, the COL in Italy can be 30% to 70% lower than the cost of living in the U.S., depending on where in Italy you want to live, and how you want to live.

Living in Italy as an American

Living in Italy as a US citizen is possible if you have the right permit. There are 2 types of residence permits in Italy: 1. Permesso di Soggiorno: a temporary, renewable residence permit with varying durations of validity.

Americans must have an entrance visa which should be obtained at an Italian consulate before coming to Italy, in order to remain in Italy more than three months and gain resident status. This procedure will take several weeks to complete so it is advisable to apply well in advance of the departure date.

The average rent price in Italy is 800 EUR (880 USD) a month. However, this is just the average—you will find rental prices to range from 490 to 1,550 EUR (540 to 1,700 USD). Below is a table with monthly rental prices by region, from most expensive to least expensive.

Average Wages in Italy increased to 2475 EUR/ Month (2668.291 USD/Month) in 2021. The maximum rate of average wage for employees was 2502 EUR/ Month and minimum was 1176 EUR/ Month.

What is the income tax in Italy 2023? ›

Latest data on Personal Income Tax Rate (%)

Personal Income Tax Rate in Italy remained unchanged at 43 % in 2023. The maximum rate was 51 % and minimum was 43 %.

All legal residents, both Italians and foreigners, have the right to public healthcare. These services are usually free-of-charge or subject to a symbolic cost and are provided by the Servizio Sanitario Nazionale (SSN).

You hardly need any cash at all. You can use your credit or debit card wherever there is a PoS (point of sale) machine. Your card needs to be on the Mastercard or VISA international network to function. (Most businesses in Italy refuse Amex and Diners because they charge too much commission.)

Other pros to making Italy your new home is that you'll be able to eat fresh and wholesome food every day, have access to a topnotch education system, good public transport, gorgeous scenery, and a rich culture and history. Essentially you'll be living where many Americans only dream of having their ideal vacation!

Italy's currency is the Euro (€). We recommend that you take a mixture of cash along with currency on a pre-paid currency card. Credit cards are widely accepted in hotels, restaurants, shops and autostrada tollbooths.

Like many sleepy communities across Italy, Presicce is grappling with a surplus of abandoned homes because people are moving away from the area. Homes up for grabs typically cost around $25,000, though they may require renovations.

While a visa is unnecessary if you're merely visiting Italy from the U.S., you'll need to apply for one in order to gain permanent residency. You will also have to provide proof of sufficient retirement funds with which you can support yourself.

Italy offers an array of options for expats seeking a rich cultural experience, perfect climate, and relaxed lifestyle for retirement. Tuscany is dotted with stunning urban areas like Florence and Pisa.

The easiest and simplest way to “move to Italy” as an American is by utilizing the Uniform Schengen Visa, which allows US citizens to stay in the Schengen Area of Europe for 90 days in a 180 day period. And United States citizens don't have to do anything extra to get this type C visa.

Can I live in Italy on my Social Security? ›

How Benefits Can Be Paid. If you have Social Security credits in both the United States and Italy, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

US expats in Italy need to be aware of two different national tax systems. First, virtually all US citizens are required to file an annual US Federal tax return, regardless of whether they live in the United States or Italy. Second, by living in Italy, American expats also can be subject to Italy taxation.

Lazio is the most popular region

Lazio, which includes Italy's capital Rome, is home to some 2,800 Americans, making it the most popular region among US nationals.

In general, Italians respect Americans and always welcome them as friends. They adore the curiosity of American tourists in regard to experiencing Italian culture, and they love the way that Americans enjoy their food.

Documents you need to rent a home in Italy

You'll need two things when signing a lease: your documents and a deposit. As for the documents you need to rent a house in Italy, you won't have to pay any special fees. All you need is an ID card or passport and Italian tax code.

Rome, Florence, and Milan are all popular cities for Americans moving to Italy, so there's no shortage of options. Just be sure to budget accordingly – living in major Italian cities can be significantly more expensive than living in small towns.

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.

Abruzzo. Located to the east of Rome, Abruzzo is arguably the cheapest and the best region to live in Italy. It has great mountains, fantastic scenery, good food, lovely Italian people and plenty of expats.

If you'd rather cook at home, you'll find it a very budget-friendly choice. For basic pantry staples, milk costs about USD$4-$4.90 per gallon, eggs are USD$2.56-$3.12 per dozen, chicken is USD$3.58-$4.38 per pound and rice is USD$0.80-$0.98 per pound.

The average median household income (PPP) was $40,094 in 2021. Italy's median household income hit (PPP) $35,189 in 2021, an increase of 1.0% over the previous year.

How much is $1000 US dollars in Italy? ›

How much is 500 US Dollar in Italian Lira? 500 US Dollar is 193600631 Italian Lira.

Standard deduction increase: The standard deduction for 2023 (which'll be useful when you file in 2024) increases to $13,850 for single filers and $27,700 for married couples filing jointly. Tax brackets increase: The income tax brackets will also increase in 2023.

Foreigners who are resident in Italy are subject to the same income tax laws as Italian citizens. This means that they must pay taxes on all income earned in Italy, including employment income, self-employment income, real estate investments, capital gains, wealth tax, and inheritance and gift tax.

The IRS has announced it will start accepting tax returns on January 23, 2023 (as we predicted as far back as October 2022). So, early tax filers who are a due a refund can often see the refund as early as mid- or late February.

