What does a year living in Italy really cost?

Most comparisons of the cost of living in Italy and Germany end with vague statements: “cheaper than Germany” or “depends on the region”. Both are true — and neither is of much help when you’re trying to work out, in concrete terms, whether and how living in Italy is financially viable.

This article does the maths. For a second home with three to six months’ stay per year, using realistic figures from real life — not from a travel guide.

First things first: Who is this overview for?

This article works through a specific scenario: a second home, used for three to six months a year, owned by someone with their main residence in Germany. Those who live mainly in Italy or rent out the property will have different cost items in some respects.

Region and property: the two factors that determine everything

Two things influence costs more than anything else. Firstly, the region: Tuscany is more expensive than Calabria — not dramatically so for food, but noticeably so for property taxes, tradesmen’s rates and restaurant costs. Sardinia lies somewhere in between, with a seasonal premium in summer. Secondly, the property: an old country house with a septic system, oil heating and basic electrical wiring costs significantly more to run than a modernised city flat. The energy rating (APE) is not a bureaucratic detail — it determines the running costs for the coming years.

Food and shopping in Italy 

Italy is no longer a cheap country for shopping, but it remains cheaper than Germany for certain product categories. Fresh fruit and vegetables at the weekly market, local wine from €3 to €5, regional-quality olive oil from €6 for half a litre, pasta, pulses and fresh fish near the coast — these are the categories where the price difference is noticeable. Imported products, the organic range in supermarkets and specialities from Germany, on the other hand, cost about the same or more.

What two people spend in a month

As a practical guide: if you shop mainly at the weekly market and in the local supermarket, two people can get by on €400 to €550 for four weeks. At discount stores — Eurospin, Lidl and Aldi are present in many regions — the guide price is €300 to €400. Those who buy locally, cook well and make use of the market live more cheaply in Italy than in Germany. Those looking for German bread, cold cuts and familiar branded products in delicatessens pay more. The decision lies less in what is on offer than in the willingness to adapt.

Energy: Electricity, gas, water: more expensive than the reputation suggests 

Energy in Italy in 2025/2026 is more expensive than the region’s reputation would suggest. Electricity prices are in line with the EU average, and in some cases higher than in Germany. For a country house with 200 m² of living space, without air conditioning but with an electric boiler, around €100 to €160 per month is realistic in summer — air conditioning pushes this figure up significantly. In quieter months, consumption is around €60 to €90. Those with gas heating pay €80 to €150 per month during the heating season.

 Oil heating, which is widespread in country houses, works differently: a 1,000-litre tank currently costs around €950 to €1,100 and lasts for one to two winters, depending on the property and how much it is used.

Water and annual estimates

Water remains inexpensive in most localities — €100 to €250 per year for a standard household. Those who water a garden or run a swimming pool should budget accordingly. As a rough annual guide for the entire energy sector: a 100 m² city flat, used for four months, costs around €600 to €900. A 200 m² country house, used for five months, costs between €1,200 and €2,000.

Why the energy rating is not just a formality

A property with an energy rating of F or G consumes two to three times more energy in winter than a property with a rating of B. Anyone comparing two property listings and ignoring the APE value is comparing two different cost structures — not two similar properties.

Taxes as an owner – what you pay

The IMU (Imposta Municipale Unica) is the annual property tax for second homes. It is calculated based on the cadastral value, multiplied by the municipality-specific tax rate of 0.86 to 1.06%. A concrete example: A country house with a Rendita Catastale of €900 has a cadastral value of around €113,400 (900 × 1.05 × 120). At a tax rate of 1.06%, this results in an IMU of €1,202 per year — half due on 16 June and half on 16 December. Anyone who misses the deadlines will be charged late payment interest.

TARI: The waste collection charge

The TARI is set by the local council and is based on living space and the number of occupants. For a country house of 150 m², a realistic figure is between €180 and €400 per year, depending on the region and local council.

