WorldTax CompareAll Comparisons

Italy vs Bhutan
Tax Rate Comparison

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

🇮🇹 Italy
vs
🇧🇹 Bhutan
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
0–25%
25% top; crypto mining revenues adding to national income
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
0%
No VAT; GST consideration ongoing
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
30%
30% CIT; digital economy and hydropower growing
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~10%
NPPF; pension adequacy improving
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%.

🇧🇹 BhutanDzongkhag & Thromde Taxes

Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.

⚠️ 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 Bhutan: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 0–25%). 🇧🇹 Bhutan is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 0%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 30%), which can influence business location decisions.

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

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