In Italy, foreign visitors, both from EU and non-EU countries, have the same rights as Italian citizens, which means that in the event of a medical emergency they are assisted and medicated for free in the emergency ward of public hospitals.

Italy's national health plan (Servizio Sanitario Nazionale), provides for hospital and medical benefits. In Italy, healthcare is considered a right and the national health plan is designed to provide for all Italian citizens and residents, including U.S. and Canadian citizens who are legal residents of Italy.

Travel Requirements for Italy

International travelers visiting Italy will need to have travel insurance with a minimum coverage of 30,000 (about $50,000 USD) to satisfy the Schengen Visa requirements.

In Italy, cash is still preferred in most restaurants, cafes and other establishments, although credit and debit cards are becoming more widely used throughout Italy and are an increasingly convenient way to pay for things. Visa and Mastercard are widely accepted, although American Express is not.

You can use credit cards at most establishments in Italy. Hotels, restaurants, and shops usually accept credit cards in Italy. Outside of most establishments, you will see stickers of the cards they accept. The most widely used cards are Visa and Mastercard.

Can I use my bank of America debit card in Italy? ›

Using a Bank of America debit card in Europe will cost you $5 fee for ATM cash withdrawals made outside the United States plus an International Transaction fee of 3% of the withdrawal amount. If you use your Bank of America debit card to purchase goods in Europe it will cost you 3% of the purchase amount.

Many foreigners consider Italians as cheerful, kind, helpful and friendly people. In most cases, it's true.

This regulation is strictly enforced in Italy. U.S. citizens may enter Italy for up to 90 days for tourist or business purposes without a visa. All non-residents are required to complete a declaration of presence (dichiarazione di presenza).

First off, tipping in Italy is neither mandatory nor expected, but if you do decide to do so, the gesture is a very clear indicator that you appreciated the service provided.

Resist the urge to buy foreign currency before your trip.

Some tourists feel like they just have to have euros or British pounds in their pockets when they step off the airplane, but they pay the price in bad stateside exchange rates. Wait until you arrive to withdraw money.

Most Italian ATMs have a daily limit of €250. It often works out cheaper to make one large withdrawal rather than a number of smaller ones. Because of this, you should check with your bank whether your card can handle the €250 daily limit. If your limit is lower, try raising it accordingly.

Italy is far less expensive than the U.S. when it comes to housing. According to April 2023 data from Numbeo.com, average rents in Italy are almost 55.3% lower than they are in the U.S. For a one-bedroom city center apartment, you can expect to pay about $718 per month in rent.

Abruzzo. Located to the east of Rome, Abruzzo is arguably the cheapest and the best region to live in Italy. It has great mountains, fantastic scenery, good food, lovely Italian people and plenty of expats.

In 2021, the town of Santo Stefano di Sessanio, located in the Abruzzo region, was offering people up to $52,500 to move there and work. The village of Santa Fiora in Tuscany was offering to pay 50 percent of your rent if you moved there to work remotely.

What time of year is cheapest for Italy? ›

“Aside from winter travel, shoulder season (March through May and September through November) is known for cheap Italy deals,” he shared. If you can hold out until the end of the spring shoulder season, you'll be rewarded with pleasant temperatures in the mid to high 70s across the country, according to WeatherSpark.

If you have Social Security credits in both the United States and Italy, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

In conclusion, Italy does tax retirement income, including US social security benefits, but there are tax treaties and agreements in place to avoid double taxation. As a retiree in Italy, you may also be subject to Italian social security contributions if you work or have income in Italy.

Tuscany. If your retirement plan involves sipping local wine, then Tuscany is the perfect region for you. Expats who have already moved to this part of Italy are in love with its rolling green landscape, extensive vineyards and unbeatable chianti wine.

The average rent price in Italy is 800 EUR (880 USD) a month. However, this is just the average—you will find rental prices to range from 490 to 1,550 EUR (540 to 1,700 USD). Below is a table with monthly rental prices by region, from most expensive to least expensive.

Cities such as Naples and Palermo are some of the cheapest cities to visit in Italy. These cities typically have lower prices for accommodation, food, transportation, and activities than the major cities in northern Italy like Milan or Venice.

Naturally, if you visit tourist destinations in the south, prices may be deliberately increased, however, generally you're likely to find far more affordable street food, cheaper accommodation, attractions, and shopping in the south.

CALABRIA REGION, ITALY:

To combat population decline, the Calabria region – situated on the tip of the “boot” if you look at the map, northeast of Palermo – is offering new residents a relocation grant of up to €28,000 (~$30,000) over a period of three years. That's about $10,000 per year to help you get settled in.

Americans who intend to stay in Italy for less than 90 days don't need to worry about visas. However, if you plan to go for an extended period, you'll have to apply for a long-stay visa. This is a crucial step because you can't apply for an Italian residence permit without this long-stay visa.

1. Bologna. Bologna Airport (BLQ) is a top choice for those looking for an affordable way to fly into Italy. Located in the Emilia-Romagna region of Northern Italy, Bologna is known for its delicious cuisine (think: Bolognese sauce and mortadella), stunning medieval architecture, and vibrant student culture.

What is the cheapest city to fly to in Italy? ›

The cheapest airport in Italy is Milan Bergamo – we've found flights from $359.

April to June offers the best weather

Often considered the best time to visit, spring offers the ideal mix of good climate and bearable tourism flows. Nature blooms as the snow melts in the mountains and the rolling hills of the central Italian countryside come to life after the chilly winter.