How Much Does It Really Cost to Live in Italy? (Hint: It's Not What You Think)

Dreaming of sipping an Aperol Spritz in a sun-drenched piazza? The good news is, that dream is likely more affordable than you think. The truth is, while some expenses might be higher than you expect, Italy's more relaxed pace of life and focus on simple, high-quality goods can make your money go a lot further than in many other countries.

The most important thing to remember is that costs vary dramatically by region. Living in Milan or Rome is a different financial game than living in a small town in Sicily or Tuscany. Let's break down the budget, category by category, with a focus on what you can expect and where you can save.

The Big Three: Rent, Groceries, and Utilities

Rent

Finding an apartment can be a big expense upfront, but the process is not as difficult as some make it seem. I found the rental process to be quite straightforward, without the need for a lawyer or a real estate agent. However, a major cost to plan for is the deposit and fees. You'll typically need to have four months' worth of rent saved up to cover the security deposit and agency fees.

For a detailed guide on the process, check out our post, "How to Move to Italy."

Groceries

If you're coming from the US, UK or Australia, get ready to see your food budget shrink. Food in Italy is a fraction of the cost, and in my experience, the quality is far superior. Italian food tastes much better because there are fewer preservatives. This means food spoils quicker, but with smaller refrigerators and grocery stores every few blocks in cities, frequent trips are no big deal.

Markets occur on a regular basis in every Italian city. The bigger the city, the more frequent and more plentiful the markets.

Most produce, whether at a local market or a large supermarket like Esselunga or Coop, is seasonal. The good news is that Italy, particularly Sicily, has a long growing season, so there's always a lot to choose from. While it's easy to find specialty items at Latin or Asian markets (I still need black beans and jalapeños for my homemade Tex Mex meals), you'll find everything you need at a local supermarket. These stores also run frequent sales on in-season products, so keep an eye out for discounts. Overall, I spend half as much on food as I did back in the US.

Utilities

In the US, I was used to only one gas and one electric company. In Italy, it's a competitive market, so you can shop around for better deals on your electricity and gas bills.

Bills typically come every other month. Gas is generally used for heating water and radiators, while electricity covers the lights, outlets, and AC (which is uncommon for most Italians to use). In my experience, these bills are comparable to what I paid in the US, but we use our AC sparingly here, which saved a lot.

Another thing to know is that renting an apartment in Italy is more like renting a condominium in the US. Your rent might not cover everything. Water is often a flat monthly fee, but any remaining balance due is sent at the end of the year along with any additional building maintenance fees (divided up by unit). We learned the hard way that you should just plan on a "13th month of rent" each year to cover these costs.

The Italian Lifestyle: Eating Out & Transportation

Dining Out

Eating out in Italy is less of a splurge and more of a daily pleasure. You can easily get a filling and delicious lunch for under10€. My advice? Skip the restaurants next to major tourist sites, they will always be more expensive and usually don't offer the best food.

A great money-saving tip is to embrace the aperitivo tradition. Between 6 PM and 7 PM, many restaurants and bars will offer a drink and a small plate of food for around 10€. My personal favorite is the Hugo spritz paired with a tagliere (similar to the French charcuterie board).

A spritz and tagliere for 8€ at Madamin in Torino.

A focaccia and drink for 10€ at Mollica in Torino.

For a quick lunch, grab a huge panino and a drink for about 8-10€. If you're on a budget in a big city, a kebab can be a great option for just 5€, often including a drink.

Breakfast is simple and cheap: an espresso for 1€ and a pastry for 2€.

Transportation

I love not owning a car in Italy. It saves me from the mess of parking and the high costs of car ownership back in the US. An annual transportation pass is incredibly cheap, usually ranging from 40-250€ depending on your age and income. A single use of public transport is usually under 2€. When you consider that I used to spend close to $1,000 per month in the US for my car, insurance, and fuel, it's a huge financial relief.

While public transport in Italy can be late or affected by strikes, the massive savings and convenience are well worth it. If you need a car for a specific trip, you can always rent one.

Leisure

You don't need a lot of money to enjoy life in Italy. The beautiful architecture alone is a joy to gaze at, and it's completely free. A simple walk through town after dinner often leads to free entertainment happening in the piazze. You can also spend hours enjoying the many beautiful parks.

Museums are generally affordable for adults and often free for children. Many museums also offer a free day once a month, typically the first Sunday. The beauty of Italy is that simply living here is a form of entertainment in itself.