Maybe you heard life in Italy is cheaper. But is it really more affordable than life in the United States, the United Kingdom, or Canada?
In this breakdown, we’ll look at the real numbers: housing (rent and purchase), utilities, food, transportation, healthcare, and even education costs. And at the end, we’ll calculate the all-in monthly budget to see if living in Italy is truly more convenient.
I am Jacopo, and on this channel, I explain Italian real estate in plain English.
All the prices you’ll see in this video are converted into US dollars. This way, we can make a fair comparison between Italy and other countries.
1. Housing (Rent)
Housing is usually the biggest monthly expense, and this is where the first big difference shows up.
In Italy, rents are significantly lower than in Anglo-Saxon countries. In medium-sized Italian cities, you can rent a 1–2 bedroom apartment for around €700–900/month ($830–1,065). Even in the largest and most expensive cities — Rome and Milan — average rents range between €1,200–1,500 ($1,420–1,775).
Compare this with the US, where medium to large cities often require $2,000–2,500/month for a similar apartment, with New York and San Francisco far above that. In London, expect to pay £1,800–2,200 ($2,450–3,000) for a central flat. And in Toronto or Vancouver, average rents sit around CA$1,800–2,300 ($1,300–1,675).
2. Housing (Purchase)
Buying property tells a similar story. Prices per square meter in Italy are well below those in New York, London, or Toronto.
- In Milan city centre, homes sell for €4,800–8,200/m² ($5,666–9,686).
- In Rome, it’s €3,800–6,500/m² ($4,485–7,681).
- In southern cities like Palermo, peripheral areas can be as low as €900–1,400/m² ($1,063–1,652).
Compare that with:
- New York City: $13,000–15,000/m².
- London: £9,000–11,000/m² ($12,250–15,000).
- Toronto/Vancouver: C$11,000–13,000/m² ($8,000–9,500).
👉 Even in prime areas, Italian property looks “cheap” by comparison. For buyers, Italy is one of the last major Western countries where city-centre historic property is still accessible.
But recently, Italy has also started experiencing a phenomenon of gentrification in its urban centers. Gentrification means that wealthier individuals and investors move into historically affordable neighborhoods, driving up both rents and property prices. For Italian citizens, this has made it increasingly difficult to afford living or buying property in the most important historic city centers. This trend has drawn growing attention from policymakers, since Italian cities — being cheaper than many other global capitals — are highly attractive to both domestic and foreign investors. As a result, ordinary people, especially the middle class, are being priced out of living, renting, or buying in central areas.
My mission, and that of my company, Valente Italian Properties, is to help foreign buyers purchase and invest in Italy, and to manage the properties we can offer here. So if you need assistance, don’t hesitate to reach out.
3. Utilities
Utilities are relatively balanced across countries, though Italy can sometimes be slightly cheaper.
In Italy, expect to pay €150–250/month ($180–295) for electricity, heating, cooling, water, and internet. In the US, UK, and Canada, the same household bills usually fall between $200–300/month.
👉 No huge savings here — but Italy’s smaller homes and milder winters in many regions keep costs contained.
You also need to consider that many Italian homes, especially the older ones, have a very low energy efficiency class. The energy class indicates the energy performance of a property, graded from G (the worst) to A (the best). Since a large share of Italian housing stock is centuries old, many homes fall into the lower categories, usually F or G. Only a small portion of newly built properties achieve higher ratings.
This means that while you might save money thanks to Italy’s mild climate, the reality is that many homes are extremely inefficient and consume a lot of energy. So in terms of utilities, there isn’t always a real saving.
On top of that, Italy produces very little of its own energy and imports most of what it consumes. Compared to countries like the United States, which have much higher domestic production, Italian energy costs are more vulnerable to external shocks. This became very clear after the invasion of Ukraine, when energy prices spiked dramatically for more than a year, putting pressure on both households and businesses.
4. Food & Restaurants
This is where Italy shines.
Eating out is drastically cheaper: a full lunch in a trattoria, homestyle restaurants usually more affordable. costs €15–20 ($18–24), and a perfect espresso is €1 ($1.20). In the US, UK, or Canada, a comparable lunch is $25–40, and coffee is $3–5.
Groceries follow the same pattern: fresh produce, bread, and wine are significantly cheaper in Italy, while packaged or imported goods can be pricier.
Not to mention that food in Italy is famously better and healthier.
👉 If you like eating fresh, seasonal food — Italy offers both quality and savings.
5. Transportation
Italy’s compact cities mean you can often rely on public transport or even walking.
A monthly pass for buses, trams, and metros costs €35–50 ($40–60).
