Yes, living in Italy is significantly cheaper than the United States in 2025. Americans can save 40-50% on overall living expenses, with substantial reductions in housing, food, healthcare, and transportation costs. Current economic data reveals Italy’s cost-of-living advantages across all lifestyle levels and regions.

For Americans interested in migrating to Italy, the financial benefits extend beyond simple savings. Lower rent prices, affordable healthcare, and reduced daily expenses allow Americans to maintain or improve their quality of life while spending considerably less than they would in comparable US locations.

Cost of living index

In 2025, cost-of-living indexes reveal Italy is significantly more affordable than the United States. Italy’s average prices for a single person’s monthly expenses (basic ones without any trips) total about $ 2.235, while the US stands at $2,516. That’s a difference of around 36%, making daily life, rent, and groceries easier to manage for newcomers and residents.

Inflation trends further influence these comparisons. Italy’s inflation rate is 1.2% in October 2025, while the US reported 3% in September 2025. Combined with exchange rate changes, these shifts impact Americans’ spending power. When the value of the Euro moves against the Dollar, it can make Italian living costs either more affordable or pricier for expats.

Housing and rent costs

Major Italian cities like Rome, Milan, and Florence offer far more affordable rent compared to popular US cities. In 2025, the monthly rent for a one-bedroom apartment in the heart of Rome is about €1,300 , while central Milan ranges from €1430.). Florence’s rentals typically trail these prices slightly. Meanwhile, the monthly rent for a one-bedroom in Manhattan, New York is roughly $4,200, San Francisco averages $3,300, and Austin comes in at about $2,128. These differences show how much more rent you pay in the US’s most expensive cities.

Costs also change depending on urban, suburban, or rural areas. In Italy, central districts are most expensive, but you can find one-bedroom apartments for €1023 outside the city center. Suburban and rural zones in both countries are dramatically cheaper, with Italy’s peripheral areas often under €1,000 ($1,070). US suburban and rural communities also offer savings, but the overall base cost remains higher than Italy’s.

When comparing different Italian regions, big cities like Rome and Milan command premium prices, yet they still remain significantly more affordable than equivalent American metropolitan areas. The stark differences become even more apparent when factoring in additional costs such as utilities, maintenance fees, and property taxes, which tend to be substantially lower in Italian markets.

Expats and remote workers looking for affordable housing in Italy should focus on smaller towns, peripheral neighborhoods, or long-term leases. Consider shortlisting districts outside tourist centers, leveraging local real estate groups, and starting early to secure the best prices.

Food, dining, and groceries

Groceries are much more affordable in Italy compared to the US. In 2025, average grocery costs for a single person in Italy total around €525 per month, while basic supermarket items like apples, bread, and cheese cost less than in the US. In contrast, Americans spend an average of $900 per month on groceries, which is nearly double the typical Italian food budget.

Dining out in Italy is also less expensive. A casual meal for one in a local restaurant ranges from €15 to €25, or about $16 to $27 per person. In the US, most people spend $20–$30 on a meal, with larger cities skewing toward the higher end of that range. Using local markets and choosing seasonal produce in Italy helps reduce expenses even further, while providing fresh ingredients. Embracing the Mediterranean diet brings not just nutritional benefits but can also lower long-term costs thanks to fruit, vegetables, and whole grains.

Transportation and mobility

Italy’s public transport is cost-effective and widely available. A monthly city transport pass typically costs €35 to €40 ($38 to $44), while in most major US cities, transit passes average $100. Italian cities offer an integrated system of buses, metros, and trains, which makes commuting affordable for locals and expats. In smaller towns, public transport may be less frequent but still reliable.

Taxes, visas, and legal considerations

Visa options for Americans are broad. Digital nomads can apply for a remote worker visa if they have at least six months’ work experience and earn a minimum annual income of €28,000. Retirees and entrepreneurs have tailored residency routes, often linked with income, health insurance, and documentation checks. Costs and requirements differ by visa and region.

Aprigliano International Law Firm supports expats and investors with immigration, corporate setup, and compliance. Our experts provide legal assistance with citizenship claims, business formation, residency permits, and real estate investments. Clients benefit from multilingual service and personalized guidance, making legal issues easier to solve in Italy.

Real-life cost examples

For American singles and retirees considering a move to Italy, understanding real-world living costs is crucial for planning. The following examples show actual monthly expenses based on current 2025 data, demonstrating how your dollars stretch significantly further in Italy.

Single expat & retiree monthly budget comparison

This level suits most retirees with decent pensions or expats with steady remote income who want comfort without extravagance. It represents the sweet spot between budget living and luxury.

Italy:

• Rent (nice area, close to center): €1,432 ($1,660)
• Groceries: €525 ($560)
• Transportation: €39 ($45)
• Dining out (12 meals): €240 ($257)
• Utilities & phone: €200 ($232)
• Entertainment & travel: €500 ($580)
• Healthcare: €150 ($160)
• Total: €3,086 ($3,577)

USA:

• Rent (nice area): $4,190
• Groceries: $900
• Transportation: $133
• Dining out (12 meals): $300
• Utilities & phone: $250
• Entertainment & travel: $1000
• Healthcare: $500
• Total: $7,273

You save $3,696 per month living in Italy (50,8% less)

This comfortable lifestyle in Italy often exceeds what the same budget provides in the US.

Is it cheaper to live in Italy in 2025?

Yes, living in Italy is significantly cheaper than the United States. Current data shows that Americans can expect to save 40-50% on overall living expenses, with the most substantial savings in housing, food, healthcare, and transportation. These cost advantages apply across different regions and lifestyle choices, whether you prefer major cities like Rome and Milan or smaller Italian towns.

The savings aren’t just about spending less money; they often translate to a better quality of life. Lower housing costs, affordable healthcare, efficient public transportation, and access to fresh, local food mean your budget stretches further while providing experiences that would cost significantly more in the US. For singles, retirees, and families alike, Italy offers a financially sustainable path to European living.

How Aprigliano International Law Firm can help

Moving to Italy requires proper legal documentation and compliance with immigration requirements. Aprigliano International Law Firm provides legal services for Americans relocating to or investing in Italy.

Services Include:

• Visa and Residency Applications: Work permits, retirement visas, and residency documentation
• Italian Citizenship: Citizenship by descent (jure sanguinis) and naturalization processes
• Business Formation: Corporate setup and regulatory compliance for entrepreneurs
• Tax Compliance: Italian tax residency and dual-taxation guidance

Our legal team handles the documentation and procedural requirements, allowing clients to focus on their relocation planning. We provide transparent pricing and case-specific guidance based on individual circumstances.

For legal assistance with your Italy relocation, business setup, or other types of temporary stay permits, contact us to discuss your specific requirements.