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Italy vs Costa Rica
Tax Rate Comparison

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

🇮🇹 Italy
vs
🇨🇷 Costa Rica
Tax Year:

💰 Personal Income Tax Calculator

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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; fiscal consolidation achieved
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
13%
13% IVA maintained
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
30%
30%; Pillar Two for MNCs; tech sector growing
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
15%
15% maintained
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~41.17%
High contributions; reform proposals for sustainability
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%.

🇨🇷 Costa RicaMunicipal Taxes

Costa Rica's 84 cantons (municipalities) levy the impuesto sobre bienes inmuebles (property tax at 0.25% of assessed value), business licences (patente municipal), and construction permits. The Municipalidad de San José and other urban cantons have highest rates. National taxes are administered by the Ministry of Finance (Hacienda). Costa Rica underwent significant fiscal reform in 2018–19 to address a fiscal deficit, converting the sales tax to a comprehensive VAT and modifying income tax.

⚠️ 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 Costa Rica: Key Tax Differences (2026)

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

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 13%).

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

📈 Capital Gains: 🇨🇷 Costa Rica taxes investment gains at a lower rate (15% vs 26%), benefiting investors.

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