This guide sets out the cost of living in Italy for expats in 2026, with rents, household spending, tax and healthcare costs by city.
What changed in 2025 and 2026
Several changes affect what an expat actually pays in Italy this year: a cut to the middle income-tax rate, a sharp rise in the flat tax for wealthy new residents, rising rents in most cities, and a gas price increase for regulated households in September 2026.
| Change | What it means | Effective |
|---|---|---|
| Second IRPEF bracket cut from 35% to 33% | Income between €28,000 and €50,000 is taxed at 33%. Maximum saving is about €440 a year | 2026 tax year |
| New-resident flat tax raised from €200,000 to €300,000 a year | Applies to people moving tax residence to Italy from 2026. Family members rise from €25,000 to €50,000 each | 1 January 2026 |
| Rents up 1.8% year on year nationally | Turin reached a record €13.5/m², Genoa rose 7.3% in one quarter | Q3 2026 data |
| ARERA gas price for vulnerable customers up 12.7% in September | At the September price, a typical household using 1,100 m³ a year would pay about €1,780 a year for gas | September 2026 |
| Inflation for 2025 settled at 1.5% | Up from 1.0% in 2024; food, household and personal care goods ran hotter at 1.9% in December 2025 | Istat final 2025 data |
Correcting an outdated assumption: Many older guides still quote the SSN voluntary health registration fee as roughly €388 a year. That minimum was raised to €2,000 from 1 January 2024 and has not been reversed. If a budget you have read elsewhere uses the old figure, it understates your healthcare cost by more than €1,600 a year.
Average monthly spending in Italy
The average Italian household spent €2,782 a month in 2025, but half of all households spent less than €2,338, and the gap between North and South is close to €900 a month.
Istat’s annual consumption survey, published on 8 October 2026, is the most reliable national baseline. It covers everything a household buys, including imputed housing costs, so treat it as a benchmark rather than an expat budget. Expats usually rent in city centres and do not benefit from the high rate of home ownership that keeps many Italian households’ costs down. For the full relocation process, see our complete guide to moving to Italy.
| Area | Average monthly household spending (2025) |
|---|---|
| North-East | €3,087 |
| Centre | €3,052 |
| North-West | €2,974 |
| Islands (Sicily, Sardinia) | €2,338 |
| South | €2,215 |
| Italy average | €2,782 |
| Highest region: Trentino-Alto Adige | €3,444 |
| Lowest region: Puglia | €1,975 |
Housing, water, electricity and gas make up 36.0% of the average household budget. Food and non-alcoholic drinks account for 19.8%, or about €552 a month, with a noticeably larger share in the South (25.4%) because overall spending there is lower.
Rent by city: 2026 comparison
Rent is the single largest cost for most expats, and city choice matters more than any other decision: a flat in Milan, Florence or Venice costs three times or more the same space in the cheapest southern provincial capitals.
The table below converts the per-square-metre asking rents from Idealista’s Q3 2026 report (published 1 October 2026) into monthly figures for typical flat sizes.
| City | Average asking rent (€/m²/month) | 50 m² one-bedroom | 70 m² two-bedroom | 90 m² family flat | Source |
|---|---|---|---|---|---|
| Milan | 22.4 | €1,120 | €1,570 | €2,020 | Idealista Q3 2026 |
| Florence | 21.7 | €1,085 | €1,520 | €1,955 | Idealista Q3 2026 |
| Venice | 20.5 | €1,025 | €1,435 | €1,845 | Idealista Q3 2026 |
| Rome | 19.2 | €960 | €1,345 | €1,730 | Idealista Q3 2026 |
| Bologna | 16.6 | €830 | €1,160 | €1,495 | Idealista Q3 2026 |
| Turin | 13.5 | €675 | €945 | €1,215 | Idealista Q3 2026 |
| Italy average | 14.6 | €730 | €1,020 | €1,315 | Idealista Q3 2026 |
Figures are rounded to the nearest €5 and are asking rents, not agreed rents. Central neighbourhoods in Milan and Rome routinely exceed these averages.
Portals do not agree exactly. Each property portal measures asking rents from its own listings, so figures differ between sites and from quarter to quarter. Use these as ranges and check live listings in the specific neighbourhood you are considering.
