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Italy vs Dominican Republic
Tax Rate Comparison

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

🇮🇹 Italy
vs
🇩🇴 Dominican Republic
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; strong economic fundamentals
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
18%
ITBIS 18% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
27%
27%; Pillar Two considerations for MNCs in FTZs
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
27%
27% as income
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~23.55%
TSS reform for pension adequacy
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%.

🇩🇴 Dominican RepublicMunicipal Taxes

The Dominican Republic's 32 provinces and 158 municipalities levy the impuesto a la propiedad inmobiliaria (IPI) on properties above DOP 9.5M at 1%, commercial licences, and local service fees. The DGII (Dirección General de Impuestos Internos) administers national taxes. The DR has been one of the fastest-growing economies in Latin America, with tourism, manufacturing (free trade zones), and remittances as key pillars. Tax reform has been ongoing to improve collection and reduce evasion.

⚠️ 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 Dominican Republic: Key Tax Differences (2026)

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

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 18%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 27%), which can influence business location decisions.

📈 Capital Gains: 🇮🇹 Italy taxes investment gains at a lower rate (26% vs 27%), benefiting investors.

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