Cost of living in Italy
The cost of living in Italy runs at about 73% of US prices, and ISTAT's minimum monthly spending for a retired couple in Rome is €1,306.42.
Official prices, where your money goes further, and a budget built from your own rent and insurance. Checked against official sources on Oct 7, 2026.
- Price level
- ~73% of the US Household consumption, 2025. World Bank. Checked Oct 7, 2026.
- Poverty line, Rome
- €1,306/mo (about $1,460) Official, household of 2, 2024. ISTAT. Checked Oct 7, 2026.
- Poverty line, Florence
- €1,366/mo (about $1,530) Official, household of 2, 2024. ISTAT. Checked Oct 7, 2026.
- Tax on a foreign pension
- 7% to 43% Foreign pensions taxed; 7% in small southern towns. PwC Tax Summaries. Checked Oct 7, 2026.
Build your Italy budget
No official source tracks what expats pay in rent, and rent is the biggest line in any budget. So this starts from what is measured, the government's poverty line, and adds your own numbers.
Get rent from current listings in the area you like and a written quote for health insurance at your age; the total then shows how far it sits above the $34,649 Elective Residence minimum.
Your monthly budget
$0
The official poverty line
ISTAT, Italy's statistics office, sets an absolute poverty threshold every year: the monthly spending on essential goods and services at or below which a household counts as absolutely poor. The figures are for a couple both aged 60 to 74.
| Area | 2024 |
|---|---|
| Rome (Lazio, metropolitan area) | €1,306 (about $1,460) |
| Florence (Tuscany, metropolitan area) | €1,366 (about $1,530) |
| Small towns in Sicily (ISTAT small municipalities) | €927 (about $1,040) |
ISTAT. Checked Oct 7, 2026.
Cost of living questions
How much do I need a month to live in Italy?
It depends mostly on rent, which no official source tracks for expats. Add your rent and insurance quotes in the calculator above, and keep the $34,649 Elective Residence minimum in mind as a floor, not a budget.
Is Italy cheaper than the US?
On average, yes: the World Bank puts household prices in Italy at about 73% of US levels (2025). Imported goods, cars and electronics can cost as much as at home or more.
Is it cheaper outside Rome?
Living costs are: the official poverty line for Florence costs €1,366 (about $1,530) against €1,306 (about $1,460) (2024).
How much does it cost to live in a small town in Italy?
ISTAT's absolute poverty threshold for a couple aged 60 to 74 in a small Sicilian town was €926.92 a month in 2024, against €1,306.42 in Rome and €1,366.10 in Florence. That is the bare minimum of spending, not a comfortable budget.
Is the South cheaper than the cities?
Yes, on ISTAT's measure: the minimum spending for a couple aged 60 to 74 in a small Sicilian town was about €380 a month lower than in Rome in 2024.
