Expat Finance Guide: Banking & Costs in Florence

The cost of living in Florence scores 3.0/5, with a personal security rating of 4.0/5. Explore banking, taxes, and financial planning for expat families below.

Italy employs a progressive tax system with taxation at both national and local levels. Florence, as part of Tuscany, generally follows the standard Italian tax framework with some local variations. The Italian tax system is moderately complex compared to other European countries, with multiple layers of taxation and various deductions. For expatriates, Italy has introduced several attractive tax regimes in recent years that can significantly reduce tax burdens for qualifying individuals. The system taxes worldwide income for residents, though various exemptions may apply depending on individual circumstances and applicable tax treaties.