Milan is known for being the Italian city with the highest salaries, but this is offset by the high cost of living. So, what is considered a “good income” in the northern city?
Milan is one of the most popular Italian cities for foreigners. The city is home to more than 475 thousand foreigners (around 14,7% of the total population), including 3.169 Brazilians, according to Istat data from 2019.
A dynamic job market, with several giants in the financial, banking and insurance sectors, countless cultural and social opportunities and relatively efficient public transport services are part of the metropolis' appeal among foreigners.
But if you are thinking about moving to Milan , one of the first things you'll probably consider is local salaries and how much you'll actually need to live in the city.
Italy’s “Wage Capital”
Milan is often referred to by national media as the “salary capital” of Italy, as it has consistently been the Italian city with the highest average income in the last years.
According to a report published by the Italian newspaper The Corriere della Sera, based on 2021 tax returns, Milan boasts an average gross personal income of €37.200 per year, corresponding to a monthly net income of around €2.000 to €2.100.
In contrast, the average gross income across Italy is around €29.500 per year (around €1.700 net monthly income), according to data from the Italian Ministry of Economy, analyzed by Italy in Dati.
Even more impressive is that while Milan's average gross income is €37.200 per year, nationally only 9,5% of workers (just under 4 million people) have an annual gross income of between €35.000 and €60.000.
Although personal income averages do not accurately define how total income is distributed among residents — and there are significant wealth imbalances in the northern city — it is still true that Milanese salaries are generally higher than in other parts of the country.
This is especially true for employees of private companies (as opposed to public employees, or state), as the average annual gross income of a private sector worker in Milan is almost double that of someone doing a similar job in Palermo, Sicily, according to data from the National Social Security Institute (INPS).
Cost of living
Although salaries in Milan are, on average, higher than in the rest of the country, these figures should be taken with caution due to the high cost of living in the northern city.
As with other European metropolises, Milan is not a cheap city to live in, having once again won the undesirable title of most expensive Italian city to live in last year.
Rent is generally the biggest expense for residents, with prices often significantly higher than in most other major Italian cities.
With luck, and a lot of resistance from landlords, you can pay between €930 to €1.400 for a one-bedroom apartment, according to Numbeo.
But many other monthly expenses, including utility bills, grocery shopping, and costs related to leisure and entertainment, tend to be higher in Milan compared to other parts of Italy.
So what is a “good income” in Milan?
The coexistence of high living costs and well-paying jobs results in a certain “income paradox”.
While you'll likely earn significantly more in Milan compared to other parts of the country, you'll also likely spend more to live and work there than anywhere else. italian city.
This means that good or even high salaries by Italian standards may not have the same value in Milan as they do elsewhere.
According to the online investment platform Moneyfarm, a single person renting a one-bedroom apartment needs a minimum monthly net income of €1.700 to €2.000 to cover all expenses and allow for at least some leisure and entertainment activities.
In contrast, a net salary of €1.500 may not be enough to cover all expenses, especially those related to leisure and entertainment.
Moneyfarm also sets the “comfort limit” — the monthly amount needed to live a comfortable life without making major sacrifices in any aspect — at €3.000.
If you think about living in Italy, comfortably, with income from Brazil, in this case, you will need to send money to Italy monthly around R$18.000,00.
For families, an average of €3.300 a month after tax is needed to cover all basic expenses and allow for at least some leisure and entertainment activities, according to estimates from online financial publication Money.it.
Summary in Numbers
- Foreigners in Milan: 475.000 (14,7% of the population)
- Brazilians: 3.169 (2019 data)
- Average gross personal income:
- Milan: €37.200 per year
- Italy: €29.500 per year
- Monthly net income:
- Milan: €2.000 to €2.100
- Italy: €1.700
- Percentage of workers with gross annual income between €35.000 and €60.000 in Italy: 9,5% (approximately 4 million people)
- 1 bedroom apartment for rent in Milan:
- €930 to €1.400 per month
- Required monthly net income:
- Single person: €1.700 to €2.000
- Comfort limit: €3.000
- Family: €3.300
- Brazilian income required to live in Milan:
- R$18.000 per month
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