Insurance – what is mandatory and what is advisable 

In Italy, there is no legal obligation to take out insurance for private homeowners without a mortgage. Those with a mortgage must provide proof of building insurance for the duration of the mortgage. Regardless of this, building insurance (incendio e scoppio) covering fire, explosion and structural damage, with an annual premium of €250 to €600, is the basic cover that no owner should be without. Third-party liability (responsabilità civile) for damage to third parties is often already included in the building insurance. Anyone with a holiday home that stands empty for long periods should also take out content’s insurance (furto e danni) against theft and burglary — additional premium of €150 to €300 per year.

Overall, an insurance budget of €400 to €900 per year is realistic for a country house of average value.

Car and mobility – road tax and fuel 

Anyone who owns a vehicle registered in Italy pays the annual Bollo auto — calculated based on engine power and emission class. For a medium-sized vehicle between 100 and 130 kW, this amounts to €150 to €250 per year. Anyone driving into Italy with a German number plate does not pay Italian road tax but does pay for fuel at current prices: in 2025, petrol cost between €1.80 and €1.95 per litre, and diesel between €1.70 and €1.85. In rural areas, petrol stations are often further apart and frequently slightly more expensive than in towns.

You can’t get by in the countryside without a car

Public transport is limited in rural areas of Italy — a car there is not a matter of convenience, but a necessity. Anyone staying in a holiday home in Tuscany, Umbria or Abruzzo without a vehicle will find themselves considerably restricted. Liguria and the larger coastal towns are exceptions, but even there, having your own vehicle is almost indispensable for trips into the hinterland.

Tradespeople, maintenance, repairs – hourly rates by region 

Tradespeople’s rates vary considerably depending on the region. In Northern Italy, Tuscany and Liguria, €50 to €80 per hour is standard; in Umbria and the Marche, the rate is €40 to €65; in Southern Italy and Sardinia, €30 to €55. On top of this come travel costs and — in popular tourist regions — waiting times of several weeks during the high season. Anyone needing a plumber in Tuscany in July will have to wait. This is not the exception, but the rule.

What a year’s home maintenance costs

For an older country house requiring no major investment, experienced owners budget around €500 to €1,000 per year for routine maintenance such as heating, pumps and the garden, a further €300 to €700 for minor repairs, and a buffer of €500 to €1,500 for the unexpected. As a rule of thumb for the reserve fund: 1 to 1.5% of the property value per year. For a country house worth €250,000, that amounts to €2,500 — it sounds like a lot, but it is realistic for older properties.

Health and doctors – an overview of co-payments 

Anyone using the European Health Insurance Card (EHIC) or registered with the National Health Service (SSN) pays co-payments (ticket sanitario) for doctor’s visits and medication. A specialist appointment costs between €20 and €50; medicines are often significantly cheaper in Italy than in Germany, with many generic medicines costing between €2 and €5. In regions with longer SSN waiting times, many expats opt for a private doctor — €50 to €120 per consultation, depending on the specialism and city.

Dental treatment is often cheaper for private patients in Italy than in Germany, particularly in southern Italy and Sardinia.

Preventative check-ups cost €50 to €80; more extensive treatments depend on the service provided but are in most cases below comparable German prices.

Cost of living by region: A comparison

Annual costs briefly: Sample calculation

Scenario: Country house in Tuscany, 5-month stay per year, two people, no car registered in Italy

This works out at around €1,860 per month of actual use — for five months a year. Cheaper than a comparable stay in a hotel, and with the home itself as a tangible asset behind it.

What the figures don’t show: the intangible cost factor

Anyone reading the sample calculation above will see just under €9,300 per year for five months. What the table doesn’t show is what many owners describe as the real surprise — in a positive sense. In Germany, you often pay for quality of life indirectly: through long commutes, expensive leisure facilities, and spending on things that are simply free in Italy. Visiting the weekly market, sitting in the piazza, having an espresso and chatting to three people — those costs €1.20 for the coffee and nothing else.