Where rents are rising fastest: Turin hit a record high in Q3 2026 with a 5.6% quarterly rise, Genoa climbed 7.3% in the same quarter, and smaller cities such as Trani and Livorno rose by more than 11%. At the other end, Ravenna and Rimini fell by 10% and 8.1% respectively. The cheapest provincial capitals for renting are in the South, with Caltanissetta at €4.8/m² and Potenza at €6.0/m².
Remember to budget for upfront costs: Italian landlords usually ask for a security deposit, and agency fees are often charged on top, so check both before you commit. Our Renting in Italy guide covers contract types and deposits in detail.
Utilities and household bills
At the September 2026 gas price for households on the regulated vulnerable-customer tariff, a typical household would spend about €1,780 a year on gas, or roughly €150 a month, before electricity.
This is our annualised estimate from the price set by ARERA (the national energy regulator) for September 2026, about €1.62 per cubic metre including all charges, and ARERA’s “typical” household consuming 1,100 cubic metres of gas a year. The price changes every month. Most expats will be on the free market, where prices vary by supplier, but the ARERA figures are a useful benchmark.
| Bill | Typical monthly cost | Notes |
|---|---|---|
| Gas (heating, hot water, cooking) | about €150 | Estimate from the ARERA September 2026 price, which rose 12.7% on August |
| Electricity | varies | Depends on supplier and use; ARERA publishes reference prices |
| Waste tax (TARI) | varies by comune | Set locally by flat size and household size; ask your landlord or comune |
| Condominium fees | varies | Often included in rent; check the contract |
| Home internet | varies by provider | Fibre is widely available in cities |
Watch the heating season. Gas costs are concentrated in winter, particularly in the North. Older buildings with poor insulation, which are common in historic centres, can push winter bills well above the averages. Ask the landlord for the property’s energy performance certificate (APE) and recent bills before signing.
Food and groceries
Italian households spend an average of about €552 a month on food and non-alcoholic drinks, according to Istat’s 2025 data, which is around one fifth of the total budget.
Grocery prices rose faster than general inflation in late 2025: Istat recorded a 1.9% annual rise for food, household and personal care goods in December 2025, compared with 1.2% overall inflation that month. Local markets and discount supermarkets are generally cheaper than city-centre convenience stores, and eating seasonal produce makes a noticeable difference. Eating out remains good value by Northern European standards outside tourist zones, but prices in central Florence, Venice and Rome reflect tourist demand.
Transport costs
A monthly public transport pass costs €39 in Milan and €35 in Rome, making a car unnecessary for most expats in major cities.
| City | Single ticket | Monthly pass | Annual pass |
|---|---|---|---|
| Milan (ATM, urban area) | €2.20 (90 minutes) | €39 (€22 under 27) | €330 (€200 under 27) |
| Rome (ATAC) | €1.50 (100 minutes) | €35 | €250 |
Outside the big cities, and especially in rural areas and much of the South, a car is close to essential. That adds fuel, insurance and maintenance, and Italian car insurance premiums can be high, particularly in parts of the South. If you plan to drive, read our guide to driving in Italy as a foreigner and check the UK licence exchange rules.
Healthcare costs for expats
Employed and self-employed residents are registered with Italy’s national health service (SSN) free of charge, but non-EU residents who are not working, such as elective residence visa holders, must pay for voluntary registration, with a minimum of €2,000 a year.
The voluntary contribution is calculated on your declared income, including worldwide income, and is fixed per calendar year:
| Category | Annual SSN contribution |
|---|---|
| Standard voluntary registration | 7.5% of income up to €20,658, plus 4% of income from there up to €51,646 |
| Minimum | €2,000 |
| Maximum | €2,788.87 |
| Students | €700 flat |
| Au pairs | €1,200 flat |
The €2,000 minimum was introduced by the 2024 budget law, replacing a minimum of €387.34. Local health authorities apply it per person, so a couple registering voluntarily should budget for two contributions. In June 2026 the Constitutional Court (ruling 97/2026) confirmed that one narrow group, people who converted a work or family permit to elective residence after receiving a civil disability pension, belongs under free mandatory registration, but it did not rule on the €2,000 fee itself. Confirm the current figure with your local ASL before you budget.
