The Wealth Gap: Italy’s Richest and Poorest Municipalities
- Northern and central Italy dominate the wealth rankings for 2023
Income inequality has long been a significant issue in Italy, a country marked by pronounced economic disparities between its regions. Historically, the wealthiest areas of the country have been concentrated in the northern and central regions, while the southern regions (often referred to as the Mezzogiorno) have lagged behind in terms of average income and economic development. Factors such as industrial concentration, infrastructure development, and population density contribute to these differences.
The Italian economy is highly regionalized, with northern Italy known for its strong industrial base, advanced infrastructure, and higher standards of living, while the south has struggled with economic stagnation, lower incomes, and higher unemployment rates. These differences are reflected not only in broader economic indicators but also in the average income levels of municipalities across the country.
In recent years, data from the Ministry of Economy and Finance (MEF) has provided insights into these regional disparities, revealing a stark contrast between the wealthiest and poorest municipalities in Italy. This ranking, based on the personal income tax declarations of 2021, highlights the ongoing economic divide within the country. While many of the wealthiest municipalities are found in the north, some notable exceptions can be found in central Italy, showing that wealth is not confined to the industrial heartland. Meanwhile, several poorer municipalities in northern regions challenge the traditional notion that wealth is uniformly distributed in the north.
The richest and poorest municipalities in Italy for 2023 have been ranked based on data from the Ministry of Economy and Finance (MEF), specifically examining the 2021 personal income tax (IRPEF) declarations. This ranking reveals a clear distinction between municipalities in northern and southern Italy, although some surprises emerge, with central Italy also represented among the wealthiest municipalities.
Key data
- Lajatico and Cavargna represent the extremes of Italian wealth
- Milan leads provincial capitals in wealth ranking for 2023
- Small towns dominate the list of Italy’s wealthiest places
- Mountainous towns feature among Italy’s poorest municipalities
Richest Municipality | Lajatico (Tuscany)
In 2023, the title of richest municipality in Italy goes to Lajatico, located in the province of Pisa, Tuscany. This small town, with just over 1,200 residents, has an average income of €54,708, according to the CGIA of Mestre, a research body that analyzed the data from the MEF.
Lajatico’s prominence as the richest municipality is noteworthy, as it is not located in the traditionally wealthier northern regions of Italy. However, the town is home to some high-income earners, including the internationally renowned tenor Andrea Bocelli, who has contributed to the municipality’s wealth.
Poorest Municipality | Cavargna (Lombardy)
At the opposite end of the spectrum, the poorest municipality in Italy is Cavargna, located in the province of Como, Lombardy, near the border with Switzerland. The average income in Cavargna is €6,314, making it the lowest in the country. However, this figure is influenced by the fact that many residents of Cavargna are cross-border workers (frontalieri) who work in Switzerland and pay taxes there, rather than in Italy.
Top 20 Ranking | Wealthiest Italian Towns
According to the CGIA of Mestre, the following municipalities are the richest in Italy based on average income:
- Lajatico (Pisa, Tuscany) – €54,708
- Basiglio (Milan, Lombardy) – €49,325
- Portofino (Genoa, Liguria) – €45,617
- Bogogno (Novara, Piedmont) – €42,366
- Varenna (Lecco, Lombardy) – €42,254
- Cusago (Milan, Lombardy) – €41,130
- Torre d’Isola (Pavia, Lombardy) – €40,160
- Galliate Lombardo (Varese, Lombardy) – €40,157
- Pino Torinese (Turin, Piedmont) – €38,441
- Pecetto Torinese (Turin, Piedmont) – €38,202
- Pieve Ligure (Genoa, Liguria) – €38,135
- Milan (Lombardy) – €37,189
- Forte dei Marmi (Lucca, Tuscany) – €36,905
- Padenghe sul Garda (Brescia, Lombardy) – €36,887
- Segrate (Milan, Lombardy) – €36,665
- Bergeggi (Savona, Liguria) – €36,521
- Arese (Milan, Lombardy) – €36,197
- Casciago (Varese, Lombardy) – €35,900
- Baldissero Torinese (Turin, Piedmont) – €35,404
- Luvinate (Varese, Lombardy) – €35,317
These rankings highlight the dominance of small municipalities in the wealthiest areas, particularly in Lombardy, Piedmont, Tuscany, and Liguria. Notably, Milan is the first provincial capital to appear on the list, ranking 12th with an average income of €37,189.
Major Cities | Provincial Capital Wealth
Among Italy’s larger cities, Milan stands out as the wealthiest provincial capital, with an average income of €37,189. Other major cities fare differently in the rankings:
- Monza ranks 33rd with an average income of €32,237.
- Bergamo ranks 39th with €31,883.
- Bologna ranks 92nd with €29,480.
- Rome ranks 120th with €28,646.
- Florence ranks 186th with €27,636.
- Turin ranks 290th with €26,840.
- Genoa ranks 665th with €25,011.
- Venice ranks 1,034th with €24,058.
Rural Poverty | Mountainous and Small Towns
At the other end of the income spectrum, the ten poorest municipalities in Italy are predominantly small, rural areas, often located in mountainous regions with aging populations. Many of these municipalities are in northern Italy, contrary to the usual assumption that the poorest areas are exclusively in the south. The top ten poorest municipalities based on average income are:
- Cavargna (Como, Lombardy) – €6,314
- Castelmagno (Cuneo, Piedmont) – €7,986
- Gurro (Verbano-Cusio-Ossola, Piedmont) – €8,149
- Valle Cannobina (Verbano-Cusio-Ossola, Piedmont) – €8,434
- San Nazzaro Val Cavargna (Como, Lombardy) – €8,809
- Val Rezzo (Como, Lombardy) – €9,648
- Dinami (Vibo Valentia, Calabria) – €9,806
- Mazzarrone (Catania, Sicily) – €9,808
- Terelle (Frosinone, Lazio) – €9,931
- Castelvetere in Val Fortore (Benevento, Campania) – €9,943
Most of these towns are small and have experienced significant depopulation and aging in recent decades. For instance, Castelmagno has only 40 taxpayers, which further explains its low average income. Additionally, many of these municipalities rely heavily on pensions as their primary source of income.
Regional Divide | North vs. South Disparities
The divide between northern and southern Italy remains evident, with the north generally enjoying higher average incomes. However, the presence of wealthy municipalities like Lajatico in central Italy challenges the narrative that only the north is prosperous. Furthermore, some poorer municipalities are also located in the north, highlighting the regional economic disparities within northern Italy itself.
In contrast, southern Italy continues to struggle with lower average incomes. The richest municipality in the south is Sant’Agata li Battiati in the province of Catania, which ranks 152nd nationally with an average income of €28,055. Other southern municipalities in higher positions include San Gregorio di Catania (€28,019) and Cagliari (€26,985), which rank 155th and 266th respectively.
Data Exclusions | MEF Statistics Limitations
It is important to note that the income data used to compile these rankings do not include several forms of income, such as capital income and forfeited tax regime earnings, nor do they account for welfare benefits like the citizenship income (reddito di cittadinanza) or disability pensions. Additionally, the figures do not capture the extent of undeclared work and tax evasion, which may be more prevalent in some of the poorer regions of the country.
Topics: Italy wealth ranking, richest towns in Italy, poorest towns in Italy, CGIA Mestre report, income disparity Italy, Italian municipalities income
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