Djibouti vs Italy
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฉ๐ฏ Djibouti โ Djibouti Tax System
Djibouti has progressive income tax up to 30%. The country is strategically important as a maritime hub and hosts multiple foreign military bases (US, France, China, Italy, Japan), which provide significant lease revenue. The Port of Djibouti handles ~95% of Ethiopian imports/exports. VAT at 10% was introduced in 2009. Free trade zones offer tax exemptions.
๐ฎ๐น Italy โ Regional & Municipal Income Taxes
Italy's 20 regions levy addizionale regionale at 0.7%โ3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.
Djibouti vs Italy: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐น Italy has a higher top income tax rate (0โ30% vs 23โ43%). ๐ฉ๐ฏ Djibouti is more favourable for high earners.
๐ VAT/Sales Tax: Italy has a higher consumption tax (10% vs 4โ22%).
๐ข Corporate Tax: ๐ฎ๐น Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฉ๐ฏ Djibouti taxes investment gains at a lower rate (25% vs 26%), benefiting investors.