Many expats also hold private health insurance, either because it is a visa requirement for their first year or to shorten waiting times for specialist care. See our guides to healthcare in Italy for expats and health insurance for expats in Italy.
Income tax and the 2026 bracket change
From the 2026 tax year Italy’s personal income tax (IRPEF) has three national brackets: 23% up to €28,000, 33% from €28,000 to €50,000, and 43% above €50,000.
| Taxable income | 2025 rate | 2026 rate |
|---|---|---|
| Up to €28,000 | 23% | 23% |
| €28,001 to €50,000 | 35% | 33% |
| Over €50,000 | 43% | 43% |
The 2026 budget law cut the middle rate by two percentage points. The saving rises with income up to €50,000 and is capped at about €440 a year. Regional and municipal surcharges are added on top and vary by location, so your effective rate depends on where you live.
For high-net-worth arrivals, the picture went the other way. The optional flat tax on foreign income for new residents rose from €200,000 to €300,000 a year for people transferring tax residence to Italy from 2026, and the amount for each family member doubled from €25,000 to €50,000. Sources we reviewed do not set out the transitional treatment for people who moved before 2026 in full, so take specialist advice. Our taxes for expats living in Italy guide explains the regimes, and you can find qualified advisers in the tax advisors directory.
Sample monthly budgets
A single expat renting a one-bedroom flat should budget roughly €2,000 to €2,300 a month in Milan and roughly €1,450 to €1,600 in Turin, before tax and private insurance. Smaller southern cities can cost considerably less.
These are illustrative estimates built from the sourced figures above (average asking rents, ARERA reference prices, Istat food spending scaled for household size and published transport fares). They are not quoted from a single source. Your costs will differ by neighbourhood, lifestyle and contract. Paying rent and bills by direct debit is simpler once you open a bank account in Italy.
| Monthly item | Single, Milan (50 m²) | Single, Turin (50 m²) | Couple, Rome (70 m²) | Family of four, Bologna (90 m²) |
|---|---|---|---|---|
| Rent | €1,120 | €675 | €1,345 | €1,495 |
| Gas and electricity | €150 | €130 | €200 | €240 |
| Food and groceries | €350 | €300 | €550 | €850 |
| Public transport | €39 | local pass; check GTT | €70 (two passes) | varies |
| Phone, internet, other bills | €80 | €70 | €100 | €120 |
| Eating out, leisure, other | €350 | €250 | €500 | €600 |
| Estimated total | about €2,090 | about €1,425+ | about €2,765 | about €3,305+ |
| Plus: SSN voluntary fee (if not working) | €167+ | €167+ | €333+ (two people) | depends on status |
Add one-off moving costs, deposits and agency fees in your first year. Our guide on how much it costs to move to Italy covers those.
Is Italy cheaper than the UK?
For most expats Italy is cheaper than the UK outside Milan, Florence and Venice, mainly because rents in mid-sized and southern cities are far lower, but energy bills and bureaucracy-related costs can offset part of the saving.
| Factor | Italy | What to watch |
|---|---|---|
| Rent outside top cities | Often half of Milan’s level | Quality of older housing stock varies |
| Energy | Gas prices rising again in 2026 | Poorly insulated historic buildings |
| Healthcare | Free if employed; €2,000+ if not | Non-working non-EU residents pay every year |
| Income tax | Middle rate now 33% | Regional and municipal surcharges on top |
| Salaries | Generally lower than UK equivalents | Remote workers on foreign salaries benefit most |
The honest summary: Italy is good value if you bring an income from abroad and live outside the most expensive cities. It is less obviously cheap if you earn a local salary in Milan. If you are still deciding where to settle, our best places to live in Italy guide compares cities on cost and lifestyle. Local providers for each stage of the move are listed in our Italy directory.
Income thresholds for visas are not a budget. The elective residence visa requires at least €31,000 a year of passive income for a single applicant and the figure required for couples and families varies by consulate. That is the legal minimum to apply, not a guide to what living comfortably costs in your chosen city. See how to get residency in Italy.
Frequently asked questions
