How Far Does Your Money Go in Italy?
A comparison study between Austin, Texas, and Lucca, Italy
I’ve been getting a lot of emails lately on the subject of money, how much of it you need in order to live abroad and what things cost here. Of course, the responsible answer is to say I couldn’t tell you because the cost of living varies wildly, depending on what part of Italy you’re in.
As a general rule of thumb, the farther north you go, the more you’re going to pay for the stuff you need. Major cities like Rome, Florence, and Milan are commensurate, cost-wise, with cities like New York, Austin, and Los Angeles. The only way we’ve managed to squeak by on our freelancer/artist wages is to sell blood. Joking! Sort of! No, we avoid the major cities where rent is $1200-1800 a month and live in smaller, more far-flung, and yet charming and affordable villages.
Here in Umbria, the second smallest region in Italy, adjacent to no other country or body of water and unique for that reason, it’s all art, culture, olive groves and grape vines. It is quite possible to get a nice apartment in this area, especially in the historic centers (which are obviously older, never convenient, usually have stairs, and possess thick, plaster, cell-phone-reception-killing walls) for under $600, even with the disappointing exchange USD-euro exchange rate, as of this writing.
If you’re the kind of extravert that withers without movida, or nightlife, you might want to get a roommate or two and stick to the major cities. Medium and smallish Italian villages roll up the carpets early, most of them, except in the summer when it’s usually too hot to stay indoors.
For our comparison, I chose the city of Lucca, which is a beautiful city close to Florence in the region of Tuscany. There are many places that are cheaper, especially in the less glamorous Viterbo region around Rome, but Lucca is not the most expensive or the least expensive. It’s somewhere in the middle.
So, too, Austin, Texas. West Virginia is half as pricey, but I doubt anyone from West Virginia is curious about doing a cost analysis of the U.S. versus Italy, so here we go.
I’m using Numbeo.com to conduct our cost-of-living comparison for the simple reason that they updated their statistics this very month. Everything has been converted into dollars, for your convenience. And if you’d like to do your own cost-of-living analysis, not only with Italy but anywhere in the world, go to their website and see what you can find.
Indices Difference between Austin, Texas, and Lucca, Italy:
Consumer Prices in Lucca are 16.78% higher than in Austin, TX (without rent).
Consumer Prices Including Rent in Lucca are 17.20% lower than in Austin, TX.
Rent Prices in Lucca are 62.29% lower than in Austin, TX.
Restaurant Prices in Lucca are 4.80% higher than in Austin, TX.
Groceries Prices in Lucca are 7.90% higher than in Austin, TX.
Local Purchasing Power in Lucca is 64.68% lower than in Austin, TX
The real shocker is the rent, isn’t it? That, and the average monthly net salary after taxes. Texas has sales tax, but no state tax; Lucca has all its taxes baked into the price. If you buy a thirty euro pair of shoes, they will cost you exactly thirty euros. No one has to stand around toting up the price plus 8.25%, which is Texas’s sales tax.
Having said that, utility bills in Italy can be fifty euros of actual usage and a hundred euros of taxes and fees, including a “television access fee,” which ain’t cheap, and you will pay it whether you own a television or not.
The biggest difference between the cost of living in Italy versus the cost of living in the United States is that you can choose to live cheaply here. I’m not sure you have a choice anymore in the States. Where is rent actually affordable?
We must also consider the cost of healthcare. If you’re a legal resident of Italy (which is NOT easy, by the way, and might even be impossible), healthcare is free. In the U.S.? Well, I don’t have to tell you how ghastly medical bills can be.
Living abroad is not for everybody. If you value comfort, convenience, and family more highly than adventure, I would strongly advise you not to attempt it. Visit instead. But if you are determined to take the dive, here are some other articles that might be of interest to you:
Learning Another Language When You Can’t Remember Your Own Phone Number
Five Things That Will Blow Your Mind About Living in Italy
Why Those “Buy a House in Italy for 1 Euro” Deals Maybe Aren’t Such a Great Idea
If you could move anywhere in the world, where would that be? I want to hear all about it, so please leave your comments below.
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Mexico is still attractive to retirees and people on fixed/limited incomes, *PROVIDED* you live as a modestly well off Mexican and NOT like an American Retiree. If I ever get out from under the albatross of this house, property, and animals that Toni left me, it is a genuine consideration. A small place, away from the larger cities, maybe up in the mountains, maybe some midway point on Baja.
Or you could just wait for a war to break out. The living is easy, if a bit rough around the edges...but you never know when someone might accidentally (or deliberately) deposit a mortar shell in your living room. It can be cheaper, but the risks? Well, as you say, it's not for everyone.
I remember being in Oslo, Norway, and thinking how nice it would be to live there. It also happens to be one of the most expensive places in the world. And the likelihood of a war breaking out any time soon is pretty close to nil.
The one thing I've learned from living in some real $#!*holes in the US and abroad is that you can be happy anywhere you put your mind to it. Some of my happiest memories involve life in a war zone. Sick and twisted, I know, but in a situation like that you learn to find joy in things you might not think of in more stable situations.
It just depends what your tolerance for risk and upheaval (and death and destruction) happens to be. :-)