Living in Milan vs Rome: Salary Comparison and Cost of Living 2025

Milan vs Rome: Complete Salary and Cost of Living Comparison 2025

Choosing between Milan and Rome is one of the most important decisions for professionals moving to Italy. These two cities represent Italy's economic and cultural centers, offering vastly different opportunities, lifestyles, and financial realities. Milan is Italy's undisputed economic powerhouse, home to the country's largest corporations, financial institutions, and fashion industry. Rome is Italy's capital, cultural heart, and home to government, tourism, and a more relaxed lifestyle. This comprehensive comparison will help you understand which city better aligns with your career goals, financial expectations, and personal preferences.

Average Salaries: Milan vs Rome

Milan offers significantly higher salaries across most industries, reflecting its position as Italy's business capital. According to recent data, average gross salaries in Milan range from €35,000-60,000+ per year for professionals, with senior executives and finance professionals earning well above €80,000. Rome offers more modest average salaries, typically ranging from €28,000-45,000 per year for professionals, with government and public sector positions offering stability but lower pay than private sector equivalents. The salary gap between the two cities is substantial - Milan salaries are often 20-40% higher than equivalent positions in Rome, though this difference is partially offset by lower living costs in Rome.

Industry-Specific Salary Differences

Milan dominates in: Finance and banking (home to Italy's stock exchange and major banks, salaries often €60,000-150,000+), Fashion and luxury goods (world-renowned fashion houses, competitive salaries), Consulting and professional services (Big Four, strategy consultancies), Technology and startups (growing tech scene), Corporate headquarters and management positions, and International business and trade. Rome excels in: Government and public administration (stable but lower salaries), Tourism and hospitality (varied, often lower), Education and research (universities, research institutions), Healthcare (major hospitals and medical centers), Cultural and creative industries (museums, media, arts), and International organizations (UN agencies, embassies). Understanding which city aligns with your industry is crucial for maximizing earning potential.

Cost of Living Comparison

Housing represents the biggest difference: Milan has one of Italy's most expensive real estate markets, with one-bedroom apartments in desirable areas costing €800-1,500+ per month, while central Milan can reach €1,200-2,000+. Rome is more affordable, with similar apartments ranging from €600-1,200 per month, though central historic areas can be expensive. Groceries are similar in both cities, with Milan being slightly more expensive (5-10%). Transportation costs are comparable, with monthly public transport passes around €35-55. Dining out is more expensive in Milan, particularly in business districts. Overall, Rome is approximately 20-30% cheaper for cost of living, making lower salaries more manageable.

Tax Differences

Both cities are in different regions with different tax rates. Lombardy (Milan) has moderate regional tax rates, while Lazio (Rome) typically has similar or slightly lower rates. However, the higher salaries in Milan mean you pay more absolute tax, even if rates are similar. Milan professionals earning €60,000 might pay €18,000-20,000 in total taxes, while Rome professionals earning €40,000 might pay €11,000-13,000. The higher gross salary in Milan usually results in higher net income, but the difference is less dramatic due to progressive tax rates.

Net Income and Purchasing Power

Despite higher taxes on higher incomes, Milan professionals typically have higher net income and better purchasing power due to: Significantly higher gross salaries, Strong job market with more opportunities, Better career progression potential, and Higher earning ceilings. However, Rome may offer better value for: Those prioritizing lifestyle over maximum income, Lower cost of living making moderate salaries more comfortable, Government workers seeking job security, and Those in tourism, education, or cultural sectors where Rome offers more opportunities.

Job Market and Career Opportunities

Milan's job market is characterized by: More multinational corporations and headquarters, Better opportunities for career advancement, Higher salaries especially in finance and business, More international business connections, Stronger startup and innovation ecosystem, and Better networking opportunities. Rome offers: Government and public sector stability, Tourism industry opportunities, Education and research positions, International organization jobs, Cultural and heritage sector roles, and More relaxed work-life balance in many sectors.

Lifestyle and Quality of Life

Milan provides: Fast-paced, business-focused environment, Excellent international connections and travel hub, Modern infrastructure and cosmopolitan atmosphere, World-class shopping and fashion scene, Strong expat and international community, and Better access to Northern Europe. Rome offers: Rich historical and cultural heritage, More relaxed pace of life, Mediterranean lifestyle, Excellent food scene and dining culture, Beautiful architecture and public spaces, and Strong sense of Italian tradition.

Which City Should You Choose?

Choose Milan if: You work in finance, consulting, fashion, or corporate roles; you prioritize maximum earning potential and career advancement; you prefer a modern, business-focused environment; you want to be at Italy's economic center; you value international connections and opportunities. Choose Rome if: You work in government, tourism, education, or cultural sectors; you prioritize lifestyle and work-life balance; you prefer a more relaxed, traditional Italian experience; you value history and culture; you want lower living costs with decent quality of life.

Use our Italy salary calculator to compare how your specific salary would translate to net income in each city, accounting for regional tax differences, helping you make an informed decision about which location offers better value for your personal and professional goals.