Italy vs Croatia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
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%.
๐ญ๐ท Croatia โ County & Municipal Surtax
Croatia's 20 counties (ลพupanije) and 556 local government units levy prirez (surtax) on income tax of 0%โ18%. Zagreb applies the maximum 18% surtax. The surtax is calculated on the national income tax liability. Property transfer tax is 3% on real estate. Municipalities may levy local fees. Croatia adopted the euro in 2023, replacing the kuna. The abolition of the second income tax bracket (36%) in 2024 simplified the system considerably.
Italy vs Croatia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐น Italy has a higher top income tax rate (23โ43% vs 20โ30%). ๐ญ๐ท Croatia is more favourable for high earners.
๐ VAT/Sales Tax: Croatia has a higher consumption tax (4โ22% vs 5โ25%).
๐ข Corporate Tax: ๐ญ๐ท Croatia offers a lower corporate rate (18% vs 24%), which can influence business location decisions.
๐ Capital Gains: ๐ญ๐ท Croatia taxes investment gains at a lower rate (10% vs 26%), benefiting investors.