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Italy vs Ecuador
Tax Rate Comparison

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

🇮🇹 Italy
vs
🇪🇨 Ecuador
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
0–37%
37% top; fiscal consolidation continuing
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
15%
15% VAT maintained for fiscal reasons
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
25%
25%; oil sector dominant; Pillar Two considerations
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
10%
10% on gains
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~32.09%
IESS; actuarial deficit concerns
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%.

🇪🇨 EcuadorMunicipal & Provincial Taxes

Ecuador's 24 provinces and 221 cantons (municipalities) levy the impuesto predial (property tax at 0.025%–0.5%), impuesto de patente (business licence), and municipal assets tax. Guayaquil and Quito have the highest municipal commercial charges. The Internal Revenue Service (SRI) administers national taxes. Ecuador uses the US dollar as official currency since 2000, providing monetary stability. Tax reform has been ongoing under successive administrations facing fiscal pressures from oil price volatility.

⚠️ 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 Ecuador: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 0–37%). 🇪🇨 Ecuador is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 15%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇪🇨 Ecuador taxes investment gains at a lower rate (10% vs 26%), benefiting investors.

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