In London, public transport is efficient but expensive: a monthly pass costs £150–250 ($200–340).
In the United States, the average cost of a monthly public transport pass in major cities is around $100
What is more expensive in Italy compared to other countries is the cost of private transportation, because gasoline is much more costly than in places like the USA or Canada. This is mainly due to the fact that most fuel is imported into Italy and, on top of that, there are significant excise taxes that heavily increase the final price at the pump.
At the time I’m recording this video, the average price of gasoline in Italy is about $1.88 per litre, while in Canada and the United States it’s below one dollar, around ninety cents.
6. Healthcare
Healthcare is one of the most striking differences.
In Italy, the national healthcare system covers residents. Basic visits require only small co-pays of €20–30 ($24–36), Emergency hospital care is usually completely free, and many medications — especially life-saving ones — are also provided at no cost.
But this only applies if you work and pay taxes in Italy. If you are a resident in Italy but don’t have insurance and don’t work there, you can still access the national healthcare system. They will treat you without asking for a credit card, even in the case of serious and very expensive emergencies, but afterwards they may send you a bill for the hospital services you received.
What you can do if your plan is not to work or pay taxes in Italy is to contribute to the national healthcare system with a kind of voluntary insurance. This costs about €4,000 per year and allows you to access healthcare services at the same low or sometimes even zero costs as an Italian citizen who has always paid taxes in Italy.
In the US, private insurance can cost $500–1,000/month — sometimes more for families. In the UK, the NHS is covered by taxes but can involve long waits. Canada’s system is public and free, but also marked by wait times.
Italy’s healthcare system is considered among the best in the world, especially for access, public coverage, and efficiency. A Wikipedia+2Wikipedia+2
The national system, the Servizio Sanitario Nazionale (SSN), is almost entirely free (or with very low co-payments for most services), similar in principle to the UK’s NHS or Canada’s public health system. Meanwhile, in the United States, healthcare costs are much higher — many people pay privately or via insurance, and out-of-pocket expenses can be very steep.
7. Education
For families, education is another area of huge difference.
- In Italy, public schools are free, with small annual fees of €200–400 ($240–475). Public universities cost €1,500–3,500/year ($1,770–4,130), while international schools for expats range between €8,000–20,000/year ($9,450–23,600).
- In the US, public universities average $10,700/year, while private universities cost $39,400/year.
- In the UK, domestic tuition is £9,250/year ($12,600), and international students pay £15,000–30,000/year ($20,400–40,800).
- In Canada, domestic students pay around C$7,076 ($5,150), while international students face C$36,100 ($26,300).
👉 Education in Italy is among the best and most affordable in the Western world, especially compared to the US and UK.
8. Taxes
Taxes on real estate property can be quite cheap.
But you need to pay attention. Normally, the purchase tax is 9% of the cadastral value. And even though the cadastral value (used only for tax purposes) is usually lower than the market value, this kind of taxation can still result in a significant amount compared to what you would pay in other countries.
However, there is a trick to drastically reduce the taxes you pay when purchasing property — something I explained in detail in another video that I strongly recommend you watch. With this option, you can bring the purchase tax down to a level lower than in any other Western country.
Once you become a homeowner, in Italy you are also subject to an annual property tax, which typically ranges between 0.76% and 1.06% — already lower than in many other nations. But you can reduce it further, even to 0% in certain cases, such as when you buy a property with historic, artistic, or cultural value, or if the property is your primary residence, where the property tax is completely waived.
Taxes are not necessarily lower in Italy, if you plan to work in the country. — in fact, income tax rates can be high.
The share of total labour costs that goes to taxes and social contributions rather than into the worker’s net salary. Italy stands out with almost 48%, one of the highest levels in the OECD. By comparison, the UK, Canada, and the US range between 30% and 35%, making the tax burden on workers significantly lighter.”
But there are many opportunities for expats — for those moving from abroad to Italy — to optimize their tax burden and make it truly convenient. For example, there are almost total tax exemptions for researchers and professors, significant incentives for digital nomads, and a flat tax regime for ultra high net worth individuals. I’ve covered the topic of taxes in Italy in detail in another video, which I recommend you go check out.
Closing: The Big Picture
Let’s add it all up.
- Italy: A single person can live on $2,200–2,600/month.
- United States: Around $3,800–4,500/month.
- United Kingdom: $3,500–4,200/month.
- Canada: $3,000–3,800/month.
Housing, food, healthcare, and education are the areas where Italy is dramatically cheaper.
So yes — the dream of living in Italy isn’t only about art, food, and lifestyle. It’s also financially realistic for many expats.
So if you want to fully understand the processo to buy a property in italy I suggest you watch this video