The pace of life in Italy is a value that cannot be captured in figures, but it is palpable. Public spaces, festivals and markets are what amusement parks are in Germany — and they don’t charge an entrance fee. A Mediterranean diet, daily exercise and less stress also have long-term health benefits, even if this effect cannot easily be translated into an annual budget.

What can be more expensive than expected

On the other hand, there are costs that many buyers underestimate. Unforeseen renovation costs hit particularly hard in the first year, when older country houses reveal their quirks. Travel costs for visits from Germany — travel to and from for two people several times a year — add up quickly. And anyone living in a poorly connected rural area pays an extra €30 to €60 a month for mobile internet as their sole connection.

The practical conclusion: those who buy in Italy and approach life there with an open mind will find living in most regions cheaper than in Germany — and in some regions significantly cheaper. Those who apply the German model with German expectations and imported habits will pay more. The decision lies less in the wallet than in the mindset.

Digital tools and resources for cost planning

Anyone wishing to calculate their own situation in more detail will find some useful resources. The authority ARERA (arera.it) publishes quarterly household energy prices for the whole of Italy, broken down by region — anyone wanting to know the current cost of electricity in Tuscany will find up-to-date data there. Fuel prices are compared daily by the Ministry at prezzi.mise.gov.it, which is useful for planning travel costs in rural areas. Many local authorities offer an IMU calculator on their websites; alternatively, independent tools on immobiliare.it or idealista.it estimate the expected IMU liability based on the cadastral value and tax rate. The Istat price index (istat.it) allows you to compare food prices by region.

These tools are no substitute for speaking to someone who knows the region. But they provide an initial guide before you plan your first viewing.

Frequently Asked Questions about the cost of living in Italy

Is living in Italy cheaper than in Germany? 

In some respects, yes. Market produce, wine, mid-range restaurants and tradesmen’s services in southern Italy are cheaper. Energy, certain imported goods and the tax burden on second homes are comparable or higher. Overall, the cost difference is smaller than many expect — and depends heavily on your lifestyle.

What are the annual running costs of a country house? 

It depends on size, age and region — but for an older country house of 150 to 200 m² in Tuscany, fixed costs of €5,000 to €8,000 per year are realistic, excluding food, travel and leisure expenses.

Where in Italy is the cheapest place to live? 

Calabria, Basilicata and parts of Sicily have the lowest cost of living. At the same time, infrastructure there is sometimes limited. Umbria offers the best balance of quality of life and moderate costs.

What surprises most German buyers about the running costs? 

Most commonly: tradesmen’s bills — waiting times and surcharges during the high season —, energy costs in poorly insulated country houses, and the level of IMU tax in municipalities popular with tourists.

Can I offset the running costs by letting the property? 

Yes — in many regions, letting the property for six to eight weeks a year covers the entire fixed costs. The split-use strategy model describes this in more detail. → [Split-Use Strategies]

Note: All prices are indicative figures based on May 2026. Prices vary by region and are subject to change. For an individual cost calculation, we recommend consulting a local property manager or tax advisor.

Conclusion

The honest answer to the question “How expensive is it to live in Italy?” is: it depends on your lifestyle. If you buy local produce, cook with seasonal ingredients and only use your car for essential journeys, living in Italy is noticeably cheaper than in Germany. Those who import German lifestyle habits — organic produce, German bread, frequent visits to high-end restaurants — pay a similar amount or more.

The specific figures from this article show fixed costs of around €9,000 to €10,000 for a second home used for five months a year. This is a framework you can plan with – and which, with careful property selection (good energy rating, moderate IMU region), can even be kept below. Those who rent out the property at the same time can often fully recoup the fixed costs – which transforms the Italian property from a pure cost factor into a self-sustaining lifestyle.

What the tables do not show, however, is the real value: a pace of life, a social life in public spaces, and a diet based on seasonal produce – things that cannot be measured in monetary terms. Those who see Italy as a place to live rather than a holiday destination does not necessarily live more cheaply – but differently. And for most buyers, that is the real reason for being here.