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Tuesday, 24 February 2026

Is it cheaper to live in Italy than the US? Italy vs the US, Canada, and Australia

Yes. In 2025, living in Italy is generally cheaper than living in the United States, Canada, or Australia. Depending on location and lifestyle, the cost of living in Italy can be 30% to 70% lower, making it an attractive option for retirees, remote workers, and families seeking a better balance between expenses and quality of life.

While average disposable income in the U.S. is approximately 54% higher than in Italy, daily living expenses in Italy are significantly lower. This difference allows many people with pensions, savings, or remote income to live more comfortably in Italy than they would in North America or Australia.

Cost of living in Italy compared to the US, Canada, and Australia

Living expenses in Italy are lower across most categories, especially housing, healthcare, food, and transportation. Costs vary widely by region, with southern Italy and smaller towns offering some of the lowest living expenses in the country. Northern cities and major urban centers tend to be more expensive but still remain more affordable than comparable cities in the U.S., Canada, or Australia.

Overall, living in Italy is significantly less expensive than living in the U.S., particularly when everyday costs are considered rather than salary alone.

Monthly rent in Italy vs big cities in the US, Canada, and Australia

Housing is one of the most noticeable cost differences. Rent prices in the United States are generally much higher, averaging about 117.3% more than in Italy. The average rent in the U.S. is around $1,700 per month, which is roughly 55% higher than Italy’s average apartment rent of about $1,100 per month.

In Italy’s major cities, a one-bedroom apartment in the city center of Rome costs approximately €1,200 per month, which is still significantly lower than the average rent for a similar apartment in a U.S. city center. Outside city centers, costs drop further, and in smaller Italian towns it is possible to find apartments renting for €400 to €500 per month. Housing in these areas is far more affordable than comparable small towns in the U.S., Canada, or Australia.

Modern one bedroom apartment interior representing typical rental housing in Italy

 

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Living in Italy: utilities, additional costs, and everyday expenses

Monthly utility costs in Italy are generally reasonable, averaging around €150 to €200 per month. This is considerably lower than the average $1,460 spent annually on utilities in the U.S. Although household utilities can sometimes be up to 33% higher in Italy due to energy rates, overall monthly expenses remain lower because housing costs are significantly reduced.

It is worth noting that imported electronics and luxury goods often cost 30% to 60% more in Italy due to taxes and shipping fees. However, these higher costs tend to affect discretionary purchases rather than daily necessities.

Food, dining, and grocery living expenses in Italy

Food prices in Italy are generally lower than in the U.S., Canada, and Australia. Grocery staples such as milk, bread, produce, and wine are available at significantly reduced costs, and the focus on fresh, high-quality local produce supports healthier eating without higher expenses.

Dining out in Italy is both affordable and central to daily life. An inexpensive restaurant meal costs about €16.41, which is roughly 12.3% less than in the U.S. A mid-range three-course meal for two averages around €60, offering excellent value for quality and experience. Italy offers a rich culinary culture that can be enjoyed regularly without straining a monthly budget.

Public transportation in Italy compared to the US, Canada, and Australia

Transportation costs in Italy are generally lower than in the U.S., Canada, and Australia. Public transportation is efficient and affordable, particularly in major cities. Average monthly transportation expenses are around €289, covering public transit and limited car use.

Many residents rely on trains, buses, and metro systems, reducing the need for car ownership. While gasoline prices in Italy can be nearly twice as high as in the U.S., strong public transport infrastructure allows many people to avoid frequent driving altogether.

Health insurance and medical care in Italy vs the US

Healthcare is one of the strongest financial advantages of living in Italy. Healthcare in Italy is significantly cheaper than in the U.S., with average medical care costs around $135 per month. Public health insurance is primarily government-funded and provides extensive coverage.

Residents in Italy are entitled to universal healthcare, with only small payments required for certain tests or specialist services. Medical care quality is high, and healthcare is viewed as a right rather than a privilege. In contrast, many Americans face significant medical debt due to high insurance premiums and out-of-pocket costs.

Compared to Canada and Australia, Italy’s healthcare system remains highly accessible and affordable, making it a key consideration for retirees and long-term residents.

Italian health insurance card with medical supplies representing public healthcare coverage in Italy

Education, culture, and lifestyle

Italy provides quality education that is largely state-funded. Public schools typically do not charge tuition fees, making education far more affordable for families compared to private-heavy systems in other countries.

Cultural experiences in Italy are also accessible and affordable. Museums, historical sites, and community events allow residents to enjoy Italy’s rich heritage without high costs. The Italian lifestyle emphasizes leisure, family, and simple pleasures. Italians tend to prioritize time with loved ones over large homes or expensive cars, which naturally supports a lower cost of living.

Is Italy cheaper overall compared to the US? Final cost comparison

Yes. Living expenses in Italy can be 30% to 70% lower than in the U.S., Canada, or Australia, depending on location and lifestyle. While salaries are lower, reduced costs for housing, healthcare, food, and transportation often result in a better quality of life,especially for retirees and those earning income remotely.

View of Manarola village in Cinque Terre showing everyday coastal life in Italy

How Aprigliano International Law Firm supports living in Italy

Relocating to Italy involves more than cost considerations. Legal compliance, residency status, and tax planning are essential. Aprigliano International Law Firm assists individuals and families with Italian residency, citizenship, business setup, and property-related legal matters.

With professional guidance, clients can navigate immigration pathways, healthcare registration, and long-term residency requirements confidently and compliantly.

If you are considering living in Italy, contact Aprigliano International Law Firm to discuss your situation and receive tailored legal guidance for your move.


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