The Cost of Living in Italy for Retiring Expats: A 2025 Guide to Regional Differences

Planning to retire in Italy is a dream for many, but understanding the real cost of living—and the striking regional differences—is absolutely crucial for making the experience both enjoyable and sustainable. Italy offers alluring lifestyle options, but where you choose to settle can impact your budget by up to 30% between regions. For anyone considering retiring in Italy as an expat, here’s what you need to know for 2025.

The Regional Divide: North vs. South

Italy is a patchwork of regions, and living costs can vary dramatically:

Northern Italy (Milan and Major Cities)

• Milan stands as one of the priciest cities in the country. Expect average monthly rents for a modest city-center apartment to start at around €1,370, while daily expenses like groceries, dining, and transport also run higher than the national average.

• General cost of living (including rent) can exceed €2,950 per month for a typical household, with consumer prices approximately 30–40% higher than in the south.

• Similar spending levels often extends to other powerful hubs like Florence and Turin.

Southern Italy (Puglia, Calabria, Sicily, etc.)

• In contrast, the South presents far more accessible options—towns in Puglia, Calabria, or Sicily often feature one-bedroom apartment rents of €500–700 monthly, and overall household budgets regularly fall between €2,000 and €2,250 per month, sometimes less for singles choosing smaller towns.

• Daily costs for food, transport, and social life are much lower, and markets are still the anchor of local shopping.

• Seaside towns in southern regions enable retirees to live comfortably on a much smaller pension, spending less on both property and everyday conveniences.

What’s Included In Your Cost of Living?

Here’s how average monthly expenses can break down (per household, 2025 averages):

• Housing & Utilities: €950–1,400 in the North, €500–800 in the South - due to the north's colder climate and industrial density

• Food & Groceries: €450–600 (North), €320–450 (South)

• Healthcare: Highly dependent on personal circumstances. Learn more about the Italian healthcare system for expat retirees

• Dining Out & Leisure: Dinner at a local trattoria, €20-25 per person (North), €10–12 (South)

• Transport: Monthly public transit pass, €36–45

• Other: Internet €27–35, Mobile €10–15, Gym €45–55

Lifestyle choices—city-center vs. small town, luxury vs. local, frequent travel vs. slower pace—also influence your total costs, but the North/South divide is generally unmistakable.

Other Things to Consider

The Southern regions offer not only lower costs but tax incentives: New residents who retire in certain areas (e.g., Sicily, Calabria, Sardinia, Campania) may benefit from a flat 7% tax on foreign pension income for up to five years. Learn more about how to manage your taxes when retiring in Italy as an expat.

That said, choosing where to retire in Italy is highly personal. Many retirees still opt for northern regions despite higher costs and taxes, attracted by superior infrastructure, greater healthcare access, and a more international atmosphere. By contrast, bureaucracy in the south can be slower, and administrative processes may take more time. To help you decide, explore our guide to the top 5 regions for retirees in Italy, or, if you prefer a comprehensive overview, read our region-by-region breakdown of all Italian regions, highlighting the unique pros and cons of each.

Why It’s Important to Plan Ahead

Long-term Success

When considering a move to Italy, careful financial planning is essential—regardless of your visa status or preferred region. Understanding your likely monthly expenses, including housing, utilities, healthcare, and everyday living costs, ensures that you can maintain your desired lifestyle long-term. Regional cost differences and taxation can have a major impact on your overall budget, so researching average prices in your chosen area and factoring in possible changes in currency exchange rates or inflation is vital.

By planning ahead, you avoid unpleasant surprises and can confidently choose a region that aligns with your savings, pension or investment income, and personal priorities. Thorough financial preparation also gives you more flexibility in adapting to unexpected expenses and provides peace of mind as you settle into your new Italian home.

The ERV and Income Requirements

When applying for Italy’s Elective Residence Visa (ERV), the government officially requires a minimum annual passive income of approximately €31,000 for a single applicant. However, local consulates have discretion—and for high-cost areas like Milan or Rome, they may expect significantly more, as they want to have certainty that the applicant's financial resources are sufficient to support the cost of living in their chosen destinations. Showing a higher income, substantial savings, or property ownership can strengthen your case, especially if you’re targeting pricier regions.

Our advice: Factor the regional cost of living into your pre-move planning. Choosing an affordable destination isn’t just about comfort; it affects your visa approval odds and long-term peace of mind.

Read more about Italy’s Elective Residence Visa (ERV) and our tips for a successful application.

How Mitos Relocation Can Help

At Mitos Relocation, we guide expat retirees through every decision—from choosing the right region based on your budget and lifestyle, to structuring your ERV application, to housing searches and healthcare registration. We can also help you plan a scouting trip to experience first hand the cost of living - and overall lifestyle - in your target destination. We do the heavy lifting so you can focus on your new Italian life.

Book a call today to discover how our tailored services have helped international retirees transition smoothly to Italy.