WorldTax CompareAll Comparisons

Italy vs Barbados
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇹 Italy
vs
🇧🇧 Barbados
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
23–43%
3-bracket IRPEF reform targeting completion
No change
12.5–28.5%
28.5% top; competitive Caribbean jurisdiction
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
17.5%
17.5% stable
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
5.5–9%
Tiered rate; Pillar Two compliance for large groups
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
0%
No CGT — sustained advantage
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~18.1%
NIS contributions; pension reform needed
No change
State, Regional & Local Taxes

🇮🇹 ItalyRegional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. 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%.

🇧🇧 BarbadosParish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%–0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Italy vs Barbados: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 12.5–28.5%). 🇧🇧 Barbados is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 17.5%).

🏢 Corporate Tax: 🇧🇧 Barbados offers a lower corporate rate (9% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇧🇧 Barbados taxes investment gains at a lower rate (0% vs 26%), benefiting investors.

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All 🇮🇹 Italy comparisons →All 🇧🇧 Barbados comparisons →